Actually, officially the WTS has most recently encouraged JWs to get life insurance to help out their families not the WTS. Of course, if you have no children, grandchildren or parents dependent on your life insurance, the WTS does suggest you could give it to them. As in the case of any assets owned by a family member, we might think that family should automatically inherit even if we are financially fixed. But I have have always felt it is that person's money and they can give it to whomever they want. Have some individual JWs dishonestly manipulated family members, I have no doubt but I don't think it is a general policy.
*** w98 1/15 p. 22 Planning Ahead for Our Loved Ones/Protect Your Family
What you will do to protect your family in the event of your death is a personal matter, but a Christian named Edward says: "I have a life insurance policy to benefit the eight members of my family. My wife is a signatory to my bank account. So if I die, she can draw money from the account. . . . I have a will to benefit my family. If I die, whatever I leave behind will be for my wife and children. I wrote my will five years ago. It was prepared by a lawyer, and my wife and son have a copy.
In a sense, making such arrangements is a gift to your family. Of course, planning for the possibility of death is not like a gift of chocolates or a bouquet of flowers. Yet, it shows your love. It proves that you want to ‘provide for those who are members of your household’ even when you are no longer with them.
Past official comments on life insurance:
*** w60 9/15 p. 576 Questions From Readers ***
Is it proper for a Christian to carry life insurance? Is it not a form of gambling?—S.P., U.S.A.
Life insurance and other forms of insurance cannot be condemned as gambling but are rather a form of investment. One is not trying to insure that one will not have an accident or will not die, but is only seeking to provide in the case of an emergency. It is Scriptural for a man to provide for those that are his own, and if he wishes to make such provision in this way, that is entirely up to him.—Gal. 6:5;1 Tim. 5:8.
*** g70 8/22 p. 12 Taking a Look at Life Insurance ***
Life insurance should be treated as valuable property similar to a savings account, stocks or bonds. It takes some of the economic sting out of death. It can serve a useful role.