Examples Of Contested Benefits

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 16, 2021

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Some events that could create contested benefits include:

1. all or some of the beneficiaries are deceased possibly creating ambiguity about who was intended to get the money. For example, several children of an insured are named equally as beneficiaries. Then, one or more of these beneficiaries becomes deceased, but they have children of their own. Should those children receive the deceased beneficiaries’ shares?

2. some, but not all, children of an insured are named as beneficiaries. The remaining children claim that their names were left off through oversight because they were born after the last beneficiary designation.

3. legal complications, as when the designated beneficiary is accused of killing the insured.

The insurance company will usually try to determine who should receive the proceeds in situations like these. If this cannot be done, it will hold the proceeds until the proper legal authorities can make the decision for them.

Such problems can often be avoided by regular review and revision of beneficiary designations.

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