Life Insurance Beneficiary Disputes Fact Sheet
Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience Helping beneficiaries nationwide resolve life insurance disputes and enforce their rights.
What Is a Beneficiary Dispute?
A beneficiary dispute arises when multiple 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, divorce‑related revocations, or improperly executed changes.
Insurers frequently delay payment or file interpleader lawsuits until the dispute is resolved.
Why Beneficiary Disputes Arise
Common causes include:
- 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 errors in updating group policy beneficiaries
- Disputes involving children from different marriages
- Alleged forgery of beneficiary documents
- Interpleader lawsuits filed by insurers to resolve conflicts
What To Do If You Face a Dispute
- Gather all beneficiary forms, policy documents, and communications.
- Request a complete copy of the policy and designation records from the insurer.
- Avoid direct communication with other claimants without legal advice.
- Contact an experienced life insurance dispute attorney immediately.
- Act quickly disputes can escalate into lawsuits if not addressed early.
Your Legal Rights
- Beneficiaries can challenge improper claims and defend rightful designations.
- Courts can resolve disputes when insurers file interpleader actions.
- Legal representation ensures your interests are protected against competing claims.
Case Example
We helped a daughter recover $300,000 in life insurance benefits after an estranged spouse contested the designation. By proving the change was valid, we successfully defended her right to the proceeds in court.
Frequently Asked Questions
Q: What is an interpleader lawsuit?
A: It’s when the insurer asks the court to decide who is entitled to the proceeds.
Q: Can divorce revoke a beneficiary designation?
A: In many states, yes, but disputes can be challenged depending on the circumstances.
Q: What if multiple forms exist?
A: Courts determine which designation is valid. Attorneys can help prove your claim.
Q: Do I need an attorney?
A: Yes beneficiary disputes are complex and often involve litigation.
How We Help
- Investigate the circumstances surrounding beneficiary designations.
- Challenge improper claims and defend rightful beneficiaries.
- Represent clients in negotiations, interpleader lawsuits, and court proceedings.
- Secure rightful payouts for families nationwide.
If you are involved in a life insurance beneficiary dispute, don’t wait. Early legal intervention often determines the outcome. Call 800‑330‑2274 for a free consultation. No fees unless we win.
Key Takeaways
- Beneficiary disputes arise from conflicting designations, divorce, fraud, or administrative errors.
- Insurers often delay payment or file interpleader lawsuits.
- Beneficiaries have strong legal rights to challenge disputes.
- Prompt legal action increases the chance of securing benefits.
Free Case Evaluation Contact Us!
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: Dec 7, 2025 | Contact 800-330-2274
Our FAQ
Have questions? We are here to help. Still have questions or can't find the answer you need? Give us a call at 800-330-2274 today!
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A grace period is the time after a missed payment during which the policy remains in force, usually 30 to 60 days depending on state law and policy terms.
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No. In most states, insurers must send a written notice of overdue premiums and warn of pending lapse before terminating coverage.
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The policy may still be enforceable. Beneficiaries can challenge the lapse based on the insurer’s failure to provide required notice.
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Yes. If the insured dies during the grace period, the policy is still considered active, and benefits should be paid.
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Yes. In group life insurance policies, employers sometimes fail to forward premiums properly, leading to wrongful lapse denials.
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Yes. If automatic payment setups fail through no fault of the insured, lapses may be challenged.
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Some policies automatically borrow against cash value to cover missed payments. Failure to apply this correctly can lead to wrongful lapse claims.
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Possibly. Some courts excuse nonpayment if the insured was mentally incapacitated and missed premiums without proper notice.
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No. Reinstatement must occur while the insured is alive, but wrongful lapse denials can still be challenged posthumously.
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Not without following strict notice and grace period rules. Beneficiaries can often challenge technical denials.
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Deadlines vary by state, but it’s critical to act within 1 to 5 years depending on the policy and jurisdiction.
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Not necessarily. Payments mailed within grace periods or accepted by insurers may keep coverage active.
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Bank records, payment receipts, insurer correspondence, and premium notices are key evidence.
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If the insurer used an outdated address despite updated information, lapse denials can often be overturned.
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Possibly. If the insured submitted a reinstatement application before death, it may help challenge a lapse denial.
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In some states, special grace periods and protections applied during COVID-19 emergencies. They can help fight wrongful lapses.
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Only if the insurer followed all legal notice and grace period requirements. Otherwise, beneficiaries may still recover.
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Misapplied premiums can lead to wrongful lapses — and courts often hold insurers accountable for these errors.
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An attorney can obtain records, challenge improper lapses, negotiate settlements, and litigate if necessary to enforce payment.
Our Clients Speak Volumes
The Right Choice for Your Claim
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“We were told the policy lapsed before my mother died. But we had receipts showing otherwise. Lassen Law Firm used them to force the company to honor the contract. They don’t mess around.”- David K.
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.
