What is typically required for a minor beneficiary according to insurance regulations?

In situations involving minor beneficiaries in insurance policies, it is standard practice to appoint a guardian to manage the proceeds of an insurance policy until the minor reaches the age of majority, which is typically 18 years old in most jurisdictions. This requirement is in place to ensure that the financial assets are handled responsibly and in the best interests of the minor. When a guardian is appointed, they are legally recognized as the person responsible for managing the funds and making decisions on behalf of the minor beneficiary, which helps protect the minor's financial future.

Establishing a trust fund can be one option for managing assets for minors, but it's not a universal requirement under all circumstances, making it less applicable as the primary answer. Similarly, while the age of the beneficiary is significant, simply stating that the beneficiary must be over 18 does not address the regulatory framework in place for managing their interests while they are still minors. The involvement of a financial advisor, although potentially beneficial, is not typically mandated by insurance regulations in the same way that a guardian is required.

Thus, appointing a guardian stands as the essential regulatory requirement for the management of benefits meant for minor beneficiaries.