What It Means to Name Your Child as Your Life Insurance Beneficiary
Naming your child or children as the beneficiary of your group life insurance plan might seem like the natural choice.
But if they're minors, it's important to understand what that means and how to do it properly so that your benefit is protected and accessible if something happens to you.
Understanding Your Options
Can You Name a Child as a Beneficiary?
Yes — and here’s what you need to know before you do.
Name One or Multiple Children
You can name your child or multiple children as beneficiaries of your life insurance benefit. You can assign specific percentages to each — for example, 50% each, or a 60/40 split.
Minors Can't Receive Money Directly
If your child is under the age of majority (18 or 19, depending on your province), they legally can't receive the money directly. That's where things can get complicated.
What Could Go Wrong
What Happens If You Don't Set Iy Up Properly?
If you name a minor child as your beneficiary without appointing a trustee or legal guardian for the benefit, here’s what may happen:
No Direct Payment
The money will not be paid directly to the child.
Held by Courts
Funds may be held in trust by the courts or a public trustee until the child reaches adulthood.
Delays & Legal Costs
Your family may face delays, legal fees, or limited access to the funds in the meantime.
Lump Sum at Adulthood
The child receives the full amount at once when they reach adulthood - regardless of financial maturity.
Best Practices
How to Do It Right
To make sure your children are properly protected and that the benefit is used the way you intend, consider these steps:
Appoint a Trustee or Guardian
This person manages the funds on behalf of your child until they reach adulthood. You can name this trustee when completing your beneficiary designation form.
Create a Will or Trust
A legal will can specify how and when your children receive the funds — for example, staggered payments at different ages. A formal trust gives you even more control.
Keep Your Records Updated
Make sure your beneficiary designation form reflects your current wishes and includes the name of your trustee if needed.
Where to Check or Update Your Beneficiary
You can view or update your beneficiary information at any time by logging into your employee portal and reviewing your benefits booklet or group benefits forms.
Log In to Your Portal
Sign in to the employee portal provided by your employer or plan administrator.
Open Your Benefits Booklet
Review your group benefits booklet or beneficiary designation forms for current information.
Review Your Designation
Confirm your beneficiary is correctly named and a trustee is appointed if your child is a minor.
Update If Needed
Life changes — make sure your designation always reflects your current wishes and family situation.
Need Help?
If you're unsure whether your child is properly set up as a beneficiary, or need help understanding your options — reach out anytime. We'll walk you through everything clearly and simply.