When you list a minor as a beneficiary in your will or your life insurance, the very best way to ensure that they get what’s coming to them is through a trusted adult.
The law does not allow any insurer you’re going to find through Alliance General Insurance Agency or any other agency to pay out directly to the minor. This law means that the courts will have to appoint a guardian to handle the money until the child has reached adult age. This is federal law and extends well beyond Denver, CO or anywhere in Colorado.
A court appointed guardian to manage the money can get very expensive very quickly, eating up the entire life insurance payout long before the minor is old enough to collect.
If you want to make sure that the money gets to the minor when they’re of age, you need to have that money going to a trusted adult with the understanding that their job is to sit on it until the recipient is of age. This responsibility takes a lot of trust, as nothing is stopping them from collecting the money for themselves, so you need to be very careful with this decision.
This decision doesn’t need to be the minor’s parents or even a family member. This person can be a longtime friend, your spouse, or even a business partner who you’ve always known to be reliable.
Alliance General Insurance Agency in Denver, CO can help you find a Colorado insurer who can cover all of your life insurance needs, but managing the payouts can be tricky. Talk with one of our agents to learn more about the stipulations of life insurance. We can help you make decisions and change your life insurance policy to how you see fit.