What provision allows a parent to retain control of a policy purchased for a minor child until they reach age 18?

The provision that enables a parent to maintain control over a policy purchased for a minor child until the child reaches the age of 18 is known as the ownership clause. This clause designates the owner of the insurance policy, who has the authority to make decisions regarding the policy, such as changing beneficiaries or accessing cash values. In the case of a policy for a minor child, the parent or guardian typically retains ownership until the child is legally considered an adult, at which point ownership can be transferred to the child.

Other terms, such as the beneficiary clause, pertain to who receives the benefits from the policy upon a claim or the death of the insured, which does not affect control of the policy itself. The insurable interest clause relates to the necessity of demonstrating a vested interest in the life of the insured in order to obtain a policy, which is not relevant to the retention of ownership. The contingent clause typically addresses conditions under which benefits are paid, focusing on secondary beneficiaries rather than ownership or control of the policy.