Can Grandparents Get Life Insurance on Grandchildren?

Shawn Plummer

CEO, The Annuity Expert


Grandparents have the option to secure life insurance for their grandchildren, provided there is an insurable interest. This guide outlines how grandparents can purchase life insurance for their grandchildren, focusing on the benefits of whole life policies.

Insurable Interest Between Grandparents and Grandchildren

  • Insurable Interest: Grandparents often have an insurable interest in their grandchildren’s lives, making it legal and possible for them to purchase life insurance for them.
  • Payment of Premiums: Grandparents can pay the premiums for these policies.

Advantages of Whole Life Insurance for Grandchildren

  • Cash Value Accumulation: Whole life policies build cash value over time, which can be beneficial for the grandchild in the future.
  • Future Insurability: Once the grandchild reaches adulthood, they can increase their coverage amount without undergoing new underwriting. This is particularly valuable if the grandchild develops health issues that might typically increase insurance costs or limit eligibility.
  • Long-Term Security: Provides financial security and support throughout the grandchild’s life.

Steps for Grandparents to Purchase Life Insurance for Grandchildren

  1. Choose an Insurance Company: Research and select a reputable insurance company.
  2. Determine Coverage Amount: Decide on the amount of coverage that would be beneficial for the grandchild.
  3. Application Process: Complete the necessary paperwork, which may require basic information about the grandchild’s health and lifestyle.
  4. Payment of Premiums: Set up a payment plan for the premiums.

Comparison of Life Insurance Types for Grandchildren

FeatureWhole Life InsuranceTerm Life Insurance
DurationLifetime coverageFixed term (e.g., 20 years)
Cash ValueAccumulates over timeNo cash value
PremiumsGenerally higherLower initially
Future InsurabilityGuaranteed without additional underwritingRequires new underwriting
SuitabilityLong-term financial planningShort-term coverage needs


Securing life insurance for grandchildren by grandparents is not only possible but also beneficial, particularly with whole life insurance policies. These policies offer long-term financial security and the ability to increase coverage in adulthood without the need for additional underwriting. This can be a strategic move to ensure the grandchild’s financial stability, regardless of future health changes.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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