When purchasing life insurance, carefully considering who will receive your assets or the payout (a "death benefit" from your policies) is wise. Generally, a beneficiary designation cannot be changed or corrected once you pass away. The designation of a beneficiary is legally binding, and the insurance company pays out the death benefit according to the policyholder's latest valid designation.
Sometimes, a life insurance beneficiary dispute may arise if someone challenges the named beneficiary in a life insurance policy. This could be due to suspicion of fraud, belief of being unjustly excluded or perceived errors in the policy. In such cases, the party seeking to contest the life insurance beneficiary must prove their claim in court.