• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Pennsylvania, life insurance beneficiary

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

nextwife

Senior Member
Not sure about PA but in IL. life insurance purchased while you were married is considered marital property and preliminary injunctions arising from divorce petitions invoke general wording to bar either party from "transferring or encumbering marital property". In some states specific wording is included to cover insurance...but in IL. case law has shown that the injunctions general intent of maintaining the financial status quo pending a final decree includes prohibiting the changing of beneficiaries of marital property until dispostion at MSA. So even if the beneficiary was changed...you'd still have a claim on the proceeds if he died before final decree.
And what if it was purchased BEFORE the marriage?
 


penelope10

Senior Member
And what if it was purchased BEFORE the marriage?
Good point and one that has yet to be discussed. That's why I think it is important that OP call the agent/insurance company that sold/issued the policy. Because there may be relevant facts or scenarios that we on the forum don't know of....
 

VeronicaLodge

Senior Member
In NJ as well - regardless of whether you are married or in process for a divorce, the owner of the life insurance policy can not change the beneficiary from the spouse unless said spouse signs a waiver and acknowledgement.
in tn i can change the beni at any time
 
And what if it was purchased BEFORE the marriage?
I'm not sure...but I just talked to a colleague who says the beneficiary designation becomes a "contractual" right to receive proceeds when it is made...whether the insurance was purchased before or after marriage...and all contractual rights are enjoined by the injunction. Here is where it gets a little confusing...the right to recieve proceeds is different from the issue of whether or not the policy itself is marital property and subject to division before the death of the insured. Classification is not uniform , and some states use inception of title rules and initial premium payments irregardless of any subsequent marital funds used to pay premiums. Other states consider subsequent marital contributions. Then cash values, surrender values, or replacement values can be used to determine value for division. In the case of clients who are deathly ill viatical settlement offers can be considered. In any case, if the policy is determined to be marital and the spouse is not named benficiary...they have a claim to an equitable portion of the proceeds. Help from and insurance expert here would be much appreciated.
 
Last edited:

penelope10

Senior Member
I'm not sure...but I just talked to a colleague who says the beneficiary designation becomes a "contractual" right to receive proceeds when it is made...whether the insurance was purchased before or after marriage...and all contractual rights are enjoined by the injunction. Here is where it gets a little confusing...the right to recieve proceeds is different from the issue of whether or not the policy itself is marital property and subject to division before the death of the insured. Classification is not uniform , and some states use inception of title rules and initial premium payments irregardless of any subsequent marital funds used to pay premiums. Other states consider subsequent marital contributions. Then cash values, surrender values, or replacement values can be used to determine value for division. In the case of clients who are deathly ill viatical settlement offers can be considered. In any case, if the policy is determined to be marital and the spouse is not named benficiary...they have a claim to an equitable portion of the proceeds. Help from and insurance expert here would be much appreciated.
LOL! Ouch you just made my head hurt. I think perhaps a good starting point for the Op might be to call the agent that sold the policy, or the company that issued the policy. Of course, if she has retained an attorney than he/she may have some insight into this area as well.
 

seniorjudge

Senior Member
I'm not sure...but I just talked to a colleague who says the beneficiary designation becomes a "contractual" right to receive proceeds when it is made...whether the insurance was purchased before or after marriage...and all contractual rights are enjoined by the injunction. Here is where it gets a little confusing...the right to recieve proceeds is different from the issue of whether or not the policy itself is marital property and subject to division before the death of the insured. Classification is not uniform , and some states use inception of title rules and initial premium payments irregardless of any subsequent marital funds used to pay premiums. Other states consider subsequent marital contributions. Then cash values, surrender values, or replacement values can be used to determine value for division. In the case of clients who are deathly ill viatical settlement offers can be considered. In any case, if the policy is determined to be marital and the spouse is not named benficiary...they have a claim to an equitable portion of the proceeds. Help from and insurance expert here would be much appreciated.
You said irregardless.

That is a capital offense.

Other than that, it was totally incomprehensible.
 

LdiJ

Senior Member
I'm not sure...but I just talked to a colleague who says the beneficiary designation becomes a "contractual" right to receive proceeds when it is made...whether the insurance was purchased before or after marriage...and all contractual rights are enjoined by the injunction. Here is where it gets a little confusing...the right to recieve proceeds is different from the issue of whether or not the policy itself is marital property and subject to division before the death of the insured. Classification is not uniform , and some states use inception of title rules and initial premium payments irregardless of any subsequent marital funds used to pay premiums. Other states consider subsequent marital contributions. Then cash values, surrender values, or replacement values can be used to determine value for division. In the case of clients who are deathly ill viatical settlement offers can be considered. In any case, if the policy is determined to be marital and the spouse is not named benficiary...they have a claim to an equitable portion of the proceeds. Help from and insurance expert here would be much appreciated.
Part of this is, of course, assuming that the policy is a whole life or other type of policy that gains cash value over time. Obviously the policy from her employer is not a whole life policy, and possibly the personal policy is term as well, rather than whole life. In that instance only the beneficiary designation would be an issue.
 

mistoffolees

Senior Member
And what if it was purchased BEFORE the marriage?
It would depend on the state rules - just like the ability to change the beneficiary AT ALL.

In my state, for example, there's no distinction on when the policy was purchased. I was unable to change any beneficiaries at all at any time between the filing of the divorce (or being served for the defendant) and the signing of the final decree. She needs to see what the default temporary orders say in her state.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top