Is Life Insurance A Part Of An Estate? 
When the owner of a life insurance policy names the estate , or the executor of his estate of his estate , as the beneficiary , the proceeds from the life insurance will be part of his estate when the insured person dies . This is also true if he transferred ownership from the estate , or executor of the estate , to someone else , within three years before the policy paid out . If the surviving spouse is the beneficiary or a policy owned by the insured spouse who died , the funds are not a part of the estate . If there is no surviving spouse , the life insurance proceeds are a part of the estate . 