As your grandparents are growing older, you may be wondering if you can purchase a life insurance policy for them. Whether they do not have it themselves or you simply want to add on additional policies, it is important to ensure that they are covered in case they are to pass away.

The simple answer to this question is yes, you are able to purchase a life insurance policy for your grandparents, but there are conditions and potential limitations on the value of the initial policy. The life insurance company needs to make sure that you prove that you have an insurable interest and that your grandparents are considered close family members. At the minimum, the insured person will have to provide information and have a signature approving the policy. Before purchasing life insurance for your grandparents, there are various components to understand thoroughly.

Insurance Companies Do Not Want You to Profit From Death

life insurance for grandparentsLife insurance explicitly states that they do not want you to profit from the death of another person. Life insurance is not supposed to be used for wealth creation, and life insurance companies will never knowingly enable anyone to profit from someone’s death. This is why insurance companies require justification for the need for the amount of life insurance you’ll want to purchase, and there needs to be an “insurable interest” between the insured and beneficiary.

For example, if you are attempting to obtain a $400,000 policy on your grandfather who is 75 and you deem it as an excellent investment for yourself, then it is extremely unlikely that the insurance company is going to accept it and offer coverage. Life insurance companies don’t want to make you rich.  Instead, you should explain how your grandfather’s death will be a financial burden that required that particular amount of life insurance. If these needs cannot be explained, then the insurance company will most likely deny coverage.

You are Unable to Purchase Life Insurance on Someone Without Consent

There have been situations where people have attempted to purchase life insurance on someone without them even knowing, which is completely not possible. In order to obtain life insurance for someone, it is required to have the application be signed, even if it is an electronic signature. Also, unless they are applying for guaranteed acceptance life insurance, they will also be required to answer some health and underwriting questions. A medical exam on the insured will also need to be done. While there have been individuals that attempt to forge signatures and answer questions for other people, this would only lead to potential criminal proceedings and ultimately lead to an insurance company to deny your claim, so therefore this would be an incredible waste of time.

If Your Grandparents Give Consent, Then You are Able to Obtain Life Insurance for Them

While it may be beneficial to purchase life insurance on your parents, grandparents, children, or any other loved one within your life that you may be financially responsible for, it is not necessarily easy for someone else to purchase life insurance for them. There have been multiple cases where insurance companies would not agree to grant coverage because the person to be insured has no income or a very small annual income and a more substantial financial loss to the beneficiary could not be established.

Therefore, a good strategy would be to obtain life insurance for your grandparents or parents would be to have them apply for coverage assuming they will be the owner of the policy. They also should name their spouse as the beneficiary as well, whenever it is possible. Once they are approved and you accept the policy, you will then be able to make the payment to get policy placed in force. Once the policy is in force, you are able to make policy changes, in which you can change the policy owner, beneficiaries, billing address, and more.

Final Word on Buying Life Insurance For Your Grandparents

Overall, it is not necessarily difficult to obtain life insurance for your grandparents or parents, but you need to ensure that everyone is on the same page and there is no miscommunication. You will be unable to conduct this process if your grandparents do not answer any of the questions or sign any documents. Consent is the number one most important aspect of obtaining a life insurance policy for someone else, and without it, you will not be able to obtain it. If the insurance company also believes that there is ill-will in attempting to receive coverage, then they will ultimately deny coverage as well.

It is important to note that the company will more than likely ask for a health exam before the policy can be written and that policies will not pay out for a minimum period of time for various reasons. With all of this being said, it is important to consult a life insurance agent before making any decisions pertaining to purchasing life insurance for your grandparents.


  1. Elexuses Bynum

    I need quotes and help with obtaining information for a life insurance policy for my grandmother

    1. Please fill in our quote form to get started and we will help you!

  2. My mother just passed away unexpectedly none of us were prepared I have a 77 year old grandmother and I was wondering if I could take up some kind of burial insurance for her

    1. You can and it is best to act now before she gets any older.

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