You can name a child, but the company will not hand the money to a minor. An adult guardian, a custodian, or a trust has to manage it until the child is grown.
If you die while your child is still a minor, the child will not get the money directly. Someone else has to be in charge of it.
One way is a legal guardian. You can name one ahead of time, or someone can ask the court after you die. A court has to give that person the right to manage the money. This can be slow and cost money.
Another way is a trust. You set it up, and a trustee pays out the money the way you want. A trust has costs, and it must be valid when you die.
Some states let an adult manage the money as a custodian. One Alaska court form, for example, lets a custodian manage a child's insurance money until age 18.
If you name no one to manage the money, a court may need to step in. That can delay the payout for your child.
- Set up a trust for the child
- Name an adult custodian if your state allows it
- Name a guardian ahead of time
- Talk to a lawyer about your state's rules
- Review your choice when your child turns 18
More questions
What if I already named my child?
The company may say it cannot pay until a guardian or custodian is in place. Fix it now by naming a trust or custodian.
When does the child get the money?
It depends on how you set it up. A trust pays on the terms you choose. A custodian in Alaska, for example, manages it until 18.
