In most cases, yes, but it depends on who owns the life insurance policy.
Life insurance beneficiary designations usually cannot be changed or overridden by the probate process. One exception is when the beneficiary is suspect in a criminal action that may have caused the death of the insured.
If life insurance proceeds are payable to the estate then they would pass through the probate process.
If the decedent was the owner of the policy, the proceeds would be included in valuing the estate.
Life insurance is personal property of the policy owner who, at his or her discretion, can assign beneficiaries during the application process. The death benefit proceeds are paid directly to the policy beneficiaries. Life insurance polices owner by an irrevocable trust pay death benefit proceeds to the trust beneficiaries.
If the beneficiary is named directly in the life policy, than yes it avoids probate. If the beneficiary is named the estate, then it would pass through probate and most likely be taxed as an asset. Life insurance proceeds almost all of the time are tax free if left to an individual. Lesson is to use a good advisor to set up beneficiaries properly at point of application to have your loved ones avoid unnecessary expenses at your death.
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Life insurance beneficiary designations usually cannot be changed or overridden by the probate process. One exception is when the beneficiary is suspect in a criminal action that may have caused the death of the insured.
If life insurance proceeds are payable to the estate then they would pass through the probate process.
If the decedent was the owner of the policy, the proceeds would be included in valuing the estate.