Ningbo Divorce Insurance Beneficiary Change

If you forget to change the beneficiary of the insurance policy after divorce, can your ex-spouse still get the death insurance? Conclusion: Yes. As long as the beneficiary designation has not been updated at the time of divorce, the death benefit may still be paid to the former spouse according to the terms of the insurance contract—divorce itself does not automatically amend the designated beneficiary. Although the insured may unilaterally change or revoke the beneficiary, they must formally submit a written request to the insurance company and obtain an endorsement; merely stating in a divorce agreement that “the beneficiary is changed to the children” does not automatically take effect against the insurance contract. This paper combines the "Insurance Law" and judicial interpretation, the relevant provisions of the Civil Code, the beneficiary change rules, circumstances, operation and common misunderstandings.

1. legal characterization: the beneficiary of the insurance policy is a contractual relationship, and divorce does not directly change the designation

Many people think that "I am divorced, why should my ex-husband (wife) get my death insurance money", but from the legal point of view, the beneficiary status comes from the designation of the insurance contract, not the marriage relationship. The life insurance contract is a commercial contract concluded between the insured and the insurer, and the beneficiary is the person who designates the right to claim insurance benefits at the time of the insurance accident. In other words, as long as the name of the former spouse is still written on the policy and has not been changed according to law, the insurer shall pay the insurance money to the designated beneficiary in the event of an insurance accident.

The relevant legal basis needs to be put together:

1. Article 39 of the Insurance Law: The beneficiary of life insurance shall be designated by the insured or the policyholder; the policyholder shall obtain the consent of the insured when designating the beneficiary. The most common scenario in divorce disputes involves one spouse insuring themselves and designating the other spouse as the beneficiary; in such cases, the insurer and the insured are the same person, and the right to designate the beneficiary is fully vested.
2. Article 41 of the Insurance Law: The insured or the policyholder may change the beneficiary and notify the insurer in writing; after receiving the written notice of changing the beneficiary, the insurer shall annotate or attach an endorsement on the insurance policy or other insurance certificates; the policyholder must obtain the consent of the insured when changing the beneficiary. This article is the operational core of the full text-changing the beneficiary is "application + written notice + insurer's endorsement" three actions, one of which is indispensable.
3. Article 42 of the Insurance Law: If there is no designated beneficiary, the beneficiary dies before the insured and there are no other beneficiaries, and the beneficiary loses or waives the beneficial right according to law and there are no other beneficiaries, the insurance money shall be treated as the inheritance of the insured (the inheritance law pointed to by the original article is now undertaken by the inheritance code of the Civil Code). This article determines where the money goes when "no one is the beneficiary", I .e. it is treated as legal inheritance.
4. Article 43 of the Insurance Law: If the beneficiary intentionally causes the death, disability or illness of the insured, or attempts to kill the insured intentionally, the beneficiary loses the right to benefit-this is a very small number of exceptions of "even if it is specified", which has nothing to do with divorce.

need special tips: currently, there is no law stipulating that "the original spouse automatically becomes invalid as the beneficiary after divorce". There has been a view that the introduction of the rule of "divorce automatically revokes the designation of spouse beneficiary" by reference to extraterritorial legislation, but China's insurance law and judicial interpretation have not been adopted, and the mainstream caliber of judicial practice is still "subject to the insurance contract agreement, the fact of divorce does not automatically deny the validity of the contract". Therefore, the only reliable action to prevent risk is to complete written changes before and after the divorce.

2. Dissecting three typical scenarios one by one

According to the difference between the insurance relationship and the beneficiary structure, the policy treatment in the divorce scenario can be divided into the following categories:

Case 1: One party insures itself and designates the original spouse as the beneficiary, which has not changed after the divorce. This is the most risky category. The insured and the insured are the same person. If they die after divorce, the insurer will pay the death insurance to the original spouse according to the contract. The former spouse "takes money with an old policy", and the children and current relatives will fail. Such disputes are not uncommon at the claims end, and the court usually finds that the insurer is not at fault for making contractual payments, and that the real fault lies in the policyholder's failure to change them in a timely manner.

Case 2: The policyholder insures the spouse and is the policyholder himself. For example, the husband insures his wife and designates himself as the beneficiary. After the divorce, the husband continues to pay and the insurance policy continues to be valid. At this time, if the applicant wants to change the beneficiary (for example, change to children), the consent of the insured (ex-wife) shall be required according to Article 41 of the Insurance Law. If the ex-wife does not agree, the paths that the applicant can choose include: negotiating with the ex-wife to take over the policy and pay the cash value consideration, negotiating to surrender the divided cash value, or suing to divide the cash value of the policy before taking out insurance. In practice, mutual insurance policies (mutual insured, mutual beneficiary or mutual insured) are most likely to be ignored in the event of divorce and must be set out in the divorce agreement.

Case 3: The beneficiary is the child. Divorcing parties often verbally agree that "insurance is left to the child", but if the beneficiary column on the policy still says the original spouse, or if the beneficiary is not designated at all, the oral agreement has no antagonistic effect. The designation of the child as the beneficiary is also subject to a written change, and if the agreement is to insure the child and the premium is paid by one party, it also involves the insured, the renewal of the payment and the attribution of the cash value, which shall be fixed by the change document.

Case 4: The policy does not designate the beneficiary or the beneficiary dies before the insured. At this time, the insurance premium shall be treated as the estate of the insured according to Article 42 of the Insurance Law, and it shall be dealt with according to the inheritance code of the Civil Code-if the insured has a will on the estate, it shall be divided equally by the first order heirs (spouse, children and parents) without a will. If the divorce does not remarry and there is no other first-order heir, the children may not be able to monopolize, and may also lead to the former spouse's claim to inheritance, which needs to be resolved according to the rules of inheritance.

How to write the 3. divorce agreement to work

The divorce agreement can agree on the ownership of the insurance policy and the change of the beneficiary, but we should pay attention to its validity boundary: the agreement is the internal agreement between husband and wife, which can bind both parties, can not directly change the beneficiary designation of the insurance contract, and can not oppose the insurer to pay according to the contract. The correct approach is to bind "agreement" with "handling:

1. Separate the "insurance terms", and list the policy number, insurance company, insurance type, policyholder, insured, beneficiary status and premium payment method one by one;
2. make clear who the insurance policies under their respective names belong to, who pays the renewal premium, and how to compensate the cash value (for example, compensate the other party according to half of the cash value at the time of insurance, or share according to the paid premium);
3. It is stated that "within X days from the date of obtaining the divorce certificate, both parties shall submit the beneficiary change application to the insurance company jointly/by the insured", and write the changed beneficiary and share to death;
4. The treatment of the mutual insurance policy states the choice: change the policyholder/surrender division/one party gives up and compensates;
5. agree on the consequences of breach of contract (such as liquidated damages for failing to cooperate in handling changes within the time limit), and keep the original agreement, service and reminder records as the evidence of accountability in the future.

Please note: For insurance policies that provide benefits upon death, if the policyholder applies to change the beneficiary, the insured’s written consent is required; once the insured has passed away, the policyholder no longer has the right to make such a change. Only when both “clearly drafting the divorce agreement” and “completing all insurance-related procedures” are done simultaneously can the process be considered truly closed-loop.

Remedies and Dispute Handling after 4. Found Missing

has been divorced and forget to change, remedy according to the following order: first, immediately check all the insurance policies -- check the insured and the beneficiary through the insurance company customer service, online insurance policy service, "Jinshi Tong" and other official personal insurance policy inquiry channels; second, the insurance policy under the name of the insured, I can directly submit the change application, without the cooperation of the former spouse, the focus is to prepare identity documents, insurance policies and written application for change; third, if the applicant is a former spouse and needs his cooperation or consent, he shall first negotiate, and if the negotiation fails, he may sue for division of the policy rights and interests and request for change or compensation; fourth, if the insured has died and the compensation has been paid to the original beneficiary, if the other party thinks that the insurance is the joint property of husband and wife, claims the division of insurance or recovery, it shall be claimed, support depends on the source of the insured funds, the point of time designated by the beneficiary and the contractual agreement, the results vary from case to case, do not copy the conclusions of others.

There is still a misunderstanding in the process of claim settlement that needs to be clarified: insurance companies only examine the insurance contract and the beneficiary's designated documents, not the divorce judgment or divorce agreement, when examining the death claim settlement. If you want to rely on the "divorce certificate" to stop the compensation, it is not feasible in procedure. If you are worried that the former spouse will not hand over the children after receiving it, you should change the beneficiary and share in place before you live, instead of pinning your hopes on recovery afterwards.

5. don't forget: the cash value of the marriage policy should also be divided

The change of the beneficiary solves the problem of "who will be given the money after death", and there is an independent problem at the time of divorce: the cash value of the insurance policy that uses the joint property of the husband and wife to pay the premium within the marriage belongs to the joint property of the husband and wife, and the divorce should be dealt with together. The cash value is the property interest that the policyholder can obtain before the withdrawal or expiration of the policy, written in the policy cash value table, belongs to a "potential deposit" in the name of the policyholder, and is divided by common property in practice:

1. The party who continues to hold the policy should compensate the other party for half of the cash value at the time of divorce. The policy itself is not transferred, and the premium is continued to be paid by the holder;
2. If both parties are unwilling to continue the insurance, they can negotiate to surrender the insurance and divide the surrender premium. However, surrender will result in loss of part of the premium and loss of protection, so it is generally not recommended to surrender the insurance easily;
3. For those who take out insurance before marriage and continue to pay the premium with common property after marriage, they shall be divided according to the cash value corresponding to the premium paid after marriage, and the part already formed before marriage belongs to the insured;
4. If the policyholder and the insured are inconsistent, and one party requests to undertake the insurance policy but the other party does not agree, the court may request to decide to change the policyholder or divide the cash value, and after the decision, the insurance company shall handle it with the effective document.

There are two reminders related to the beneficiary problem: firstly, the agreement of the beneficiary does not affect the common property attribute of the cash value of the insurance policy -- even if the children are appointed as the beneficiary, the cash value formed by the marital insurance still needs to be divided when divorce occurs, and the two are two sets of rules; secondly, the survival annuity, maturity payment and dividends already received during the existence of the marriage relationship are obtained based on common property insurance, in practice, it is mostly recognized as common property and may claim division in the event of divorce, while insurance compensation obtained by one party for personal injury belongs to personal property in accordance with Article 1063 of the Civil Code and does not participate in the division. It is much more labor-saving to settle these accounts once in the divorce agreement than to repeatedly pursue them later. In addition, the cash value of the policy for the children (the insured is the father or the mother) also belongs to the property of the insured, and arrangements can be made in the event of divorce on "who bears the subsequent premium and how to compensate for the cash value", and it is agreed not to surrender or change the beneficiary without the consent of the other party, so as to prevent one party from transferring property through surrender.

6. FAQ

Is the former spouse still entitled to death insurance after divorce?

If there is no change at the time of divorce and the policy designates him as the beneficiary, the death claim will still be paid to the former spouse according to the contract. Divorce is not a statutory beneficiary change or invalidation, do not think that "divorce automatically expires".

Can I unilaterally change the beneficiary myself?

Yes, but there are conditions: if the insured himself is the insured, he can unilaterally change and notify the insurer in writing without the consent of the former spouse; if the insured is the former spouse and needs to change, the insured must get the consent according to Article 41 of the Insurance Law, otherwise the change is invalid.

Does the divorce agreement still count if it says "the beneficiary belongs to the children?

The agreement is binding on both parties, but does not necessarily change the designation of the insurance contract. The child must actually submit a change application to the insurance company and obtain an endorsement in order for the child to become a beneficiary of the contract.

How to deal with the policy of mutual investment after marriage and divorce?

Negotiable options include: surrendering the policy and dividing the cash value, changing the policyowner while continuing coverage, or one party waiving their rights in exchange for compensation. The cash value of a policy that pays premiums on joint property during marriage belongs to the joint property of the husband and wife, and the divorce should be dealt with together, leaving behind the aftermath.

The claim has been paid to the former spouse, can it be recovered?

Generally, it can't claim directly to the insurance company (it pays according to the contract without fault), and it can only recover compensation from the original beneficiary based on the divorce agreement or property division agreement. Whether it can be supported depends on the agreed content and capital contribution, which makes it difficult to prove. Therefore, it is far more cost-effective to "change in place before death" than "chasing after the event.

Practical experience of 7. lawyers

Forgot to change the beneficiary of the insurance policy after divorce, which is the pit where many people clap their legs. Divorce itself will not automatically change the beneficiary specified in the insurance contract. As long as the change is not handled with the insurance company, the death claim may still be paid to the former spouse according to the contract. So don't think that if you write a beneficiary in the divorce agreement to change to a child, everything will be fine-the agreement does not automatically fight the insurance contract, what really works is the step you said: propose a change to the insurance company and get an endorsement. This step may seem trivial, but it directly determines who will end up with the money.

The insured himself has the right to unilaterally change or revoke the beneficiary, but the action is not complicated: sort out all the policies under the names of himself and his spouse, check the policyholder, the insured and the beneficiary one by one, and submit a written change application to the insurance company for those that need to be changed, and only after receiving the comment or receipt can it be counted as landing. Don't just change one or two copies. You have to go through serious illness, term life insurance and annuity. The cash value of the policy formed by the premium paid in marriage is also a divisible property, and don't forget this piece when the divorce is divided, its value is often underestimated.

If the ex-husband (wife) has died and the settlement of claims has been initiated, it is found that there is no change, whether to claim it back depends on whether the change is actually handled and how to recognize the contract and the agreement at that time. The proof and responsibility of such disputes are very heavy, and the best strategy is to handle it in advance. A reminder to remarried families: after reorganizing the family, the beneficiary setting should be more clear, and the arrangement of spouse and children should be straightened out to avoid fighting between the old and new relationships on the same insurance policy. While you’re going through the divorce proceedings, take the opportunity to address property division as well—this can help avoid many future complications.

The key to changing the insurance beneficiary is this one sentence: Change it immediately upon divorce. Specific suggestions: make a list of all policies (including mutual insurance policies and policies for children) before divorce, and confirm the policyholder, insured and beneficiary one by one; The divorce agreement lists the insurance terms separately, and clearly writes down the change time limit, beneficiary, cash value compensation and liability for breach of contract; Immediately after receiving the license, the change will be completed and the certificate will be retained according to the three steps of "written application-notification to the insurer-approval. Do not falsify change applications or reverse dates, such materials may be found invalid or even lead to adverse consequences in litigation.