FEGLI Claims and Divorce Cases: What Ex-spouses Must Know About Their Rights to Death Benefits After Separation
When a federal employee takes out life insurance coverage on his life, he may designate anyone to be the beneficiary of his policy. If he designates his spouse as the sole, primary beneficiary on the policy, the spouse will collect the Federal Employee Group Life Insurance (FEGLI) benefits after his death. That is true even […]
VGLI Claims and Divorce Cases: A Divorced Spouse’s Rights to Collect Veterans Death Benefits After Separation
Life insurance is often discussed in family law cases because it is taken into consideration when people go through divorce and determine spousal support and child support. The proceeds of a VGLI policy may be included as an item in a divorce decree, spousal and child support arrangements, and equitable distribution contracts. For these reasons, […]
SGLI Claims and Divorce Cases: An Ex-spouse’s Rights to Death Benefits After Separation
SGLI, or Servicemembers’ Group Life Insurance, is life insurance that covers eligible servicemembers. It is a federal government program controlled by federal laws. These laws take precedence over any conflicting state law or regulation.
Denied Key Person Life Insurance Claims
Key person life insurance (aka key man life insurance or corporate owned life insurance) is life insurance coverage on top executives, directors, partners, proprietors and key employees in a corporation.
Life Insurance Beneficiary Designations Provisions
Recently, a New Jersey court heard a life insurance case arising out of a beneficiary dispute. In Fox v. Lincoln Financial Group, et al.,[1] the insured bought a life insurance policy when he was married and designated his then wife as the primary beneficiary. The insured later divorced and changed the beneficiary by making his sister […]
Woman Staged Her Ex-Husband’s Death to Get $2 Million of Life Insurance
A Minnesota woman was charged with defrauding Mutual of Omaha Insurance Company of more than $2 million in life insurance by making a fake claim about her husband’s death. According to the criminal complaint, the insured bought a life insurance policy on his life from Mutual of Omaha and listed his wife and son as […]
Denied FEGLI Claims Due to Termination of Coverage
How can termination of FEGLI coverage affect FEGLI Beneficiaries’ rights? Employees of the Federal Government are covered by group life insurance called FEGLI. When they apply for coverage, federal employees are required to complete a Designation of Beneficiary form, identifying an individual as the beneficiary of the life insurance proceeds payable upon their death under […]
Who Receives SGLI Benefits When No Beneficiary is Designated?
SGLI beneficiary disputes generally arise out of two or more competing claims filed for the same proceeds of an SGLI policy. This happens when there are inconsistencies regarding the Designation of Beneficiary Form/Election Form completed by an insured. When no beneficiary is designated on the Election Form, the insurance company will pay the proceeds of […]
Federal Court Decides a FEGLI Beneficiary Dispute Case
In a recent FEGLI beneficiary dispute case, the United States District Court in New York reviewed issues of the FEGLI beneficiary designation form, a decedent’s intent in changing beneficiaries and state law claims seeking damages for unjust enrichment, conversion, misrepresentation and promissory estoppel. In Smith v. Smith[1], the surviving spouse of a FEGLI insured decedent […]
3 Cautions Life Insurance Consumers Need to Know
With life insurance companies making obtaining life insurance policies easier, more and more consumers get coverage. There are several things policyowners and beneficiaries need to know when buying life insurance.