Getting life insurance seems simple. Find a plan with the coverage that you need at a rate you can afford and make the purchase. You may have to do some research but there are plenty of companies to choose from. Your job may even provide a plan. The truth is, you should put considerable thought into choosing a life insurance plan. There is another aspect that you may not have thought of.
If your beneficiary is a minor, you need a life insurance custodian. Should you pass before the child reaches either 18 or 21 years of age, depending on the state, an insurance company cannot legally pay the benefits to that minor. This is the role of the custodian. The person you choose will take charge of the financial assets until the beneficiary reaches legal age.
Trust Is Essential
You want to be 100% certain that your benefits will pay your funeral expenses and go to your beneficiary. Above all else, your life insurance custodian should be someone you completely trust who cares about your child and has their best interests at heart. It’s also helpful if they have some financial savvy and the time to handle the job responsibly.
If your life insurance beneficiary is a minor, you need to appoint a custodian in case you pass before the beneficiary reaches the age of legal majority. Choose someone you would trust with your child’s life.