Beneficiary Dispute

Overview

What is a life insurance beneficiary? There are two types. Named beneficiaries are listed on a policy as a beneficiary. Unnamed beneficiaries are persons who believe they are beneficiaries under a policy. The purpose of a beneficiary dispute lawsuit is to define who is entitled to the proceeds. If a contester (think unnamed beneficiary) brings a claim against a policy, the named beneficiary’s rights are in danger. Unfortunately, a named beneficiary, removed beneficiary, and/or a person that believes they are entitled to a policy, can contest the policy proceeds. Therefore, a named beneficiary may be surprised when a third party contester (think unnamed beneficiary) appears and asserts a claim for the same policy. Sadly, policy disputes and payments may sometimes bring out the worst in people.

Has someone contested your beneficiary designation? Were you improperly removed as a beneficiary? Do you believe that you are a beneficiary with rights policy proceeds? Don’t wait! Let an attorney help you secure your beneficiary rights.

Life Events

Most policyholders have lived through monumental life changes. Unfortunately, even throughout those life changes, the policyholder may not have updated their beneficiary information. Common life events include:

• • Marriage;
  • Divorce;
  • The birth of a child;
  • Adoption;
  • Remarriage; and/or
  • The death of a loved one

These monumental life changes can prevent an insured’s proceeds from going to the their insured’s intended beneficiary. One or more of these life events can wreak havoc on the accuracy on a beneficiary claim form. It is common for an insured to remarry and mistakenly forget to update their beneficiary designation. Once an insured dies, the law and facts determine the beneficiary of the proceeds. An insured’s beneficiary designation omission or mistake may be costly.