Yes. Life insurance proceeds payable to a designated beneficiary are not part of the estate. A beneficiary can legally collect the sums issued by the insurer and refuse the estate, without having to pay the
deceased's debts from the insurance proceeds. This is not the case if the policy is payable to the estate, heirs, liquidator or any person's legal representative, in which case it is considered part of the estate and must be used first to pay estate
debts.
To learn more, see Settling an estate.