Nominating a Minor as Beneficiary: Key Rules for Insurance and Mutual Funds

Can a minor be named as beneficiary?

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Yes. In many cases you can nominate a minor as the beneficiary for life insurance proceeds or for mutual fund investments. If the nominee is a minor, you must also appoint a guardian who will receive and manage the funds on the minor’s behalf until the child reaches adulthood.

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How a minor nominee works

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When the nominee is a minor, the policy or fund house requires you to name a guardian who will receive the proceeds on the minor’s behalf and manage them until the child becomes an adult.

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What to provide on the nomination form

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  • Minor’s full name and date of birth
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  • Guardian’s name, relationship to the minor, and contact details
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  • A statement that the guardian will hold the proceeds in trust for the minor
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  • Policy or folio details, if applicable
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Practical considerations

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  • Nomination for a minor is available for life insurance policies and for mutual fund folios, but the process may differ by provider
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  • The guardian is responsible for using the proceeds in the minor’s best interests
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  • You can usually update or change nominations later, subject to the provider’s rules
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Steps to nominate a minor

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  • Ask your insurer or fund house for the appropriate nomination form
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  • Provide the minor’s details and guardian information, along with valid ID documents if required
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  • Submit and confirm the nomination in writing, and keep copies for records
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