Can a Spouse Override a Life Insurance Beneficiary?

We all know that life insurance offers coverage to people like your household, especially when you pass away. In addition, if you purchase a life insurance policy, it’s usually common to choose your spouse as the primary beneficiary since they have unique legal rights and considerations in estate laws immediately after you die. However, the question asked is, can a spouse override a life insurance beneficiary?

Can a Spouse Override a Life Insurance Beneficiary?

The answer to the question is no. A spouse cannot override a life insurance beneficiary. However, complicated state regulation permits few exceptions, and the courts can determine the exception to be adhered to. Generally, immediately after the death of the policyholder, the death benefit is compensated to the beneficiaries depending on the state regulations that handle the policy. 

Moreover, it’s a good idea to consult a lawyer or other professionals about your choices. For this reason, you will get support offers that give you legal authority or verify a particular exception that can be applied to your circumstances.

How Does Life Insurance Beneficiary Work?

The death benefit on the policyholder’s policy will be offered to the beneficiary upon your demise. As a policyholder, you can choose many beneficiaries to obtain either the same or different shares. Generally, even if the main beneficiary isn’t your spouse, they will still receive compensation. This applies to most policyholders who do not update their policy and choose their ex as beneficiary.

However, if your main home is among one of the community property states, your spouse has the legal right to get half of the death benefit. In other words, the insurance provider will divide the compensation in half between the spouse and the named beneficiary depending on the state’s rules.

The following community property states:

  • Arizona.
  • Louisiana.
  • Idaho.
  • Nevada.
  • Wisconsin.
  • Texas.
  • New Mexico.
  • Washington.

In most cases, community property rulings divide the award equally between the spouse and the beneficiary. This simply means that a designated life insurance beneficiary can override the main spouse or a written will.

Types of Life Insurance Beneficiaries

Since a spouse cannot override a life insurance beneficiary, it’s still important that we know the types of life insurance beneficiaries. If you buy a policy, it’s mandatory to designate multiple people as beneficiaries. These individuals will collect the death benefit immediately after they die. The following are the main types of life insurance beneficiaries, such as

Primary beneficiary

The first person to get the death benefit is called the primary beneficiary. If the primary beneficiary is still living during the demise of the insured, they will have the legal right to a full payout or the percentage mentioned.

Contingent beneficiary

Also known as secondary beneficiary, is the next individual if the primary beneficiary is dead at the time of the policyholder’s death. In other words, the contingent beneficiary will receive the death benefit if the primary beneficiary is dead.

What Are Life Insurance Beneficiary Rules for Spouses?

Once the policyholder is dead, the life insurance beneficiary will be entitled legally to collect life insurance proceeds. As state rules governing life insurance beneficiaries vary from each other, some standard laws are applicable. Unless they say otherwise in the policy, a spouse in a community property state is recognized as the designated life insurance beneficiary.

Also, even if there’s someone named on the title or who earned it, every item and belonging during the marriage is regarded as ownership for both spouses. However, if there is a financial justification for them to be included, the late policyholder is allowed to designate anyone as a life insurance beneficiary. This could be children, parents, siblings, friends, or even a charity or other organization.

Final Thoughts

Without the policyholder’s permission, a spouse cannot override a life insurance beneficiary. In addition, the policyholder is demanded to update beneficiary designations, as they are legally binding. However, surviving spouses have some protections, such as the elective share provision, from state laws and spousal rights. You should review your life insurance and ensure your beneficiary designations are accurate.

Also, update the information if you have designated a deceased ex-spouse, a family member, or someone you just no longer want as a beneficiary. Occasionally, you can accomplish this online or by getting in touch with your insurance provider (or, when your employer provides insurance, your benefits department).

Additionally, remember to review your beneficiaries whenever either your personal or financial circumstances change or every few years. Furthermore, if you have any questions about your particular situation since state laws vary, you should consult an expert.

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