Question

Which statement is true regarding a minor beneficiary? a)Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21 b)Normally, a guardian is required to be appointed in the Beneficiary clause of the contract c)The minor must pay the debts of the insured's estate before receiving any of the proceeds d)The minor is entitled to receive the death proceeds immediately

Answer 1

Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21.

Step-by-step explanation:

The statement that is true regarding a minor beneficiary is that normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21. When a minor is named as a beneficiary, it is common for the insurance contract to have provisions that ensure the funds are managed by a trustee until the minor reaches a certain age. This is to protect the minor's assets and ensure they are used for the minor's benefit when they are older and can make informed decisions about how to handle the money.