We buy life insurance for lots of reasons but mainly to replace property or income lost on the insured’s death – to take care of those we leave behind. If those we leave behind are minors, it makes sense to have the policy beneficiary be a trust that can administer the funds and make sure our wishes are followed.
Practical advice => Don’t make your estate or your spouse the beneficiary of your life insurance. If the proceeds end up in the hands of minors, they will be subject to Court supervision and be paid in full to the minors when they reach age 18. We all can appreciate the danger of letting large amounts of money get in the hands of an 18-year old.