Does Life Insurance Become Part Of The Estate? 
Life insurance can become part of an estate , but not necessarily . If the named beneficiary is alive when the insured dies the death benefit is paid to the named beneficiary . On the other hand life insurance policies may be designed as part of an estate , and this can be beneficial when one wants to continue the benefits - say to the grandchildren - without causing the occurrence of taxation due to the benefit being paid to the insured 's child then passed on to the grandchildren . 