Life Insurance Beneficiary Disputes
If you are involved in a dispute over life insurance proceeds, you are not alone. Every year, thousands of beneficiary disputes arise after the death of an insured, often leading to delays, denials, or interpleader lawsuits. At Lassen Law Firm, we focus exclusively on helping beneficiaries resolve life insurance disputes nationwide. Christian Lassen, Esq., a life insurance attorney with 25 years of experience, personally handles every case to protect your interests and enforce your rights.
If a life insurance beneficiary dispute arises, the insurance company may delay payment, file an interpleader lawsuit, or deny the claim altogether. Beneficiaries have the right to challenge disputed claims and fight for their rightful share.
What Is a Life Insurance Beneficiary Dispute?
A beneficiary dispute occurs when two or more individuals claim they are entitled to receive life insurance proceeds, or when the validity of a beneficiary designation is challenged. Disputes may involve claims of fraud, undue influence, forgery, divorce-related revocation issues, or accusations that a designation was changed improperly.
When disputes arise, insurers often delay paying benefits until the legal issues are resolved.
Why Beneficiary Disputes Arise
Beneficiary disputes commonly occur due to last-minute changes to designations, divorces that impact former spouse designations, competing claims from multiple parties, allegations of mental incapacity, or claims that the insured was coerced into changing a beneficiary. Sometimes disputes arise simply because policies were not updated after major life events.
These conflicts can quickly escalate into lawsuits if not resolved promptly.
How We Help Resolve Life Insurance Beneficiary Disputes
At Lassen Law Firm, we represent beneficiaries in disputes involving life insurance proceeds. We investigate the circumstances surrounding the beneficiary designation, challenge improper claims, and defend rightful beneficiaries against competing claims. Our firm aggressively pursues resolution through negotiation or litigation when necessary.
For example, we recently helped a daughter recover $300,000 in life insurance benefits after an estranged spouse contested the designation, arguing the change was invalid. We successfully defended the daughter's right to the proceeds in court.
Common Causes of Life Insurance Beneficiary Disputes
- Last-minute changes to beneficiary designations
- Divorce revoking a prior spouse’s designation
- Allegations of undue influence or fraud
- Disputed handwritten or improperly witnessed designations
- Multiple conflicting beneficiary forms
- Mental incapacity of the insured at the time of change
- Employer error in updating group policy beneficiaries
- Disputes involving children from different marriages
- Alleged forgery of beneficiary documents
- Interpleader lawsuits filed by the insurer to resolve conflicts
What to Do If There Is a Life Insurance Beneficiary Dispute
If you are involved in a life insurance dispute:
- Gather all beneficiary forms, policy documents, and communications.
- Request a complete copy of the policy and all designation records from the insurer.
- Avoid communicating directly with other claimants without legal advice.
- Contact an experienced life insurance dispute attorney immediately.
- Act quickly to preserve your legal rights and contest improper claims.
Beneficiary disputes can escalate fast — early legal intervention often determines the outcome.
Contact us today for a free consultation.
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: June 8, 2025 | 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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“They tried to deny my mom’s claim by referencing a vague exclusion clause. Christian quickly proved the exclusion didn’t apply. What seemed impossible at first became a closed case thanks to their persistence.”- Thomas E.
Why The Lassen Law Firm Is Different
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Proven National ResultsRepresenting clients coast to coast and recovering hundreds of millions in denied life insurance claims, we secure justice and peace of mind for families everywhere.
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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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