Life insurance policies allow the policyholder to secure the financial stability of his loved ones after his death. Any person named in a life insurance policy as a recipient of money upon the policyholder's death is called a "beneficiary." Because life insurance policies often involve substantial amounts of money, it is common for disputes to arise over the legitimacy of someone's status as a beneficiary. A life insurance policy is generally considered a legally-binding contract that reflects the intentions of the policyholder regarding payment to beneficiaries; therefore, you will need to prove the existence of fraud, mistake, mental incapacity or clearly contradictory intention by the policyholder to successfully contest a beneficiary of a life insurance policy.
Step 1
Review the life insurance policy and any accompanying documentation such as notes or worksheets to determine the status of the beneficiary you wish to contest. Insurance companies occasionally make mistakes and award benefits to beneficiaries who were later changed by the policyholder or listed as alternate beneficiaries.
Step 2
Gather any evidence to support your dispute of the beneficiary. Determine whether any change-of-beneficiary forms were properly signed and notarized by the policyholder after the date of the initial issuance of the policy; this would serve as evidence that the policyholder had specific intentions that contradict the provision of benefits to the disputed beneficiary. Collect any information or documentation that may suggest that the policyholder was coerced or defrauded into designating the disputed beneficiary. If the policyholder was suffering from a mentally incapacitating injury or an illness, such as Alzheimer's when he designated the disputed beneficiary, obtain documentation demonstrating the existence of the condition from his doctors.
Step 3
Provide all relevant information to the insurance company before the expiration of the period within which you are required by state law to file your dispute. Although the statute of limitation for contesting a beneficiary varies by state, the amount of time you have to contest a beneficiary will be stated on the policy. Call the insurance company if you are unsure how long after the policyholder's death you have to file your dispute.
Step 4
Retain an attorney who specializes in estate planning or insurance law in the state in which the policyholder resided at the time of her death. Because the policy is a legally-biding contract, an insurance company will not decide a dispute unless it is clear that the company made a clerical or filing error; therefore, the dispute likely will be settled by a court or through mediation. Provide all information supporting your dispute of a beneficiary to the attorney, who will guide you through the legal process involved with your dispute.
Things You'll Need
- Copy of insurance policy
- Supporting documentation
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