Interpleader: What it Means to Your Life Insurance Claim–A Life Insurance Interpleader Action is filed when someone has died and there are multiple, conflicting claims on a life insurance policy.
The sad news after you have lost a loved one, you have a dispute with a family member, or ex-family member, about who is the rightful beneficiary or heir as to the life insurance claim.
Someone else says they, not you, should be the one to get the life insurance benefits – a former wife or husband, or grown children from a short first marriage. This is a real trauma after the loss of your loved one. Many times, the life insurance company says it wants to pay the policy proceeds claim, and is ready to pay, but they can’t to decide who to pay of the adverse claimants.
The insurance provider claims if it pays one party, that the other “legal beneficiary” will sue them. When numerous people are making competing claims for the life insurance policy benefits, the insurance company will usually file a lawsuit against several claimants, and let the Court decide the who is the proper beneficiary. Beneficiary disputes need to be resolved before you can receive your proper claim benefit.
The life insurance company does not want to have excess litigation, so, the life insurance company starts a civil action of a very special and peculiar kind. It starts an Interpleader action.
What Does Interpleader Mean?
When the life insurance company files an Interpleader, it is giving the Court the power in determining who is the proper beneficiary for the Life Insurance Proceeds. Once the Court decides, under the law, the life insurance company can’t be blamed. The Court will supervise the litigation between whomever claims to be proper beneficiaries. It is a lawsuit that you don’t start, but you need to win to be the successful claimant.
How is Your Claim Effected as a Named Beneficiary?
Sometimes, the life insurance contract was updated to show that the new spouse was the person who should receive the benefits. Sometimes there could be a legal agreement to have some life insurance benefits for a former spouse, or other person. And, we have all heard stories of a distant family member who suddenly appears when someone dies – and who claims to be a primary beneficiary to a life insurance policy. These life insurance disputes need to be taken very seriously.
Last Minute Beneficiary Changes can often raise red flags concerning numerous legal issues: Life Insurance policy owners generally retain the right to change beneficiaries whenever they choose, however; the policy holder must have mental capacity when the changes are made (have they been forced or coerced into making these changes, and does the insured individual understand these changes?), and the changes must be free of undue influence and duress.
Beneficiary forms can be confusing, not properly received, or numerous – such as a policy that has been updated a number of times over the last twenty years.
Interpleader is a Very Serious Matter for Life Insurance Beneficiaries.
The judge is going to decide, or there is going to be a trial to decide who gets the policy benefits. If you don’t have the right lawyer, a lawyer who knows these insurance cases backwards and forwards, who is able to find and present the strongest evidence in your favor, you will lose. These cases are often brought in Federal Court, the United States District Court. You really need an experienced life insurance lawyer who knows the complicated court rules of Interpleader actions and dealing with multiple claims.
With us, at LifeInsuranceLawyerNOW.com and LifeInsuranceJustice.com, and Joseph S. Fogel as your experienced life insurance attorney, we will do everything we can to get you paid, as the victor in an interpleader proceeding.
Call us now at (888) 997-4070 to speak with a competent life insurance attorney now. We won’t shuffle you off to paralegals and assistants. You can get your questions answered in a free consultation by a knowledgeable life insurance lawyer. You can email us, at email@example.com or use the form on this site. We offer a free no-cost consultation, phone consultation, and generally work on a contingency basis, so you do not have to pay anything unless we recover for you.