Naming minors as policy beneficiaries will result in more stress

Payouts will be tied up in administrative merry-go round

- By Boitumelo Kgobotlo

Parents who list their minor children as sole beneficiaries of their funeral or life insurance policies could unknowingly create problems that delay funeral arrangements and deny their children access to funds when they need them most.

Nedbank insurance chief actuary Susan Hunt has urged parents, especially single parents, to avoid naming children under the age of 18 years as beneficiaries on such policies. She said this move could result in the insurance payout being tied up in legal processes, leaving families without the means to cover costs.