Cap. 16 Art. 1712LContractstakenout for the benefit of a child’s estate.

(1) It shall be lawful for parents of a child to enter into a contract of life insurance, for the child as policyholder, in the administration of the child’s property.

(2) Any such contract may be entered into by either parent and the name of the child as policyholder shall be recorded in the policy.

(3) Payments of any proceeds under the policy, at maturity, during the term by way of withdrawals or on earlier surrender, may only be made to the parents jointly or to a bank account designated as property of the child. The provisions of article 136 shall apply to any relevant acts in relation to the life insurance policy.

(4) It shall not be lawful for the parents to designate a third party as a beneficiary of a contract of life insurance entered into for a child as policyholder.

(5) On reaching maturity the child shall be entitled to exercise all rights in relation to the policy without the need to any formality other than giving notice to the insurer and providing him with evidence of his identity and age.

Sub-Title 4 - Pledge of Insurance Policies