When a beneficiary is validly in the life insurance contract, the capital payable upon death is generally paid to them and does not form part of the estate.
In this case, the insurance capital is generally available to pay the debts of the estate, even if is in deficit.
However, when the capital is payable to the estate, it is among the sums that the liquidator take into account when settling the estate. It can then be used to the estate's debts according to the applicable rules.
It is therefore important to check the contract and the beneficiary designation before determining whether the capital should be included in the estate assets.