In the 2000 comedy flick Family Man, the investment guru played by Nicolas Cage is asked if he likes kids. His response: “On a case-by-case basis!”
But when minors are to be a party to a life insurance policy we can’t be so selective. Every case is a potential problem and contracts must be implemented accordingly.
Minors are not legally competent (as in not allowed under the law) to own a policy or take possession of the death benefit, so… the easiest solution is to always use a state’s Uniform Transfer to Minors Act (UTMA) when drafting a beneficiary designation for a minor child.
The most important thing on a life insurance policy is the beneficiary designation. But you’d never know it by the small amount of space given for it on the application – space that is especially inadequate if a minor is involved. A UTMA designation will always take a separate page to be appended to the application.
That’s just a start. There are always devils in the details, e.g. accommodating contingent minor beneficiaries. So call with questions or help on a policy involving minors at 706-354-0401 or email@example.com.
You probably know that Cage’s real name is Nicolas Coppola. He changed it for the screen because he didn’t want to appear to be cashing in on the reputation of his uncle, director Francis Ford Coppola.