When life changes, so should your beneficiary. Our client’s experience is a powerful reminder to take charge of your financial future by keeping beneficiary designations up to date.
Our client’s husband divorced his first wife decades ago, remarried, and spent the next 27 years happily married to his new spouse. When he passed away, however, his family was shocked to discover that his life insurance beneficiary designation had never been updated. His ex-wife – whom he had not seen in nearly three decades – was still listed as the beneficiary and immediately claimed the full policy amount.
Under federal law, life insurance companies are required to pay benefits strictly according to the plan documents. In this case, that meant the insurer was prepared to pay the ex-wife. What made the difference was JuneLaw’s ability to understand how ERISA interacts with Michigan state law – and connect those dots to protect our client’s rights.
Faced with losing the life insurance proceeds her husband intended for her, our client acted quickly to safeguard her future. Timing was critical: once an ex-spouse receives the funds, it can be extremely difficult to recover them. Thanks to her determination and swift action – and our experience navigating the overlap between ERISA and state law – she secured the benefits her husband meant for her.
Within a year, we were able to secure the life insurance proceeds for our client.
This case serves as a powerful reminder of how important it is to review and update your beneficiary designations regularly. Life events such as divorce, remarriage, or the birth of children can have lasting financial consequences if your policies and plans are not kept current.
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