In a life insurance contract for a child, who is typically the applicant-owner?

In a life insurance contract for a child, the applicant-owner is typically a parent or guardian, often the father in many scenarios. The reason the father, or another adult, serves as the applicant-owner is that minors are legally incapable of entering into contracts, including insurance policies, on their own. The parent or guardian has the authority to make decisions regarding the policy, including selecting the coverage amount, managing payments, and designating beneficiaries. This structure ensures that the child's best interests are taken into account while providing the protection that a life insurance policy offers.

In addition, the other roles such as the insured, the beneficiary, and the insurer have distinct functions in the context of the insurance contract. The insured refers to the individual whose life is covered under the policy; in this case, it would be the child. The beneficiary is the person or entity entitled to receive the death benefit from the policy; this could be the parent or guardian or another designated individual. The insurer is the company that provides the insurance coverage. Each of these roles is significant, but they do not have the same authority or responsibilities as the applicant-owner in managing the insurance policy.