Disputing life insurance beneficiaries requires a legal case presented in court. This is not something the life insurance company can do, even if your claim seems valid. Only the courts have the legal right to make a change to a life insurance policy after the policyholder’s death.
Occasionally, there are situations wherein one may want to or need to contest life insurance policies. The situation could be that your husband or wife dies and never updated their life insurance policy to reflect you and your children together as beneficiaries, and thus, you do not get a payout despite feeling that you are rightfully entitled to it. Another situation wherein people often want to dispute life insurance is when a very old or very ill person updates the beneficiaries on his or her life insurance when they are close to the end of their life. Many argue that the individual who changed the terms or beneficiaries on their policies were not of sound and healthy mind when they did so.
When to Consult a Lawyer
When you are in a situation and you feel you need to dispute the terms of a life insurance policy, going to the insurance company may not actually be your best option. If the policy holder on the account has already died and their death benefits have been paid out or will soon be paid out, the only course of action you can take is legal action. If the holder of the policy has died, make sure you speak to an experienced attorney with specialty in life insurance disputes and healthcare policies in general, as they will be the individuals who can best advise you.
What to Consider Before You Contest a Life Insurance Policy
Before you start the process of disputing a life insurance policy, there are a few things you should consider.
- First, a dispute may take a very long time, and if you are in desperate need of the death benefit money, you may need to speak to the beneficiary rather than go through a lawsuit.
- Second, these types of lawsuits can be costly, so make sure you have the resources in order to actually fight the fight.
- Lastly, remember that the best way to avoid one of these legal cases is to have good communication with the policyholder while they are still alive. It is much easier for them to make changes to the terms of their policy before they pass on.