Eliza purchased a life insurance policy on her own life. Eliza is not married and does not have any children, but she is fond of her neighbor and some of her close relatives. She has expressed some concern about owing estate taxes at her death; however, she refuses to implement any trust planning for her estate. Accordingly, Eliza executed a will that leaves all of her personal property to her neighbor, and all of her remaining assets to her close relatives. She has named her estate as the beneficiary of her life insurance policy. Which of the following are correct statements regarding the advantages or disadvantages of the life insurance policy beneficiary designation?

I. Eliza's estate may use the life insurance policy death benefit to pay any estate taxes due.

II. Since the estate was named as the beneficiary of the life insurance policy, the death benefit may only be used to pay expenses of estate administration and creditors of the estate.

III. The life insurance policy death benefit will be included in Eliza's gross estate.

IV. The life insurance policy death benefit will be distributed according to the terms of the will.

A) I and III 

B) I, III, and IV 

C) II and III 

D) I, II, and III