Life insurance is not required to be used to pay the debts of the estate.
Life insurance proceeds are not part of your estate. They go
directly to the beneficiary, and are their property. Your daughter
can do whatever she wants with the proceeds.
She can pay off your credit cards if she wants, but she doesn’t have
to, even if your will said she should use the insurance money to pay
your debts. If that’s what you really want, you should make your
estate—not your daughter—the beneficiary of your insurance policies.
Then, the proceeds will become part of your estate, so they’d be
available to repay your debts.
... if the deceased owned life insurance and nominated a beneficiary
of the policy, the proceeds of that policy would not pass into the
deceased's estate, but would go directly to the nominated beneficiary
The amount of the life insurance is included in the estate for the purpose of calculating estate tax, but not for the purpose of debt repayment.
The estate for the purpose of estate tax is called the "Gross estate" and includes many things that are not included in a "probate" estate.