Can a Spouse Change the Beneficiary on a Life Insurance Policy? Not Without the Insured’s Consent
A spouse cannot unilaterally change the beneficiary on a life insurance policy unless they are the policyholder. Only the person who owns the policy—typically the insured—has the legal authority to designate or modify beneficiaries, though community property laws in some states may give a spouse partial rights to the proceeds.
Life insurance is one of the most critical financial tools a person can have to protect the future of their loved ones. Whether it’s covering mortgage payments, medical bills, funeral costs, or simply ensuring a stable economic foundation for surviving dependents, life insurance benefits often serve as a family’s lifeline after the death of the insured. Many people mistakenly assume that if someone is married, their spouse automatically receives the life insurance payout. That’s not always true. Who receives the money depends entirely on the named beneficiary in the policy—and that designation can only be changed by the policyholder themselves.
Understanding Life Insurance and Beneficiary Designation
A life insurance policy is a binding contract between the insured and the insurance company. It outlines specific terms and conditions, including how long the policy lasts, how much the death benefit is worth, and who will receive the payout when the insured dies. The named beneficiary—whether a person, multiple individuals, or an organization—is the only party entitled to receive the policy proceeds, unless that designation is legally contested and successfully overturned.
One of the most important rights the policyholder has is the ability to choose beneficiaries freely. This can include a spouse, children, siblings, friends, or charitable organizations. A person can even designate different percentages to multiple beneficiaries. Some policies also allow for the naming of contingent beneficiaries—individuals who will receive the benefit only if the primary beneficiary is deceased or unable to claim the funds. This flexibility in naming beneficiaries makes the issue of who can change them, especially a spouse, a matter of legal significance.
Spousal Rights and Community Property Considerations
In general, a spouse cannot alter a life insurance policy’s beneficiary designation unless they are also the policyholder. However, in community property states—such as California, Texas, Arizona, and a handful of others—there may be legal considerations if the policy was acquired or maintained during the marriage using shared funds. In those jurisdictions, a surviving spouse may have a legal claim to half of the policy’s value, regardless of the named beneficiary, unless they explicitly waived those rights in a prenuptial or postnuptial agreement.
That said, even in community property states, a spouse cannot simply call the insurance company and request a change in the beneficiary. Any change must be made by the owner of the policy and often requires a signed and witnessed change-of-beneficiary form. The insurer will typically reject any request that doesn't come from the policyholder or an authorized legal representative. Unauthorized changes are not legally binding and can be contested in court.
Can Someone Else Ever Change the Beneficiary?
There are limited circumstances in which someone other than the insured may change a beneficiary. For example, if the policyholder becomes incapacitated and has previously given someone power of attorney, that designated agent may be able to modify policy terms—but only if the power of attorney document specifically grants that authority. Otherwise, even legally appointed guardians cannot change a life insurance beneficiary without court approval.
Additionally, in some cases involving irrevocable beneficiaries, the insured may not even be able to make changes without the beneficiary’s consent. This typically occurs when a policy is part of a divorce decree or financial settlement agreement. If a spouse was named as an irrevocable beneficiary as part of a divorce, the insured cannot remove them without their written approval.
What Happens If No Beneficiary Is Named or the Beneficiary Is Deceased?
If a policy has no living beneficiary at the time of the insured’s death, the proceeds typically go to the estate. From there, the funds are distributed according to the insured’s will, or if there is no will, through the state’s intestacy laws. In such cases, a spouse might receive all or part of the proceeds, but only after a legal process. This is a key reason why keeping beneficiary designations updated is vital, especially after life changes like marriage, divorce, or the death of a named beneficiary.
How to Prevent Beneficiary Disputes
To avoid future disputes over who receives the death benefit, insured individuals should always keep a current copy of their policy, verify that their designated beneficiaries are correct, and consider formalizing their intentions through legal documents. In marriages where a spouse is not the designated beneficiary, having a prenuptial or postnuptial agreement that clarifies the spouse’s understanding of the policy can be crucial. This is especially important in blended families or second marriages, where the insured may want to provide for children from a prior relationship.
What to Do If You Suspect an Unauthorized Change or Have Beneficiary Concerns
If you believe a beneficiary change was made without proper authorization, or if you are a surviving spouse concerned about your rights to a life insurance policy, it’s essential to consult with an experienced life insurance attorney. Disputes over beneficiaries are often complex and can escalate into full legal battles, especially when large sums of money are involved.
We regularly help clients who are navigating this exact issue—whether they are contesting a change, defending a designation, or simply trying to understand their rights under state law. Our attorneys are skilled in addressing both contractual policy disputes and deeper legal issues like community property claims, power of attorney abuse, or estate litigation.
Final Takeaway: Only the Policyholder Can Change the Beneficiary—Not the Spouse
Unless the spouse is the policyholder, they cannot change the beneficiary on a life insurance policy without proper legal authority. While some state laws may give a spouse rights to the policy’s proceeds under certain conditions, the beneficiary named in the contract typically has the strongest legal standing. To ensure your life insurance reflects your true intentions—and to avoid disputes—it’s critical to understand your state’s laws and update your policy documents accordingly.