A common question among policyholders is whether it’s possible to name more than one beneficiary. The answer is yes. Life insurance policies typically allow for multiple beneficiaries, offering flexibility in distributing the death benefit. However, the process can be complex, especially when considering contingency or secondary beneficiaries, co-beneficiaries, and the potential for disputes over beneficiary designations. Our life insurance lawyers have handled extremely large beneficiary disputes involving: United of Omaha; Colonial Life; Midland National Life; USAA Life; and many more. When naming multiple beneficiaries, policyholders have the option to assign primary and secondary beneficiaries. The primary beneficiary is the person who will receive the death benefit upon the insured’s death. If the primary beneficiary can’t claim the benefit, for example, if they have predeceased the policyholder or cannot be found; the death benefit could then go to the secondary, or contingent, beneficiary. For example, a policyholder might name their spouse as the primary beneficiary and their adult child as the contingent beneficiary. If the spouse predeceases the policyholder, the death benefit would automatically go to the child.
In some cases, policyholders may choose to designate co-beneficiaries, dividing the death benefit among multiple individuals or entities. This can be done by specifying percentages or fixed amounts for each beneficiary. For instance, a parent might decide to leave 50% of the death benefit to one child and 50% to another. Alternatively, they could allocate 30% to a spouse, 40% to a child, etc. Despite the flexibility offered by life insurance policies, disputes over beneficiary designations happen frequently. Our top life insurance lawyers have disputed life insurance claims involving: Sun Life; TIAA; Corebridge Financial; Mass Mutual Life; and more. Challenges to beneficiary designations often occur when there are allegations of undue influence, lack of mental capacity, or errors in the documentation process. In one case involving Prudential Life, the policyholder’s adult children discovered that their parent changed the beneficiary designation shortly before death, naming a new romantic partner as the sole beneficiary. In a Guardian Life dispute, insured named their ex-spouse as the beneficiary but failed to update the policy after remarriage. Upon the policyholder’s death, both the ex-spouse and the current spouse tried to claim the death benefit.
In conclusion, while it is entirely possible to name multiple beneficiaries on a life insurance policy, doing so requires careful planning. Our top life insurance lawyers contest beneficiaries every day.