Insurance Companies and Payments to Beneficiaries

From time to time I find interesting and relevant articles online that I post to various social media sites, except my blog. Makes no sense, since purpose of this blog is to provide meaningful wealth management information to help consumers better protect their financial security.

Therefore, I am going to start posting a mixture of original content articles and material I find on the internet, beginning with this troubling, yet not surprising revelation about insurance companies not paying or trying to pay beneficiaries. Many times I have handled cases where the beneficiary was unaware that they were a beneficiary. In such cases, do insurance companies have the right to keep the money without making any effort to locate the beneficiary? As an attorney, I often hear about cases where former spouse was the actual beneficiary due to the other spouse’s failure to legally change the beneficiary form to name their new spouse. Divorce agreement said that spouse would do so, but never did. Should insurance company benefit from spouse’s failure to act?

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