Is Life Insurance Part Of An Estate After Death? 
Life insurance MAY become part of the deceased 's estate if it is set up that way . Usually that 's only the case when the assets of the insured are over the estate tax threshold , currently about $ 5.4 million . Then an insurance policy designed to pay the estate tax may be designed specifically for that purpose . Otherwise typically life insurance will have named beneficiaries and the death benefit will go directly to them , not the estate . 