Can You Name Multiple Beneficiaries on a Life Insurance Policy?
Yes, you absolutely can name more than one beneficiary on a life insurance policy. Most insurers allow policyholders to designate multiple individuals or entities to receive the death benefit, providing flexibility in how those funds are distributed. But while the process seems straightforward, the reality can become complicated—especially when legal disputes, family tensions, or ambiguous designations enter the picture.
Understanding Primary, Contingent, and Co-Beneficiaries
There are different ways to divide a life insurance payout among multiple parties. The most common structure includes primary and contingent (also called secondary) beneficiaries. The primary beneficiary is the person or entity who will receive the proceeds first. If the primary beneficiary is deceased, disqualified, or cannot be located, then the contingent beneficiary steps in to receive the funds.
For example, a policyholder may name their spouse as the primary beneficiary and their adult child as the contingent. If the spouse passes away before the insured, the payout will go directly to the child. But in cases where both the primary and contingent beneficiaries are unavailable or improperly designated, the benefit might be redirected to the estate, leading to further legal complications.
Another option is to name co-beneficiaries—two or more individuals who will share the benefit simultaneously. Policyholders can specify exact percentages or dollar amounts, such as allocating 50% to each child, or 40% to a spouse, 30% to one child, and 30% to a sibling. These arrangements require clear documentation, as any ambiguity could lead to future disputes.
The Legal Risk of Naming Multiple Beneficiaries
While naming multiple beneficiaries offers more control, it also increases the risk of conflict. We have handled major life insurance disputes involving insurers like United of Omaha, Colonial Life, Midland National Life, and USAA Life, where disagreements over beneficiary designations led to delayed or denied claims. In many cases, these disputes revolve around the policyholder’s intent, especially when the designations are changed late in life or when family dynamics shift due to remarriage or estrangement.
A common issue arises when a policyholder fails to update beneficiary designations after a major life event—such as divorce, the death of a family member, or remarriage. In a case involving Guardian Life, the insured had named an ex-spouse as beneficiary but never updated the policy after marrying a new partner. Upon death, both the ex-spouse and current spouse tried to claim the benefit, resulting in a lengthy legal dispute. In states with automatic revocation statutes, the ex-spouse may be disqualified—but this depends on the jurisdiction and the specific language of the policy.
Disputes Arising from Last-Minute Changes or Undue Influence
In some situations, adult children or other family members discover that a parent modified their policy shortly before death, naming a new romantic partner or caretaker as the sole beneficiary. Such was the case in a dispute involving Prudential Life, where the children alleged that their terminally ill parent was unduly influenced by a companion into changing the beneficiary. This led to a legal battle over capacity, coercion, and the authenticity of the signature on the updated forms.
We’ve also resolved complex beneficiary disputes with major life insurance providers such as Sun Life, TIAA, Corebridge Financial, and Mass Mutual Life. These cases often hinge on whether the insured had the mental capacity to make changes or whether fraud, duress, or mistake played a role in the designation.
How to Prevent Beneficiary Disputes When Naming Multiple Parties
The best way to minimize the risk of future litigation is by being clear, specific, and proactive when naming multiple beneficiaries. Some helpful practices include:
Naming individuals explicitly by full legal name and relationship
Assigning fixed percentages or dollar amounts to each beneficiary
Keeping records of the reasons for your choices in a separate document
Regularly reviewing and updating your designations, especially after major life events
Working with an attorney to coordinate your policy with your estate plan
Failing to do so can create confusion or leave the policy open to challenges—especially if someone feels unfairly excluded or suspects misconduct.
We Fight Beneficiary Disputes Every Day
At LifeInsuranceAttorney.com, our team of seasoned life insurance lawyers regularly handles contested beneficiary cases nationwide. Whether you’re the rightful beneficiary who’s being denied a payout, a family member disputing a questionable designation, or someone involved in a multi-party claim, we can help. Our firm has successfully recovered life insurance benefits in highly complex cases, including interpleader lawsuits and claims involving elder fraud, mistaken documentation, and revoked or outdated designations. If you need life insurance claim help in Utah call us.
FAQ About Naming Multiple Beneficiaries on Life Insurance Policies
Can I name more than one beneficiary on my life insurance policy?
Yes, you can name multiple primary beneficiaries and even multiple contingent beneficiaries. Just be sure to specify how the benefit should be divided.
What’s the difference between a primary and a contingent beneficiary?
A primary beneficiary receives the death benefit first. If the primary is unable or unwilling to accept the benefit, it goes to the contingent beneficiary.
Can I split the benefit unevenly among multiple beneficiaries?
Absolutely. You can assign different percentages or fixed dollar amounts to each beneficiary according to your wishes.
What happens if a co-beneficiary dies before the policyholder?
If a co-beneficiary dies first and the policy isn’t updated, their share may pass to the other co-beneficiaries, to a contingent beneficiary, or to the estate—depending on the policy language.
Can a life insurance company deny a claim if the beneficiary designation is unclear?
Yes. Vague, outdated, or contested designations can cause claim delays or denials. The insurer may even file an interpleader lawsuit to let a court decide who gets the money.
Can an ex-spouse still receive the death benefit?
Sometimes. If the insured didn’t update the policy after divorce, and the state doesn’t have an automatic revocation law, the ex-spouse might still be entitled to the benefit.
How often should I update my beneficiary designations?
You should review and update your designations any time there’s a major life change—like a marriage, divorce, birth, or death in the family.
What if someone contests the life insurance beneficiary after the policyholder dies?
They can file a legal challenge, but they’ll need to prove fraud, undue influence, or incapacity. Courts will examine the evidence and the policyholder’s intent.
Does the order in which beneficiaries are named matter?
Yes. The policy typically follows a hierarchy—primary first, then contingent—so it’s important to understand the implications of the order.
Do I need a lawyer to dispute a beneficiary designation?
Yes, in most contested cases, legal representation is critical. Our attorneys can help uncover wrongdoing, challenge improper changes, and fight for your rightful claim.