Benefits can be contested during certain events, such as children of the deceased, suspected murder of the policy holder, and all beneficiaries are deceased.
1. If all beneficiaries are deceased, this will create problems concerning who gets the money. Arguments can arise from this type of situation, especially if other relatives become involved. If children are named beneficiary from different homes, this can create problems as to who gets what money first. When a person dies and is a beneficiary to one who has deceased prior to them, then the children become next in line to receive the benefits.
2. If the children receive these benefits, it is because they were named beneficiaries prior to the death. Some children that were not named as beneficiary may try to claim they were forgot or left out by accident, while all along were never named beneficiary to begin with. This type of situation can be held in the court system for a long time until it can be determined if they have a case or not.
3. Legal complications will arise when this type of thing is forced to be dealt with or when someone is accused of murder who is insured. If the policy holder suddenly dies for no apparent reason, an investigation will occur into the death in hopes of obtaining information, if foul play was involved or not. If foul play is suspected then the beneficiary will receive no money until all legal issues are worked through.
There will be an insurance investigation to determine cause of death and who will gain access to the money.If the issue can not be resolved through the insurance company, legal authorities will become involved and make the decision. With a murder the local police department will become involved to determine cause of death and to locate the suspect who they feel was involved with the murder. This can also hold up proceedings for collecting benefits from the deceased.
These type of problems can be avoided by keeping up-to-date with beneficiaries and the policy holders. Make sure to know for certain who you name as beneficiary and that they can be trusted with what you have to offer after your death.