Florida Life Insurance Laws: An Attorney Explains the Rules Every Beneficiary Should Know
Life insurance laws vary widely from state to state, and Florida has some of the strongest protections for life insurance beneficiaries in the country. Whether your claim is delayed, denied, or tied up in a beneficiary dispute, understanding Florida life insurance laws can make the difference between recovering the benefits you’re owed and losing them entirely.
Florida Life Insurance Beneficiary Rules
Under Florida law, a life insurance beneficiary is the person or entity designated in the policy to receive the death benefit upon the insured’s passing. Most Florida life insurance policies clearly list a primary and contingent beneficiary. But when they don’t, or when beneficiary designations change—or should have changed—disputes often arise.
If No Beneficiary Is Listed
If a Florida life insurance policy does not name a beneficiary, the benefit usually goes to the insured’s:
Estate, or
Next of kin, depending on the terms of the policy.
This often requires probate, even though most life insurance policies are normally exempt from probate.
Beneficiaries Must Be Properly Designated
Florida requires that the insured:
Apply for the policy or
Provide written consent
A policy taken out on someone without their written consent is generally considered invalid under Florida law.
This prevents fraud, insurable-interest issues, and unauthorized policies.
Minors as Life Insurance Beneficiaries in Florida
A “minor” in Florida is anyone under age 18. When a minor is listed as the beneficiary:
The insurance company cannot immediately release funds to a child.
The insurer will usually hold the proceeds in a restricted account until the child turns 18.
Alternatively, a court-appointed guardian of the property may be required.
Beneficiaries and parents are often surprised by this rule, especially when large death benefits are involved.
Life Insurance and Divorce in Florida: Rights of Former Spouses
Florida’s automatic revocation-on-divorce statute is one of the most misunderstood life insurance laws.
How the Law Works
When a couple divorces in Florida, the law generally revokes the ex-spouse’s beneficiary designation automatically — as if they had been removed — unless:
The policyowner re-designates the former spouse after the divorce,
A marital settlement agreement specifically requires keeping the ex-spouse as beneficiary on this specific policy (e.g., to secure alimony or child support), or
The divorce court orders the policyowner to maintain coverage for their former spouse or children.
Frequent Outcomes
Many beneficiaries believe that a divorce automatically ends all rights to life insurance. But that is not always true:
If the policyowner is also the former spouse, they may still collect benefits from the insured’s policy.
If there was a court order requiring coverage, a wrongly removed or omitted beneficiary can sue to recover the proceeds.
If a policyowner attempted to keep their ex-spouse but failed to re-designate them correctly, litigation often follows.
ERISA Policies Override Florida Divorce Law
Many employer-provided life insurance policies fall under ERISA, a federal law.
ERISA overrides conflicting state laws.
This means:
The beneficiary listed in the ERISA plan documents gets the benefit — even if Florida’s revocation statute would normally revoke the ex-spouse.
This state–federal conflict is a common source of beneficiary disputes and often requires legal intervention.
Life Insurance With No Beneficiary or With a Deceased Beneficiary
When no valid beneficiary exists:
The benefit typically goes to the estate or next of kin.
If the primary beneficiary died before the insured, the contingent beneficiary collects.
If the primary beneficiary died after the insured but before submitting a claim, the proceeds go to the beneficiary’s estate.
Because timing matters, these cases often require death certificates for both individuals and may involve probate court.
Can a Family Member Sue for Life Insurance If They Are Not the Beneficiary?
Yes — but only under specific legal circumstances.
A relative can sue for life insurance benefits if they can show:
There was a court order (child support, alimony, divorce decree) requiring the policyholder to maintain coverage for them;
The policyholder wrongfully changed the beneficiary in violation of a legal obligation; or
The beneficiary changes were the result of fraud, lack of capacity, or undue influence.
These lawsuits are common in Florida, especially after divorce.
Wills vs. Life Insurance Policies in Florida
Life insurance policies are governed by contract law, not probate law—meaning they normally bypass wills and estates.
However, a policy does enter probate if:
The beneficiary is listed as “my estate,”
No beneficiary is named, or
The beneficiary died and no contingent beneficiary exists.
If a will names one person but the policy names another, the policy controls, not the will. This conflict frequently leads to litigation.
Do Beneficiaries Need an Insurable Interest?
A beneficiary does NOT need an insurable interest in the insured.
A policyowner, however, must have an insurable interest at the time the policy is taken out. In Florida:
A person cannot obtain a life insurance policy on someone else with no insurance interest without their written consent.
A policy issued without written consent is likely void.
Are Life Insurance Death Benefits Taxable in Florida?
Under IRS rules, life insurance death benefits are not taxable income to the beneficiary.
However:
Any interest paid on the delayed claim is taxable and must be reported.
Life Insurance Claims in Florida: Deadlines, Delays & Unclaimed Money
How Long Does a Beneficiary Have to File a Claim?
Florida does not impose a strict filing deadline, but waiting too long can cause:
Lost policy information
Archived insurer records
Delayed payments
Difficulty proving entitlement
Beneficiaries should file a claim as soon as they obtain the death certificate.
Unclaimed Life Insurance Benefits
If the insurance company cannot locate the beneficiary:
The money is turned over to the Florida Bureau of Unclaimed Property,
The beneficiary must later claim it through the state.
How Long Does It Take to Get Paid?
Most Florida life insurance claims are processed in:
30–60 days, once the insurer receives all required documents.
Florida law requires insurers to pay interest on death benefits held for more than 30 days.
Contestability Period in Florida
Most life insurance policies in Florida include a two-year contestability period.
If the insured dies during these first two years, the insurer may:
Investigate the application
Verify medical history
Check for misrepresentations
Request additional records
If the insured dies after two years, the insurer cannot deny the claim for application misrepresentation, except for narrow exceptions such as fraud involving non-payment of premiums or certain riders.
Grace Period for Life Insurance Premiums in Florida
Florida law requires a grace period of at least 30 days for premium payments. During this period:
The policy remains in force
The insured can still make payment
Coverage cannot be denied for late premium payment
Moreover, if the policy covers an insured age 64 or older (and was issued or delivered in Florida after October 1, 1997, and has been in force at least one year), the insurer cannot lapse the policy for nonpayment unless, after the grace period, the insurer mails a written notice of the impending lapse at least 21 days before the effective lapse date to the policy-owner and a designated secondary addressee (Fla. Stat. § 627.4555).”
The law also requires an insurance company to notify the applicant of the right to designate a secondary addressee at the time of application for the policy, on a form provided by the insurer, and at any time the policy is in force, by submitting a written notice to the insurer containing the name and address of the secondary addressee. This rule protects seniors from inadvertent policy lapse, one of the most common denial reasons.
Common Reasons for Life Insurance Claim Denials in Florida
Failure to pay premiums / policy lapse
Especially common for seniors who did not receive proper lapse notices.Revocation of an ex-spouse
Automatic revocation laws create beneficiary disputes.Material misrepresentation
During contestability, insurers may deny a claim if the application contained inaccurate or incomplete information.Beneficiary disputes
Divorce, competing relatives, and invalid beneficiary changes often lead to delays.
Need Help With a Life Insurance Claim or Denial?
Life insurance disputes are complex, especially when state laws on divorce, minors, estates, and ERISA all overlap. Our life insurance attorneys handle:
Denied claims
Delayed claims
Beneficiary disputes
Policy lapse challenges
ERISA appeals
Divorce-related beneficiary issues
Cases involving estates and probate
➡️ If your life insurance claim has been denied or delayed, call us for a free consultation at (888) 510-2212.
You do not have to fight the insurance company alone. We can help you understand your rights and recover the benefits your loved one intended for you.
