Affordable Life Insurance Protection for Your Family
If you have elderly grandparents who are on a fixed monthly income you may be wondering if they have enough money saved to pay for their final expenses.
You may be asking yourself if you can buy life insurance for your grandparents?
The answer is "YES", you can.
Many adult grandchildren purchase life insurance plans for their grandparents to make sure there is no financial stress in paying for their grandmother or grandfather’s funeral and burial expenses.
Knowing that life insurance can cover final expenses in the event of their death can provide you and your grandparents with peace of mind.
Requirements to Buy Life Insurance on Someone Else
Can You Take Out a Life Insurance Policy on Your Grandparent?
A person is able to buy life insurance for another person, be it a spouse, parent, child or grandchild, as long as they can demonstrate Insurable Interest.
Can You Legally Buy Life Insurance on Someone Else?
The simple answer is Yes — you can buy life insurance for someone else if they agree and are aware of the decision.
However, you can't buy a plan for anyone without an insurable interest and consent from the person you are buying life insurance for.
What is the Oldest Age to Buy Life Insurance?
You can purchase guaranteed acceptance life insurance for people ages 45 to 85 years old.
Insurable Interest and Life Insurance
Yes, you may be able to buy life insurance on a person who is not your spouse or child.
You can obtain life insurance on anyone with whom you have an Insurable Interest.
There must be an Insurable Interest for you to take out life insurance on another person.
One way to determine Insurable Interest is whether or not you rely on that person for financial support, or a living situation.
Or, if you would suffer a financial cost should the person you wish to insure pass away; such as, having to pay for the funeral expenses of your parent.
Each person has an Insurable Interest in his or her own life, and therefore can select anyone as a beneficiary of his/her own life insurance policy.
Examples of Insurable Interest Include:
If You are An Adult, You May Insure:
Tips for Buying Life Insurance on Your Grandparents
Why Do People Buy Life Insurance on their Grandparents?
People often buy life insurance on their grandparents to provide financial security for their family in the event of their death.
Life insurance can help families pay for funeral costs, medical expenses, and other debts. It can also provide a source of income for surviving family members.
Life Insurance for Your Grandparents
Did You Know the Average Cost of Funeral and Burial Expenses is Around $7,700?
It may be a lot more than you expected. When you add up the cost of a funeral, memorial service, burial plot, headstone, flowers, and casket it can easily exceed $7,000.
That’s why it’s important to plan ahead.
Whether your grandparents are 70, 75 or over 80 years old, it’s not too late to get life insurance plans for them that can help provide funds for the family to make sure your grandparents have the dignity of a nice funeral and burial.
In fact, there are even guaranteed approval plans available which means you can get life insurance on your grandmother even if she has health problems, and she cannot be turned down for coverage.
These plans are called "Guaranteed Acceptance" and they will accept anyone who meets the age requirements.
Some life insurers provide guaranteed approval life insurance for ages 45 to 85.
And, there’s no hassles of a medical exam or having to answer questions about her health.
With guaranteed coverage, your grandparents will not have to take physical exams and they won’t have to answer any health questions.
You may choose from $2,000 up to $25,000 of life insurance on your grandparents, and the beneficiary can use the money as they choose.
If you buy life insurance on your grandparents you can name yourself as the beneficiary, or someone else, and the beneficiary would receive the death benefit proceeds from the insurance policy upon your grandma’s passing.
The proceeds from the life insurance policy are free from federal income tax.
You can purchase life insurance policies on your grandparents.
You will need their Consent, and Insurable Interest in your grandparents.
The quickest and easiest way is to buy guaranteed acceptance life insurance with no medical exam and guaranteed approval for anyone ages 45 to 85.
Keep in mind, guaranteed issue plans have limited coverage the first two years of coverage. That’s how they can accept anyone, regardless of health.