Which statement is FALSE regarding Alabama law and Life insurance benefits for minors?

The statement that only minors can receive benefits is false because it misrepresents the provisions surrounding life insurance benefits. In Alabama, while minors can indeed be designated as beneficiaries of life insurance policies, they are not the exclusive recipients of insurance benefits. Typically, beneficiaries can be individuals of any age, including adults, making it possible for life insurance benefits to be paid out to parents, guardians, or other adults designated as beneficiaries for the policy.

The other statements reflect true aspects of Alabama law regarding life insurance for minors. Minors have the capacity to enter into insurance contracts under specific conditions, which allows them to be protected by policies. Furthermore, beneficiaries do usually need to be of legal age to receive funds directly from a policy, ensuring that they can manage and apply those benefits appropriately. Lastly, under certain circumstances, minors can inherit assets, including life insurance benefits, though this is subject to legal stipulations and may require a guardian to manage the funds until the minor reaches the age of majority.