Life Insurance for Grandkids (Discounts & Rates)
Grandparents can buy life insurance for grandkids with the parents’ permission or if you’re their legal guardian. However, you usually need to prove insurable interest before you buy a life insurance policy on them. Life insurance rates for grandkids cost $14.59 per month on average. Invest in a whole life insurance policy for your grandkid to insure it lasts their entire lifetime. Coverage for minors over $15,000 may be subject to gift taxes.
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UPDATED: Apr 21, 2021
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- Grandparents can purchase life insurance for grandkids
- Life insurance quotes for grandchildren average $14.59 per month
- Purchase a whole life insurance policy to lasts their full lifetime
Generally, grandparents can buy life insurance for grandkids if they’re the legal guardian or have the parent’s permission.
Below, discover what providers sell life insurance for minors and determine if purchasing a policy for your grandchild is the right choice.
Discover the best life insurance company for grandkids by entering your ZIP code into our free quote tool above.
How much does life insurance cost for grandkids?
Life insurance rates for grandkids cost $14.59 on average. However, the age of your grandchild impacts the total premium.
Baby life insurance will cost less than teenage life insurance.
Usually, you must prove insurable interest to purchase life insurance on someone else. If you’re the legal guardian of your grandchild, this will be no problem.
Otherwise, you must prove that your grandchild’s death would cause emotional and financial consequences to you.
Below, compare the average life insurance quotes for grandkids for whole policies from various providers:
- Foresters Financial: $15.18
- Gerber Life Insurance Company: $27.70
- Globe Life: $10.10
- Mutual of Omaha: $14.70
- Physicians Mutual: $5.50
- Royal Neighbors of America: $10.56
- Transamerica: $21.40
Each provider sells different levels of coverage for children of various ages.
For example, the Gerber Grow-Up Plan is a whole policy available for children ages 0 to 14 with coverage reaching up to $50,000.
Whereas the Globe Life whole policy is available to children ages 0 to 24 but provides up to $30,000 worth of coverage.
Therefore, compare rates from multiple providers online to find the best company and coverage for your needs.
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Should you buy life insurance for grandkids?
Many grandparents want to purchase life insurance for their grandchildren to provide financial security later in life.
However, when it comes to grandparents buying life insurance for grandchildren, some financial experts warn this might not be the best investment.
Because children do not have dependents or an income, life insurance is often unnecessary.
Most children are also very healthy. According to the Centers for Disease Control and Prevention (CDC), 86.3% of children between 5 and 11 are in excellent or very good health.
Some life insurance for babies guarantees the standard rate for your grandchild upon reaching adulthood. But there are three other cheaper rating tiers available.
Only about 5 percent of young adults receive worse than standard ratings for life insurance.
If the goal is to assist with future college tuition costs, consider a college savings account or 529 plan.
However, unlike a 529 account, life insurance does not impact financial aid.
What are the best life insurance policy options for grandkids?
Whole life insurance policies are the best option for minors.
You can invest in as little as $5,000 worth of coverage to assist with funeral costs, or larger $50,000 death benefits.
When the child reaches adulthood, they can continue making the policy payments to maintain coverage throughout their lifetime.
This keeps their rates low if they develop a pre-existing or high-risk condition.
Know that under current estate planning laws, purchasing coverage for your grandchild above $15,000 may be subject to gift taxation.
Talk with your family and a financial expert to determine the right coverage amount for your grandchild.
Life Insurance for Grandkids: The Bottom Line
Ultimately, whether you choose to buy life insurance for grandchildren or not is up to you.
There may be better ways to invest in your grandchild’s future. However, if it fits in your budget and brings you peace of mind, then it is worthwhile.
Find affordable life insurance for grandkids right now by entering your ZIP code into our free quote tool below.