By Life Quotes, Inc. Staff

A widow is battling insurers over a $56 million life insurance policy .

Following the death of wealth New York attorney Arthur Kramer, his widow, Alice, learned that he purchased seven large life insurance policies on himself, reports the Wall Street Journal.

In a twist of events, rather than listing the family as beneficiaries, investors stand to claim the funds.

The Journal reports that Alice Kramer is now refusing to present the insurance company with a death certificate and is claiming that her late husband violated the state’s “insurable interest law.”

“From 2004 to 2008, tens of thousands of older people sought to make some fast cash by taking out multimillion-dollar policies on their own lives and flipping these to brokers, who resold them to investors like hedge funds and investment banks,” reports the Journal.

Alice asserts that the transactions were illegal and therefore she is entitled to the money, says the Journal. The case is being battled in New York Court of Appeals.

It’s crucial that when taking out a life insurance policy beneficiaries are selected with thought and care. As circumstances in life change, it’s important for people to revisit their life insurance policies and designated beneficiaries.

This article was originally published by Life Quotes, Inc.