New Jersey Life Insurance Exam Practice Question
Which of the following MUST be TRUE in order for a minor to receive proceeds from a death benefit?
Correct Answer: D
Rationale: To receive proceeds from a death benefit, a minor must have an appointed guardian (D). This ensures that the funds are managed responsibly until the minor reaches adulthood.
Option A is incorrect; while being related to the insured may be common, it is not a legal requirement for receiving benefits. Option B is also wrong; minors can be named as primary beneficiaries, not just contingent ones. Lastly, option C is misleading; there is no universal age requirement of 16 for minors to receive benefits, as this varies by jurisdiction. Thus, having a guardian is essential for proper fund management.
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