Paul Sanchez
In most cases, only birth or adoptive parents, or court-appointed legal guardians, can take out life insurance on children under the age of 17. However, in New York, a minor above the age of 14 years and six months is legally competent to contract for, own, and exercise all rights relating to a life insurance policy. In Washington, children aged 15 or older must sign any life insurance application someone takes out on them.
| Characteristics | Values |
|---|---|
| Minimum age to sign a life insurance application | 15 years old |
| Minimum age to own a life insurance policy | 14 years and 6 months old |
What You'll Learn
Minors can be beneficiaries of life insurance policies
In most cases, only birth or adoptive parents, or court-appointed legal guardians, can take out life insurance on children under the age of 17. Children aged 15 or older must sign any life insurance application someone takes out on them.
In New York, minors under the age of 14 years and six months are prohibited from freely contracting for, owning or exercising rights relating to a life insurance contract, such as being a beneficiary. However, a minor above the age of 14 years and six months is legally competent to "contract for, be the owner of, and exercise all rights relating to, a life insurance policy upon the life of the minor or upon the life of any person". This means that a minor above this age can be a beneficiary of a life insurance policy.
In Washington, if another family member (such as a grandparent) wants to buy a policy for a child, they must first get written consent from the child's parent or legal guardian.
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Minors can own life insurance policies
In most cases, only birth or adoptive parents, or court-appointed legal guardians, can take out life insurance on children under the age of 17. Children age 15 or older must sign any life insurance application someone takes out on them. If another family member (such as a grandparent) wants to buy a policy for a child, they must first get written consent from the child's parent or legal guardian.
In New York, a minor above the age of 14 years and 6 months is legally competent to "contract for, be the owner of, and exercise all rights relating to, a life insurance policy upon the life of the minor or upon the life of any person". Pursuant to the New York Uniform Gifts to Minors Act (UGMA), Estates, Powers and Trusts Law (EPTL) §§ 7-4.1 to 7-4.12 (McKinney 1992 & Supp. 2001) (governs gifts made prior to 1997) or Uniform Transfers to Minors Act (UTMA), Estates, Powers and Trusts Law (EPTL) §§ 7-6.1 to 7-6.26 (McKinney Supp), a minor of any age can own a life insurance policy, although indirectly, by way of a gift or transfer from an adult.
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Minors can be donees of life insurance policies
In most cases, only birth or adoptive parents, or court-appointed legal guardians, can take out life insurance on children under the age of 17. Children aged 15 or older must sign any life insurance application someone takes out on them.
However, minors can be donees of life insurance policies. In New York, the Insurance Law prohibits a minor under the age of 14 years and six months from freely contracting for, owning or exercising rights relating to a life insurance contract, such as being a beneficiary. However, a minor below the age of 14 years and six months may be a donee of a life insurance policy pursuant to New York's Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA).
In Washington state, rules are in place to prevent someone from buying juvenile life insurance for fraudulent purposes. The insurance company may refuse your request for life insurance if your child's current policy or the life insurance you're applying for exceeds the company's maximum death benefit limit for children.
According to Ins. Law § 3207(a) (McKinney 2000), a minor above the age of 14 years and six months is legally competent to "contract for, be the owner of, and exercise all rights relating to, a life insurance policy upon the life of the minor or upon the life of any person". The Insurance Law prohibits a minor below that age from owning a life insurance policy. However, the UGMA/UTMA permits a minor of any age to own, although indirectly, a life insurance policy by way of a gift or transfer from an adult.
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Minors can be the subject of life insurance policies
In Washington state, only birth or adoptive parents, or court-appointed legal guardians, can take out life insurance on children under the age of 17. Children age 15 or older must sign any life insurance application someone takes out on them. If another family member (such as a grandparent) wants to buy a policy for a child, they must first get written consent from the child's parent or legal guardian.
Pursuant to the New York Uniform Gifts to Minors Act (UGMA), Estates, Powers and Trusts Law (EPTL) §§ 7-4.1 to 7-4.12 (McKinney 1992 & Supp. 2001) (governs gifts made prior to 1997) or Uniform Transfers to Minors Act (UTMA), Estates, Powers and Trusts Law (EPTL) §§ 7-6.1 to 7-6.26 (McKinney Supp.), a minor of any age may own a life insurance policy by way of a gift or transfer from an adult.
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Minors can sign life insurance applications
Pursuant to the New York Uniform Gifts to Minors Act (UGMA), Estates, Powers and Trusts Law (EPTL) §§ 7-4.1 to 7-4.12 (McKinney 1992 & Supp. 2001) (governs gifts made prior to 1997) or Uniform Transfers to Minors Act (UTMA), Estates, Powers and Trusts Law (EPTL) §§ 7-6.1 to 7-6.26 (McKinney Supp.), a minor of any age can own a life insurance policy by way of a gift or transfer from an adult.
It is important to note that the laws regarding minors and life insurance may vary by state and country, and it is always best to consult with an attorney or legal professional for specific advice.
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Frequently asked questions
In most cases, only birth or adoptive parents, or court-appointed legal guardians, can take out life insurance on children under the age of 17. Children aged 15 or older must sign any life insurance application someone takes out on them. In New York, a minor above the age of 14 years and 6 months is deemed legally competent to contract for, be the owner of, and exercise all rights relating to a life insurance policy.
In New York, a minor under the age of 14 years and 6 months is prohibited from freely contracting for, owning or exercising rights relating to a life insurance contract, such as being a beneficiary. However, an insured may name anyone they choose to be a beneficiary, so they may designate a minor below the age of 14 years and 6 months.
In New York, a minor above the age of 14 years and 6 months has an insurable interest in the life of his or her grandparents and is, therefore, allowed to own a life insurance policy issued upon their lives. However, a minor below that age is deemed incompetent to own a life insurance policy.
