Will I get paid from life insurance after my dad passed?

My dad died suddenly at the end of July. I’m 22 (female), and he also had a younger daughter who’s almost 4. He divorced my mom in 2015 and got remarried in 2016, but he never updated the life insurance policy. Right now, the policy lists my mom as the main beneficiary, and I’m the backup. My mom believes that a Wisconsin law stops her from getting the money because they were divorced, but their divorce papers don’t mention life insurance payouts. I’ve seen some laws about it, but I’m confused. My mom doesn’t even want the money and wants it to go to me to split with my sister.

We both filed claims last week with the divorce papers attached, but I don’t know if I’m actually getting anything. Anyone know what to expect here? Thanks for any advice.

The insurance company will pay your mom, as she’s listed as the primary beneficiary. Sometimes, courts may make an ex stay as the beneficiary if there are still things like child support or alimony to pay. The insurance company won’t care why your mom is still listed—they just pay whoever the policy says.

Your mom could refuse the payout, and then the company would pay you as the backup.

Don’t listen to what people say. It’s all about what’s written in the policy. Whatever it says, that’s what’s going to happen.

Your mom will get the money, no need to worry.

Life insurance is a legal contract. If your mom is listed as the beneficiary, the money will go to her. Sorry about your loss.

Blayne said:
Life insurance is a legal contract. If your mom is listed as the beneficiary, the money will go to her. Sorry about your loss.

Even with a law that cancels her rights to it after the divorce?

@Gray
No, state laws can’t take away a person’s rights as a beneficiary just because they got divorced.

Avery said:
@Gray
No, state laws can’t take away a person’s rights as a beneficiary just because they got divorced.

Actually, yes they can. Some states do have what’s called divorce nullification.

Your mom can choose to decline the money, and then the insurance will pay whoever is next on the list (you).

In most cases like this, the ex-spouse still gets paid. Your mom could either turn down the money or take it and share it with you.

Dakota said:
In most cases like this, the ex-spouse still gets paid. Your mom could either turn down the money or take it and share it with you.

What about the state law that stops her from getting it after the divorce? I heard 26 states have this.

@Gray
It depends. If this was a policy from work, it might follow federal rules (ERISA), and that could be stronger than state law.

My parents divorced too, and when my mom passed, my dad was still listed as the beneficiary. He had to fill out a form giving up the money, and then it went to me and my sibling. I’m not in Wisconsin, but I don’t think there’s a law that can override a named beneficiary. You can list anyone—family, friend, anyone.

@Lior
In 26 states, they stop the ex from getting life insurance money after a divorce. My mom’s not planning to sign anything even though she says it should go to me.

@Lior
Did your dad sign the form on his own, or did the insurance company make him do it? Also, which state if you don’t mind sharing?

Sorry for your loss.

Insurance companies don’t look at divorce. They just follow who’s listed as the beneficiary. So if your mom is the one named, she’ll get the money. She can choose to turn it down and then it would go to you.

Is life insurance taxable? If your mom doesn’t want it, could the person with the lower taxes claim it?

Tamsin said:
Is life insurance taxable? If your mom doesn’t want it, could the person with the lower taxes claim it?

No, life insurance payouts aren’t taxable.