Can I buy a life insurance policy for my grandparents?

UPDATED: Feb 12, 2021

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Asked January 30, 2012 by Elizabeth Nunes

1 Answer


The simple answer to that question is yes, but there are conditions and possibly limits on the value of the initial policy. It will be necessary to prove you have an insurable interest, but grandparents are considered close family ties. At a minimum, the insured person will have to provide some information and a signature approving the policy.

Additionally, a health exam may be required before the policy can be written. Once the exam has been passed, most policies will not pay out for a minimum period of time, or for certain reasons. The point is, you can buy a life insurance policy for your grandparent, but you cannot buy one without that person's consent. You would still retain ownership of the policy and control over the accrued cash value, in the case of permanent life insurance policies.

There are policies available which do not require a medical exam. These are called simplified life insurance, and have limits on the maximum face value. Most companies which offer simplified life insurance limit the face value to $150,000, and provide both permanent and term life options. Simplified life insurance and final expense coverage can both be purchased online in most states, using electronic verification methods to put the policy into effect as soon as your grandparent has been approved.

Another type of insurance is meant primarily to pay for the deceased person's final expenses. This type of insurance normally pays directly to a chosen funeral parlor, not to the owner of the policy. Final expense coverage is usually the least expensive type of insurance to buy for older people, and it does not require a medical examination. Make sure that you understand the policy completely before anyone signs it, looking for exclusions or limitations that would eliminate your relative from a final payout.

Answered January 30, 2012 by Anonymous

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