Every life insurance policy has provisions for how a beneficiary can be changed and those rules must be strictly followed for any change to effective.
How About Substantial Compliance with Beneficiary Changes
Some policy holders argue that saying they want to change beneficiaries is enough and that is substantial compliance.
So, for example, one could argue that getting married automatically creates a new life insurance beneficiary and revokes all other beneficiary designations.
However, substantial compliance means that the policy holder did everything they could do to change the beneficiary designation based on the policy provisions. So, in our example, if the policy holder did not follow the strict policy procedures for changing the beneficiary to the new spouse, that new spouse would not be a beneficiary if the policy holder passed. The ex-wife would still be the beneficiary!
What Should You Do If There is A Beneficiary Dispute?
If the life insurance company says they won’t pay you or family member because of a dispute of a beneficiary dispute, it is time to call us at the Life and ADD Claim Law Firm to help you. Let us help you get on the path to recovery.