Article Archives >> Lead Stories >> April 16-30, 2006
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Insured May Not Change Beneficiary
Of Life Insurance By Provisions in Will
Even a specific reference to the policy to be changed
does not prevail over terms of contract
An insured may not change the beneficiary of a life insurance policy by direction in a will, even where the will specifically refers to the policy, when the policy establishes a different procedure for change, according to an appellate court in New York.
Martha Hubbard took out a $200,000 life insurance policy in 1985. She followed the policy’s procedure to change the beneficiary twice, ultimately naming an individual as beneficiary if her son did not survive her. In 2003, she wrote a will in which she specifically said that only $25,000 of the proceeds should go to the named individual (who had survived her son), and the remainder should be distributed to other individuals and several charities.
Article Archives >> Lead Stories >> April 16-30, 2006
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