Life Insurance Beneficiary Disputes
Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience
If you are involved in a dispute over life insurance proceeds, you are not alone. Beneficiary disputes are among the most common and emotionally charged life insurance conflicts. They often arise after the death of a loved one and can delay payment for months or years if not handled properly.
At Lassen Law Firm, we focus exclusively on helping beneficiaries resolve life insurance disputes nationwide. Christian Lassen, Esq., has 25 years of experience handling contested beneficiary claims and personally manages each case to protect clients’ rights and secure rightful benefits.
What Is a Life Insurance Beneficiary Dispute
A beneficiary dispute occurs when two or more individuals claim entitlement to life insurance proceeds or when the validity of a beneficiary designation is challenged. These disputes often involve allegations of fraud, undue influence, forgery, lack of capacity, or improper execution of beneficiary changes.
Unlike simple claim denials, beneficiary disputes typically involve litigation between private parties rather than just a dispute with the insurer. Insurance companies often delay payment or file an interpleader lawsuit until the dispute is resolved.
Why Beneficiary Disputes Commonly Arise
Beneficiary disputes often arise after major life events that were not properly reflected in policy records. Common triggers include divorce, remarriage, estrangement, blended families, and last minute changes to beneficiary designations.
Disputes may also involve claims that the insured lacked mental capacity, was coerced into changing beneficiaries, or that forms were forged or improperly witnessed. In group life insurance policies, employer errors in processing beneficiary changes are a frequent cause of conflict.
How We Resolve Life Insurance Beneficiary Disputes
At Lassen Law Firm, we represent beneficiaries in contested life insurance disputes from the earliest stages through litigation if necessary. We gather and analyze beneficiary designation forms, policy records, medical evidence, and witness testimony to determine the validity of competing claims.
We defend rightful beneficiaries against improper challenges and pursue claims on behalf of those who were wrongfully excluded. When insurers file interpleader lawsuits, we aggressively litigate on our clients’ behalf to secure their share of the proceeds.
In one recent case, we helped a daughter recover $300,000 in life insurance benefits after an estranged spouse contested the beneficiary designation. By proving the designation was valid and properly executed, we secured full payment for our client.
Common Causes of Life Insurance Beneficiary Disputes
• Last minute changes to beneficiary designations
• Divorce or remarriage affecting prior designations
• Allegations of undue influence or coercion
• Claims of mental incapacity at the time of change
• Conflicting or multiple beneficiary forms
• Improperly witnessed or incomplete designations
• Employer errors in group policy updates
• Disputes involving children from different marriages
• Allegations of forgery or fraud
• Interpleader actions filed by insurers
What To Do If You Are Involved in a Beneficiary Dispute
If you are involved in a life insurance beneficiary dispute:
- Collect all beneficiary forms, policies, and correspondence
- Request a complete copy of the policy and designation records
- Avoid direct communication with competing claimants
- Preserve any evidence related to the insured’s intent or capacity
- Contact an experienced life insurance dispute attorney promptly
- Early legal involvement often determines whether a beneficiary prevails.
For a concise overview of beneficiary disputes and immediate steps, see our Life Insurance Beneficiary Dispute Fact Sheet
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Written & Reviewed by Christian Lassen, Esq., Nationally recognized life insurance lawyer: 25 years experience, hundreds of millions recovered. Quoted in The Wall Street Journal ( May 17, 2025).
Last reviewed: Jan 3, 2026 | Contact 800-330-2274
Frequently Asked Questions About Life Insurance Beneficiary Disputes
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The insurer may file an interpleader lawsuit, asking a court to determine who is entitled to the proceeds.
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Yes, but last-minute changes are often challenged based on claims of undue influence, lack of capacity, or fraud.
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In many states, yes. Divorce may automatically revoke an ex-spouse’s right to life insurance unless reaffirmed afterward, but ERISA policies are different.
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Sometimes. Handwritten beneficiary changes must comply with policy and legal requirements to be valid.
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Changes made during incapacity can be challenged and potentially invalidated in court.
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An interpleader is when the insurer deposits the life insurance proceeds with the court and lets the court decide who should receive them.
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Yes, and if proven, the forged designation will be invalidated, and rightful beneficiaries will prevail.
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Yes, but life insurance proceeds for minors are often placed in court-supervised trusts until the child reaches adulthood.
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No. Once a beneficiary is named, parents have no authority to override the designation unless fraud or incapacity is proven.
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Yes. Disputes often arise between current spouses and children from prior relationships.
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Yes. If the designation provides for multiple beneficiaries, proceeds are typically divided as specified.
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The proceeds will usually pass according to policy defaults or the insured’s estate laws.
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Possibly. If divorce proceedings were underway but not finalized, beneficiary rights may be contested.
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Deadlines vary by state, but it’s important to act promptly once a dispute is known.
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Yes. In some cases, employer error in handling beneficiary forms can lead to legal liability.
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Yes. Group life insurance policies under ERISA follow federal rules, and courts must follow the last valid designation on file.
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Courts may review evidence to determine the insured’s intent and resolve ambiguity.
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Yes. Deathbed changes often trigger challenges based on undue influence or lack of mental capacity.
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An attorney can gather evidence, challenge improper claims, defend rightful beneficiaries, negotiate settlements, and litigate if necessary.
Our Clients Speak Volumes
The Right Choice for Your Claim
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“The insurer said the application wasn’t complete, so the claim couldn’t be processed. I felt helpless until I hired Lassen Law. They located the original records and showed that everything was properly submitted. Case closed.”- Christopher A.
Why The Lassen Law Firm Is Different
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Proven National Results
With over two decades of exclusive focus on life insurance litigation, we’ve helped thousands of families recover wrongfully denied benefits. Our reputation for fast, strategic resolutions has made us a trusted national resource for complex claim disputes.
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Recognized ExpertisePerfect 10.0 Avvo rating endorsed by over 1,700 attorneys; life member of the Multi-Million Dollar Advocates Forum; ranked among the top 1 percent of lawyers nationally for life insurance litigation.
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Client-First AdvocacyNo upfront fees: our contingency fee guarantee aligns our interests with yours; we provide personalized, compassionate representation from your initial consultation through resolution.
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Media & Community LeadershipQuoted in The Wall Street Journal and featured in leading legal publications; frequent speaker at national conferences; dedicated to charitable efforts supporting pediatric cancer care.
