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To receive proceeds from a death benefit, a minor

Rationale

A minor must have an appointed guardian to receive proceeds from a death benefit.

In most jurisdictions, a minor cannot legally receive insurance proceeds directly. Therefore, a guardian must be appointed to manage the funds on behalf of the minor until they reach the age of majority.

A (must be related to the insured.) YOUR ANSWER

While it is common for beneficiaries to be relatives of the insured, there is no legal requirement that a minor must be related to the insured in order to receive death benefits. A minor can be named as a beneficiary regardless of their relationship to the insured.

B (can only be named as a contingent beneficiary.) YOUR ANSWER

Minors can be named as primary beneficiaries as well as contingent beneficiaries. There are no restrictions that limit minors to only being named as contingent beneficiaries. The distinction between primary and contingent beneficiaries does not hinge on the age of the beneficiary.

C (must be at least 16 years old.) YOUR ANSWER

There is no universal age requirement of 16 years for a minor to receive death benefits. Instead, the requirement is that the minor must have a guardian appointed to manage the funds until they reach the age of majority, which varies by state and can be younger or older than 16.

D (must have an appointed guardian.) CORRECT

This statement is accurate since minors are not legally able to manage their own financial affairs. An appointed guardian is necessary to handle the death benefit proceeds on behalf of the minor until they are legally recognized as an adult.

Conclusion

In conclusion, to receive proceeds from a death benefit, a minor must have an appointed guardian who can oversee the funds until the minor reaches adulthood. The other options incorrectly impose unnecessary restrictions or misinterpret the legal status of minors as beneficiaries. This understanding is crucial for ensuring that death benefits are properly managed for minors.

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