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Life insurance is not just for insuring yourself. You can apply for a policy on loved ones to help protect yourself if their passing could impact you financially. For example, you may decide to get a policy for one or more of your grandparents. This can help you cover end-of-life costs when they pass away, pay off their outstanding debts, or to receive other financial assistance. Let’s dive deeper into how getting life insurance for grandparents works and explore some policy types you can consider.
Life insurance for grandparents involves applying for a policy to insure a grandparent and naming yourself as the beneficiary. Even though your grandparent is insured, you are responsible for paying premiums. If your grandparent passes away during the policy term, you can receive the policy’s death benefit.
In general, you must meet three requirements to get life insurance for grandparents:1
Here are some of your options for helping to cover your grandparents with life insurance:
Term life insurance offers coverage for 10, 20, or 30 years, depending on your choice. It can expire if your grandparent outlives the policy, meaning you’ll need to renew coverage or get a new policy. However, premiums are typically reasonable.
Whole life insurance is a type of permanent policy that charges higher premiums but can cover your grandparents for life. It also has a cash value component, which grows tax-deferred at a fixed interest rate. Once you accumulate enough cash value, you can typically take out low-rate, no-credit-check loans or withdraw money. You can also surrender the policy if you no longer need coverage and get the cash surrender value minus surrender charges.
Final expense insurance, also called burial insurance, is a small-dollar whole life policy to help cover end-of-life expenses, such as funeral costs and medical bills. These policies usually offer:
Guaranteed issue life insurance is a small whole life insurance policy that approves all applicants that meet certain criteria. These policies offer many of the same features as final expense insurance, but in addition to skipping the medical exam, there are no medical questions on the application. These policies require waiting one to two years before your full coverage kicks in. If your grandparent passes away during this waiting period, beneficiaries usually receive a premium refund instead of the death benefit.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Final expense insurance is a common policy for grandparents. Here are some average costs for $10,000 in final expense insurance coverage for healthy men 50 and up:2
| Age | Average Monthly Premium |
|---|---|
| 50 | $47 |
| 60 | $63 |
| 70 | $97 |
| 80 | $197 |
Here are some average costs for the same coverage for healthy women 50 and up:2
| Age | Average Monthly Premium |
|---|---|
| 50 | $34 |
| 60 | $49 |
| 70 | $73 |
| 80 | $158 |
Consider the following factors when shopping for the best life insurance policy for your grandparents:
Many get life insurance for their grandparents to help cover end-of-life costs. A final expense or guaranteed issue life insurance policy may work best in these cases to reduce premiums and get coverage for life. However, if your grandparent provides significant financial support, or if you’ll need to help the other grandparent when the insured passes away, you may need a larger death benefit to help cover those needs.
You must balance financial goal considerations with your budget. Permanent life insurance policies tend to cost more per dollar of coverage compared to term life insurance policies, so term life insurance may be the best option for maximizing coverage on a budget.
However, suppose you don’t need a large amount of coverage. In that case, small guaranteed issue whole life insurance policies have competitive overall premiums, even if the coverage per dollar is lower.
Determine whether you need guaranteed coverage for the remainder of your insured grandparent’s life or only for a fixed period. The former situation may require a permanent life insurance policy, such as whole or guaranteed issue life insurance. Meanwhile, term life insurance may work better in the latter circumstances.
Age and health are two of the most crucial life insurance underwriting factors impacting premiums and approvals. Getting a policy for older grandparents with health issues may result in higher premiums or lower coverage limits. That said, policies like final expense or guaranteed issue life insurance don’t require medical exams, which may help if your grandparent has health issues or prefers not to take the exam.
People can get life insurance for their grandparents, but the best type of policy and amount of coverage allowed can vary. If you want to learn more about insuring your grandparents or are ready to find a life insurance policy, speak with an Aflac agent today to explore some options and get a quote.
1 The Motley Fool - Buying Life Insurance for Grandparents. Updated February 21, 2023. https://www.fool.com/the-ascent/insurance/life/buying-life-insurance-for-grandparents. Accessed June 12, 2024.
2Forbes - Do You Need Burial Insurance? Updated August 16, 2023. https://www.forbes.com/advisor/life-insurance/burial-insurance/. Accessed June 12, 2024.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans - 68000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. 65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.
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