You can instruct the appointee by way of a Will to take care of the money for your daughter
When I was taking a term plan, the idea was to ensure that the proceeds go to my now 5-year old daughter. This is my way to ensure her future is secure in my absence. However, the insurer insisted I have an adult relative as the appointee as she is a minor. How can I make sure she gets the money when needed?
Roopak Kulkarni, Hubli
Your intent is laudable and appreciated. However, the insurer is right in seeking you to appoint or nominate an adult to take care of the insurance proceeds in case of your death. You will need an appointee if the nominee is a minor. In case you die while the nominee is a minor, the sum assured will be paid to the appointee. To ensure your intent to provide for your daughter after your demise, you can instruct the appointee by way of a Will to take care of the money for your daughter. In case you die when your daughter becomes an adult, the policy proceeds would anyway automatically go to her.