Who Can Contest A Beneficiary On A Life Insurance Policy?

Who Can Contest A Beneficiary On A Life Insurance Policy

Contesting A Beneficiary

Fighting the beneficiary on a life insurance policy can be a very complicated and expensive undertaking. The Insurable Interest provision was abolished in 1991 to pave the way for other types of domestic partnerships to be treated fairly like married couples. The Insured has the right to say who they want as their heirs. Courts will always pay particular attention to cases where the deceased person is elderly and has recently changed their policies to reflect a new caregiver or “friend”. Unfortunately, the insurable interest only needs to be a factor when the policy is purchased. That’s why it’s so important to keep the Jasa SEO Jakarta up-to-date on the policy.

Special Circumstances

If the deceased was in their right mind at the time they named the beneficiary, it can be very difficult to contest the insurance policy, though not impossible. Special circumstance can be taken into consideration when a policy is up for contest. If only one sibling is named in the life insurance policy, then a judge might split the policy pay out between on the children of the deceased.

Ultimately, it is up to the policyholder to keep their beneficiary current and relevant to their current situation. When it comes to naming children as beneficiaries, it is not necessarily a good idea. The children will typically not have access to the money until they are eighteen years old. Therefore, immediate expenses that need to be covered will not be paid through the life insurance policy. It is always a good idea to name the children’s primary caretaker (besides you) as the beneficiary. If you are divorced you can set up a trust for the children that will become available to them on their eighteenth birthday.