Can a Minor be Appointed as a Nominee?

Yes, indeed, you can appoint minors as beneficiaries or nominees in a life insurance policy. In fact, when you invest in a child plan the child is often a minor at the time of nomination. However, while nominating minors as beneficiaries of your life insurance policies, you will need to take care of a few things:

If a claim occurs while the nominee is still minor, the life insurer will pay the benefit amount to the guardian/custodian of the child. The custodian has to invest the money safely so that it can be used for the welfare of the minor beneficiaries.

Premium Protection Option in Child Insurance Plans

Premium protection is a unique feature available in child insurance plans. This feature when selected can do away with the need to assign a guardian for the minor nominee. Here’s why:

i. The policy will pay the guaranteed death benefit upon the death claim
ii. The insurer will continue to invest the remaining premiums on your behalf
iii. The investment part of the policy will continue as it would while you were alive
iv. Your child will receive the maturity benefit (usually payable after the child has achieved 18 years of age)

Thus, the family will receive a smaller life cover amount immediately upon your demise, but the child’s future will also be adequately funded.