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There would rarely be a Will dispute about life insurance. The dispute as to who should receive the policy funds is likely to be with the insurance company not anyone else. A will dispute might eventuate if the policy funds are given to the executor or administrator and there is an argument in relation to the interpretation of the Will as to which beneficiary should receive the funds.
Unless the deceased specifically referred in his or her Will the manner in which the policy funds should be shared… the funds would go into the residue of the estate and be shared by the “Residuary Beneficiaries”.