If the beneficiary of a Life Insurance policy dies before the policyholder, the benefits typically do not go to the beneficiary's estate. Instead, the payout usually goes to the contingent beneficiary named in the policy. A contingent beneficiary is someone designated by the policyholder to receive the benefits if the primary beneficiary is unable to. If there is no contingent beneficiary named, the benefits may go to the policyholder's estate or to their next of kin, depending on the terms of the policy and applicable laws. It is important for policyholders to review and update their beneficiary designations regularly to ensure their life insurance benefits are distributed according to their wishes.