• 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.

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.

lm6

Junior Member
What is the name of your state? OHIO

My father died in 02/08 and left my sister and I the beneficiaries on his group life insurance policy from work. His wife lied to us about his desire to change the beneficiary to her and claimed it was a clerical error by his employer and that the insurance company had told them both it had been fixed. Before realizing the extent of her lies and greed, we had considered giving her part or all of the money. But, after doing our own research we feel that he wanted us to have the money and sent in the claim forms. After hearing nothing from the insurance company, I called to find that they are not processing the claim yet because she has hired an attorney and is contesting the payment. All the company told me was that they were waiting for information from the attorney and that when they received it they would send out a letter recommending a settlement or probate court if one was not reached. She was listed as the beneficiary of the will and her attorney has sent us the waiver of notice form for the will to file with probate court. I thought that wills and insurance beneficiaries are separate so she wouldn't be able to contest the payment. Do I need to take action at this point or will the situation eventually resolve? He was terminally ill, but was newly diagnosed when he changed his will and did not change the life insurance at that point when I know he had clear mental function. The beneficary form he completed was from 12/2005 after they were living together but before they married. But, when he added her to his health insurance in 2006, he did not change the designation. Any information about this subject would be appreciated.
 


Betty

Senior Member
The life ins. proceeds pass outside the estate & go to the bene(s) named in the policy. If someone other than the bene(s) named is contesting the payment, the ins. co. will see if a settlement can be worked out. If not, it will probably end up in court with a judge deciding who gets payment. Anyone can contest or sue for payment of the ins. proceeds but that doesn't mean they will win. At this time you just need to wait & hear from the ins. co.
 

lm6

Junior Member
Thanks for the info. I have a few more questions. My sister and I have already decided not to settle because we are upset at the way she has handled this whole mess. Instead of grieving with us, she has been scheming behind our backs to get this money when he left everything else to her. And, she has called us liars and thieves on top of all of that. So, when it goes to court, is it the insurance company that has to go, or will we directly be involved since we are the named beneficiaries? I don't understand how the court could rule in her favor, but if it does, is there an appeal process?
 

Betty

Senior Member
I would at this time wait to hear from the ins. co. You & your sister would only have to go to court if you & your sister would be sued by the wife for the proceeds if paid to you & your sister by the ins. co. If the proceeds would be payable to the wife by the ins. co., you & your sister can sue for the proceeds. It would be up to the judge to decide who gets them. The normal procedure would be to pay the money to the bene(s) named in the policy though no one say say for sure what any individual judge will decide. It may all end up being worked out by the ins. company's lawyers & wife's lawyer in or out of court - will have to wait & see.
 

Find the Right Lawyer for Your Legal Issue!

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