Life Insurance Interpleader Lawsuits
If you were named in a life insurance interpleader lawsuit, it’s critical to act quickly to protect your rights. Interpleaders occur when an insurance company cannot determine who is entitled to life insurance proceeds, so they deposit the money with the court and leave the beneficiaries to fight it out. At Lassen Law Firm, we focus exclusively on helping beneficiaries resolve life insurance disputes and interpleader cases nationwide. Christian Lassen, Esq., a life insurance attorney with 25 years of experience, personally handles each case to protect clients’ interests.
If a life insurance interpleader is filed, you have the right to defend your claim in court and contest competing claims to the proceeds. Early legal action can be the difference between winning and losing.
What Is a Life Insurance Interpleader Lawsuit?
A life insurance interpleader lawsuit happens when the insurer files a legal action asking the court to determine who is entitled to the policy proceeds. The insurer usually deposits the money with the court, names all potential claimants as defendants, and then exits the case. The beneficiaries must then litigate to prove their right to the money.
Why Life Insurance Companies File Interpleaders
Insurance companies file interpleaders to avoid the risk of paying the wrong person and being sued later. When there are conflicting claims, allegations of fraud, divorce-related issues, unclear beneficiary designations, or disputes among heirs, insurers often refuse to decide and leave the dispute to the courts.
While insurers have the right to file interpleaders, they often do so prematurely or unnecessarily.
How We Help Resolve Life Insurance Interpleader Cases
At Lassen Law Firm, we represent beneficiaries named in life insurance interpleader lawsuits. We move quickly to defend your claim, gather evidence supporting your rights, and challenge improper or fraudulent competing claims. Our firm is experienced at negotiating settlements and, if needed, fighting interpleader cases in court.
For example, we recently helped a surviving daughter recover $500,000 in an interpleader lawsuit after a former spouse tried to claim benefits. We proved the designation was properly changed, and the daughter prevailed.
Common Scenarios Leading to Life Insurance Interpleaders
- Divorce without updated beneficiary designations
- Death without a valid or clear beneficiary designation
- Disputes between current spouse and children from prior marriages
- Allegations of undue influence or forgery
- Simultaneous deaths (e.g., accidents where insured and beneficiary both die)
- Employer errors in updating group policy beneficiary records
- Claims from alleged common-law spouses
- Deathbed changes to beneficiary designations
- Competing claims from named beneficiary vs. estate
- Multiple conflicting beneficiary forms
What to Do If You Are Named in a Life Insurance Interpleader
If you are named in a life insurance interpleader lawsuit:
- Do not ignore the court papers — deadlines are strict.
- Contact an experienced life insurance attorney immediately.
- Gather all documents, including the life insurance policy, beneficiary forms, and any correspondence.
- Prepare to defend your claim aggressively with legal support.
- Act quickly — failing to respond can result in losing your claim by default.
Early legal action often determines who ultimately receives the proceeds.
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 Interpleaders
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An interpleader is when an insurer asks a court to decide who should receive disputed life insurance proceeds.
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To avoid liability when multiple people claim the same insurance benefits, protecting themselves from double payment lawsuits.
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Yes. If you fail to respond, you can lose your claim to the insurance money by default.
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The insurance company usually deposits the life insurance proceeds with the court, and court fees may be deducted from the funds before distribution. At Lassen Law Firm, we handle life insurance interpleader cases on a contingency fee basis, meaning you pay no attorney’s fees unless we successfully recover proceeds for you.
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Yes. If multiple parties prove partial entitlement, the court may divide proceeds among them.
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Yes. Many interpleader cases are resolved through negotiation or mediation between competing claimants.
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Courts review evidence, including prior forms, the insured’s intent, and legal presumptions to determine entitlement.
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In some states, yes. Divorce can revoke a spouse's rights to proceeds unless reaffirmed afterward.
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Possibly. If the insured failed to update the beneficiary designation after divorce, legal battles often arise.
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Yes. If a beneficiary form is proven to be forged, it will be invalid, and rightful beneficiaries will prevail.
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Yes. If the insured and beneficiary die close together, disputes over entitlement can trigger interpleader actions.
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Yes. Group life policies through work often fall under ERISA, impacting how disputes are resolved in federal court.
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Sometimes. If there’s a clear, uncontested beneficiary, interpleaders may be challenged as improper.
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Timelines vary, but many resolve within 6 to 18 months depending on court schedules and complexity.
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No. Life insurance proceeds are distributed according to the beneficiary designation, not the will.
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Yes. Skilled attorneys can negotiate settlements faster and present strong evidence to secure rightful payment.
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Possibly. In some cases, courts award fees to prevailing claimants, especially if bad faith is proven.
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Each claimant must prove by a preponderance of evidence that they are entitled to the proceeds.
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Failing to respond to the lawsuit promptly or trying to defend the case without legal representation.
Our Clients Speak Volumes
The Right Choice for Your Claim
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“Apparently, there were so-called inconsistencies on the application. The insurer used that as an excuse to avoid paying. Thankfully, Lassen Law stepped in and proved everything had been disclosed accurately. Claim paid.”- Rebecca M.
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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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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