Preference Beneficiary life ins

[bjamm1972]

What is the name of your state (only U.S. law)? Il
From almost everything I have read, if there is no designated beneficiary on a life insurance claim, the money would go into the deceased estate to be divided between survivors ie.,spouse, minor children. Then I come across what is called a Preference Beneficiary where the insurance says they will pay in order of spouse then children. Now I am totally confused. Which is right by law? Can a Preference Beneficiary be challenged if that is the case, On the basis that the deceased has a minor child who is 14 and deceased was married to surviving spouse for 1 year. Doesn't the minor child have any rights to his fathers insurance money for his future?

[ShyCat]

Which is right by law?

One is law, the other is a contractual clause. If a policy has such a clause, then that prevails. If a policy does not have such a clause, the intestate statutes come into play.

Can a Preference Beneficiary be challenged if that is the case?

On what basis? "I don't like it" would not be legal basis on which to object to a perfectly valid clause in the life insurance policy. It is, after all, what the owner of the policy and the insurance company agreed to.

[Dandy Don]

Where did you find this information about a "Preference Beneficiary"--was it associated with any particular insurance company or just generic information you found on a website?

[bjamm1972]

I have seen it a few places online, but yes, Prudential Group Life