Minor children cannot own or manage assets. If a minor is named as a beneficiary of life insurance, the life insurance company often holds the assets until the child reaches the age of 18 and then distributes the proceeds to the beneficiary at that point in time, when the child is often not responsible enough to handle the money. When this happens, the minor child is often denied the benefits of the assets when the child most needs the money. This is not what the insured party wants to occur. Read more about designating minor children as life insurance beneficiaries.