Life Insurance Beneficiary Rules for a Spouse: Can a Husband or Wife Override the Policy?
A Life Insurance Lawyer’s Comprehensive Guide to Spousal Rights, Divorce Orders & Beneficiary Disputes
Life insurance beneficiary disputes involving a spouse are some of the most common — and most confusing — conflicts our life insurance attorneys handle. Families often assume that a spouse is automatically entitled to life insurance proceeds after the insured dies. Others believe a husband or wife can always override the beneficiary designation and claim the payout. Unfortunately, neither assumption is universally true.
Life insurance is fundamentally a contract, and the rules surrounding beneficiary rights depend on:
State law
Federal law (including ERISA)
Community property rules
Divorce decrees and court orders
The terms of the life insurance policy
How and when premiums were paid
Whether a beneficiary is revocable or irrevocable
This guide breaks down exactly how spousal rights work, when a spouse can or cannot override a beneficiary, and what to do when a dispute arises.
If you need legal help now, call (888) 510-2212 for a free consultation with a life insurance lawyer.
Is a Spouse Automatically the Beneficiary of a Life Insurance Policy?
In most cases, no — spouses are not automatically the beneficiaries of life insurance policies. Unless a policy specifically requires a spouse to be named (which is rare), the policy owner is free to name anyone as a beneficiary:
Current spouse
Former spouse
Children
Other relatives
Trusts
Business partners
Friends
Charities
Revocable vs. Irrevocable Beneficiaries
The right to change a beneficiary depends on the designation type:
Revocable Beneficiary
Most common
Can be changed at any time
Spouse has no guaranteed right unless named
Irrevocable Beneficiary
Cannot be removed or changed without their permission
Often used in divorce cases or estate planning
Gives the beneficiary strong legal protection
If the insured names a spouse as an irrevocable beneficiary, the spouse cannot be removed — even if the insured remarries.
Court Orders & Divorce Decrees Can Control Beneficiary Rights
One major exception to “the policyholder can choose anyone” is when a court order or divorce decree requires the insured to maintain life insurance for a specific person.
For example:
A divorce judgment may require the husband to carry a $250,000 life insurance policy for the benefit of his minor children.
If this order exists:
He cannot remove the children as beneficiaries
He cannot replace them with a new spouse
The insurance company must be notified
The designation should be made irrevocable
Failure to follow the divorce decree often results in:
Lawsuits
Interpleader actions
Delayed payouts
Wrongful beneficiary claims
A life insurance attorney is often necessary to enforce the court order or challenge an unlawful beneficiary change.
What Happens When There Is No Named Beneficiary?
If the insured dies without a valid beneficiary listed, most policies follow a built-in order of precedence, such as:
Surviving spouse
Children
Parents
Estate
Some policies automatically pay the spouse; others do not. Always check the actual policy language.
Can a Spouse Override a Beneficiary on a Life Insurance Policy?
The answer is: sometimes yes, sometimes no. It depends on three major factors:
1. Where the couple lived — community vs. non-community property states
2. How the premiums were paid
3. Whether federal law (ERISA) overrides state law
Let's break it down.
Life Insurance & Community Property States: When a Spouse Has Rights
In community property states, spouses share ownership of assets acquired during marriage — including life insurance purchased with marital funds.
Community property states include:
Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin
(Alaska and Tennessee allow optional community property agreements.)
If a policy was purchased using marital (community) funds:
The surviving spouse may have a legal right to half of the death benefit, even if they are not the named beneficiary.
Example:
Husband buys a $500,000 policy using community funds
Names his adult son from a prior marriage as the beneficiary
He dies
Wife may claim $250,000 as her community property share
The son receives the remaining $250,000
These cases often result in lawsuits or interpleaders because both parties have legal claims.
Exceptions
Community property laws may NOT apply if:
The policy was purchased before marriage
Separate funds were used
A postnuptial agreement waived rights
The policy is employer-sponsored and governed by ERISA
Are Life Insurance Policies Marital Property?
It depends on:
State laws
Type of policy
Whether cash value accumulated
Source of premium payments
Policies with Cash Value (Whole, Universal Life)
Often treated as marital assets during divorce.
Term Life Insurance
Usually not considered marital property unless community property rules apply.
ERISA: When Federal Law Overrides Spousal Rights
Many employer-sponsored group life insurance policies are controlled by ERISA, a federal law.
Key ERISA rule:
The plan must pay the named beneficiary — even if state law or a divorce decree says otherwise.
This means:
Community property laws do not apply
Revocation-on-divorce laws do not apply
The ex-spouse may still receive the payout if still listed as beneficiary
This is one of the most common causes of beneficiary disputes.
Elective Share Rights and How They Affect Life Insurance Policies
In some states, (for example, Florida) a surviving spouse who was intentionally disinherited may still have powerful legal protections that impact life insurance payouts. Florida’s elective share law allows a surviving spouse to claim 30% of the decedent’s elective estate, regardless of what the will says. While life insurance policies paid directly to a named beneficiary are generally considered non-probate assets, they can become part of the elective estate if the policy had no named beneficiary or the estate was designated as the primary recepient. In these cases, a surviving spouse may argue that the life insurance proceeds should be partially included when calculating the elective share. Disinherited spouses often use this statute to recover a portion of life insurance money when a policy was purchased with marital funds, premiums were paid from marital income, or the insured attempted to bypass spousal rights by naming another beneficiary. If you believe elective share laws may affect your life insurance claim, a life insurance lawyer can evaluate whether you have a legal right to recover part of the policy proceeds.
Can Spouses Waive Rights to Life Insurance Benefits?
Yes. Spouses can sign:
Prenuptial agreements
Postnuptial agreements
Divorce settlement agreements
These waivers must:
Comply with state law
Clearly reference the policy
Notify the insurance company
Many disputes arise when:
The waiver was unclear
The insurer was never notified
The waiver did not meet legal requirements
A life insurance lawyer can analyze whether a waiver is valid.
What Happens When an Ex-Spouse is Still the Beneficiary?
This is one of the most frequent disputes we handle.
Possibilities include:
1. Revocation-on-divorce statute applies
Many states automatically revoke an ex-spouse as beneficiary unless:
A divorce decree required them to remain
There is a written agreement
The policy is not governed by ERISA
The insured reaffirmed them after divorce
2. ERISA overrides state law
If the policy is through work:
The ex-spouse stays the beneficiary
Even if the insured meant to remove them
3. The insurer files an interpleader
If two parties claim the policy, the insurer will:
Deposit the money with the court
Let a judge decide
Withdraw from the dispute
This delays payouts and requires legal representation.
When to Hire a Life Insurance Lawyer
You should consult a life insurance attorney if you are facing:
Beneficiary disputes between a spouse and ex-spouse
Conflicts involving community property
Divorce decree or court order issues
ERISA preemption problems
Denied or delayed life insurance claims
Competing claimant situations
Suspicion of fraud or improper beneficiary changes
These cases are legally complex and emotionally draining. Our attorneys handle:
Interpleader lawsuits
Appeals of denied claims
Beneficiary contest litigation
ERISA claim disputes
Enforcement of divorce orders
Community property claims
We work on a contingency fee basis — no fee unless we recover the death benefit.
Get Help With Spouse Beneficiary Rights Today
Life insurance beneficiary rules involving a spouse vary widely depending on state law, federal law, and individual policy terms. If you are unsure of your rights or believe a payout is being wrongfully denied or misdirected, speak with a life insurance lawyer immediately.
📞 Call (888) 510-2212 for a free consultation.
We help beneficiaries resolve complex life insurance disputes and recover the proceeds they are legally entitled to.
