Is life insurance part of a deceased person’s estate?


The simple answer is No. The complex answer is that the proceeds from a life insurance policy are paid to the Beneficiaries as nominated on the form given to the company that issues the policy. However, if no Beneficiaries have been nominated and there are no dependants, then the proceeds will be paid to the Estate. Life Insurance policies, however, are subject to Estate taxes whether the death benefit passes to the Estate or the Beneficiary.