According to insurance law, why can't a common-law spouse be designated a beneficiary?

In the context of insurance law, a common-law spouse may be excluded as a designated beneficiary primarily due to the legal recognition of relationships. The reasoning behind this hinges on the fact that, in many jurisdictions, common-law marriages are not automatically recognized in the same manner as traditional marriages, especially if a legal spouse still exists.

If an individual is legally married to someone else, designating a common-law spouse as a beneficiary may not be legally valid, since beneficiaries typically must have a recognized legal status to ensure that the claim can be processed without disputes. This means the law prefers the legal partner over any other form of relationship, as a matter of ensuring societal norms and consistent application of laws regarding beneficiaries.

The other options do not accurately reflect the legal basis for beneficiary designation. The concept of "benefit of marriage" and moral implications of relationships are not generally factors in determining a beneficiary's status in legal terms. Thus, the understanding that a legal partner's existence prevents designation of a common-law spouse as a beneficiary is aligned with insurance law principles.