and everything is ok with the policy and it is paid up til March 2007. She left my 8 year old grandson beneficiary which, I thought, since she was close to my sister she would choose her. I respect her decisions and didn't choose the policy to influence the beneficiary factor but do the laws allow for an 8 year old beneficiary and is he protected under that policy til he's 21 if she were to die before he turns of legal age? The comapny is Garden State out of League City Texas.
2007-02-03 05:33:22 · 3 answers · asked by sheree 2 in Business & Finance ➔ Insurance
If you want to get her a different policy for her sister to be a beneficiary, nothing is stopping you from doing that. But if you are giving this to her than, yes it is her decision. If the son is the beneficiary, and his mother dies before he is considered an adult in the state. The GOVERNMENT will control the money until he is of age. Talk to an attorney and get a trust to assign as beneficiary that will not let the son get a big check before he is ready.
2007-02-03 05:38:13 · answer #1 · answered by GoodTimesMakingMoney 2 · 0⤊ 0⤋
OK, who is the policy OWNER? Yes, the law will allow for an 8 year old beneficiary. Most of the time, the child's legal guardian would THEN have access to the funds, to spend as they choose, hopefully to feed, clothe, and educate the child, but hey, they can do whatever they want with it.
The policy OWNER can change the beneficiary, if they want to set up a trust so the funds aren't abused.
2007-02-03 16:25:08 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋
The owner of the policy has the sole right to name the beneficiary. You can own a policy insuring your daughter, and name the beneficiary, provided the beneficiary has an insurable interest.
As far as naming a minor as beneficiary, this is perfectly legal; however, the company will like require a trustee to take control of the death benefit. As the policy owner, you can also name a trustee.
2007-02-03 14:06:37 · answer #3 · answered by Rob D 5 · 0⤊ 0⤋