New Mexico Life Insurance
Reader’s Question:
Are there any grounds under which one can question a life insurance beneficiary? If so, please explain. I live in New Mexico.
Shiela
Albuquerque, NM
Disputes of a New Mexico life insurance policy are very rare. But if there are any, it usually involves cases wherein the insured man remarries and the present wife is prejudiced as the ex-wife remains to be the beneficiary of his life insurance.
Another example is when a person with 5 children holds a life insurance policy and suddenly dies. In his policy, only 4 kids are declared to be his beneficiary since the youngest child was not included yet at the time of the purchase.
In both examples, it is a necessary measure to notify the life insurance company right away of the circumstance and expect hat there might commence a long and tedious legal dispute. Once a dispute is submitted, the insurance company will convey the life policy benefit to a trust supported by a state court. It is the court that will decide the legitimacy of the petition.
But then again, I believe it is solely up to the policy holder to alter the beneficiary or describe his beneficiary. Legal issues would come into place if he/she passes away without having the chance to cure any faults regarding beneficiary.
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