The short answer is no. The slightly longer answer is that you can, but it is not recommended because a minor cannot legally receive life insurance money. Here is why.

Avoid naming minor children as life insurance beneficiaries. Instead, establish a trust that can fund your child's needs.

When buying life insurance, you must name one or more beneficiaries: the people who will receive the policy's death benefit when you die. Most people name a spouse or partner as primary beneficiary, but many also want to name their children.

That instinct makes sense. Life insurance is intended to replace the financial support you provide your family, including childcare costs. However, children under 18 cannot legally collect insurance benefits directly, even if they are rightful heirs. If you die with your children as beneficiaries, proceeds can reach them only through a trust fund managed by an adult. If you cannot name your spouse, naming an irrevocable trust ensures the payout goes toward your child's care.

If you do not select that adult—perhaps an attorney, accountant, or an organization such as a bank—the probate court selects someone or an organization to oversee the money. Once your children reach the age of majority, generally 18, the funds automatically go to them.

Until then, the trust administrator controls how the money is invested and spent.

Why Is Naming Your Child as Beneficiary a Bad Idea?

Naming a minor as a policy beneficiary can delay payment for an extended period. 

Life insurers cannot pay a death benefit directly to anyone below the age of majority: 18 in every state except Alabama and Nebraska, where it is 19, and Mississippi, where it is 21. Before then, a judge selects an adult to manage the money for the minor.

During the months before a legal decision, your child will not have the financial support you intended for their care. 

Alternatives to Naming a Child as Your Life Insurance Beneficiary

It is best for a minor child not to be named directly as a life insurance beneficiary. The best way to avoid payment delays and legal proceedings is to name a trust as primary or contingent beneficiary.

Creating a Trust and Appointing a Trustee

An irrevocable life insurance trust (ILIT) would be the most appropriate policy owner, with the child named as the trust's beneficiary. When the insured person, such as a parent, dies, the insurer pays the death benefit to the trust. Its terms should require the trustee to use trust funds for the beneficiary child's care. The trustee manages the death benefit and any other trust money according to your instructions. 

The person establishing the trust, called the settlor or grantor, can specify in the trust document how money should be managed. For example, the grantor can require the trustee to pay for the child's college education and distribute the remainder at a certain age, such as 25 or 30. This preserves the funds instead of distributing them to someone too young and financially immature.

Naming Your Spouse as Policy Beneficiary

If possible, name your spouse as primary beneficiary and the trust as contingent beneficiary. Your spouse can continue managing household finances and setting money aside for your child's future. If you both die, the trust can take over. Your children's physical guardian need not be the same person as their financial guardian.

Single parents are not required to give any part of the death benefit to their child's other parent unless a divorce agreement orders it.

Who Receives the Death Benefit if You Name a Minor?

If your beneficiary is a minor when you die, a court-appointed adult becomes custodian of the funds. The court will most likely choose the

surviving parent or the guardian named in your will. 

The money goes into a custodial account, such as a trust or UTMA account. The custodian manages the funds, may invest them, and can withdraw money for eligible expenses until your child reaches the age of majority. When your child can access the money varies by state and does not always coincide with the age of majority.

How Does a UTMA Account Work With Life Insurance Money?

The Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) allow custodial account funds to cover certain eligible expenses for your child, regardless of age. State law defines eligible expenses. Education is the most common use, but some states also allow summer camp or a child's cellphone bill.

Money in a UTMA or UGMA account counts as an asset and could reduce your child's financial aid eligibility. If you leave the death benefit to your child to pay for education, direct it to a 529 account.