As a kid, your grandparents are there to love, protect, and even spoil you a little. Helping them figure out their finances as they age is one way to protect both them and your family in return.

As your grandparents get older, you may want to put a plan in place to help cover their end-of-life expenses, especially if they don’t already have money set aside.

Buying life insurance helps ensure that you can take care of their final needs without going into debt.

Can you get a life insurance policy on grandparents?

The short answer is yes, but the decision comes with some fine print.

Buying life insurance for someone else isn’t difficult, but it does require you to prove that you have an “insurable interest.” In other words, you would typically need to be a close relative and/or show that there would be financial consequences for you if they died to justify purchasing a policy. Life insurance companies put these conditions in place because they don’t want you to profit from the death of a person you do not financially or physically rely upon.

The coverage amount you ask for should fit both of your situations and needs. And remember, you can’t buy a policy without their consent, so be sure to discuss it with them ahead of time.

What kinds of life insurance should you buy for your grandparents?

Taking out life insurance on your grandparents is part of helping them plan ahead for common end-of-life expenses. There are three main kinds of life insurance for older adults:

• Term life offers coverage for a specific period of time, a good option if your grandparents are still paying off large expenses. Term life generally requires a medical exam and offers higher coverage amounts than no-exam options, but check with your provider for senior-specific options. Learn more about term life.
• Permanent life insurance is best for seniors in relatively good health who want lifelong protection for big expenses. More expensive than term life, permanent policies offer a guaranteed payout and build cash value over time, making it easier to cover future funeral costs and other financial responsibilities. Learn more about permanent insurance.
• Final expense. This type of policy is meant to help cover end-of-life expenses, especially for older seniors with health issues. Easy to qualify with no medical exam required, final expense typically has lower coverage amounts to pay for funeral costs or leave small legacies. Learn more about final expense.

Life insurance policy death benefits can help pay for anything you want, from funerals and lingering debts to medical bills and long-term care. Policies with more comprehensive coverage and death benefits provide a spouse or family members with extra income, funds for daily expenses, and allow them to save for the future.

Can grandparents get life insurance on grandchildren?

Again, the answer is yes if they’re able to show an insurable interest. Grandparents who are their grandchildren’s primary caregivers, for example, will easily qualify. As a grandparent, you also generally need parental permission before buying a life insurance policy for grandchildren.

The most common policies gifted to minor children are whole life or permanent policies, which offer lifelong protection that grows with them. You can buy a policy in their name and plan on handing it over to them to manage when they become adults. This helps lock in a lower rate and allows them to earn extra cash value for college costs or other expenses.

Still have questions?

Whether you’re starting to have those end-of-life conversations with family or want to protect a new generation, Fidelity Life can help you find the right policy for you and your loved ones.

At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.