How to Waive Your Rights to Life Insurance Proceeds

Life insurance beneficiary designations are under the complete control of the policy owner and can be amended or changed at any time. If you are the listed beneficiary on a life insurance policy at the time of the insured person's death, and you choose not to accept the proceeds of the policy, you must inform the life insurance carrier of your decision. The most common instance of refusal to accept life insurance proceeds is in the event of divorce, where the ex-spouse is still listed as the primary beneficiary but admittedly acknowledges that she should have been removed and replaced with another person.

Things You'll Need

• Separation agreement

Instructions

1. Write a clear and concise letter to the life insurance company that explains your intention to waive your right to any and all proceeds from the policy containing your name as the primary beneficiary.

2. Mail the letter to the life insurance carrier along with a copy of your marital separation agreement and divorce paperwork. According to DivorceSource.com, "Most courts allow a former spouse to waive beneficiary status by a separation agreement that specifically encompasses the proceeds."

3. Include any policy proceeds or other beneficiary materials that were previously sent to you by the life insurance company.

4. Call the life insurance company's customer service department and inform them of your intention to waive your beneficiary rights. Inform them that you have returned the unsigned proceeds check and a letter of explanation and instructions.

References

• DivorceSource.com: Life Insurance & Divorce