My Underage Daughter is the Beneficiary to My Life Insurance Policy

[AutumnAngel]

YOUR STATE NAME - Washington State

Hi, I am a single mother of a 3.5 year old daughter, who is the only beneficiary of my variable life insurance policy. If I die before she turns 18 she obviously won't be able to collect the money. Her dad will gain custody but would he get my life insurance money on her behalf?? I hope not. I need to find a way to make sure he doesn't touch that money. He is extremely irresponsible and I know he would not spend it ONLY on her. My boyfriend is the insurance agent who sold me this policy; he is telling me to make the beneficiary my mom or dad, but I don't really trust anyone to not be tempted to spend it on themselves every once in awhile. This is so important to me. I would literally turn in my grave if I knew that she wasn't able to go to college because some idiot wanted to buy a car or something. These are my real concerns and I don't know what to do or who to talk to. I have thought about wills and/or trusts but I am just not sure about the procedure and if it will give me what I need.

Thank you for your time, I truly appreciate it.

 

[cbg]

A financial planner (some of them are insurance agents as well but not all insurance agents are financial planners) can make the beneficiary of your policy a trust specifically for your daughter's education. I used to work for one so I've seen it done, although I don't know the specific process. The company issued the policy may be able to advise you on this as well - the financial planner I worked for had his office actually in the building of the insurance carrier so all the information was right there. (He was an insurance agent as well.) The beneficiary of an insurance policy can always be changed if necessary, so the fact that you have it set up as your daughter right now shouldn't be an issue.