Yes.
RE: Yes
FROM THE ARTICLE ( AUTHOR’s RESPONSE TO THE QUESTION ):
According to Dupont & Blumenstiel, a law firm based in Dublin, Ohio, in a case like this “a strange result can occur when community funds are used to purchase a policy and the surviving spouse is not made the beneficiary of the full proceeds.”
“In this case, the IRS believes that although one-half of the proceeds are includable in the deceased spouse’s federal gross estate, in certain circumstances the surviving spouse may have made a gift of that spouse’s half of the proceeds to the named beneficiary,” it adds.
Still, it’s usually a complicated and prolonged process to even attempt to break a life-insurance policy, which is a legal contract between him and his insurance company. According to Heban, Murphree and Lewandowski, a law firm based in Toledo, Ohio, “This process is not easy to navigate.” His wife would have to prove the policy went against his intentions.
“While it is possible to dispute beneficiaries on a life insurance policy, doing so creates a tremendous amount of cost and takes a lot of time,” the law firm says. “It also forces the rest of the estate to stay open, preventing the probate courts from closing the estate and distributing its assets. While the estate is held in the courts, fees, taxes, and other penalties will continue to build.”
There are often other avenues. “To avoid this, some families will take the dispute to mediation or arbitration to work out a settlement. This takes less time and costs less money. In this process, the interested parties can figure out a way to split the benefit to avoid a costly and lengthy court battle. This type of settlement can protect the estate from unnecessary expenses,” it added.
As to your other question, it depends on the terms of the particular policy, but the insurance company is mostly concerned that the premiums are paid in full, per the agreement. Ultimately, one can’t predict how people react in times of grief. Your partner is not being transparent in life, and only in death is he prepared to reveal the truth about your relationship. That price of that is $100,000.
It is also a price that will be borne by both you and his wife upon his death.