Challenging or Defending of Life Insurance Beneficiary Designations
Life insurance policies often involve multiple layers of primary and contingent beneficiary designations, making disputes all the more complicated. A designation may be contested on numerous grounds.
We have extensive experience in defending and contesting beneficiary designation, including navigating federal and state laws governing life insurance policies. We'll work with you to establish a valid claim and ensure the life insurance benefits are distributed fairly and justly
Common reasons for life insurance beneficiary challenges
involve claims of lack of capacity or undue influence. Often there is some evidence the owner tried to change a beneficiary designation before death. In some instances, a spouse may have rights under state laws to a portion of the policy proceeds.
Claim of a lack of mental capacity to execute a designation
Claim that a designation was the product of undue influence
Claim that a designation was the product of fraud
Claim that the owner of the policy expressed a clear intent to change the beneficiary
Claim that the owner of a policy did or did not substantially comply with designation rules
Claim that a beneficiary designation was made in violation of a court order or legal judgment
Claim that a beneficiary designation was made in violation of a prenuptial or postnuptial agreement
Claim that a spouse is entitled to the benefits
Claim that a beneficiary is disqualified due to their role as a caregiver or fiduciary
Claim that a designation in favor of an ex-spouse is overruled by a divorce
Claim that a divorce decree provides an ex-spouse with rights in the life insurance benefits
Claim that a power of attorney was wrongly used to designate a beneficiary
Claim that the beneficiary killed the policy owner
In order to effectively address these complex disputes, we will:
Thoroughly investigate the circumstances surrounding the beneficiary designation, including the policy owner's intent, any undue influence or coercion, and the validity of any documents involved.
Evaluate any applicable state laws and insurance policy provisions that may impact the outcome of the dispute.
Collaborate with experts in fields such as mental health, handwriting analysis, and forensic accounting to build a strong case.
Negotiate with the opposing party, seeking to reach an amicable resolution that respects the policy owner's intentions and protects our client's interests.
If necessary, aggressively litigate the case in court, presenting a compelling and well-prepared argument on our client's behalf.
What is an Interpleader Lawsuit?
Sometimes, more than one person claims to be the rightful beneficiary of the policy. The law does not force an insurance company to weigh the merits of potential claimants and decide who to pay the benefits. Paying the wrong person can expose the insurance company to a lawsuit from the disgruntled claimant and even potential double liability.
Instead of taking chances, the insurance company can file a type of lawsuit known as an interpleader. An interpleader allows someone holding disputed funds to file a lawsuit and let a court decide the proper owner. The interpleader prevents the life insurance company from being obliged to determine at its peril which person has the better claim. As part of the process, the insurance company will name the competing claimants as defendants, deposit the money with the court, and typically obtain an order releasing it from any liability.
When faced with competing claims, the life insurance company will send letters to each claimant notifying them of a dispute and often allow a period to resolve it informally. That is what is commonly known as a pre-interpleader letter.
Our primary goal is to ensure that the outcome of your beneficiary dispute is fair and just
Reflecting the true intentions of the policy owner and protecting your rights. We are dedicated to providing personalized attention, maintaining open communication, and offering expert legal representation throughout the entire process.
FAQ
-
A disputed life insurance beneficiary designation is when there is a disagreement over who should receive the proceeds of a life insurance policy after the policyholder passes away.
-
Yes, you may contest a life insurance beneficiary designation if you believe the named beneficiary was no longer the intended recipient at the time of the policyholder’s death.
-
A beneficiary designation is a document that indicates who should receive the life insurance proceeds after the policyholder passes away.
-
To contest a beneficiary designation, you may claim that the named beneficiary was not the intended recipient of the life insurance. This can include proof of a major life change, such as a divorce or remarriage, or evidence of fraud or undue influence.
-
If there is a dispute over a life insurance beneficiary, the insurance company may file an interpleader lawsuit in court.
-
Yes, you can change the beneficiary on your life insurance policy at any time by submitting a new beneficiary designation form to the insurance company.
-
Yes, there is federal law that governs life insurance beneficiary designations. The Employee Retirement Income Security Act (ERISA) sets minimum standards for employer-sponsored life insurance and ensures that beneficiaries receive the benefits they are entitled to. Other relevant federally regulated policies employee to federal employees (FEGLI), servicemembers (SGLI), or veterans (VGLI)
-
Yes, a beneficiary may contest a life insurance payout but before the insurance company has paid out the policy proceeds.
-
Yes, you should contact a life insurance lawyer if you believe you need to contest a beneficiary designation. A lawyer can help you understand your legal rights and options and can represent you in court if necessary.
If you have not already hired a lawyer,
it is very important to do so after you receive that letter from the insurance company. If the matter cannot be resolved at that stage, the claimants and their lawyers will appear in the interpleader lawsuit.
• Aetna
• Anthem Blue Cross
• American National
• Hartford
• Life Insurance Company of North America
• Metlife
• Monumental Life Insurance
• Mutual of Omaha
• National Western Life Insurance
• New York Life
• Protective Life
• Prudential
• Standard Insurance Company
• Aetna • Anthem Blue Cross • American National • Hartford • Life Insurance Company of North America • Metlife • Monumental Life Insurance • Mutual of Omaha • National Western Life Insurance • New York Life • Protective Life • Prudential • Standard Insurance Company
