Last Updated: July 2020
Many grandparents don’t know how to shop for life insurance for their grandchildren.
Maybe you aren’t even sure if you want to buy life insurance for your grandchild yet.
Below, we’ll explain why you might want to get a life insurance policy for your grandchildren, including the benefits for the grandkids’ future. We’ll also show you how to shop for the right policy and company.
- Can you Purchase a Life Insurance Policy for Your Grandchildren?
- The Benefits of a Life Insurance Policy for Grandchildren
- How to Purchase Life Insurance for Your Grandchildren
- The Best Life Insurance Companies for Grandchildren
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
Purchasing life insurance for your grandchildren is not only affordable but is often extremely easy to do. Rates for individuals this young are typically very low and certain whole life policies have the ability to grow in value. Parental consent may be required in some states.
Can you Purchase a Life Insurance Policy for Your Grandchildren?
Yes. Typically it is not difficult to get life insurance on someone else in your own family.
Depending on the state you live in, you may need the consent of the parents (your children) to purchase the policy.
You’ll purchase the life insurance in the grandchild’s name, and once they are an adult, they will become the policy owner.
It is one of the best ways to show just how much love you have for your grandchildren, and it is an incredibly generous and lasting gift that you can give.
The Benefits of a Life Insurance Policy for Grandchildren
Even though it is important to have life insurance for your grandchildren in case there is some sort of tragedy or accident, this is not the only reason to purchase a policy.
There are many reasons why purchasing life insurance for your grandchildren is a good idea for their future as they grow into adulthood.
Life Insurance for Grandchildren is Very Cheap
With your grandchildren being young and likely in good health, it is incredibly easy to find a very affordable premium. It is an incredible value for a low cost.
This is beneficial for a grandparent because they can get a policy that is inexpensive, and it covers the children which is important.
If your grandchildren try to purchase a whole life policy once they are older, they will end up paying much more for a policy.
The Policy Will Be Worth Something When the Grandchildren are Older
A whole life insurance policy that has cash-value can appreciate with time. This is a long-term benefit, and it is a gift that your grandchildren will appreciate when they grow up.
The grandchildren can use this cash for any college expenses, a down payment for a house, to use as a collateral assignment for a loan, and many other costly living expenses.
You’re not only providing financial security for your children if their kids pass away, but also security for the grandchildren themselves.
It Helps Give Your Kids Peace of Mind
When it comes to the parents, most of them see how great of a value it is to get life insurance for their children.
However, many times parents can’t budget for it or simply have other priorities and put it on the back burner.
Grandparents buying life insurance for grandchildren is a way to help your kids out financially as well as your grandkids.
Other Reasons to Purchase Life Insurance for Grandchildren
Life insurance has several other uses throughout the life of a grandchild. Some of the other important factors include.
- Protecting the child’s future insurability.
- Tax advantages for savings plans.
- Beneficial access to the cash value.
Protecting insurability for a grandchild is the main reason why it is important to purchase the life insurance policy. This is a way to ensure that they have life insurance as an adult.
Not to mention protecting your own kids from being burdened with paying for funeral expenses if something were to happen to them.
These types of things are what these grandparents consider and think about when it comes to them purchasing a full life insurance policy on their grandchildren.
It is a way to show your grandchildren just how much you love them by leaving them a specific legacy that will help to contribute to their financial security for their future.
How to Purchase Life Insurance for Your Grandchildren
As a grandparent, purchasing life insurance for your grandchildren is an incredibly generous action to take. It will help ensure the child’s protection and financial security as they age into adulthood.
Grandparents buying life insurance for grandchildren should compare policies from multiple life insurance companies before making a decision.
You should review the details of the policy to ensure the grandchild has flexibility and benefits in the future.
The Best Life Insurance Companies For Grandchildren
The options you have for purchasing life insurance for your grandchildren are plentiful. A large majority of life insurance companies offer excellent whole life insurance policies that are designed specifically for this newborn grandchildren and toddlers.
In our experience at Rootfin, we typically help our clients work with a select few life insurance companies.
Here are the best life insurance companies for this demographic. Each carrier is known to offer excellent whole life insurance policies that you can purchase for your grandchildren at affordable rates.
- Gerber Life Insurance (The Grow-Up Plan)
- Mutual of Omaha
- Foresters Financial
While these 3 companies are certainly at the top of our rankings, working with an independent life insurance agency is still going to be your best plan of action.
Use an Independent Life Insurance Agent to Compare Different Carriers
Use an independent agent to get quotes from the best life insurance companies.
A good independent life insurance agent will be able to walk you through the differences between the policies so you can make the right decision for your grandchildren.
You can purchase life insurance with no medical exam for your grandchildren and get coverage in force for them quickly with future guaranteed options to buy more insurance no matter their health.
We see a lot of children buy life insurance for their parents, but it’s rarer yet still generous, to see grandparents buy life insurance for their grandchildren.
It’s a special legacy to pass on your grandchildren will never forget.
That said, we’ve helped dozens of grandparents purchase life insurance for their grandkids.
We’d be happy to assist with your options. Just fill out the form on the right or give us a call.
I am interested in purchasing life insurance policy for my grandchildren.
Hi Barbara,
Thanks for reaching out. Complete the form on this page or call us at 888-430-7668 and we’ll go over the best options.
In the state if Colorado, is it possible to get life insurance for some of your grandchildren but not for others?
Thank you for your time.
Hi Brenda, yes it is. Give us a call and we’ll walk you through it. 888-430-7668