I assumed ownership of a life insurance policy on my brother after my father passed away. At the time, I had assumed that I was the only beneficiary based on previous conversations with my father. Also, at the time I assumed ownership of the policy upon my father’s passing, the insurance company did not inform me—nor did I ask—about the current beneficiaries and whether I wanted the beneficiaries to remain the same. Unfortunately, my brother passed away and upon submitting a claim with my insurance company I learn that my father’s wife is the primary beneficiary and that I am a contingent beneficiary. I am at a loss, as I was completely unaware of this and furthermore she has nothing to do with me or my brother. My insurance company told me that it was too late to change beneficiaries after the claim for the insurance proceeds was submitted. Is there anything that can be done to change the beneficiary at this point or any recourse that I can take against the insurance company for not notifying me upon my assumption of ownership of the beneficiaries?

  1. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    First, and foremost, I am very sorry for your losses.  Given the circumstances as you have described them, to the best of my knowledge, there is no way to change the beneficiary at this point since your brother is now, unfortunately, deceased.  Had you asked about this at the time of ownership transfer and then you had not been informed of the terms and conditions of the policy, that would be one thing.  However, if as you stated you did not ask, I am not honestly sure that you have any recourse at this time.  Moving forward, working with your Insurance Professional who will regularly review your policies with you can avoid such circumstances.
    Answered on February 10, 2014
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