Life Insurance question?

By estate people mean that it will fall under the wording of your will. Keep in mind that by doing this it will have to go through probate which costs money. It is best to name a contingent beneficiary which is easy to do. If it is a significant policy you could always leave it to a trust so that it won't go through probate and you can have more flexibility on where the money goes than just a listed beneficiary. Please let me know if you have any questions.