Yes, you may need to set up a trust and a will. Maybe just a will could be sufficient. I have both set up for my kids. Like Jen said, I have a separate guardian and executor...mainly because I don't want my money to be used to the benefit of others...separation of duties, I guess. So, my executor knows how to spend the money and then I have specified that once my children reach maturity, they get so much percentage of money left over at 25 years of age, then so much at 30 years of age and so on. I don't believe a 21 year old should have all the money that is left over and is quite mature enough to know what to do with it. I have also made my intentions known that I would like them to go to college and have the money be used for that as well. Separately, I have a responsible party that has agreed to raise my kids should something happen to my husband and I.
You can name your daughter as a beneficiary of your policies, and she will get the money. But, whoever has guardianship, and if you don't name someone, the courts will for you, can spend the money as they like. If her father is still in the picture, he will probably get custody. If not, you will want to name a responsible person. So, it's to your benefit to name a guardian and then an executor and then specify exactly what you want the money to be used for.
Kind of like Larry Birkhead, with Anna Nicole Smith. He was so darn happy to be that little girl's father...not so sure because he wants to be a father...maybe that's true. But, my guess is that he's looking down the road and sees $$$ if that little girl gets some inheritance from Anna Nicole and J. Howard Marshall. If so, I'm sure there will be some good lawyers on that case to make sure the $$ goes to the girl and not Larry.