What to do if a life insurance proceeds were paid out in the wrong amounts to the beneficiaries?
Question Details:
My brother and I were named as beneficiaries of my godfather's life insurance policy. We received 50% each but we were supposed to receive 10% each. Supposedly it was the insurance company's error. What is the best course of action?
If you and your brother erroneously received more of the insurance proceeds than what the policy stated (50% versus 10%), then you need to immediately call and write the insurance carrier about the error that you discovered asking for written instructions as how to proceed.
Keep a copy of the letter sent for future need and reference. Honesty with the insurance carrier is the best course of action for you and your brother. Most likely you each will be required to return the extra 40% received.
