Is Your Ex-spouse still a Named Beneficiary Under Your Insurance Policy?

A client called to ask me a question for one of her customers. The customer's ex-wife died. They had been divorced for several years and, as of the date of her death, the children were still minors. The ex-husband "alleged" that it was his ex-wife's intent not to change her life insurance policy. However, the insurance company refused to issue the $250,000 death benefits to the ex-husband.

The question asked was whether the insurance company was correct in not releasing the check to the ex-husband. Well, I pondered the question. The policy is a contract between the insurance company and the insured, now deceased. She named her beneficiary and never changed it even well after the divorce. However, you have to also consider case law and any statutes that might change the basic contract analysis.

ANSWER: The Ex does NOT get the $250,000.
STATUTE: A statute in PA provides that if an ex-spouse is still named as a beneficiary under a life insurance policy upon the death of the other ex-spouse then such ex-spouse will not be entitled to the death benefits. There would have to be CLEAR intent (ie. provided in the divorce decree) that the deceased person intended for the ex-spouse to receive such death benefits.

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