Life insurance policies typically list a primary beneficiary and one or more contingent beneficiaries. The primary beneficiary is first in line to receive the payout, and the contingent beneficiary receives the benefit only if the primary cannot. Most people assume this is straightforward, but disputes arise when the primary beneficiary is disqualified due to homicide, abandonment or predeceasing the insured. These situations often trigger complex legal battles between family members, former partners and estates.
Understanding when a contingent beneficiary can challenge a primary beneficiary’s eligibility is essential for families facing a contested claim.
When a Primary Beneficiary Is Disqualified
A primary beneficiary may lose eligibility for several reasons. The most common include:
The primary beneficiary predeceased the insured
The primary beneficiary is legally responsible for the insured’s death
The primary beneficiary abandoned the insured under state law
The primary beneficiary is otherwise barred by statute or policy terms
When this happens, the insurer must determine whether the contingent beneficiary should be paid or whether the benefit should go to the estate.
Predeceased Primary Beneficiaries
If the primary beneficiary dies before the insured and the policyholder never updates the designation, the insurer must follow the policy language. Some policies automatically shift the benefit to the contingent beneficiary. Others require a new designation and default to the estate if none exists.
Disputes arise when:
The primary beneficiary died shortly before the insured
The insurer claims the contingent designation is invalid
The policyholder attempted to update the form but did not complete the process
The employer or insurer lost the updated form
In these cases, contingent beneficiaries often argue substantial compliance or administrative error.
The Slayer Rule and Homicide Disqualification
Every state has a version of the slayer rule. A beneficiary who intentionally kills the insured cannot receive the life insurance benefit. When the primary beneficiary is a suspect or has been convicted, the insurer will freeze the claim and investigate.
Contingent beneficiaries may challenge eligibility when:
The primary beneficiary is under criminal investigation
The primary beneficiary is charged with homicide
The primary beneficiary is convicted
The primary beneficiary is found civilly liable for wrongful death
Insurers often file interpleader in these cases to avoid paying the wrong party.
Abandonment and Spousal Disqualification
Some states have laws that disqualify a spouse who abandoned the insured before death. These laws vary widely and often require:
Proof of intentional abandonment
Evidence of lack of support
A court finding of desertion
A showing that the spouse forfeited rights under state law
Contingent beneficiaries, often children or parents, may challenge a spouse’s eligibility under these statutes. These cases are fact intensive and often involve conflicting testimony about the relationship.
When the Contingent Beneficiary and Estate Compete
If the primary beneficiary is disqualified, the next question is whether the contingent beneficiary or the estate should receive the benefit. This depends on:
The policy language
The plan documents
Whether the contingent designation is valid
Whether the contingent beneficiary is still living
Whether the policyholder intended to change the designation
Insurers may default to the estate if there is any defect in the contingent designation, which often leads to disputes among heirs.
Interpleader in Primary Eligibility Disputes
When eligibility is unclear, insurers frequently file interpleader. This allows the court to decide who should be paid. Interpleader is common when:
The primary beneficiary is accused of homicide
The primary beneficiary predeceased the insured
The contingent beneficiary claims the primary is disqualified
The policy language is ambiguous
Multiple parties assert competing claims
Interpleader delays payment but provides a structured process for resolving the dispute.
Evidence That Helps Contingent Beneficiaries Win
Contingent beneficiaries challenging primary eligibility should gather:
Death certificates
Criminal records or police reports
Medical records showing timing of deaths
Evidence of abandonment or estrangement
Prior beneficiary forms
Emails or statements showing the policyholder’s intent
Employer or insurer records showing attempted updates
This evidence can shift the case from a technical dispute to a clear eligibility issue.
Why These Cases Require Specialized Knowledge
Primary eligibility disputes involve a mix of state statutes, policy language, slayer rules and administrative procedures. Many attorneys overlook key evidence or misunderstand how insurers evaluate eligibility. Families need guidance from someone who understands how to challenge disqualification decisions and protect the rights of contingent beneficiaries. Recent settlements include: Jackson National; Manulife Financial; Nationwide Life; and Equitable Holdings Life.