answered on 16/05/2018
Whether the insurance proceeds form part of the deceased's estate depends on the insurance policy. For example, the company will be rightfully entitled to the insurance payout if it is the named beneficiary of the insurance policy. A common scenario for this is where the company takes out a key person insurance policy.
On the other hand, the policy may be taken out for the benefit of the company's employees (assuming the deceased was an employee). If so, then the insurance proceeds form part of the deceased's estate. The Insurance Act allows insurers to either pay to the insured/employer or to those entitled through the insured/employer to receive such payments i.e. the deceased. As the insurer has paid the insurance proceeds, the employer owes the same to the deceased's estate.
The distribution of the deceased's estate will depend on his will. If the deceased did not leave behind a will, the distribution of assets will follow the rules laid down in the Intestate Succession Act.