In most instances, life insurance benefits are paid to the person listed on the policy, notwithstanding the terms of any Last Will and Testament.
A life insurance policy is a contract between the life insurance company and the owner of the policy; the life insurance company is not bound by the terms of the Last Will & Testament, only to the terms of the policy that has been created.
However, if the life insurance proceeds are paid to the estate of the decedent, the answer to this question may be different, as the terms of the Last Will & Testament then control. But the answer also depends upon the state where the estate is being distributed, as several states have different treatments.
To ensure the proper application of the law to your specific situation, you should speak with an attorney in your jurisdiction to determine what your state’s rules and laws provide. To find a local attorney for FREE, visit Standard Legal’s Attorney Find page.