If we have free life insurance via our employer, or when we create an investment account, we are asked to provide a beneficiary. Is the beneficiary required to be our estate, which should be defined in a will accordance with Islamic inheritance laws? Or are we able to name whoever we want as our beneficiary for life insurance or an investment account?
May Allah bless you.
Who ever you will list as beneficiary, they will have to distribute the payout to the rightful heirs.
So it would be sensible to include in your Islamic will that you have a life insurance or a pension fund etc which must constitute part of your estate too.
P.S: if you can speak directly to the company and ask them, if you could not list any beneficiary, so that the payout can automatically be included with the remaining of your estate, then it would be the best option to ensure its distribution is in accordance with shariah.
And Allah knows best!