What Happens If There Are Multiple Beneficiaries on a Florida Life Insurance Policy?

Life insurance policies often name multiple beneficiaries to ensure financial security for loved ones after the policyholder’s passing. However, disputes can arise when multiple people claim the same benefits. Understanding how Florida law handles multiple beneficiaries is essential for ensuring the rightful parties receive their share.

If you are involved in a life insurance beneficiary dispute, the Law Offices of Jason Turchin can help. Call 800-337-7755 for a free consultation to discuss your case.

How Do Life Insurance Companies Handle Multiple Beneficiaries?

When a policyholder names multiple beneficiaries, the insurance company follows the distribution method outlined in the policy. Beneficiaries are usually designated in one of two ways:

• Per Stirpes – If a beneficiary passes away before the policyholder, their share goes to their heirs.
• Per Capita – If a beneficiary predeceases the policyholder, their share is divided among the surviving beneficiaries.

If the policy is unclear or if disputes arise, the insurance company may delay payment or file an interpleader lawsuit, asking the court to decide who should receive the benefits.

Common Issues When Multiple Beneficiaries Are Named

Disputes among multiple beneficiaries can occur for several reasons, including:

• Changes to the Policy – If the policyholder updated the beneficiaries before passing, prior beneficiaries may contest the change.
• Missing or Deceased Beneficiaries – If a named beneficiary is deceased or cannot be located, the insurance company may require legal intervention.
• Beneficiary Designation Errors – If the policy contains conflicting information or lacks clarity, the payout process may be delayed.
• Divorce or Family Disputes – Ex-spouses, children from different marriages, or other family members may challenge the intended payout.
• Competing Claims – If more than one person claims to be the rightful beneficiary, the insurance company may refuse to pay until the dispute is resolved.

Can a Beneficiary Challenge a Life Insurance Policy in Florida?

Yes, a beneficiary can challenge a life insurance policy under certain circumstances, including:

• Allegations of undue influence or fraud when changing beneficiaries.
• Disputes over handwritten or outdated beneficiary designations.
• Conflicting information between a will and the life insurance policy.

Florida courts typically follow the life insurance policy’s listed beneficiaries unless a legal challenge proves otherwise.

What Happens If There Is No Living Beneficiary?

If all named beneficiaries have passed away or cannot be located, the life insurance proceeds typically go to the policyholder’s estate. This means:

• The payout may be subject to probate, delaying distribution.
• Creditors may claim a portion of the proceeds.
• The money may be distributed according to the policyholder’s will or Florida intestacy laws.

If you believe you are entitled to life insurance benefits but are facing obstacles, consulting an attorney can help clarify your legal options.

What Is an Interpleader Lawsuit in a Life Insurance Dispute?

When multiple beneficiaries claim the same policy, or when an insurance company is unsure who should receive the payout, they may file an interpleader lawsuit. This legal action allows the court to determine the rightful beneficiary.

In an interpleader case:

• The life insurance company deposits the policy funds with the court.
• All potential beneficiaries present their claims.
• The court reviews the evidence and makes a final ruling on who receives the money.

If you are involved in an interpleader lawsuit, having a knowledgeable attorney on your side can help protect your interests and ensure you receive the benefits you are entitled to.

How to Resolve a Life Insurance Beneficiary Dispute

If you are facing a life insurance dispute in Florida, take the following steps:

• Gather all relevant documents, including the life insurance policy, beneficiary designations, and any recent updates.
• Contact the insurance company to understand their reasoning for any delays or disputes.
• Consult a life insurance lawyer to review your case and determine the best course of action.
• Consider mediation or legal action if an agreement cannot be reached among beneficiaries.

Legal representation can help ensure your rights are protected and that you receive the benefits you deserve.

FAQs

What if the life insurance policy names an ex-spouse as a beneficiary?

Florida law may automatically revoke an ex-spouse as a beneficiary unless the policyholder reaffirmed them after the divorce. However, some policies governed by federal law may still allow an ex-spouse to receive benefits.

Can a stepchild or common-law spouse claim life insurance benefits?

Only named beneficiaries are entitled to life insurance benefits. If a stepchild or common-law spouse is not listed, they generally cannot make a claim unless they can prove fraud or undue influence.

How long does it take to resolve a life insurance dispute?

The time frame varies depending on the complexity of the dispute. Simple claims may be resolved in weeks, while legal challenges or interpleader lawsuits can take months or longer.

Do I need an attorney for a life insurance dispute?

While not required, having an attorney can help navigate disputes, challenge denials, and represent you in court if necessary.

How can the Law Offices of Jason Turchin help?

Our firm has extensive experience handling life insurance disputes, including cases involving multiple beneficiaries, denied claims, and interpleader lawsuits. We can help you fight for the benefits you are entitled to. Call 800-337-7755 for a free consultation today.

Contact a Florida Life Insurance Lawyer Today

Life insurance disputes can be stressful and financially challenging. If you are dealing with a dispute involving multiple beneficiaries or have been denied a claim, legal action may help you recover the benefits you are entitled to.

Call the Law Offices of Jason Turchin at 800-337-7755 for a free consultation or visit www.victimaid.com to discuss your case.