Life Insurance for Grandparents: What You Should Know in 2026

You can buy life insurance for a grandparent if you have insurable interest and they consent to the application. 

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Updated: July 17, 2026

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Key Takeaways
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You can buy life insurance for your grandparent if you have a financial dependency or estate obligation and your grandparent provides written consent by signing the application.

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Insurable interest and consent are required in virtually all states. Proceeding without both makes the policy void or unenforceable, regardless of premiums paid.

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Life insurance for a 65-year-old grandparent costs an average of $96 per month for a $15,000 final expense policy or $169 per month for a $250,000 term policy with a 10-year term.

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Final expense and guaranteed issue life insurance are the most common options for grandparents because they accept applicants up to age 85 and require no medical exam.

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Can You Buy Life Insurance for Your Grandparents?

You can buy life insurance for your grandparent if you meet two requirements: insurable interest and written consent. Insurable interest means you have a financial stake in your grandparent's life, such as covering funeral costs, paying off their debts or supporting them financially. Your grandparent must sign the application, and many insurers also require a recorded voice or video confirmation of consent.

Buying life insurance for someone else without meeting both requirements voids the policy. If you misrepresent insurable interest or forge the grandparent's signature, the death claim will be denied regardless of premiums paid. Before applying, confirm that your financial relationship with your grandparent qualifies and that they're willing to participate in the application process.

Power of attorney doesn't satisfy the consent requirement for a grandparent's life insurance application. Insurers usually still require the grandparent to take part in the application process and sign it themselves.

What Types of Life Insurance Are Available for Grandparents?

Five policy types are available for grandparents: whole life, term life, final expense, guaranteed issue and no-exam life insurance. Each serves a different coverage need and age range, with final expense and guaranteed issue designed specifically for seniors who can't qualify for standard underwriting.

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    Whole Life Insurance

    Whole life insurance provides permanent coverage with a guaranteed death benefit and builds cash value over time. Grandparents up to age 85 can qualify for $25,000 to $500,000 in coverage, depending on health. Premiums are fixed for life and won't increase as your grandparent ages. Whole life is the best option if the goal is leaving a legacy or building cash value.

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    Term Life Insurance

    Term life insurance is available for grandparents, but options narrow above age 70 to 75. Most insurers limit term lengths to 10 to 15 years at that age, with coverage amounts often ranging from $100,000 to $500,000 for healthy applicants. A 65-year-old in average health can get a $250,000 policy with a 10-year term for around $180 per month. Term life works best for grandparents who need temporary coverage to pay off remaining debt or support dependents.

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    Final Expense Insurance

    Final expense life insurance is designed for seniors and covers end-of-life costs like funeral expenses, medical bills and outstanding debts. Coverage ranges from $1,000 to $50,000, with availability usually extending to age 85. No medical exam is required, and approval is often immediate. A 65-year-old can expect to pay $80 to $150 per month, depending on coverage amount and health. Final expense is the most common choice for grandparents who want to relieve their family of burial costs.

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    Guaranteed Issue Life Insurance

    Guaranteed issue life insurance requires no medical exam or health questions and is designed for grandparents who can't qualify for standard underwriting. Coverage is usually capped at $25,000 or less, and most policies include a two-year graded benefit period during which only premiums plus interest are paid if the insured dies. After the graded period ends, the full death benefit is paid. Premiums are higher than other policy types due to the guaranteed acceptance.

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    No-Exam Life Insurance

    No-exam life insurance uses accelerated underwriting instead of a full medical exam, which speeds up approval (often within 24 to 48 hours). This option is available to grandparents in average to good health and offers higher coverage than guaranteed issue but at a higher rate than standard term life insurance policies. No-exam policies still require health questions and may pull prescription and medical records.

How Much Does Life Insurance for Grandparents Cost?

Life insurance for a 65-year-old grandparent costs an average of $96 per month for a $15,000 final expense policy or $169 per month for a $250,000 term policy with a 10-year term, based on a male nonsmoker in average health. Rates vary by policy type, coverage amount and health classification. Final expense and guaranteed issue cost more per dollar of coverage than term or whole life. Compare the cheapest life insurance for seniors to find the most affordable option for your grandparent:

Cheapest Term Life Insurance for 65-Year-Olds
Penn Mutual$110$72
Banner Life$119$84
Pacific Life$119$84
Lincoln Financial$123$83
Transamerica$126$96
John Hancock$126$85
Protective$130$90
Fidelity$134$104
Guardian Life$135$87
Prudential$136$97
Cheapest Final Expense Insurance for 65-Year-Olds
Transamerica$79$59
Americo$79$61
Aflac$82$64
Mutual of Omaha$83$60
Lincoln Heritage$85$65
Liberty Bankers Life$85$65
Foresters Financial$85$64
American Home Life$85$71
Aetna$86$70
Royal Neighbors of America$88$69
What Affects Life Insurance Rates for Grandparents?

Age at application, health classification, policy type, coverage amount and tobacco use all affect life insurance rates for grandparents:

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    Age at Application

    Life insurance rates increase with age. A 65-year-old man pays an average of $169 per month for a $250,000 term policy with a 10-year term, while a 70-year-old man in the same health classification pays $321 per month, a $152 monthly increase. Most insurers stop offering term life above age 75 or 80, so final expense and guaranteed issue are your only options.

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    Health Classification

    Insurers assign health ratings based on weight, blood pressure, cholesterol and pre-existing conditions. The better your grandparent's health, the lower their monthly rates will be.

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    Policy Type

    For a 65-year-old man, final expense insurance costs $96 per month for $15,000 in coverage ($6.40 per $1,000 of coverage), while a $250,000 term policy costs $169 per month ($0.68 per $1,000). A $15,000 guaranteed whole life policy averages $71 per month or $4.73 per $1,000 in coverage.

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    Coverage Amount

    Monthly rates increase as coverage amounts rise. Use our life insurance calculator to determine how much life insurance you need.

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    Tobacco Use

    Tobacco use increases life insurance premiums greatly. A nonsmoking male pays $169 per month for a 10-year $250,000 term policy, while a smoker pays $537 per month, a $368 monthly increase. Insurers define tobacco use as any cigarette, cigar, pipe or nicotine product use within the past 12 months.

How to Choose the Best Life Insurance for Grandparents

Choosing the right policy comes down to your coverage goals and your grandparents' overall health. Here's how different situations match up with the best options:

  • Covering burial costs: Final expense insurance with $15,000 to $25,000 in coverage fits most burial budgets of $7,000 to $12,000. It's the most straightforward option for end-of-life planning.
  • Leaving a legacy or covering debt: Term or whole life with $100,000 to $500,000 in coverage is more appropriate in this situation. Grandparents in average to good health can qualify for full underwriting and get the best per-dollar value.
  • Health conditions, standard underwriting not an option: Final expense and guaranteed issue policies accept applicants up to age 85 with no medical exam.
  • Poor health, no other options: Guaranteed issue is the fallback. Coverage caps at $25,000, and most policies include a two-year graded benefit period in which only premiums and interest are paid if the insured dies.

Can Grandparents Buy Life Insurance for Their Grandchildren?

Grandparents can buy life insurance for their grandchildren if they have an insurable interest, a financial dependency or an estate planning reason. The most common product type used in this scenario is whole life insurance for children, which usually offers coverage up to $50,000 and is available from birth to age 17. 

Buying life insurance for your grandchild locks in low childhood rates, builds cash value over time and provides lifelong coverage. A whole life policy for a 10-year-old costs around $10 to $20 per month for $50,000 in coverage, with premiums fixed for life. Cash value accumulates tax-deferred and can be borrowed or withdrawn later for college expenses, a down payment or other financial needs.

Compare Life Insurance Rates

Make sure you're getting the best rate for your insurance. Compare quotes from the top insurance companies.

Life Insurance Policy for Grandparents: FAQ

MoneyGeek gathered life insurance quotes for a 65-year-old male nonsmoker in average health to compare costs across providers for grandparents shopping for coverage. The sample includes a $250,000 term policy with a 10-year term and a $15,000 final expense policy, the two coverage types grandparents use most to cover debt or end-of-life costs. Holding age, gender, health classification and coverage amount constant across providers isolates real pricing differences instead of differences caused by mismatched inputs. Actual rates vary by policy type, coverage amount, age, gender and health classification.

About Mark Fitzpatrick

Mark Fitzpatrick, Licensed P&C Insurance Expert, MoneyGeek

Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident expert in insurance and economics. He has spent nearly a decade covering the market, first at LendingTree and now at MoneyGeek, where he analyzes hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.

Mark studied at Boston College before earning a master's in economics and international relations from Johns Hopkins University. Before MoneyGeek, he worked in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.

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