Murder-for-insurance cases: how insurers and police respond

Killing someone to collect life insurance is extremely rare, and the law is built so that it does not pay. A beneficiary who intentionally and unlawfully kills the insured loses the death benefit under the the slayer rule: when a beneficiary can't collect, the money goes to the next eligible person, and the insurer will usually investigate before it pays any claim that raises suspicion. Most delayed claims after a suspicious death involve routine questions, not accusations.

Why insurance and homicide are linked in the public mind

Life insurance pays a large sum on a death, so investigators of any unexplained or violent death routinely ask who benefits. That question is a standard part of a homicide inquiry, in the same way they ask about wills, debts and relationships. It does not mean a beneficiary is a suspect, and it is not evidence of motive on its own. Millions of ordinary claims are paid every year to spouses, parents and children after natural deaths and accidents.

Insurance fraud generally is a large problem. The Coalition Against Insurance Fraud's 2022 study estimated that fraud across all lines of insurance costs the U.S. about $308.6 billion a year, with life insurance fraud the largest single category at an estimated $74.7 billion, according to coverage of the study. Those figures are estimates covering many kinds of fraud, such as lying on applications and false claims. Homicide for insurance proceeds is a tiny and very different slice, and no reliable national count of such cases is published. This guide therefore explains the process rather than quoting numbers it cannot support.

The legal rule: a killer cannot collect

The principle is old. The U.S. Supreme Court held in Mutual Life Insurance Co. v. Armstrong (1886) that a beneficiary who murders the insured cannot recover on the policy. Today statutes in the states spell it out:

• California Probate Code §252 bars a named beneficiary who feloniously and intentionally kills the insured, and the benefit is payable as if that person had died first.
• Florida Statutes §732.802 applies to a beneficiary who unlawfully and intentionally kills the insured, with a final conviction of murder in any degree being conclusive.
• Texas Insurance Code §1103.151 forfeits the interest of a beneficiary who is a principal or an accomplice in wilfully bringing about the insured's death.

Our the slayer rule: when a beneficiary can't collect guide covers the statutes in detail and links the sections. The key points here: no criminal conviction is strictly required in many states, because a civil court can decide the question on a lower standard of proof, usually "more likely than not." A conviction ends the question. An acquittal does not always settle the insurance question, because the standards of proof differ.

What an insurer does when a claim looks suspicious

Insurers keep special investigation units, and state laws push them to look. Under the NAIC's Insurance Fraud Prevention Model Act (#680), a state may require insurers to report suspected fraudulent insurance acts to the commissioner and give those who report information in good faith immunity from civil liability. Many states have adopted fraud-reporting and immunity laws of this kind, in varying forms, and many require insurers to maintain an anti-fraud plan.

When a death is recent, violent or unexplained, or when circumstances make the claim unusual, an insurer typically does some or all of the following:

1. Collects proof of death: the death certificate, the cause and manner of death, and the police or medical examiner's report when available. See how to file a life insurance claim.
2. Looks at the policy's history: how recently it was bought, who applied, who paid premiums, whether the beneficiary or owner changed shortly before the death, and whether the insured knew about and consented to the coverage.
3. Coordinates with law enforcement: sharing records with detectives and prosecutors, and reporting to the state fraud bureau where required.
4. Waits on the criminal case when needed: if a beneficiary is a suspect, the insurer may hold that beneficiary's claim until the investigation resolves, and it may pay or reserve for other claimants.
5. Uses court procedure if claimants conflict: the insurer can deposit the money with a court through interpleader and let a judge decide, which also protects it from paying twice. See life insurance beneficiary disputes and interpleader.

A suspicious claim is not necessarily denied. The insurer is deciding whether the person claiming the money is entitled to it.

Contestability and insurable interest

Two policy concepts come up in these cases and are often confused.

The two-year the two-year contestability period lets an insurer investigate and rescind a policy for material misstatements on the application. A rescission claim is about what the applicant said. It is a different issue from the slayer rule, which is about what the beneficiary did. The slayer rule operates whenever the killing occurs, even years after the policy was issued.

insurable interest: who can buy life insurance on whom is the safeguard against buying coverage on someone with no stake in their life. Most states require that an adult insured consent in writing to coverage bought by another person, with the details in each state's insurance code. For example, California Insurance Code §10110.1, Florida Statutes §627.404 and New York Insurance Law §3205 address who may insure whom. A policy bought on a person without a valid insurable interest or consent can be void.

Who is paid when a beneficiary is disqualified

Under the common approach, the killer is treated as having died before the insured, so the proceeds follow the rest of the designation. In order, the money commonly goes to:

• a contingent beneficiary, if one is named and eligible
• other primary beneficiaries who share a portion, as the designation provides
• the insured's estate or the policy's default order, if no named person qualifies

The killer's own heirs generally cannot receive the money through the killer. Children of the insured who are named, or who inherit through the estate, are not penalized for another person's crime.

If you are a surviving family member

1. Notify the insurer promptly and keep copies of every document you send and receive.
2. Expect more questions than usual, including requests for records and recorded statements, if the death is under investigation. Providing records is normal; you may want a lawyer present for interviews if you are a person of interest.
3. Know your timelines. Under the NAIC Unfair Life, Accident and Health Claims Settlement Practices Model Regulation (#903), an insurer should send a written status notice if a claim is unresolved 30 days after proof of loss, then every 45 days, and a denial should be in writing and cite the policy provision, with notice of your right to ask the state insurance department to review. Your state's version may differ.
4. Ask about interest. Several states require interest on delayed death benefits; see interest on late life insurance claims.
5. Consider a lawyer if payment stalls or competing claimants appear. Our guide on when to hire a life insurance lawyer explains when it helps, and the life insurance claim checklist lists what to gather.

If you are worried about your own safety

If someone pressures you to buy life insurance naming them, to sign an application you did not read, or to hide a policy, treat that as a warning. No insurer can issue most policies on an adult without that adult's consent and signature, and you can ask any insurer in writing about coverage on your own life. If you fear for your safety, call 911. If you are in a relationship that feels unsafe, the National Domestic Violence Hotline operates at 800-799-7233.

Key takeaways

• A beneficiary who intentionally and unlawfully kills the insured cannot collect; the money goes to the next eligible person.
• Insurers investigate suspicious claims and may hold a suspect's claim, but a delay is not a denial, and most delayed claims are routine.
• A criminal conviction settles the slayer-rule question, and many states let a civil court decide it without one.
• Consent and insurable-interest rules exist to stop anyone from insuring a life they have no right to insure.
• Surviving family members should keep records, watch claim deadlines and get a lawyer if payment stalls.