If the deceased's life insurance named the estate as the beneficiary, the policy should be included as an Asset in the Inventory. The value of the policy, the insurer, and the policy number should be included when adding this Asset.
Because this will add to the estate's assets, it should be considered an asset that passes through the estate (ie, a Probate asset).
However, if the policy named a specific beneficiary, such as a spouse or a child, the policy would be paid directly to the beneficiary without ever going through the estate. Therefore, the life insurance policy does not need to be included in the Inventory. It can be included for tracking purposes, in which case it should be marked as a non-probate asset that passes outside the estate.