Family disputes can sometimes lead to an heir being disinherited. Whether it’s due to concerns about preserving family wealth or ongoing mistreatment, it’s important to understand the legalities of excluding someone from your life insurance policy.
Life Insurance vs. Wills
Excluding an heir from your life insurance policy at Ottawa Insurance Agency is different from excluding someone from a will. Laws regarding wills vary by state, and individuals can often contest a will in court. Some people choose to leave all heirs at least one dollar to demonstrate they weren’t accidentally excluded from a will. However, it’s crucial to remember that a will does not override the beneficiaries listed on your life insurance policy.
Designating Life Insurance Beneficiaries
Life insurance policies in Zeeland, MI, allow you to designate beneficiaries for your policy. In the event of your passing, the policy would pay out a specified amount to your chosen beneficiaries. To exclude someone from your life insurance policy, do not list them as a beneficiary. If you wish to disinherit someone already listed as a beneficiary, you can contact your insurance company to have them removed.
Understanding Irrevocable Beneficiaries
Beneficiaries you can remove from your policy without their consent are revocable beneficiaries. Conversely, irrevocable beneficiaries require the individual’s permission to be removed from the life insurance policy. This typically applies in special cases. For instance, if someone purchased a life insurance policy while married, they might be legally required to name their former spouse as a beneficiary according to the divorce agreement.
The insurance agents at Ottawa Insurance Agency can help you understand how to include and exclude beneficiaries on your policy. We currently serve the Zeeland, MI area. Contact us for more information today.
