A beneficiary is a person who is named in this contract as a recipient of the life insurance proceeds in the event of the insured person’s death. The beneficiary may be a spouse, a relative, a child, a friend, a trust, etc.
A life insurance policy also sets out rules about what happens when there is no named beneficiary. In many policies, the surviving spouse automatically receives the life insurance proceeds when no beneficiary is named at the time of the insured’s death. In others, the money goes to the estate of the insured.
To be valid, a beneficiary change/designation must be made according to the rules outlined in the life insurance policy itself and must be received, approved and recorded by the insurance company. Another scenario where the policy owner may be restricted in choosing the beneficiary is when there is a court order, such as a divorce decree, ...
If a life insurance policy was purchased with community property income (if premiums were paid using community property money), the surviving spouse may file a life insurance claim for half or a portion of the policy proceeds if someone other than the spouse is listed as the beneficiary. The beneficiary will receive the rest.
July 25, 2020. Many people wonder whether there is a special set of rules applicable to life insurance beneficiaries. You may also wonder whether spousal rights are the same as beneficiary rights. This article will address these and many other topics about spousal and beneficiary rights. Simply put, a life insurance policy is a contract between ...
If a spouse wishes to waive his or her right to a certain life insurance policy, the couple may sign an agreement specifying the policy will be considered separate (not community) property. Usually the insurance company needs to be put on notice of such waiver of spousal rights. In some cases, the insurance company may ask ...
Not all life insurance policies fall under these revocations laws. For example, life insurance policies controlled by federal laws will pay to the listed beneficiary regardless of the conflicting state laws.