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: August 13, 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?

Life insurance on a grandparent requires two things: insurable interest and written consent. Insurable interest could mean covering funeral costs, still owing on the grandparent's debts or simply providing financial support they rely on. The grandparent has to sign the application, and many insurers also require a recorded voice or video confirmation of consent.

Buying life insurance for someone else without both requirements voids the policy outright. Misrepresent insurable interest or forge the grandparent's signature, and insurers deny the death claim no matter how many premiums were paid. Confirm your financial relationship qualifies and get the grandparent's buy-in before submitting the application.

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

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 is permanent: coverage lasts a lifetime, the death benefit is guaranteed and the policy builds cash value along the way. Coverage runs $25,000 to $500,000, and grandparents can qualify up to age 85 depending on health. Once your grandparent locks in a premium, it stays fixed for life and never climbs with age. Choose whole life when the point is leaving money behind or building cash value.

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    Term Life Insurance

    Term life insurance stays available for grandparents past 70, though the choices shrink. Past age 70 to 75, insurers cap terms at 10 to 15 years, and healthy applicants typically see coverage between $100,000 and $500,000. Take a 65-year-old in average health: a $250,000 policy with a 10-year term runs about $180 a month. If your grandparent just needs coverage until a debt is paid off or dependents are settled, term life covers that window.

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    Final Expense Insurance

    Final expense life insurance exists for one purpose: covering what's left behind, from funeral costs to medical bills to outstanding debts. Grandparents can apply up to age 85, with coverage between $1,000 and $50,000. There's no medical exam. Approval often comes back the same day. Expect a 65-year-old to pay $80 to $150 a month depending on the coverage amount and health. This is the policy families reach for when they want burial costs handled.

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    Guaranteed Issue Life Insurance

    Guaranteed issue life insurance skips the medical exam and the health questions entirely, built for grandparents who can't pass standard underwriting. Coverage is usually capped at $25,000 or less, and a two-year graded benefit period applies. Die during those two years, and the insurer pays out premiums plus interest, not the full benefit. Once the two years pass, the policy pays out in full. Guaranteed acceptance comes at a cost: these premiums run higher than other policy types.

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    No-Exam Life Insurance

    No-exam life insurance swaps the medical exam for accelerated underwriting, and approval can land in 24 to 48 hours. This option is available to grandparents in average to good health. The coverage ceiling beats guaranteed issue, but the premium runs above what a standard term policy would cost. Health questions are still part of the application, and insurers may pull prescription or medical records before approving it.

How Much Does Life Insurance for Grandparents Cost?

Life insurance for a 65-year-old grandparent runs $96 a month for a $15,000 final expense policy, or $169 a month for a $250,000 term policy with a 10-year term. Both figures assume a male nonsmoker in average health. Policy type, coverage amount and health classification all move the price. Per dollar of coverage, final expense and guaranteed issue cost more than term or whole life. See cheapest life insurance for seniors for 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

Coverage goals and your grandparent's overall health decide which policy fits best. 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.

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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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