Can Minors Be Life Insurance Beneficiaries?
💬 Love Deserves Protection—Not Legal Delays
When you buy life insurance, it’s likely because you love someone. And if that “someone” is your child, naming them as a beneficiary feels natural. However, if your children are still minors, things become a little more complex—and that’s okay. With the right guidance, you can still protect them fully.
⚖️ What Happens If a Minor Inherits Life Insurance?
By law, minors (typically under 18) can’t directly access or manage life insurance payouts. Even if they are listed as beneficiaries, they legally can’t touch that money. So, what happens?
If you don’t make additional arrangements, a court may have to appoint a guardian. This can delay access to the funds, cost additional money, and potentially place decisions in the hands of someone you didn’t choose. It’s not ideal, especially during an already difficult time.
🛡️ Smart Options to Protect Your Children
Thankfully, you have several solid choices that ensure your life insurance benefits serve your children exactly how you intend:
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Set Up a Trust: You can create a trust and name it as the beneficiary of your policy. Then, choose a trusted adult (the trustee) to manage the money for your kids until they’re old enough.
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Appoint a Custodian Under the UTMA/UGMA Laws: This allows you to name someone to oversee the funds on your child’s behalf without needing a full trust.
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Name a Reliable Adult as the Beneficiary (With Instructions): In rare cases, you can leave the funds to someone you trust with a verbal or written understanding—but this comes with legal risks and is not recommended without legal advice.
🔄 Update Your Plan As They Grow
As your children grow older, their needs change. And so should your life insurance plan. Don’t forget to:
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Revisit your beneficiary designations regularly
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Update the appointed trustee or custodian if needed
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Adjust coverage based on your current financial situation
This ongoing attention keeps your plan aligned with your children’s best interests.
âś… Can Minors Be Life Insurance Beneficiaries?
Yes, you absolutely can name your children as beneficiaries—but doing it wisely matters more than anything. Through a trust, a custodian, or another thoughtful legal method, you can make sure your love turns into lifelong protection.
⚠️ Don’t let a simple oversight delay the support your children may one day need most. Act today. Speak with a licensed advisor, update your documents, and leave behind more than money—leave clarity, security, and love.
👉 Speak with one of our licensed agents today.
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