What is true regarding a minor beneficiary?

When it comes to minor beneficiaries in life insurance policies, it is typically true that a guardian is required to manage their benefits. Minors, who are not legally able to enter into contracts or manage financial affairs on their own, cannot receive benefits directly. Instead, a court-appointed guardian or a parental figure usually manages these funds until the beneficiary reaches the age of majority, which varies by state.

This ensures that the minor's interests are protected and that the benefits are used appropriately, as minors lack the legal capacity to make informed decisions regarding financial matters. The other options do not accurately represent the legal and practical realities of how minor beneficiaries are treated, highlighting the necessity of appointing a guardian to oversee the benefits until the beneficiary is legally able to handle them independently.