Beneficiary changes may be considered invalid under a Federal Employees Group Life Insurance policy if they are not made in accord with the laws that govern them. In a lot of cases, a FEGLI beneficiary change’s validation may be contested after the policyholder’s death and if at least two competing claims are filed under that policy.
How a State Court Order Can Restrain the Insured from Making Beneficiary Changes
State court order might come into play in the case the insured federal employee gets divorced or has children who need child support. It may direct the individual to keep their ex-spouse or children as the beneficiaries for their life insurance. State court orders might also restrain the divorcing person from renaming beneficiaries on their insurance policy.
Generally, if a person who is prevented by a court order from making changes to their insurance policy chooses to change their beneficiaries later on, they will be violating the state court order and the change will be considered invalid. However, when it comes to FEGLI policies, this isn’t the case. Federal laws determine whether a FEGLI policyholder’s beneficiary change outweighs the state court order that prohibited the beneficiary designation change.
According to federal laws that govern FEGLI claims, the policyholder’s beneficiary choice can’t be prohibited even if a state court order says the contrary. In simpler words, a beneficiary change might be considered valid in this case even if a state order was violated. If you were denied a FEGLI policy claim because of a beneficiary change being considered invalid, you can dispute it with the assistance of a professional lawyer.
Can Someone Else Besides the Policyholder Perform a Beneficiary Change?
The FEGLI Act prevents third parties with a POA (Power of Attorney) to execute change-of-beneficiary forms. While state law allows such actions, FEGLIA does not.
If you were denied a FEGLI claim because of a beneficiary change that was executed by the POA of the insured, you should get in touch with a life insurance lawyer to determine what actions you can take to dispute this change.
Community Property States: How Do They Impact Beneficiary Change under a FEGLI Policy?
Community Property State Laws and FEGLI Beneficiary Change
FEGLI beneficiaries who live in a community property state often wonder what happens after the policyholder’s death to the FEGLI policy proceeds. Community property state laws generally require the marital assets to be divided in case of a divorce. However, this contradicts federal laws that govern FEGLI claims.
You are eligible to receive FEGLI policy benefits if a FEGLI policy holder is your family member or you're the designated beneficiary. You can learn more by getting in touch with a life insurance lawyer and getting consultation regarding your claim.
FEGLI Claim and no beneficiary
If no FEGLI policy beneficiary named, money unless contested may go in this order: widow/widower; children; parents; executor; next of kin. Our life insurance lawyers can contest any beneficiary and win.