New York City Life Insurance Interpleader Lawyers

Facing a Life Insurance Dispute in NYC? We Can Help.

When multiple people claim the same life insurance benefits, the insurance company may file an interpleader lawsuit, leaving the courts to decide who should receive the money. If you are involved in a life insurance interpleader case in New York City, you need an attorney who understands the complexities of these disputes.

At The Law Offices of Jason Turchin, we can represent beneficiaries in interpleader lawsuits throughout Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. If an insurance company has filed an interpleader action against you, call (800) 337-7755 for a free consultation. You won’t pay any fees or costs unless we win or settle your case.

What Is a Life Insurance Interpleader Lawsuit?

A life insurance interpleader lawsuit occurs when multiple parties claim entitlement to the same life insurance payout. Rather than deciding who gets the money, the insurance company deposits the funds with the court and asks a judge to make the decision.

Why Do Insurance Companies File Interpleader Lawsuits?

An insurer may file an interpleader lawsuit to:

• Avoid liability for paying the wrong person.
• Protect themselves from multiple lawsuits over the same policy.
• Resolve disputes between competing beneficiaries.

Once the lawsuit is filed, the court determines who should receive the life insurance proceeds. Having a lawyer represent your interests can often increase your chances of winning the case.

Common Reasons for Life Insurance Interpleader Cases in NYC

Life insurance interpleader lawsuits typically arise when there is uncertainty over who should receive the policy benefits. Some of the most common causes of these disputes include:

1. Conflicting Beneficiary Claims

If multiple individuals claim they are the rightful beneficiary, the insurance company may file an interpleader action to avoid making the wrong payment. This often happens when:

• Ex-spouses claim they were still entitled to benefits.
• Children or other relatives challenge a named beneficiary.
• Multiple versions of the policy list different beneficiaries.

2. Last-Minute Beneficiary Changes

If a policyholder changed their beneficiary designation shortly before their death, the previous beneficiary may challenge the change, arguing:

• The policyholder was not of sound mind when they made the change.
• The change was made under duress or undue influence.
• Someone fraudulently altered the policy.

3. Divorce and Life Insurance Beneficiary Disputes

In New York, an ex-spouse is automatically removed as a life insurance beneficiary after divorce—unless the policyholder explicitly reaffirmed their intent to keep them as a beneficiary.

This often leads to disputes when:

• The insured failed to update the policy after divorce.
• The ex-spouse claims they were still meant to receive benefits.
• The current spouse or children contest the ex-spouse’s claim.

4. Disputes Over Estate vs. Named Beneficiary

If a policyholder did not name a valid beneficiary, or if all listed beneficiaries have passed away, the estate may claim the life insurance proceeds.

This can lead to disputes between:

• Heirs of the estate vs. a named beneficiary.
• Creditors who claim the estate owes debts.
• Trustees if the policyholder intended the proceeds to go into a trust.

5. Homicide and the New York Slayer Statute

Under New York’s Slayer Statute, a beneficiary cannot typically receive life insurance proceeds if they are convicted of intentionally causing the policyholder’s death.

If the primary beneficiary is under investigation for homicide, the insurance company may delay payment and file an interpleader lawsuit to determine whether the next beneficiary in line should receive the money.

What Happens in a Life Insurance Interpleader Case?

Once an interpleader lawsuit is filed, the case follows this general process:

1. The insurance company deposits the policy funds with the court.

2. Competing claimants are notified and must file responses.

3. Each party presents evidence supporting their claim to the funds.

4. The court makes a final ruling on who receives the benefits.

Because the insurance company removes itself from the dispute, beneficiaries must fight for their share on their own. This is why it’s critical to have an attorney representing your interests.

How a New York City Life Insurance Interpleader Lawyer Can Help

If you are involved in a life insurance dispute, an attorney can:

✔ Investigate the policy’s history to determine the rightful beneficiary.

✔ Gather evidence such as financial records, legal documents, and medical records to prove your claim.

✔ Challenge fraudulent or invalid beneficiary changes.

✔ Negotiate a settlement with other claimants to avoid costly litigation.

✔ Represent you in court if necessary.

With experienced legal representation, you can protect your right to the life insurance proceeds.

Frequently Asked Questions About Life Insurance Interpleader Cases in NYC

How Long Does a Life Insurance Interpleader Case Take in New York?

Interpleader lawsuits can take several months to over a year, depending on the complexity of the case. If multiple parties are involved, the process may take longer.

Can I Settle a Life Insurance Dispute Without Going to Court?

Yes. Many interpleader cases are resolved through negotiation before trial. A lawyer can help negotiate a fair settlement with other claimants.

What Happens If I Ignore an Interpleader Lawsuit?

If you fail to respond to the lawsuit, the court may rule against you by default, awarding the funds to another claimant. It’s important to file a timely response and consult an attorney.

What If the Policyholder Named an Invalid Beneficiary?

If the named beneficiary is legally ineligible (e.g., due to the Slayer Statute or divorce laws), the court may:

• Award the funds to the contingent beneficiary, if listed.
• Distribute the proceeds to the estate.

Who Pays for the Legal Costs in an Interpleader Case?

Each claimant is generally responsible for their own legal fees. However, if you win the case, you may be able to recover some costs depending on the circumstances.

How Much Does It Cost to Hire a Life Insurance Lawyer for an Interpleader Case?

At The Law Offices of Jason Turchin, you won’t pay any fees or costs unless we win or settle your case. We handle interpleader disputes on a contingency fee basis, meaning there are no upfront legal fees.

Get Help With Your New York City Life Insurance Interpleader Case

If you are involved in a life insurance interpleader lawsuit in New York City, don’t try to handle it alone. We can help fight for your share of the benefits and protect your legal rights.

📞 Call (800) 337-7755 for a free consultation today.