The short answer is typically no. Life insurance policies are designed to provide financial security for listed beneficiaries so they can carry on with their lives if someone passes away unexpectedly. Generally, those named as beneficiaries of life insurance policies cannot spend the death benefit from the policy.
The life insurance company will typically distribute the death benefit to the beneficiaries listed on the policy, or where a probate court order is issued for the estate of the deceased. If a beneficiary is a minor, the court may appoint a conservator to manage the funds on behalf of the minor until they reach adulthood.
However, some life insurance policies may permit policyholders to draw a loan against their life insurance policy during their lifetime. This is not to be confused with the death benefit that the named beneficiaries may receive after they policyholders Death.
Therefore, the best way to make sure that your life insurance funds are administered in line with your wishes is to complete estate planning documents like a Will, Trust and Power of Attorney forms that spell out exactly who should receive designated funds and what will happen after your death.
Ultimately, the best course of action is to consult with an estate planning attorney and review all documents related to your life insurance policy to ensure that your wishes are properly documented.