Can You Name a Minor as Your Life Insurance Beneficiary?
Did you know?
Even if you name a child as your beneficiary, they may not receive the proceeds right away. Life Insurance companies can’t pay money directly to a minor. Planning ahead can help avoid unnecessary delays and ensure your wishes are carried out.
Help Protect Your Child’s Future
When you buy life insurance, you’re thinking about the people you love. If you’re considering naming a child or grandchild as your beneficiary, it’s important to know that while you can name a minor, they can’t receive the proceeds directly. Fortunately, a little planning can help ensure your wishes are carried out.
Can I Name a Minor as My Life Insurance Beneficiary?
The short answer is yes. But before you make that decision, it’s important to understand how it works.
While you can name a child as your beneficiary, a minor can’t receive life insurance proceeds directly.
A little planning today can help make sure the financial support you intended for your child is available when it’s needed most—and managed according to your wishes.
What Happens If You Name a Minor as Your Beneficiary?
While naming a child is allowed, there are several practical considerations that surprise many families.
- Your Child Can’t Receive the Money Right Away
Because minors cannot legally manage large financial assets, the insurance company cannot pay the death benefit directly to them.
- There May Be Court Delays
If you haven’t made other arrangements, a court may need to appoint a guardian or conservator before the money can be distributed. This legal process can take time and may delay access to money that could help pay for everyday living expenses, education, or other important needs.
- The Court May Decide Who Manages the Money
Without a plan in place, the court—not you—will choose the person responsible for managing the life insurance proceeds until your child becomes an adult.
- Your Child May Receive the Money All at Once
Once your child reaches the legal age in your state, they may receive full access to the remaining funds. For some families, this may be acceptable. Others may prefer a strategy that allows money to be distributed over time for education, housing, healthcare, or other important milestones.
The good news is that you have options. Understanding them now can help you make informed decisions and better protect the people who matter most.
- Uniform Transfers to Minors Act (UTMA) Account1
A UTMA account lets you name a trusted adult as custodian to manage the assets for your child’s benefit until they reach the age established under your state’s law.
- Revocable Living Trust2
A revocable trust allows you to name a trustee to manage the life insurance proceeds according to your instructions. You can decide when and how funds are distributed – for example, to help pay for your child’s education or other important life milestones. A trust can also help ensure the money is managed responsibly over time instead of being distributed all at once.
Help Protect What Matters Most
Choosing a life insurance beneficiary is one of the most important decisions you’ll make. If your beneficiary is a child, taking a few extra steps today can help ensure the financial protection you intend is managed according to your wishes. A financial professional and estate planning attorney can help you choose an approach that fits your family’s goals.
Key Takeaways
- Yes, you can name a minor as your life insurance beneficiary. However, a child can’t receive the death benefit directly.
- Without a plan, a court may need to appoint someone to manage the money. This can delay access to funds and leave important decisions to the court.
- A trust or UTMA account may offer greater flexibility and control. These options can help ensure the money is managed according to your wishes until your child is ready to receive it.
A financial professional and estate planning attorney can help.
They can help you choose an approach that supports your goals and helps protect the people you love.
Frequently Asked Questions
Can I name my child as my life insurance beneficiary?
Yes. Many parents and grandparents do. However, because minors can’t receive life insurance proceeds directly, you may want to consider a trust or UTMA account to fully protect your child.
If I name a child as the beneficiary, at what age may the child receive life insurance proceeds?
It depends on your state’s laws. In many states, beneficiaries receive control of the funds when they reach age 18.3
What is a UTMA account?
A Uniform Transfers to Minors Act (UTMA) account allows a trusted adult to manage financial assets on behalf of a child until they reach the age set by state law.
What is a revocable trust?
A revocable trust (or living trust) is a legal document that allows a person (grantor) to manage and control assets during their lifetime while retaining the ability to change or revoke the trust. After the grantor’s death, assets are distributed according to the trust’s instructions. This often keeps money from going through probate court, speeding up access to the beneficiaries.
Celeste Leendertse
Celeste Leendertse is an Advanced Sales Team 2026 summer intern at National Life Group. She recently graduated from the University of Southern California, having obtained a bachelor’s degree in economics and a minor in Applied Data Analytics. Celeste has a background in project management, leadership, data analysis, and previous internship experience at National Life Group. This summer, she’s excited to deepen her knowledge of advanced sales strategies while supporting financial professionals and helping deliver meaningful solutions for clients.