Life Insurance Dispute Involving Multiple Beneficiaries

Life insurance is meant to provide security and peace of mind to loved ones after the loss of a family member. But what happens when more than one person is listed as a beneficiary—or when there’s confusion or disagreement about who is entitled to the money?

Disputes involving multiple life insurance beneficiaries are more common than many people realize. These cases can quickly escalate into complex legal battles, especially if large policy amounts are involved or if there are unclear designations, competing claims, or family tensions.

At the Law Offices of Jason Turchin, we can represent clients throughout Florida, New York, New Jersey, and nationwide in life insurance beneficiary disputes. Whether you’re one of several named beneficiaries, someone who was removed from a policy, or a family member facing a legal claim, we can help you understand your rights and work toward a resolution.

How Do Life Insurance Beneficiary Disputes Arise?

Life insurance disputes involving multiple beneficiaries can arise from several different situations. These cases often involve:

• Conflicting versions of the policy (e.g., multiple amendments or designations)
• Unclear or missing percentages of how the benefit should be split
• Disputes between primary and contingent beneficiaries
• Challenges to the validity of beneficiary changes
• Claims by stepchildren, siblings, or others not named
• Allegations of undue influence, fraud, or forgery
• Last-minute changes near the time of death

Even if the policy clearly lists multiple beneficiaries, disagreements can arise about how benefits should be distributed—or whether someone was improperly excluded or added.

Real Case Example – Dispute Among Siblings and Caregiver in Florida

Our client contacted us after his father passed away, leaving behind a $400,000 life insurance policy. The policy named children as beneficiaries. However, just before the father passed, the beneficiary designation was changed to the caregiver, even though the father’s faculties were no longer fully there.

Our investigation revealed that the change was submitted after the father’s mental capacity failed, raising concerns of undue influence and lack of capacity. We also learned the caregiver did this to others in the past.

We filed a claim on behalf of our client and challenged the validity of the new designation. After discovery, we were able to get our clients a rightful settlement of their claims.

What Happens When There Are Multiple Beneficiaries?

When a policy lists more than one beneficiary, the insurance company typically pays the proceeds according to the designations and percentages listed in the policy. However, if any of the following apply, a dispute may arise:

• Percentages are missing or unclear – The insurer may divide the benefit equally, but beneficiaries can challenge that.
• A listed beneficiary is deceased – The share may go to contingent beneficiaries, other surviving beneficiaries, or the estate.
• Conflicting documents exist – The most recent, properly executed designation generally controls—but this can be challenged.
• One beneficiary contests another’s right to recover – Allegations of fraud, coercion, or lack of capacity may lead to litigation.
• Someone claims a trust or estate should have received the benefit – Courts may need to interpret the decedent’s intent.

If there is any uncertainty, the insurer may withhold payment and file an interpleader lawsuit, asking the court to decide who should receive the funds.

What Is an Interpleader Action?

An interpleader is a legal action filed by the life insurance company when there are competing claims from multiple potential beneficiaries. The insurer deposits the policy funds with the court and removes itself from the dispute. From there, the beneficiaries must present their cases, and a judge decides who is entitled to the money.

We regularly represent clients in interpleader lawsuits. These cases often require a deep understanding of insurance law, probate issues, and evidence—especially if one party is claiming fraud or undue influence.

Legal Grounds for Challenging a Beneficiary Designation

If you believe someone was wrongfully added or removed as a beneficiary, you may have legal standing to challenge the designation. Some common grounds include:

• Undue Influence – The decedent was manipulated or pressured into changing the beneficiary.
• Lack of Capacity – The decedent was mentally or physically unable to understand what they were signing.
• Forgery – The change was not signed by the policyholder or was altered after the fact.
• Breach of Divorce Agreement or Court Order – A prior court order required a specific beneficiary.
• Mistake or Clerical Error – The insurance company or agent processed the designation incorrectly.

How Our Firm Helps With Multi-Beneficiary Disputes

At the Law Offices of Jason Turchin, we’ve helped resolve countless life insurance disputes—many involving multiple beneficiaries. Our legal team can:

• Review the policy and all beneficiary designations
• Analyze divorce decrees, wills, trusts, and court orders
• Challenge or defend changes made close to the time of death
• Represent clients in negotiations, mediation, or court
• Navigate interpleader lawsuits and probate-related disputes

We can work with clients throughout Florida—including Miami, Orlando, Fort Lauderdale, Tampa, and West Palm Beach—as well as in New York and New Jersey. Many of our cases are resolved without going to trial, but we are prepared to litigate when necessary.

FAQs – Life Insurance Disputes With Multiple Beneficiaries

What happens if the policy doesn’t specify how the money should be split?

If the policy doesn’t list percentages, most insurers will divide the benefit equally among the listed beneficiaries. However, a dispute may still arise if someone believes that’s not what the decedent intended.

Can a beneficiary be removed or changed without notice?

Yes—unless the policy is governed by a court order or divorce agreement. Generally, the policyholder can update beneficiaries at any time. However, last-minute changes may be challenged.

What if a listed beneficiary has died?

If no contingent beneficiaries are listed, that share may go to the remaining beneficiaries or into the policyholder’s estate. It depends on the policy terms and state law.

Can I challenge a beneficiary designation if I suspect fraud or coercion?

Yes. If you believe a beneficiary change was made under undue influence, coercion, or while the policyholder lacked capacity, you may be able to contest it in court.

What if there are two different beneficiary forms?

The most recent valid form usually controls. However, if the newer form is incomplete, unsigned, or suspicious, it may be challenged.

What if one beneficiary is refusing to cooperate?

If the insurer won’t pay until all parties agree, a lawyer can negotiate or initiate legal action on your behalf to resolve the matter.

Will the insurance company help resolve the dispute?

No. Most insurers take a neutral position or file an interpleader. They do not represent your interests and won’t help you win your share.

Can the money be divided unequally?

Yes—if the policy designates specific percentages. However, any deviations from the written terms must be legally justified.

How long does it take to resolve these disputes?

It varies. Some cases settle within a few months; others may take longer, especially if litigation is involved.

How much does it cost to hire your firm?

We typically work on a contingency fee basis. That means you pay no legal fees or costs unless we recover money for you.

We’re Here to Help You Protect What You’re Entitled To

Disputes involving multiple beneficiaries can be emotionally draining and legally complex. Whether you’re defending your right to receive benefits or challenging someone else’s claim, we’re here to help.

At the Law Offices of Jason Turchin, we’ve handled many life insurance disputes involving siblings, ex-spouses, children, and blended families. We bring experience, compassion, and a strategic approach to resolving these cases.

Call us today at (800) 337-7755 or contact us through VictimAid.com for a free consultation.