One of the most common, and often heartbreaking, reasons life insurance companies deny a claim is a dispute over who the right beneficiary is. In other words, who is the person entitled to the life insurance payout? After the death of a loved one, the last thing anyone wants to face is a legal battle to recover benefits they are rightfully entitled to. Unfortunately, disputes over life insurance beneficiaries are more common than many realize, and insurance companies often use these conflicts as justification to delay or deny payouts.
At Dabdoub Law Firm, we have represented clients across the country in life insurance disputes, helping people recover what is rightfully theirs. In this article, we’ll explain how these disputes arise, what your legal options are, and how our national law firm can help you win your case.
Why Life Insurance Companies Dispute Beneficiaries
When someone purchases a life insurance policy or obtains coverage through their employment, they are asked to name a beneficiary. The beneficiary is the person or persons who will receive the life insurance benefit upon the insured’s death. However, several issues can complicate this seemingly straightforward process:
- The policyholder did not update the beneficiary designation after a divorce or remarriage.
- Multiple versions of the policy or beneficiary forms exist.
- A beneficiary designation is challenged as being forged, coerced, or made under undue influence.
- The insured attempted to change the beneficiary, but the change was not properly executed or submitted.
- Conflicting claims are made by family members, ex-spouses, children, or others.
When a dispute arises, insurance companies may place the funds aside and file an interpleader complaint. This is a legal action whereby a court helps determine who the proper beneficiary is. While this may seem like a neutral process, it often results in significant delays, legal fees, and emotional stress for the rightful beneficiary.
Are You the Correct Beneficiary?
If you believe you are the rightful beneficiary of a life insurance policy but are being denied, you need to act quickly and decisively. The first step is to contact an experienced life insurance attorney who can review your case and:
- Identify if you are legally the correct beneficiary
- Interpret the policy language and beneficiary designations
- Assess any competing claims
- Advocate on your behalf in communications with the life insurance company or in court
These disputes often hinge on detailed facts and complex legal arguments. Attempting to resolve them alone can result in forfeiting your right to the benefits. With Dabdoub Law Firm, you don’t have to face this challenge alone.
Real-Life Examples of Beneficiary Disputes
We’ve handled cases where an ex-spouse remained listed as the beneficiary years after a divorce, despite the decedent intending to leave the money to their children. In other cases, siblings have challenged each other’s rights to the benefits based on unclear or outdated beneficiary forms. Courts have even ruled against family members when the deceased's intentions were not properly documented in writing.
Each of these situations requires strategic legal intervention, supported by experience in ERISA law, state contract law, and insurance policy interpretation.
How Dabdoub Law Firm Can Help
Our firm focuses exclusively on disability and life insurance law, and we’ve built a national reputation for successfully handling complex claims, including:
- Life insurance beneficiary disputes
- Interpleader actions filed by insurance companies
- Wrongful denials of life insurance claims
- Claims governed by ERISA and private life insurance policies
We understand the tactics insurance companies use to avoid paying benefits. We also know how to build a compelling case using evidence, legal precedents, and strong advocacy to help our clients prevail.
You Deserve the Life Insurance Benefits Promised to You
If you’ve lost a loved one and are facing a dispute over life insurance benefits, you don’t have to go through this alone. Dabdoub Law Firm will walk you through the entire process—from determining whether you are the correct beneficiary to fighting for your rights in court, if necessary.
We work on a contingency fee basis, which means you pay nothing unless we win. Let our experience, national reach, and dedication to justice work for you.