Many parents with minor children have not acquired substantial assets, so they use life insurance to provide financial security for the children in case one or both parents die. If you name your minor children as beneficiaries and they are minors when you die, the insurance company cannot legally pay the life insurance proceeds directly to them. In this scenario, it will be necessary to ask a court to appoint an adult to manage the money for the children until they reach adulthood. You can avoid this situation by establishing a trust for the children and naming the trust as the beneficiary of your life insurance.
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