Can a Person with Power of Attorney Change a Life Insurance Beneficiary?
Changing a life insurance beneficiary is a significant legal action—one that directly affects who receives the policy’s payout after the insured’s death. When someone holds power of attorney (POA) over the policyholder, the question often arises: Can they use that authority to change the beneficiary? The short answer is no—not without explicit authorization. And even when the POA document appears to grant such authority, the change can often be contested and overturned. Our life insurance attorneys regularly handle these disputes and have successfully invalidated many beneficiary changes made under questionable circumstances.
The issue of power of attorney and life insurance beneficiary changes is complex and highly dependent on the wording of the POA document, the intent of the policyholder, and applicable state laws. Courts are especially wary of beneficiary changes that benefit the agent acting under POA, as this raises the possibility of undue influence, fraud, or breach of fiduciary duty.
General Rule: POA Agents Cannot Change Beneficiaries Without Specific Permission
Under most legal standards, someone acting as an agent under a power of attorney cannot change a life insurance beneficiary unless the POA document explicitly grants them that power. General language giving the agent broad authority over finances is not enough. Courts often interpret these documents strictly to prevent abuse of power and protect the policyholder’s original intentions.
Even when a POA includes language about managing life insurance, many states require additional language specifically authorizing a change in beneficiary. In the absence of this, the attempted change may be invalid—and the original beneficiary designation remains enforceable.
Why Beneficiary Changes Under POA Are Often Contested
Our firm routinely handles cases where a life insurance beneficiary was changed shortly before the policyholder’s death, often by a family member or caregiver holding power of attorney. These cases raise red flags and are frequently challenged for the following reasons:
Lack of specific authority in the POA document
Evidence that the policyholder lacked mental capacity
Suspicion of undue influence or coercion
Beneficiary change benefits the POA agent directly
Change contradicts longstanding beneficiary designations
Courts have overturned beneficiary changes in cases where the POA agent failed to act in the best interest of the policyholder or used their authority for self-dealing. This is especially true when the change was made shortly before death or under suspicious circumstances.
Types of Power of Attorney and Their Impact on Life Insurance
Understanding the differences between POA types helps clarify what actions are legally permitted.
General Power of Attorney
Grants broad authority over financial and legal matters but does not survive incapacitation. Cannot be used to change beneficiaries unless specifically authorized.
Limited Power of Attorney
Restricts the agent’s authority to specific actions. Unless the POA clearly states the power to change beneficiaries, such an action is not permitted.
Durable Power of Attorney
Continues in effect after the policyholder becomes incapacitated. Still requires explicit authority to alter beneficiary designations.
Springing Power of Attorney
Only takes effect upon the policyholder’s incapacitation. Even then, the agent’s powers are defined narrowly and must include express language to change beneficiaries.
Medical Power of Attorney
Grants decision-making authority for health-related matters only. This type of POA does not give the agent any authority over financial matters or life insurance.
Legal Remedies When POA-Based Beneficiary Changes Are Disputed
If you believe a beneficiary was improperly changed using a POA, you have legal options. Courts can void the change if the POA lacked specific authority, or if the agent abused their position. Our attorneys can file lawsuits to reinstate the rightful beneficiary, especially when we can show the agent acted in bad faith or had a conflict of interest.
We gather evidence such as:
The original and altered beneficiary forms
The full POA document
Medical records showing the policyholder’s mental state
Witness statements about the policyholder’s intentions
Financial records indicating who benefitted from the change
In many cases, we’ve recovered the full death benefit for the rightful beneficiary by showing that the change was improper, unlawful, or contrary to the policyholder’s wishes.
FAQ: Power of Attorney and Life Insurance Beneficiaries
Can someone with power of attorney change a life insurance beneficiary? Only if the POA document clearly grants that power. General financial authority is not enough. Courts require specific language authorizing the change.
What happens if the POA agent changes the beneficiary without permission? The change may be declared invalid. The original beneficiary can contest the change and potentially recover the policy proceeds.
Is a POA allowed to name themselves as the beneficiary? This is highly suspect and often deemed a breach of fiduciary duty. Courts are cautious about self-serving beneficiary changes made by POA agents.
Does a durable power of attorney allow someone to change beneficiaries? Not unless it explicitly states that the agent may alter beneficiary designations. Durability only ensures the POA remains in effect during incapacitation—it does not expand the scope of authority.
How do I prove that a POA-based beneficiary change was improper? You can present the POA document, medical records, witness testimony, and the policyholder’s past beneficiary statements to show lack of authority or undue influence.
Can a POA change a life insurance policy after the policyholder dies? No. All powers under a POA end at the policyholder’s death. Any attempt to make changes after death is legally invalid.
Is a beneficiary change valid if the policyholder was mentally incompetent at the time? No. Even if the POA document grants the agent power, changes made while the policyholder lacked capacity can be challenged and voided.
Can a POA override a will or trust? No. A power of attorney is a separate legal tool and does not allow an agent to alter a will or trust.
What if the insurer accepted the POA-based beneficiary change? The insurer’s acceptance doesn’t make the change legally valid. Courts can still reverse it if the agent lacked authority or violated their fiduciary duties.
Can multiple people with POA make changes to a policy? If the POA is joint, all agents must act together. If it’s separate, only the designated agent may act. The scope of authority depends entirely on the document’s language.
How long do I have to contest a beneficiary change made under POA? Deadlines vary by state and insurer, but prompt legal action is critical. Once the policy pays out, it can be harder—but not impossible—to recover funds.
Can I recover the life insurance payout if I was removed as beneficiary unfairly? Yes. If the change was invalid or based on fraud or undue influence, courts can order the payout to be returned to the rightful beneficiary.