Wondering what you’d need to do to make a minor child the beneficiary of your life insurance policy? MiWayLife makes it easy.
Life insurance is a great way to create a financial safety net for your family. For this reason, most people tend to take out life insurance once they get married or have children. As the policyholder, it's up to you who you choose to be the beneficiary of the policy's payout. If you're a parent wanting to ensure this lumpsum goes directly to your child instead of their other parent or a trusted adult – or wish to make a child that isn't yours the beneficiary, you'll be glad to know nothing is stopping you.
To add a minor, meaning someone who's under the age of 18, as a beneficiary to your policy, you may be asked to provide different documents depending on who your insurer is. However, if you have a policy with MiWayLife, you'll be asked to provide three things. The first is confirmation of guardianship over your minor beneficiaries. If you're their parents, a birth certificate would do the trick. Next, you'd need to prove that your relationship has an insurable interest. This means that you'd have to prove that the child would suffer a hardship or financial loss in the event of your passing.
How To Receive A Payout For A Minor
If your beneficiary is still a minor at the time of the payout, the policy would be paid to their natural guardian, such as their surviving parent or adoptive parent; a legal guardian appointed by the High Court or a trust account. If a trust account is required and doesn't exist, this can always be opened.
Where the policyholder or guardian has chosen that the policy benefits be paid into a trust account, MiWayLife will do just that after the following documents have been submitted: the trustee's certified ID document, the trust deed and the designated trust bank account details.
If there is no guardian appointed over the minor beneficiary and if a trust account has not been formed for the minor beneficiary, MiWayLife will then pay the benefits into the Government Guardian Trust.
How To Claim A Payout For A Minor
To claim the benefits for the minor beneficiary, their guardian would need to submit the following documents:
The Bottom Line
At the end of the day, you can certainly name a minor child as the beneficiary of your life insurance policy and MiWayLife makes the process simple.
Did you know:
You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.
