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Can I make my minor child the beneficiary of my life insurance policy?

My child is currently only 14, are there any additional measures I'd have to take since they're not an adult?

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  Answers  |  1

September 06, 2017

Yes, Joseph, you can make your minor child the beneficiary. However, it is in some ways, not the best thing to do. First, think of the future that you are setting up with your policy as the funding mechanism: with your passing, your child’s financial future is supported by the death benefit. It’s a compassionate goal. But your child is a minor; if a death benefit is delivered there can be problems putting hundreds of thousands of dollars in the hands of a child. Making an adult your beneficiary might solve that problem. But since people die unexpectedly, that can leave the future uncertain, too. Try this: have an attorney create a trust, and make the trust the beneficiary. Trusts don’t die, have age issues, become incompetent over time, etc. A trust can be a list of instructions that detail what happens to the death benefit - how it is disbursed, to whom, and when. Think of a trust as comparable to a corporation; it is a non living legal entity that can act in your behalf. Now, think back to the future that you are setting up for your child. Making the trust your beneficiary improves on that compassionate goal. If things in your life change over time, you can change the details in the trust. Hope that helps.

Kirby Thomas

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