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Can one spouse legally designate someone else to be their beneficiary for their life insurance?

Can one spouse legally designate someone else to be their beneficiary for their life insurance?

Q: Is it necessary to update life insurance beneficiaries after separation?

While it is not legally required to update life insurance beneficiaries after separation, it is highly advisable. If a beneficiary is not updated, the current beneficiary may still receive the benefits upon the policyholder's death, which could lead to unintended consequences.

Q: Can a life insurance policy be contested after the policyholder's death?

Yes, a life insurance policy can be contested after the policyholder's death. Common grounds for contesting include claims of fraud, lack of insurable interest, or if the beneficiary designation was not valid. Legal advice may be necessary to navigate such situations.

Q: Do life insurance beneficiaries have to pay taxes on the payout?

Generally, life insurance payouts to beneficiaries are not subject to income tax. However, if the policyholder's estate is large enough to incur estate taxes, the payout may be included in the estate's taxable value. It's advisable to consult a tax professional for specific situations.

Full question:

If a husband and wife are separated (not legally - just living apart), can one of the spouses legally designate someone else to be their beneficiary for their life insurance?

Category: Insurance
Subcategory: Life Insurance
Date: 04/07/2025
State: Colorado

Answer:

The terms of a life insurance contract govern the type of beneficiary (ies) and whether or not they can be changed. If beneficiary designation is revocable, then the policy owner reserves the right to change the beneficiary(ies) at any time and for any reason without his/her/their consent. If beneficiary designation is irrevocable, then the policy owner is usually required to obtain the consent of the named beneficiary(ies) in order to make a change.

Please see the information at the following link:
http://www.massmutual.com/mmfg/prepare/articles/lifeinsbene.html

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can a spouse change their life insurance beneficiary without consent?

Yes, if the life insurance policy allows for a revocable beneficiary designation. This means the policy owner can change the beneficiary at any time without needing permission from the current beneficiary. However, if the beneficiary designation is irrevocable, the policy owner must obtain consent from the current beneficiary to make any changes.

What happens to life insurance if the policyholder gets divorced?

In many cases, a divorce can affect life insurance beneficiary designations. If the policyholder wants to change the beneficiary after a divorce, they should review the policy terms. If the designation is revocable, they can change it without consent. If it’s irrevocable, they will need the ex-spouse's consent to make any changes.