What Is Required For Grandparents To Buy Their Grandchildren Life Insurance?
With most insurance companies, grandparents wanting life insurance for their grandchildren do not need permission (verbal or written) from the child’s parents. Some providers do require the parent to consent to the policy, but most do not.
To apply, you’ll only need the child’s full name and date of birth. Very few companies will require the grandchild’s Social Security number.
There will always be a few health-related questions (about the grandchildren). However, no medical records or physical exams are ever required.
If your grandchild was born with a health condition(s), you can still apply to see if they are approved. The worst-case scenario is a declined application.
That said, here’s a list of common health conditions that will 100% result in decline:
- Down syndrome
- Diabetes
- Sickle cell anemia (sickle trait is okay)
- Spina Bifida
- Heart conditions
Other medical conditions could result in a declined application. Those are just some of the most common ones.
Benefits Of Buying Life Insurance For Grandchildren
There are four main benefits of buying your grandchildren a life insurance policy.
- Future insurability: Nearly all child life insurance policies guarantee that the insured children can purchase more coverage later in life. Additional coverage is guaranteed and not subject to underwriting approval. That means if they develop some health issues as adults, they can still acquire more coverage and maintain their financial security.
- Lifetime coverage at a rock-bottom rate: If you buy your grandchild a whole life insurance policy, the price will be extremely low due to their young age. They will have lifetime financial protection, and for the rest of their lives, they’ll have a policy they can rely on that costs just pennies per day.
- Savings for future use: Children’s whole life insurance is a type of policy that will build cash value. Cash value is like a behind-the-scenes savings account that continually grows. Every time you make a payment, a small portion goes into the cash value account. It also typically earns interest. You can access and use the cash value anytime later in life for any purpose. It can serve as a college savings account, provide down payment assistance for a home, or cover medical bills, financial debts, or other expenses.
- Peace of mind: Albeit rare, child deaths do happen, and final expenses are expensive. The typical funeral costs nearly $10,000 in most states. A life policy can give you and your loved ones peace of mind, knowing that their unexpected death won’t create significant financial hardship. The payout money can also serve as a financial safety net to allow you and other loved ones to step away from work during the grieving process.
How Much Does Life Insurance Cost For A Grandchild?
Whole life insurance for grandchildren will generally cost $19-$35 monthly for roughly $50,000 in coverage. Your actual premium payment depends on the kids’ age and the amount of coverage you buy.
| AGE | $10,000 | $25,000 | $50,000 |
|---|---|---|---|
| 0-4 | $4.61 | $10.02 | $19.04 |
| 5-9 | $5.43 | $12.08 | $23.17 |
| 10-14 | $6.15 | $13.87 | $26.75 |
| 15-17 | $7.75 | $17.87 | $34.75 |
| Source for monthly prices: Choice Mutual child quote calculator. Rates valid as of 09/15/2025. | |||
How Does Life Insurance For A Minor Work?
Life insurance for a minor is the same as an adult policy. The only difference is that a third party buys the policy (children cannot buy it themselves).
In most cases, children’s life insurance will be a whole life policy, but some (not many) offer term life or universal life insurance for children.
Regardless of which type of policy you have, if the child dies while the policy is in force, the insurance company will pay the death benefit (tax-free) to the beneficiaries. The life insurance payout money can be used for any purpose.
If you opt to buy your grandchild a whole life policy, the premiums will never increase, coverage won’t decrease, it will build cash value, and the coverage will last their entire life.
You can transfer ownership of the policy to the child when they are an adult. Some companies, such as the Gerber Grow Up Plan, automatically transfer ownership once the children turn 25, but most providers allow you to choose when and if you do so.
Coverage Limits
Most companies will allow a grandparent to buy life insurance coverage for a grandchild between $5,000 and $75,000.
If you want more than $75,000, you’ll need to buy multiple policies from multiple companies. There is no law or rule preventing you from doing so.
Frequently Asked Questions
Generally speaking, Mutual of Omaha offers the best whole life insurance for grandkids. They typically have lower premiums than other providers, excellent added benefits, an easy application process, and offer up to $50,000 in coverage. However, if you’re looking to insure a grandchild aged 18-25, then Globe Life would be the best company. All other children’s life insurance companies have a maximum age limit of 17 for new applications.
Yes, you can buy multiple policies from different insurance companies.
All whole life policies (for minors or adults) accrue cash value. The only type of life insurance that does not build cash value is term life insurance. It is important to remember that only the policy owner can access the cash value.
Insurable interest is what life insurance companies require for a person to buy life insurance on someone else. In layman’s terms, it is the financial or legal interest you have in the insured person if they die. In other words, how would their death affect you legally or financially? Fortunately, the nature of your relationship (grandparent or great-grandparent) satisfies this rule and thus entitles you to buy a policy on a grandchild. For example, you cannot purchase life insurance on your neighbor because you would not be legally or financially affected by their death.
Nearly all children’s life insurance companies allow both grandparents and great-grandparents to buy a policy on their grandchildren.
The death benefit is paid out tax-free. However, withdrawing the cash value and giving it to a grandchild could result in gift tax implications, so it’s best to consult with your CPA before doing so.
Legal guardianship is not required to buy life insurance for your grandchildren.
Most children’s life insurance companies offer an online application that allows you to complete the entire application process without needing to speak with an insurance agent. Not all, but most do.
Gerber Life and Globe Life offer child life insurance policies in New York.
- Nationally licensed life insurance agent with over 15 years of experience
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
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Insurable interest. https://www.protective.com/learn/what-is-insurable-interest-in-life-insurance
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gift tax. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
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Cash value. https://www.thrivent.com/insights/life-insurance/how-the-cash-value-of-life-insurance-works
