Most people work for more than one employer over the course of their career. Many also have multiple group life insurance policies through different jobs. When the insured dies, families often assume the beneficiary listed on each policy will match. In reality, it is common for two employers to have completely different beneficiary records.
This creates one of the most confusing and emotionally charged disputes in life insurance law. Two employers. Two policies. Two different beneficiaries. One death benefit that everyone believes they are entitled to receive.
Below are the ten most common reasons this happens and how courts decide who wins.
1. The Insured Updated One Employer’s Records but Not the Other
People often update their beneficiary at their current job but forget to update the older employer’s converted or ported policy. The result is two different beneficiaries. Each claims the insured intended them to receive the money. The insurer pays based on the form it has, not what the insured may have intended.
2. One Employer Used an Outdated Beneficiary Form
Some employers never purge old records. If the insured submitted a new form but HR failed to upload it, the insurer may rely on an outdated designation. Meanwhile, the second employer may have the correct and updated form. This creates a direct conflict between two sets of documents.
3. The Insured Had Basic and Supplemental Coverage With Different Beneficiaries
Many employees do not realize that basic life and supplemental life require separate beneficiary forms. One employer may have processed one form but not the other. When the insured dies, the beneficiaries listed on each policy may not match.
4. One Employer Migrated to a New HR System and Lost Data
System migrations are notorious for causing beneficiary errors. If one employer lost or corrupted beneficiary data during a system upgrade, the insurer may rely on whatever survived the migration. The other employer may have accurate records. This leads to competing claims and confusion.
5. The Insured Named a New Spouse at One Job but Not the Other
This is one of the most common disputes. After marriage, the insured updates the beneficiary at the current employer but forgets to update the older policy. The new spouse and the former beneficiary both claim the payout. The insurer cannot guess intent and must follow the documents.
6. One Employer Required Spousal Consent and the Other Did Not
Some plans require spousal consent to name someone other than the spouse. Others do not. If the insured named different beneficiaries at each employer, the validity of each form depends on the plan rules. This often leads to disputes between spouses, children, and partners.
7. One Employer Processed the Change and the Other Never Did
The insured may have submitted beneficiary changes to both employers, but only one processed the form. The other may have lost it, misfiled it, or uploaded it incorrectly. When the insured dies, the insurer pays based on the last valid form it has, even if it is wrong.
8. One Policy Was Converted or Ported and the Beneficiary Was Never Updated
When employees leave a job, they often convert or port their group life insurance. Many assume the beneficiary automatically carries over. It does not. If the insured never submitted a new form, the converted policy may list an outdated beneficiary while the new employer lists someone else.
9. One Employer’s Policy Is Governed by ERISA and the Other Is Not
ERISA rules require insurers to follow the beneficiary on file, even if there is evidence the insured intended something else. A non ERISA policy may allow more flexibility. This creates a situation where one beneficiary wins under federal law and another wins under state law.
10. The Insured Made Conflicting Changes During Illness or Decline
When someone is ill, they may update beneficiaries inconsistently. One employer may receive a valid change. The other may receive a form that is incomplete, unsigned, or submitted too late. After death, the beneficiaries argue over which form reflects the insured’s true intent.
Who Actually Wins When Two Employers List Different Beneficiaries
There is no automatic winner. Courts look at several factors:
• which form is valid under each policy • whether ERISA applies • whether the insured complied with each employer’s procedures • whether HR made administrative errors • whether one form was never processed • whether the insured had capacity when making changes • whether state law or federal law controls
Insurers do not decide intent. They only follow the documents they have. When two employers list different beneficiaries, the dispute almost always ends up in litigation or interpleader because the insurer cannot choose between competing claims.