Disputing a Life Insurance Beneficiary Designation in New Jersey: Exploring Your Legal Rights

If you are reading this, it likely means you are experiencing a difficult and confusing situation involving a dispute over life insurance proceeds. Whether you are the named beneficiary or someone who believes they should have been, we understand how frustrating and emotional it can be to navigate these matters. It’s natural to feel uncertain about your legal rights and options in such a situation. We are here to help you through this process, ensuring that you understand your legal standing and the steps you can take to contest a life insurance beneficiary designation.

Understanding Life Insurance Beneficiary Disputes

A life insurance policy is meant to provide financial support to those left behind after the death of the policyholder. When there is a disagreement over who should receive the death benefit, it can lead to a legal dispute. Beneficiary designations are typically straightforward, but issues can arise when they are unclear, outdated, or contested by someone who believes they have a rightful claim to the policy’s proceeds.

A life insurance policyholder has the right to designate who will receive the proceeds upon their death. However, complications often arise if the beneficiary designation is not updated after life events such as marriage, divorce, or the birth of children. This can create confusion and legal challenges. At times, a former spouse may be listed as a beneficiary, even though they are no longer part of the policyholder’s life. In these cases, the person who believes they have a right to the benefits, such as a current spouse or child, may need to challenge the existing designation in court.

Ted Treif (Partner)

Life insurance attorney since 1976

Barbara Olk (Retired)

Life insurance attorney since 1976

Eyal Dror (Associate)

Life Insurance Attorney since 2007

Common Reasons for Contesting a Beneficiary Designation

Life insurance disputes typically stem from a few common situations. One frequent cause is the presence of a former spouse or an ex-partner on the beneficiary list. If the policyholder did not update the beneficiary information following a divorce or remarriage, it could result in the ex-spouse receiving the insurance proceeds instead of the intended beneficiary.

Another issue that arises is when the designation is unclear or contested due to ambiguous language. Sometimes, beneficiaries are not clearly identified or there are multiple names listed without specific instructions on how the proceeds should be divided. This can create confusion and lead to disputes between potential claimants.

In some cases, individuals might try to challenge the validity of the life insurance policy itself. For example, if there is suspicion that the policyholder was coerced or unduly influenced when naming a beneficiary, it may be possible to contest the designation based on claims of fraud or undue influence.

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We contacted Trief & Olk to help us with a life insurance issue and Shelly Friedland was the attorney assigned to our case. Before Shelly took our case she explained to us that the likelihood of our success without going to court was possible but not likely. Unfortunately we did not get the outcome we had hoped for but it was our decision to not move forward and have our case litigated. Shelly is very knowledgeable and was very straight-forward in her assessment of our case as we moved forward. She was very patient and thorough in answering our questions. She always responded in a timely manner and listened to our concerns. We would certainly recommend Shelly and would use her firm again in the future.”

- John Ramig

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If there is any possibility of winning your life insurance case – this is the place to do it for you. They are efficient, honest and will achieve the best possible outcome.

Shelly Friedland worked on my case where a life insurance policy had lapsed and was even a few days beyond the grace period. Farmers had rejected my claim twice and was unwilling to take a second look. Shelly was able to get them to pay the entire claim without going to court, and the full amount was deposited in my account within a couple months. Highest recommendation.”

- Kathleen Brown

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Trief & Olk is a superior law firm. Their attorneys and other legal professionals have a brilliant understanding of the law and the litigation process. They diligently perform their work in an efficient, strategic and cost-effective manner to ensure the best possible outcomes for their clients.

- Christopher Hughes

What Are Your Legal Options?

If you find yourself in a situation where you need to contest a life insurance beneficiary designation, there are several legal options available. The first step is to carefully review the policy and the beneficiary designation to understand who is named and whether there are any ambiguities. If the beneficiary is clearly stated and there is no legal basis to challenge the designation, the matter may end there. However, if the beneficiary is in dispute, the following options may be considered.

Reviewing the Policy for Errors or Ambiguities

Before taking legal action, it’s important to carefully review the life insurance policy for any errors or ambiguities in the beneficiary designation. A small mistake, such as a misspelling of a name or unclear language, can lead to confusion over the rightful recipient. If the beneficiary designation is ambiguous, it may be possible to resolve the issue through negotiation or mediation. In some cases, the insurer may be willing to settle the matter without going to court.

Settlements & Verdicts

$3 Million Policy

William Penn Life Insurance

$1.2 Million Policy

Primerica

$1.5 Million Policy

Metropolitan Life Insurance Company

$1 Million Policy

Protective Life Insurance

$675,000 Settlement

Confidential Settlement

$4.3 Million Policy

State Farm, Primerica, Farmers, BrightHouse

Proving Fraud or Undue Influence

If there is evidence that the policyholder was coerced into naming a beneficiary, it may be possible to contest the beneficiary designation on the grounds of fraud or undue influence. This could involve proving that the policyholder was manipulated or deceived into naming a particular person as a beneficiary, or that they were not in a sound mental state when they made the decision. This can be a complex legal process, and gathering evidence to support such claims is crucial.

Challenging the Validity of the Beneficiary Designation

Another option for contesting a life insurance beneficiary designation is to challenge the validity of the designation itself. If the policyholder was married, divorced, or had other life events that may have affected their beneficiary designations, it may be possible to argue that the current beneficiary designation no longer reflects the policyholder’s true wishes. For example, if the policyholder divorced and never updated their life insurance policy, the ex-spouse may still be listed as the beneficiary, even though they would not have been the intended recipient at the time of death.

Filing a Lawsuit

If an agreement cannot be reached through negotiation or mediation, the final step may involve filing a lawsuit. In this case, the court will determine who is entitled to the life insurance proceeds based on the evidence provided. A lawsuit can be costly and time-consuming, but in some cases, it may be the only option to resolve a dispute over the beneficiary designation. The court will consider various factors, including the validity of the beneficiary designation, any claims of fraud or undue influence, and whether the policyholder intended for the listed beneficiary to receive the proceeds.

How Can Our Firm Help You?

Navigating the complexities of life insurance beneficiary disputes can be a difficult and overwhelming process. Our firm understands the emotional toll these disputes can take on you and your family. With years of experience handling such cases, we can help you understand your legal rights and options and guide you through each step of the process.

If you are unsure about how to contest a life insurance beneficiary designation or if you believe you have a valid claim, we can help you assess your situation. Our team will work closely with you to gather the necessary evidence, review the policy documents, and determine the best course of action. We will fight to ensure that your rights are protected and that you receive the fair outcome you deserve.

If you are involved in a dispute over a life insurance beneficiary designation in New Jersey, it is important to act quickly. There are legal deadlines that may affect your ability to contest the designation, so it is crucial to seek legal advice as soon as possible. Our firm is here to provide you with the guidance and support you need during this challenging time. We will help you understand your options and work diligently to pursue a successful outcome for your case.

Let us assist you in resolving your life insurance beneficiary dispute and obtaining the justice you deserve. At Trief & Olk, we are committed to providing compassionate and effective legal representation to our clients. Contact us today to schedule a consultation.

To learn more about this subject click here: Understanding New Jersey’s Approach to Life Insurance Disputes: Key Insights for Beneficiaries