What happens when my beneficiaries are minors?

When naming a minor beneficiary, keep in mind that minors under the age of 16 will not be able to manage the money until they turn 18 or without a legal guardian.

Life insurance indemnity aims to financially protect the people you love. However, when it comes to a child or minor, choosing him as a beneficiary can result in a series of legal obstacles.

When choosing an underage beneficiary, life insurance may have its main function deferred. This may occur because without a legal guardian or guardian, the beneficiary will not be able to make use of the indemnity for years or until he reaches the age of majority. 

Therefore, before appointing a child as a beneficiary of your life insurance policy, it is best to provide a legal guardian to protect him and represent his interests before the courts and other institutions, such as banks and schools.

Valuable tips:

  • Minors under 18 years of age can only make use of the indemnity after reaching the age of majority;
  • Appointing a guardian or legal guardian is a way of protecting the minor from any abuse, fraud or misuse of money.

Stay with us and learn more about beneficiaries under the age of 18.

Can I name minors as beneficiaries?

You can, yes, nominate a minor beneficiary. But while you can name you the beneficiary of your life insurance policy, it is not advisable to do so without the figure of a guardian or legal guardian.

When a child is a beneficiary, even if he/she receives compensation, he/she is prevented from carrying out any banking operation relating to the insurance money – at least until he/she reaches the age of majority. 

This legal prohibition exists for the sake of the child’s own safety, such as abuse, fraud or even the misuse of money. 

The main reason – and, perhaps, it should be the only one – for investing in life insurance is to ensure that your loved ones and people who depend on your income can continue with the dreams you have nurtured throughout your life: 

  • quality education for their children, 
  • pay off the home loan, 
  • and protect the lifestyle you’ve built together.

Therefore, when the beneficiary is a minor, it is important to appoint a legal guardian through a notarized power of attorney. The legal guardian must be a trusted adult to, under power of attorney, legally represent the interests and care for the child’s safety. 

Below are the consequences of a minor beneficiary who does not have a legal guardian.

What are the consequences if they need to receive coverage as a minor? 

If the minor is not under the custody of a legal guardian – to be a guardian, a power of attorney signed by the child’s parents or guardians and authenticated by a notary is required -, he will be unable to carry out any movement, withdrawal, transfer, payment, debit or investment. with the money received as a life insurance claim.

In these circumstances, the life insurance policy ends up being prevented from working within its main objective, to financially protect the…

  • loved ones, 
  • dependents, 
  • legal entity (CNPJ), or 
  • an institution that the insured wants to help, even when absent.

What are the alternatives for this option?

If you are a life insurance contract, it is important to indicate the guardian or legal guardian alongside the policy beneficiaries. In addition, it is important to provide, while still alive, a power of attorney signed and notarized, admitting the adult person in question as the legal representative of the minor.

To ensure that your beneficiaries, especially minors, receive the compensation you have contracted for them.

It’s not the same as the legal guardian, but it’s less work and bureaucratic than he is.

Your Life Insurance Guardian’s resource is a person you trust – family member, close friend, partner, etc. – designated as the protector of your insurance policy.

The legal guardian or guardian is not necessarily aware of the existence of the life insurance policy you have taken out. That is, even if your child has a legal guardian, he may not receive compensation due to ignorance.

Often, in order not to splurge on the family, people prefer to keep it a secret about purchasing a life insurance policy. However, this can be risky, as the existence of compensation may never come to the attention of loved ones and loved ones. 

As claiming the payment of compensation and the notice of the claim is the duty of the insured or the beneficiary, life insurance falls by the wayside and the transfer never happens, leaving the people you would like to protect financially vulnerable.


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