You can buy life insurance for your grandparents to cover their end-of-life expenses.
However, even though you’re paying for it, they will still need to participate in the process.
Learn the requirements, policy options, monthly cost estimates, and the best companies for seniors.
Topics Covered in this article
How To Buy Life Insurance For Grandparents
Grandchildren can take out life insurance for a grandparent so long as they are willing to answer the health questions (if any) and sign the application.
If your grandparents are unwilling to participate in the process, there is no way to insure them.
In that circumstance, your best end-of-life planning option would be a pre-paid burial plan or putting money into a savings account.
Life insurance companies require beneficiaries to have “insurable interest” to buy life insurance for another person.
Insurable interest is when you (the beneficiary) would suffer a financial loss due to the insured’s passing (your grandparents).
A grandchild’s most common insurable interest is to cover their grandparent’s funeral costs, medical bills, and other end-of-life expenses.
That said, burial insurance coverage up to $50,000 requires no explanation regarding why you want the insurance.
However, if you want more than $50,000, you may need to demonstrate how their death would cause a financial burden.
5 Tips When Buying Life Insurance For Grandparents
Buying life insurance for a senior can be tricky, given their age and potential health complications.
Consider these tips to ensure you find the right policy at the best price and meet your needs.
- The type of policy matters greatly: There are many types of life insurance plans (whole, term & universal). Furthermore, they all function differently. Be sure to choose the correct type to accomplish your goal rather than deciding solely on price.
- Obtain their consent first: It’s best to have a quick conversation with your grandparents, informing them that you want to buy life insurance coverage for them. Just make sure they are on board with participating in the process. If they aren’t, there is no way to insure them.
- Learn about their health: If you know about their past and current health issues, an insurance agent/company can give you detailed product info. That includes accurate life insurance quotes, policy options, and waiting period provisions (if any), to name a few. Without their health information, you’ll only get very general information that is not specific to your grandparents.
- Utilize an independent insurance agent: Independent agents can represent multiple insurance carriers for your benefit. They will compare offers from each insurance company to find you the best deal possible. Captive insurance agents (State Farm is one example of a captive company) cannot represent other insurance providers. Working with an independent agent is always free.
- Be open-minded about insurance companies that aren’t household names: There were 747 life insurance companies in the USA in 2020. Conservatively, less than 1% advertise in mass media to become a household name like Aflac or State Farm. It would be best not to exclude 99% of the companies available when buying life insurance for parents or grandparents.
What Is The Best Life Insurance For A Grandparent?
Final expense life insurance is likely the best life insurance for your grandmother or grandfather since covering funeral expenses is why most grandkids want to insure their grandparents.
That said, which policy and company are best depends upon their health, age and why you need coverage.
Remember, there are many types of life insurance coverage (temporary and permanent policies).
It’s critically important to select the correct type of coverage that will best satisfy your needs.
| Policy Type | Age Range For New Applicants | Typical Coverage Options | Average Monthly Cost | Best Reasons To Buy | Medical Exam Required? |
|---|---|---|---|---|---|
| Final Expense Whole Life | 0-89 | $1,000-$50,000 | $40-$150 | End of life expenses, final medical bills, or other last debts | No |
| Guaranteed Acceptance Whole Life | 40-85 | $2,000-$25,000 | $50-$200 | Very dire health issues that renders you uninsurable for products with underwriting | No |
| Traditional Whole Life | 0-85 | $50,000+ | $200-$2,000 | Estate planning, debt payoff, spousal income protection, very high funeral costs, or leave a legacy for your heirs. | 0-80: No 81-85: Yes |
| Universal Life | 18-85 | $50,000+ | $200-$1,500 | You want permanent coverage with flexible payment options, estate planning, debt pay payoff, spousal income protection, retirement supplementation, final expenses, a legacy for heirs | 0-80: No 81-85: Yes |
| Term Life | 0-80 | $50,000+ | $100-$1,000 | Financial debts or income replacement | 0-79: No 80: Usually |
Final expense insurance
A final expense plan is a small whole life insurance policy that provides peace of mind knowing you can pay for your grandparent’s burial or cremation costs when they die.
They don’t need to be in good health to qualify because the underwriting is very lenient, and there is no medical exam.
The policy will pay out a lump sum cash benefit to the beneficiary. There are no restrictions on how the money is spent. Because the policy is whole life, the rates will not change, and the coverage lasts forever.
Guaranteed acceptance
Guaranteed life insurance is a type of whole life insurance policy with no health questions or underwriting. Because acceptance is guaranteed, there is a two-year waiting period.
If they die during the waiting period, the insurance company will only refund your premiums plus a small amount of interest.
Traditional whole life
Whole life insurance is a type of permanent life insurance that builds cash value. Whole life insurance rates never change, and the coverage doesn’t expire or decrease in value.
Traditional whole life plans typically require you to buy $100,000 or more in coverage.
Term life insurance
A term policy is a life insurance plan that will expire after a predefined period of time. It might last a certain number of years (such as 5, 10, or 15) or until a certain age (such as 70, 75, or 80).
After the policy expires, you no longer have insurance. Some term life insurance plans have a fixed cost.
However, some companies (such as AARP life insurance or Globe Life Insurance) have monthly premiums that increase over time.
Generally speaking, nearly all term life coverage will expire at or around age 80.
Universal life insurance
A universal life policy is technically considered permanent insurance (although it rarely lasts forever).
They’re often sold to supplement retirement or diversify your investment portfolio. The main thing to understand is that these plans rarely last forever.
They’re usually marketed as permanent coverage that is less expensive than whole life.
While they are less costly than whole life (for the same amount of coverage), it’s generally an illusion.
We say that because universal life policies often crash shortly after age 75 or 80, leaving the policy owner without coverage.
Grandparent Life Insurance Quotes
The table below shows what burial insurance for your grandparents might cost.
Please remember that all life insurance prices are based on the insured’s resident state, gender, tobacco usage, coverage amount, and health.
| Age | Female $10,000 Simplified Issue (Monthly Rates) | Female $10,000 Guaranteed Acceptance (Monthly Rates) | Male $10,000 Simplified Issue (Monthly Rates) | Male $10,000 Guaranteed Acceptance (Monthly Rates) |
|---|---|---|---|---|
| 45 | $22 | $28 | $27 | $33 |
| 50 | $24 | $30 | $30 | $36 |
| 55 | $27 | $38 | $35 | $45 |
| 60 | $32 | $42 | $43 | $55 |
| 65 | $41 | $51 | $54 | $66 |
| 70 | $51 | $69 | $70 | $89 |
| 75 | $71 | $98 | $99 | $121 |
| 80 | $98 | $140 | $139 | $166 |
| 85 | $135 | $170 | $192 | $230 |
How To Get No Waiting Period Final Expense Life Insurance For Your Grandparents
With funeral life insurance, there are three different types of plans.
Which one your grandparents are eligible for depends on their health.
- Full 2-3 year waiting period: During this time, the insurance company will only refund all premiums paid plus interest. They will not pay out for natural causes during the waiting period.
- Partial waiting period: The insurance carrier will pay out a portion of the face amount during this time. It’s usually 30-40% for months 1-12 and 70-80% during months 13-24. After two years, the total amount is payable.
- No waiting period: An immediate coverage plan will pay out 100% of the death benefit starting on day 1 of the policy. The only exception is suicide or if you lie about your health when you complete the application.
You must apply for a plan with health questions to get partial or immediate coverage.
Your grandparents don’t have to take an exam, but they must complete a health questionnaire.
Truthfully, most seniors can qualify for immediate or partial coverage.
Remember, final expense policies for seniors are designed to accept many health risks.
It’s not like life insurance for a grandchild where they need to be in near-perfect health to qualify. At the end of the day, if you want immediate coverage life insurance for your grandparents, you’ll need to speak with a Choice Mutual agent.
Only an agent can determine which life insurance companies will approve your grandparent for no waiting period life insurance coverage.
We have over 15 different insurance companies that we can offer your grandparents. If your grandparents can get immediate coverage, we’ll find it.
Best Life Insurance Companies For Grandparents Over 80
Getting life insurance for a senior over 80 is still possible with many companies.
If your grandparents are above 80 or even 85, your best option will likely be with one of these three final expense companies.
Use our quoting tool to get quotes for any of these companies.
| Insurance Company | Coverage Options Above 80 | Max Age For New Applicants | Policy Type | When Policy Can Pay Out |
|---|---|---|---|---|
 | $2,000-$40,000 | 85 | Final Expense Whole Life | No waiting period |
 | $1,000-$25,000 | 85 | Final Expense Whole Life | No waiting period |
 | $2,000-$25,000 | 89 | Final Expense Whole Life | No waiting period |
 | $2,500-$10,000 | 90 | Final Expense Whole Life | No waiting period |
 | $2,000-$10,000 | 90 | Final Expense Whole Life | Refund of premiums in first 12 months, 50% payout in 2nd year, then full benefits after 2 years |