Can a life insurance company pay benefits to survivors that are not named as beneficiaries?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a life insurance company pay benefits to survivors that are not named as beneficiaries?
Recently my brother passed and has designated my to sisters and myself as the legal beneficiaries of his life insurance policies. He had gone through a very nasty divorce during which his 2 children abandoned him; we even have a police report where his daughter assaulted him. Now the children have approached the life insurance company to try to claim the benefits. The company has now told me that they have decided to pay the children the benefits. How can the insurance company go against the legal wishes of my brother when the proper paper paperwork was filed with their company?
Asked on October 8, 2011 under Insurance Law, Missouri
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
There is no way to provide a definitive answer, without someone reviewing the insurance policy; you should therefore consult with an attorney to help you. That said, as a general matter, an insurer may NOT go against the clearly stated wishes of the insured, as set forth on a properly executed insurance policy. If beneficiaries are listed by name, the proceeds must be paid to them. Sometimes the insured makes a mistake, though, in how he or she designated beneficiares, and leaves some "loophole"--e.g., leaving benefits to his current spouse by name, instead of to, "my wife," which means that if he divorces and remarries, the benefits still go to his x-wife; or desginating insuarance benefits to go to his estate, in case they will pass by his will or (if no will) intestate succession)--which could mean to someone he'd rather not get them. Therefore, the policy must be examind as the first step to determine who should receive the benefits.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.