U.S. Supreme Court Decisions About Life Insurance: Key Rulings That Affect Beneficiary Rights, ERISA Claims, and Payout Disputes
Life insurance disputes often end up in federal court, especially when the policy is governed by ERISA, impacted by federal preemption, or tied to federal employee benefits like FEGLI or SGLI. But the cases that reach the United States Supreme Court carry enormous weight—they shape how life insurance companies handle claims, how beneficiaries are determined, and how disputes must be resolved.
If your life insurance claim has been denied, delayed, or caught in a legal dispute, it is critical to understand these Supreme Court rulings—and how they may affect your case.
This comprehensive guide breaks down the most influential U.S. Supreme Court decisions impacting life insurance claims, beneficiary rights, ERISA litigation, divorce and life insurance disputes, federal employee life insurance programs, and preemption issues.
If you need legal help with a denied or contested life insurance claim, call Kadetskaya Law Firm LLC at (888) 510-2212 for a free consultation.
1. ERISA and Life Insurance: The Supreme Court’s Impact on Beneficiary Rights
Because most employer-provided life insurance policies fall under ERISA (Employee Retirement Income Security Act of 1974), the U.S. Supreme Court plays a major role in interpreting how these benefits must be paid.
Several landmark cases define how ERISA plans must treat beneficiary designations—and these often override state law, divorce decrees, community property rules, and even equitable arguments.
Here are the most important decisions.
2. Kennedy v. Plan Administrator for DuPont (2009)
The Supreme Court requires strict adherence to the policy’s beneficiary designation—even if a divorce decree says otherwise.
This is one of the most important life insurance beneficiary cases in U.S. history.
Background
A husband named his wife as the beneficiary.
They divorced.
Their divorce decree stated the wife waived her right to benefits.
The husband never changed the beneficiary on the life insurance policy.
When he died, the plan administrator paid the ex-wife.
The daughter sued, arguing the ex-wife waived her rights.
Supreme Court Decision
The Court ruled:
The plan administrator must follow the plan documents—even if a divorce decree says the ex-spouse waived her rights.
Why This Matters
Divorce decrees do not automatically remove an ex-spouse.
Beneficiary designations control—even if outdated.
ERISA preempts state “revocation-upon-divorce” statutes.
Practical Impact
If someone dies without updating their beneficiary form, the listed person—even an ex-spouse—will likely receive the payout.
3. Hillman v. Maretta (2013) — FEGLI Life Insurance
Federal employee life insurance (FEGLI) must be paid to the named beneficiary—even if a state law says otherwise.
This case involves the Federal Employees’ Group Life Insurance (FEGLI) program.
Background
A federal employee named his wife as the FEGLI beneficiary.
They later divorced.
He never changed his beneficiary form.
Upon his death, his ex-wife collected the FEGLI proceeds.
The widow sued under a Virginia law that automatically revokes an ex-spouse after divorce.
Supreme Court Decision
The Court ruled:
FEGLI is governed by federal law, which overrides state statutes. The named beneficiary must be paid—even if it’s an ex-spouse.
Importance
FEGLI beneficiary forms control the payout.
State “revocation on divorce” laws cannot interfere.
Families have limited recourse if the form is outdated.
4. Ridgway v. Ridgway (1981) — SGLI Military Benefits
Military life insurance (SGLI) is strictly controlled by federal law—even over court orders and divorce judgments.
This decision is crucial for Servicemembers' Group Life Insurance (SGLI) cases.
Background
A service member named his ex-wife as beneficiary.
A divorce decree required him to maintain life insurance for his children.
He remarried and changed the beneficiary to his new wife.
When he died, both the ex-wife and widow claimed the benefit.
Supreme Court Decision
The Court held:
Federal law governing SGLI preempts any state-level divorce decree. The named beneficiary receives the payout—period.
Implications
State court orders cannot override SGLI forms.
Children and ex-spouses cannot claim SGLI unless listed.
Military families must keep beneficiary forms current.
5. ERISA Procedural Violations & Full and Fair Review Requirements
Although not tied to a single landmark case, the Supreme Court has repeatedly emphasized ERISA’s core principles:
Beneficiaries must receive a full and fair review.
Insurers must follow the plan's written terms.
Courts must defer to plan administrators only if procedures are followed properly.
Improper claim handling—such as failing to disclose documents, ignoring medical evidence, or using biased reviewers—may justify overturning a denial.
6. How These Supreme Court Decisions Affect Life Insurance Claims Today
These rulings create predictable but sometimes harsh outcomes:
1. Beneficiary forms are important.
They control the payout—even over:
Divorce decrees
Court orders
Wills
State laws
Verbal agreements
2. Federal preemption is powerful.
FEGLI, SGLI, and ERISA plans all follow federal rules—not state courts.
3. Family expectations often don’t match legal reality.
Adult children, widows, or new spouses often lose claims because beneficiary designations were never updated.
4. Insurers rely on these cases to justify denials.
Life insurance companies frequently use Supreme Court rulings to:
Deny competing claims
Pay ex-spouses
Avoid paying estates
Keep from litigating disputes
This is why having a knowledgeable life insurance lawyer is essential.
7. When to Hire a Life Insurance Lawyer
You should call an attorney immediately if:
A life insurance policyholder died after failing to update beneficiary forms
An ex-spouse is claiming benefits
A divorce decree promised life insurance to a child or spouse
You believe the wrong person is receiving the payout
The insurer issued an interpleader lawsuit
You are dealing with FEGLI, SGLI, or ERISA life insurance
The claim is delayed or denied
The insurer is citing federal preemption
These cases are complex, and the stakes are high.
8. How Kadetskaya Law Firm LLC Helps in Life Insurance Disputes
At Kadetskaya Law Firm LLC, we represent beneficiaries, spouses, children, and estates in life insurance disputes across the United States. We have extensive experience handling:
ERISA life insurance appeals
FEGLI and SGLI beneficiary disputes
Ex-spouse and divorce-related claims
Denied or delayed payouts
Conflicting beneficiary claims
Interpleader lawsuits
Bad faith claim handling
Accidental death & AD&D denials
We know how insurance companies use Supreme Court rulings to avoid paying claims—and we know how to fight back.
Call for a Free Consultation
If your life insurance claim has been denied, delayed, or contested—and especially if the insurer is citing a U.S. Supreme Court decision or federal preemption—do not try to fight this alone.
📞 Call (888) 510-2212 for a free consultation.
You will speak directly with an experienced life insurance attorney who can evaluate your case, explain your rights, and help you recover the benefits you deserve.
