Life Insurance Beneficiary Laws In Texas

  • 4 min read
  • Apr 02, 2021

This statute applies when an insured designates his or her spouse as beneficiary and the couple later divorces. Alternatively the insured person may give written instructions to the insurance company.


Life Insurance Beneficiary Rules Texas Boonswang Law

Here we answer 10 FAQs about life insurance beneficiaries.

Life insurance beneficiary laws in texas. Some universal life policies have a no-lapse guarantee. The Texas code contains a divorce revocation statute. You can include this request in your divorce decree and the eventual payout will go to your ex-spouse.

Whether you are the named beneficiary or believe you should be call us for your free no-obligation. I put might in quotes because the only way to answer the question with certainty is to review the policy and the latest beneficiary designations on file. The Texas Family Code lists three exceptions to the rule that a former spouse cannot receive the proceeds of a life insurance policy after a divorce.

Included in this are life insurance policies retirement accounts like IRAs and 401ks joint accounts and other beneficiary-based accounts. Call our Life Insurance Law hotline at 215 531-7961 to get advice sympathetic understanding or even a confidential free case evaluation for your claim. The insured spouse redesignates the.

The person named or designated in the policy is called the beneficiary. A beneficiary of a life insurance policy or contract forfeits the beneficiarys interest in the policy or contract if the beneficiary is a principal or an accomplice in wilfully bringing about the death of the insured. If your spouse or ex-spouse named you as beneficiary and someone is disputing that you may still be paid.

This beneficiary will receive the life insurance payout upon the insureds death. Added by Acts 2001 77th Leg ch. The divorce decree names your ex-spouse as a beneficiary.

If your premium payments arent enough to cover the cost of insurance the no-lapse guarantee keeps the policy in effect. Life Insurance Law LLC is a nationwide network of attorneys who work with clients to recover denied or delayed life insurance. 1419 2 eff.

Life Insurance Beneficiary Rules for Spouse. The beneficiary may be a spouse a relative a child a friend a. A beneficiary is a person who is named in this contract as a recipient of the life insurance proceeds in the event of the insured persons death.

These require extra work to handle. A A life insurance policy may provide that the beneficiary of the policy be a trustee designated by will in accordance with the policy provisions and the requirements of the insurance company. There is always a possibility to make changes if life throws a situation.

According to FindLaw if the decree does not mention. Non-Probate Texas Inheritances. If you are an ex-spouse and your life insurance claim was denied you may still be paid.

There is no hard and fast rule that only your spouse or children can be named as your life insurance beneficiaries. A beneficiary of a life insurance policy or contract forfeits the beneficiarys interest in the policy or contract if the beneficiary is a principal or an accomplice in wilfully bringing about the death of the insured. Although naming your beneficiary is pretty straightforward there are still plenty of questions you may come across when making your decisions.

This contract outlines rules about naming changing or removing beneficiaries. Agents who sell variable life insurance in Texas must have a federal securities license and a state insurance license. There are a number of financial accounts that wont fit neatly into your estate.

Your life insurance beneficiary is the designated person or enitity that will collect your policys death benefit when you die. Added by Acts 2001 77th Leg ch. Life insurance beneficiary rules for spouses and ex-spouses vary by state.

Section 9301 of the Texas Family Code provides that a divorce decree will render ineffective a beneficiary designation in favor of a former spouse for a life insurance policy unless one of the following three exceptions applies. Texas Insurance Code 1103151. However if the life insurance policy only listed the wife as beneficiary and no secondary beneficiaries then the life insurance policy might be part of his estate.

B Except as provided by Subsection c on probate of a will described by Subsection a the life insurance policy proceeds shall be paid to the trustee. If you want the funds in these accounts to be included in your estate you must title your estate their. Simply put a life insurance policy is a contract between the insurance company and the owner of the policy.

If the couple divorces the ex-spouse is automatically no longer the beneficiary upon divorce. During divorce proceedings you may wish to keep your ex-spouse as a beneficiary on your life insurance for any number of reasons. In simple terms a life insurance beneficiary is a person who is entitled to receive the death benefit.

However a designation may fail or be successfully challenged for various reasons. Failure to provide the designation in a form that satisfies the insurance. If the former spouse has custody of minor children the divorce decree may name that spouse as beneficiary.

Beneficiary of a life insurance policy or contract forfeits the beneficiarys interest in the policy or contract if the beneficiary is a principal or an accomplice in wilfully bringing about the death of the insured.


Life Insurance Beneficiary Rules Texas Boonswang Law


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