What is a life insurance contingent beneficiary minor?
Often times, a husband and wife will each take out an insurance policy, naming the other as the beneficiary. In some instances, however, there may be a situation where both spouses die, meaning the insurance policy beneficiaries would also have passed away. To protect any children, therefore, a couple may want to name them as a life insurance contingent beneficiary minor.
There are some things to take into consideration when naming a life insurance contingent beneficiary minor. To put it simply, an insurance company will not award a minor (or young child) money from an insurance policy but, rather, the money will go to a guardian who will then act on the child’s behalf, financially speaking. Then, when the child is old enough, they would assume all responsibility in terms of deciding how the money is spent.
Nobody likes to think about the type of situation where they would actually need to have named an alternative beneficiary or, in this case, a life insurance contingent beneficiary minor. The truth is, life is unpredictable and making the necessary arrangements that will ensure your family is protected should the worst happen is something that nobody would soon regret. Take the time to think about who will benefit from your insurance coverage and, in the case of young children, who you can entrust as their guardians until they are of age.
To learn more about naming a life insurance contingent beneficiary minor, contact the team of experts at TermLife-Insurance.com. Here, you will find licensed insurance agents and underwriters whose knowledge of the industry will help you to make the best possible decisions with regards to your life insurance needs. Get your life insurance contingent beneficiary minor questions answered and make the arrangements you need for greater peace of mind.
