Quora Answer: How Do You Ensure Your Children Receive Their Share of Your Life Insurance Payout?

The following is my answer to a Quora question: “How can you ensure that your underage children receive their share of your life insurance?”

Insurance policies can be nominated.  You nominate the share of the claim to your preferred beneficiaries.

In the event that you pass away while the children are still below the age of majority, the estate will withhold the funds until they reach that age, and then pay out.  That money will be kept in an account.  This is why it is important to have good executors.

Alternatively, you can nominate it to a trust, and have them as beneficiaries.  This is only worth it if the sums are substantial, and is normally done with all assets you want to leave to them.  In this case, it is important to have good trustees.