Understanding Competing Life Insurance Beneficiary Claims in Florida
Life insurance is meant to provide peace of mind and financial protection after a loved one’s passing. But sometimes, more than one person claims to be the rightful beneficiary of the same policy. When that happens, the insurance company cannot simply choose one person—it must follow specific legal procedures under Florida law to determine who is entitled to the proceeds.
Disputes over life insurance benefits can arise for many reasons, and understanding the process can help you protect your rights and avoid costly mistakes.
Common Reasons for Beneficiary Disputes
Competing beneficiary claims are surprisingly common in Florida life insurance cases. They typically arise when:
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The policyholder made recent changes to the beneficiary designation before death, and family members dispute their validity.
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Divorce or remarriage occurred after the original policy was issued, but the insured never updated the beneficiary designation.
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Multiple versions of the policy or inconsistent beneficiary forms exist.
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The policyholder’s mental capacity or undue influence is questioned—especially in cases involving elderly or ill policyholders.
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Children from different relationships or former spouses make conflicting claims.
Each of these situations can create uncertainty about who legally qualifies as the true beneficiary.
How Florida Law Handles Conflicting Beneficiary Claims
When an insurer receives competing claims, it often files what’s called an interpleader action in court. This means the insurer deposits the life insurance proceeds with the court and lets the judge decide who should receive them. The insurer steps out of the dispute, and the competing claimants must prove their entitlement through evidence and legal arguments.
Florida courts look at several factors, including:
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The most recent valid beneficiary designation on file.
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Whether any court orders or divorce decrees affect the beneficiary rights (for instance, under F.S. § 732.703, certain designations for former spouses may be void).
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Evidence of fraud, forgery, or undue influence that might invalidate a change in designation.
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The policy’s governing law clause and any relevant federal law (especially for employer-provided policies governed by ERISA).
The Impact of Divorce and F.S. § 732.703
Under Florida Statute § 732.703, when a marriage ends, any beneficiary designation made in favor of a former spouse is generally considered void—unless the policyholder reaffirms the designation after the divorce. This statute prevents ex-spouses from automatically collecting life insurance benefits unless the insured explicitly chooses to keep them as beneficiaries post-divorce.
However, federal laws like ERISA (which governs many employer-based policies) can sometimes override this Florida statute. That’s why it’s critical to have an experienced life insurance attorney review the policy type and applicable law before proceeding with a claim.
How a Florida Life Insurance Attorney Can Help
A knowledgeable Florida life insurance claims attorney can:
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Investigate the policy and all beneficiary designations.
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Obtain court records or settlement agreements related to divorce or estate proceedings.
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Represent your interests in an interpleader lawsuit or settlement negotiation.
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Challenge invalid beneficiary changes caused by fraud, coercion, or incapacity.
Life insurance disputes often involve sensitive family issues and complex legal questions. Having the right legal representation can mean the difference between recovering what you’re owed and losing your rightful claim.
Take Action to Protect Your Claim
If you believe you’re entitled to life insurance proceeds but another person is also claiming them, do not wait to act. Contact an experienced Florida life insurance attorney as soon as possible. Early action can help preserve evidence, prevent the insurer from paying the wrong party, and protect your financial rights.
Have you or someone you know been denied life insurance benefits? Contact Florida Life Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Miami Attorney Gonzalez-Sirgo directly at jp@yourattorneys.com or by text at (305) 929-8935.
