Life Insurance Beneficiary Disputes: Key Cases and Outcomes
Life insurance beneficiary disputes often arise when there are conflicting claims over the policy’s proceeds, especially in cases involving divorces, remarriages, and changes in the policyholder's family structure. Here are some notable cases where beneficiaries disputed life insurance claims and the outcomes:
1. USAA Life Insurance Claim Denial - $90,000 Dispute
Case Overview: The policyholder named his wife as the sole beneficiary of his policy. However, after executing a trust that left all his assets to his children from a previous marriage, his children claimed that the trust should supersede the policy’s beneficiary designation.
Outcome: The court ruled in favor of the wife, maintaining that she remained the sole beneficiary as designated in the life insurance policy, regardless of the trust.
2. Transamerica Life Insurance Claim Denial
Case Overview: The policyholder named his wife as the primary beneficiary and his sister as the contingent beneficiary. After divorcing his wife and marrying another woman, he did not update his beneficiary designation. Upon his death, his second wife claimed the policy proceeds, arguing she should be entitled as the surviving spouse.
Outcome: The court ruled that the divorce automatically revoked the ex-wife’s beneficiary status, and the sister, as the contingent beneficiary, was entitled to the policy proceeds.
3. Senior Life Insurance Claim Denial
Case Overview: The policyholder named his wife as the primary beneficiary and his brother as the contingent beneficiary. After separating from his wife and moving in with another woman, he did not change his beneficiary designation. When he died, his girlfriend claimed the policy proceeds, arguing she was his common-law spouse.
Outcome: The court found no valid common-law marriage, and the wife remained the primary beneficiary, as no formal change was made to the beneficiary designation.
4. Securian Life Insurance Claim Denial
Case Overview: The policyholder named his wife as the primary beneficiary and his children as contingent beneficiaries. After his wife passed away, he remarried but did not update his beneficiary designation. Upon his death, his second wife argued she should receive the policy proceeds as the surviving spouse.
Outcome: The children were ruled to be the rightful beneficiaries, as the policyholder did not make any changes to the beneficiary designation after his first wife’s death.
5. Genworth Life Insurance Claim Denial
Case Overview: The policyholder named his wife as the primary beneficiary and his son as the contingent beneficiary. After divorcing his wife and marrying another woman, he did not update the beneficiary designation. Upon his death, his ex-wife claimed she was still entitled to the benefits.
Outcome: The court ruled that the divorce automatically revoked the ex-wife’s beneficiary status, and the son, as the contingent beneficiary, was entitled to the proceeds.
6. Americo Life Insurance Claim Denial
Case Overview: The policyholder named his wife as the sole beneficiary. Later, he executed a will leaving all his property to his children from a previous marriage. Upon his death, his children argued that the will should supersede the beneficiary designation.
Outcome: The court upheld the life insurance policy’s beneficiary designation, ruling that the wife remained the sole beneficiary, as the will did not affect the life insurance proceeds.
How Our Life Insurance Lawyers Can Help
Life insurance beneficiary disputes can be complicated and require thorough legal analysis. If you find yourself in a situation where a life insurance claim has been denied or contested, our experienced attorneys can help in the following ways:
Reviewing the Policy: We will carefully examine the terms of the life insurance policy and any relevant legal documents, such as trusts, wills, and beneficiary designations, to understand your rights.
Fighting for the Beneficiaries: If you are facing a dispute over who should receive the policy proceeds, we will fight for the rightful beneficiary through negotiations or litigation.
Ensuring Compliance with State and Federal Laws: Beneficiary designation laws vary by state, and federal laws may also apply in certain cases. We will ensure that all legal requirements are met and that your rights are protected.
FAQ Section
Can a life insurance policy be overridden by a will or trust?
No, a life insurance policy’s beneficiary designation generally takes precedence over a will or trust unless the policyholder has updated the beneficiary designation in accordance with the insurer’s requirements.How can I contest a life insurance claim if my ex-spouse is still the beneficiary?
If your ex-spouse is still named as the beneficiary, we can challenge the claim by showing that the beneficiary designation was revoked due to divorce, or we can seek a court ruling if there is ambiguity in the policy or the circumstances.What happens if I don't change my beneficiary after a divorce or remarriage?
In most cases, a divorce will automatically revoke your ex-spouse’s beneficiary status, but this may not apply to all policies or in all states. Our lawyers can help you understand how state and federal laws impact your beneficiary designation.