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.
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:
- The birth of a child;
- 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.
Remember to Change the Beneficiary
In the above-mentioned scenario, if the insured intended to switch the beneficiary designation to someone new, but forgot, the new beneficiary will have to contest the policy. If you are the spouse of a decedent that forgot to update their life insurance beneficiary designation, you should contact a life insurance attorney in Jacksonville, Florida.
It’s important to note the distinction between life insurance proceeds and will proceeds. Life insurance may avoid probate altogether. Whereas most states require you to file a will in probate. Notably, this page information is intended to assist life insurance beneficiaries, not beneficiaries of wills.
Why Should You Hire A Lawyer?
We can represent your interests as a named beneficiary or unnamed beneficiary in a dispute over beneficiary rights. Please note that you should consult an attorney before you accept payment and/or agree to settle a life insurance beneficiary dispute. Prior to initiating a legal action, a life insurance company will allow all parties an opportunity to resolve the beneficiary dispute.
If the parties are unsuccessful at resolving and agreeing on the payout of the policy, the life insurance company with file an interpleader lawsuit with the court. A life insurance company files an interpleader action when it is unable to determine the rightful beneficiary.
An interpleader action names all potential beneficiaries to a claim and places the policy proceeds with the court in trust. This relieves the life insurance company of liability.
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