Life Insurance Interpleader - Frequent Questions
Life insurance interpleader cases can be overwhelming, especially at an already difficult time. Here are some of the most common questions our clients ask when navigating a legal battle over life insurance benefits in Texas.
What is an interpleader in a life insurance case?
An interpleader is a legal process used when a life insurance company receives conflicting claims for the same policy. Rather than risk paying the wrong person, the insurer files an interpleader lawsuit, deposits the money with the court, and asks a judge to decide who should receive the proceeds.
What’s the difference between a life insurance claim denial and an interpleader?
A claim denial means the insurance company refuses to pay due to reasons like policy exclusions, lapsed coverage, or alleged fraud. An interpleader means the insurer wants to pay but doesn’t know which claimant is legally entitled to the money. In interpleader cases, the dispute is between claimants—not between the claimant and the insurer.
How long does the interpleader process take in Texas?
The timeline varies, but most interpleader cases in Texas take 6 - 18 months or more. Delays can occur if the case involves multiple parties, complex legal issues, or if the dispute goes to trial instead of settling out of court.
Do I need an attorney if I'm involved in a life insurance interpleader case?
Yes. If you’ve been named in an interpleader lawsuit, you are part of a legal dispute. Without an attorney, you risk losing your claim due to missed deadlines or legal technicalities. An experienced attorney can help protect your rights and fight for the benefits you’re entitled to.
What is the cost of an interpleader lawsuit?
Legal fees vary based on the complexity of your case. Most attorneys have no experience in interpleader cases. And most do not have experience in determining whether federal or state law applies to the dispute. We offer hourly or contingency fee options. We offer free consultations and can explain your options based on your specific situation.