AboutMichael Feinberg, ChFC Expertise I am the Executive Director of Synergy Financial Services, concentrating in
life insurance, long term care insurance, and long-term and tax-advantaged
investing. I am licensed for Life, Health, and Securities. I am always happy to answer any questions you may have on any of these
topics.
I good frined of mine recently lost her husband to suicide. They have had their term life insurance policy for 5 years. I just found out that before her husband passed he changed the beneficiary on the policy to someone other than his wife. My question is this: is there a contestability period when a beneficiary has been changed?
Answer David, technically, "contestability" refers to the insurance company's right to investigate and possibly void a claim due to intentional misrepresentations on the application and is limited to the first 2 years of a policy.
My question here would be: Does your friend reside in a community property state which requires the agreement of a spouse to remove them as a beneficiary? I am not a state insurance law expert but am aware that some states require the signature of the spouse in order to remove them as the beneficiary. However, if they do not live in one of these states, and if he submitted a beneficiary change form that was valid, there may not be much that can be done.
I would consult a lawyer experienced in insurance law to see if there is any remedy against what has happened. It sounds like a pretty horrible situation all around.
