Mother passed away unexpectedly. Father is not allowed to receive life insurance due to their recent divorce...?

  • by raul f
  • Aug 05,2018
  • 12 answers

Life insurance company claims that because of the divorce they will have to pay the funds to the contingent beneficiary. Here where it gets weird to me. Mother chose her sister as a contingent, father chose his sister as a contingent in the event they both passed. Due to the divorce they cannot pay my father but they want to split the funds between my mothers contingent and my fathers contingent. Why should my fathers contingent receive anything considering he did not pass.


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Insurance Answers (12)

mbrcatz 3 months ago

Something is way off on this story. Only a handful of states have a provision where a divorce could possibly affect payout . . . AND, only the policy OWNER gets to choose the beneficiary. If dad had a choice, that would mean he would be an owner, and thus wouldn't be passed over. So dad did NOT get to choose a contingent beneficiary.
Assuming mom lived (and died) in Florida, her sister would get all of the money if she didn't reaffirm her ex as beneficiary.
to your direct question - since dad isn't getting any money, he can't "assign" any of this money to anyone else. It's not his to give to his sister yet.

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A Hunch 3 months ago

What state are you in? Florida recently (as in the last 5 years) passed a law that if there was a divorce and life insurance beneficiary was not updated/reaffirmed after the divorce, it will not pass to the former spouse.
I don't believe any other state has a law like this.

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Casey Y 3 months ago

There is something funny going on here...
Life insurance pays out to the beneficiary. You cannot put it in your will to have that money go elsewhere, its a contract with a third party. As such, even if the divorce decree stated that these needed to be changed, unless the policies were actually endorsed...your dad should still be the beneficiary.
Your dad can read the policy or get a lawyer...heck, even ask the agent who sold it for guidance...

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Common Sense 3 months ago

Apparently they had a clause that negated the spouse in case of divorce. Otherwise it would not have an impact. I am sure that even y0u could have a look under the pretense that you want to challenge. They may say it is none of your business at first but when you say the word "lawyer" then they will most likely say okay. One little glimpse.

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Rik 3 months ago

Fart poopie

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james 3 months ago

He has a right to see all documents. If he was listed in the past on any. He will need get a attorney to see these if games are being played. A Attorney will explain to him what they say. They can be worded strange. That is were you start. This can take up to 2 weeks if they put the stall on. But if he is still to receive it. About the only way to keep him from getting it is if he was illegally involved in her death. The checks must be made out to the listed beneficiary. For them to cash. Unless fowl play involved on either part. They can send the checks to the wrong address if that is what is listed with the insurance company. If the wrong person cash's them & caught. They are in deep trouble.

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Insurance Pickle.com 3 months ago

A divorce does not change the beneficiary of a policy. I'm assuming this is a made up story. Beneficiaries also do not chose contingent beneficiaries. The "father" in this story would not be "choosing his sister as a contingent."
The primary beneficiary would receive the funds. Unless the insured changed the beneficiary before she died, that's who would get them. So, if you're writing a short story or something, make sure you understand that. Also understand that the owner of the policy who sets the beneficiary sets the contingents and the split as well. So, if the mother (presumably the owner) set the sister and sister-in-law as contingents if the father passed, then she would set the split between them as well. It would be spelled out.

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curtisports2 3 months ago

A divorce does not automatically take away a beneficiary's right to a death benefit. Your father may need to retain an attorney to force the insurance company to pay. Start with the state's insurance regulatory agency.

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poldi2 3 months ago

Ask the insurance company.

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Bob 3 months ago

Sounds like BS on the insurance part to me, call state insurance regulator or a lawyer

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Janet 3 months ago

Ask a lawyer.

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sheloves_dablues 3 months ago

They shouldn't. Something is really wrong with this scenario.

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