Who Can Claim Life Insurance After Death?

After an insured person passes away, the question becomes, “Who can claim the life insurance death benefits?” While the answer may be very simple, it can also become very complex. In the simplest of cases, the person who can claim the life insurance death benefits after an insured person dies is the beneficiary. A beneficiary is usually named at the time the policy is issued but can be changed at any time by the policy owner in most situations. Whoever is the named beneficiary at the time the insured passes away is generally entitled to the death benefits. On the other hand, let’s assume that no beneficiary was named. In that situation, the death benefits are usually payable to the insured’s next of kin in an order specified by the state called intestate succession. For example, intestate succession in Pennsylvania is as follows:

• Surviving Spouse
• Children
• Parents
• Siblings
• Grandparents
• Uncles/Aunts
• Commonwealth of Pennsylvania

Common Types of Beneficiary Disputes

However, there are several situations which can complicate these seemingly simple rules and cause a contentious life insurance dispute between family members of the deceased. If the insured was married at the time of his or her passing, their spouse may be entitled to a portion of the benefits even if someone else is the named beneficiary. Death benefits may be split if the insured was a party to a divorce decree/settlement awarding all or part of the life insurance benefits to the ex-spouse or children as a form of alimony or child support. If there is evidence that the beneficiary was intended to be changed prior to the insured person’s death but was not completed in time, a court may award death benefits to the intended new beneficiary.

Beneficiary Disputes in Court Require an Experienced Life Insurance Attorney

In addition to the above circumstances, there are also situations in which one family member may believe they are entitled to the death benefits for a number of different reasons and file a competing claim to that of the next of kin or beneficiary. In that situation, a life insurance company will often send the competing claims to the court to determine who is rightfully entitled to the death benefits. These court proceedings are called “interpleader” and require a skilled and experienced life insurance lawyer’s assistance to ensure a successful outcome.

No one wants to believe that a loved one may turn on them, but beneficiary disputes have a tendency to bring out the worst in people. To preserve relationships and resolve a life insurance dispute quickly and amicably, get a life insurance lawyer involved as early as possible. Life Legal has handled countless beneficiary disputes with successful outcomes on behalf of our clients without sacrificing family relationships.