Minor Beneficiary Life Insurance

Minor beneficiary life insurance isn't a type of life insurance, but it is a way of saying you want to give your death benefits to your children. You can name minor beneficiaries for term and whole life insurance policies, which can be as low as $9/mo. Shop around and compare the top companies to secure affordable minor beneficiary life insurance rates.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Jul 28, 2021

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The Rundown

  • Minor beneficiary life insurance is not the same as life insurance with a child rider
  • A child rider adds at least $4 per month to your life insurance bill
  • You get term life insurance as low as $9 per month

Do you want to get life insurance for a minor beneficiary? When you add a minor as a beneficiary, you’re ensuring some level of financial security for your child.

But how much do minor beneficiary life insurance rates cost? Keep reading to learn how much minor beneficiary life insurance costs, what kind of coverage it offers, and how it differs from life insurance with child riders.

Are you ready to get minor beneficiary life insurance? Enter your ZIP code in the free online quote tool above to compare multiple companies in your area.

How much are minor beneficiary life insurance rates?

Minor beneficiary life insurance isn’t known as a life insurance type. So, any minor beneficiary life insurance quotes will depend on what type of life insurance you have.

If you have a term life insurance policy, you’ll pay at least $9 per month. Meanwhile, whole life insurance policies could be as low as $53 per month.

Several factors determine whether affordable minor beneficiary life insurance is available to you. The most significant factors include age, gender, health, policy limits, and policy type.

Let’s look at the cost of life insurance based on some of these factors.

Average Monthly 20-Year Term Life Insurance Rates by Age, Gender, and Coverage Limits
Age & GenderAverage Monthly Rates for $500,000 Death BenefitsAverage Monthly Rates for $750,000 Death BenefitsAverage Monthly Rates for $1,000,000 Death BenefitsAverage Monthly Rates for $2,000,000 Death Benefits
50-Year-Old Female$71.03$103.64$128.87$250.87
50-Year-Old Male$93.23$136.94$174.13$340.64
60-Year-Old Female$102.37$149.34$189.50$373.49
60-Year-Old Male$138.64$204.05$255.08$504.64
70-Year-Old Female$295.61$440.76$556.17$1,089.38
70-Year-Old Male$444.63$664.29$846.83$1,676.36
80-Year-Old Female$1,375.68$2,061.10$2,573.20$5,086.77
80-Year-Old Male$1,776.11$2,661.75$3,455.01$6,901.88
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How does minor beneficiary life insurance work?

Minor beneficiary life insurance is designed for beneficiaries who are minors during the time a policyholder buys life insurance coverage.

Since minors are under the age of 18, they can’t receive death benefits. Therefore, a policyholder needs to appoint a custodian to oversee the life insurance claim payout.

We recommended choosing someone you can trust. If you’re not sure, you can set up an annuity until your child is old enough to use the death benefits.

What happens if a minor is the beneficiary on a life insurance policy?

If you buy minor beneficiary life insurance, you’ll need to add an adult to manage the death benefits until your minor beneficiary is old enough to receive the money. The guardian of your child’s coverage limit is known as a custodian for a minor beneficiary.

Most life insurance companies have a minor beneficiary clause. When you want to add someone to watch over the death benefits for your child, you’ll need to fill out a custodian for a minor beneficiary form.

Do taxes affect life insurance claim payouts to minor beneficiaries?

The short answer is no. According to the IRS, money from death benefits isn’t included in a person’s gross income.

However, you should still talk to a tax professional. Tax law changes rapidly, so stay updated on what’s going on with federal and state tax laws.

What’s the difference between minor beneficiary life insurance and child riders?

With minor beneficiary life insurance, you ensure that your children receive your death benefits if you pass away before their adults.

But have you heard of child riders for life insurance? Riders are add-ons that expand standard life insurance coverage.

Child riders provide a small life insurance coverage for your child within your current policy. This allows you to manage more than one policy without getting another one.

When you add a child rider to your term or whole life insurance policy, your life insurance rates increase by at least $4 a month.

Minor Beneficiary Life Insurance: What’s the bottom line?

Setting up wealth for your children is a common practice among life insurance policyholders. The toughest part about minor beneficiary life insurance is selecting a custodian.

Trust is much harder to find than life insurance. If you have any hesitations about your death benefits, you can always look for an annuity or trust fund provider to ensure your child gets what’s promised.

Before you buy minor beneficiary life insurance, use our free comparison tool below to compare life insurance quotes from the best companies near you.

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