New York Limit on Life Insurance for Minors

In New York, an insurer may issue a life insurance policy on a minor for a maximum face amount of $50,000, provided the policy meets state‑mandated consent and beneficiary requirements.

Statutory Cap and Its Rationale

The New York Insurance Law (Section 3102) sets the $50,000 limit to protect minors from excessive underwriting and to ensure policies serve a legitimate financial purpose, such as covering funeral costs or securing a modest savings vehicle.

Eligible Policy Types

Both term and whole life policies can be issued within the limit, but the insurer must treat the minor as the insured and a parent, guardian, or legal custodian as the owner and primary beneficiary.

Consent and Ownership Requirements

The adult who purchases the policy must provide written consent acknowledging the minor's lack of legal capacity. The adult holds the policy rights, can change beneficiaries, and may surrender the policy, but cannot assign it to a third party without court approval.

Beneficiary Designations

New York law mandates that the parent or guardian be the primary beneficiary. A secondary beneficiary may be named, but the primary must retain control until the minor reaches the age of majority (21 years in NY).

Exceptions and Special Situations

Higher face amounts may be approved if the policy is part of a court‑ordered settlement, a trust for the minor's education, or a charitable arrangement, but such cases require judicial review and explicit regulator notification.

Key Compliance Checklist

• Maximum face amount: $50,000 unless court‑ordered exception.
• Owner must be parent, guardian, or legal custodian.
• Written consent from the adult purchaser is required.
• Primary beneficiary must be the adult owner.
• Policy may be surrendered or altered only by the adult owner.

Comparison Table