Yes, minor children can be beneficiaries of life cover. Life cover, also known as life insurance, is a financial product that provides a payout in the event of the insured person’s death. The policyholder has the flexibility to designate beneficiaries who will receive the insurance proceeds.
In the case of minor children, it is common for parents or legal guardians to designate them as beneficiaries of life cover. This ensures that, in the unfortunate event of the policyholder’s death, the insurance proceeds are directed towards the financial well-being and support of the children.
However, since minors cannot directly manage or access significant sums of money, it is advisable to appoint a trustee or a guardian to oversee the funds on behalf of the minor beneficiaries. The trustee or guardian will act in the best interests of the children, ensuring that the funds are used for their care, education, and other necessary expenses until they reach a suitable age or meet specific conditions specified in the policy.
It’s important to consult with an insurance advisor or financial planner when designating minor children as beneficiaries of life cover. They can guide you through the process, help establish a trust or guardianship arrangement, and ensure that the insurance policy aligns with your specific intentions and the well-being of your children.