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Buying Life Insurance for your Grandchildren: Everything you need to know about life insurance as a Grandparent in 2021

Buying Life Insurance for Grandchildren

Are you considering buying life insurance for your grandchildren? You have come to precisely the right place.

This web post will talk about the procedures and costs for grandparents buying life insurance for grandchildren. We will thoroughly explain the leading life insurance for grandchildren, first-rate health insurance for grandchildren, health insurance for grandkid quotes, other quotes on grandchildren insurances. With the information provided, you can choose whether or not you should opt for your grandchild’s insurance coverage. 

How do they work: Life Insurance Policies for Grandchildren

How do they work: Life Insurance Policies for Grandchildren
How do they work: Life Insurance Policies for Grandchildren

Insurance policies for grandchildren are a lifetime policy of around 10,000 to 50,000 USD of policy coverage. Every month, a percentage of your payment to the insurance premium is put into an interest-bearing account. This account is called “cash value”. These “cash value” funds are collected over a period and add up to a hefty sum.

Grandchild Life Insurance Policies usually don’t ask for an exam of any kind. Grandparents can get a policy in the name of their grandchildren.

Life insurance for kids is usually very straightforward, but here is the fine print:

  • There will be no increases in Premium Amounts
  • The policy will not expire at any time, no matter the grandchild’s age.
  • The cash value that is accumulated can be withdrawn anytime for any personal reason
  • There will be no decreases in Coverage Amount

The fine print is not a cause for concern, and the terms and conditions of the insurance policies for grandkids are pretty transparent.

Another available option is to include your grandchild as a coverage beneficiary in someone else’s policy. As an added beneficiary, they would also get a part of the coverage. But if the procedure becomes inactive due to some reason, your grandchild will again miss out on the benefits.

Another excellent reason to get an individual insurance policy for your grandchild is that if your grandchild is the term-rider of someone else’s policy, their coverage is withheld after reaching legal age. Once they are 18 years old, they are no longer liable to have coverage as a term rider, which is why it is a smarter choice to get an individual life insurance policy for your grandkids.

One other option is to buy life insurance policies for your grandchildren, which would be to add them as a term rider to your life insurance policy. It is essential to note that adding a grandchild as a term rider to your policy does not mean they have a policy of their own. They are only an add-on to your life insurance policy. They are only insured if you are insured.

Additionally, grandchildren term riders’ coverage eligibility usually expires once they reach 18-25.

The preferred life insurance for a grandchild is an individual policy (which would be life term) and not as a rider on another life insurance policy.

What are the typical Grandchild life insurance policy quotes

Typical Grandchild life insurance policy quotes
typical Grandchild life insurance policy quotes

The price quotes on grandchild life insurance policies aren’t different for boys and girls. But the cost does vary with age and the particular plan. Life insurance policies for grandchildren of 4 years with a coverage of 10,000$ have a premium quote of about 4 USD monthly. This quote is the minimum. The maximum grandchildren life insurance policy for teens with coverage of 50,000$ has a monthly premium quote of about 31 USD monthly. Most of the grandchildren’s life insurance policies fall in this range.

Doesn’t vary with gender | No change in rates | Coverage will never expire

AGE
$10,000
$20,000
$30,000
$50,000
0-4
$4.00
$7.00
$10.00
$16.00
5-9
$4.80
$8.60
$12.40
$20.00
10-14
$5.50
$10.00
$14.50
$23.50
15-17
$6.90
$12.80
$18.70
$30.50

Which are the Preeminent Life Insurance Companies for Grandchildren ?

Preeminent Life Insurance Companies for Grandchildren
Preeminent Life Insurance Companies for Grandchildren

After thoroughly researching all the insurance companies providing insurance coverage for grandkids, we have narrowed it down to three insurance companies. There are several other insurance agencies offering grandchildren insurance policies. But the following listed are the top three agencies with the most satisfactory terms for their policies.

Grandparents wanting top-ranked life insurance policies for their grandkids should take up one of the following guidelines.

Life Insurance Policy from OUR

  • Type of Policy: Life Term Policy
  • Accumulation of Cash Value: Yes
  • Premium Amounts Fixed: Yes
  • Expiration Date of Coverage: Never
  • Age Eligibility Criteria: 0 -17
  • States Available: All states (plus DC) except NY
  • Range of Coverage: $5,000-$50,000
  • Rates Vary with Gender: No
  • Monthly Premium for $10,000 policy for grandchildren aged 10: $5.50
  • Including Term Riders Free of Cost: Guarantee of Insurability & Premium Waiver if Owner Dies

OUR is the largest agency in the world. They possess abounding financial backing and strong foundations. They will certainly pay the insurance claims when it matures.

OUR life term insurance for grandchildren tops this list because it offers the cheapest rates for life insurance policies for infants. They also have an effortless application process while providing the highest coverage amounts. An additional bonus is that they allow add-on term riders without any additional costs.

Their terms are extremely favorable for those considering life insurance policies for their grandchildren. For example, if the policy’s owner passes away before the policy matures, OUR provides a grace period of 90 days for someone else to pay the premiums and continue the policy without letting it lapse. They also offer unlimited up-gradation of the coverage amount throughout the term of the policy. This up-gradation also does not require them to fill any health or lifestyle questionnaire.

Their policy offers the most outstanding insurance terms, and it is effortless to get one. Their application process is smooth and quick, and people can complete it within 2 minutes.

Life Insurance Policy from OUR

  • Type of Policy: Life Term Policy
  • Accumulation of Cash Value: Yes
  • Premium Amounts Fixed: Yes
  • Expiration Date of Coverage: Never
  • Age Eligibility Criteria: 0 -14
  • States Available: All states (plus DC)
  • Range of Coverage: $10,000-$50,000
  • Rates Vary with Gender: No (excepting CA and FL)
  • Monthly Premium for $10,000 policy for grandchildren aged 10: $10.06
  • Including Term Riders Free of Cost: Guarantee of Insurability 

OUR is the agency behind the famous “Grow Up plan”, a well-renowned advertisement. They are also a financially strong company with an impeccable record of paying up their insurance claims. Their policy of life insurance on grandchildren offers a unique set of terms. Their policy doubles the coverage amount once the grandchild reaches 18 years of age. They don’t increase the premium amount, even though the coverage amount is now double.

Their premium costs are fair, especially considering their unique policy offer. Their double coverage option makes them an attractive choice of life insurance. Grandparents can apply for their grandchildren’s life insurance policy online. This online process is effortless and takes very little time.

Their only disadvantage is that their premium costs are slightly expensive. 

Life Insurance Policy from OUR

  • Type of Policy: Life Term Policy
  • Accumulation of Cash Value: Yes
  • Premium Amounts Fixed: Yes
  • Expiration Date of Coverage: Never
  • Age Eligibility Criteria: 0 -24
  • States Available: All states (including DC)
  • Range of Coverage: $5,000-$30,000
  • Rates Vary with Gender: No
  • Monthly Premium for $10,000 policy for grandchildren aged 10: $5.41
  • Including Term Riders Free of Cost: NA

OUR Insurance for grandchildren is the last insurance policy that makes the top three. OUR is a top-notch life insurance company. The agency has excellent financial-backing and a fair track record of paying their insurance claims. They also offer an online application process that is smooth and quick. Their premium rates are competitively priced, giving them an advantageous edge in the insurance policy market.

OUR insurance policy for grandchildren offers the usual terms of life insurance, but they also provide another unique advantage. They are the only life insurance agency in this category to provide a policy for grandchildren above 18 years of age; this is the maximum limit for most policies. Their policy allows for coverage of grandchildren up to 24 years of age. 

What is the maximum coverage of Life Insurances for Grandchildren?

Grandparents who want to get life insurance for their grandchildren should first thoroughly research the insurance market, which this article helps with. One primary concern is the amount of coverage; they will want to get the maximum amount within their budget. The maximum amount of coverage offered varies with insurance companies. Each agency has a different cap on its maximum coverage amounts. But generally, all policies fall within a range of USD 5,000 to USD 50,000, with slight variations. Coverage amounts for life insurances on grandparents also falls within this range. All of the agencies mentioned on this list also offer life insurance policies on grandparents, and OUR again tops that list.

But if grandparents are looking for insurance policies with coverage of more than 50,000 USD for their grandchildren, they will also have to pay higher premiums. Agencies that offer more than 50,000USD coverage do exist, but their terms are not as favourable as those mentioned on this list. Another option would be to take on multiple policies. Grandparents can take on more than one life insurance policy for their grandchildren; this is not illegal. They will have to pay the premiums for both the policies, but it can offer more coverage for your grandchild if it is within budget.

What are the qualification criteria for Grandchildren ?

Usually, life insurance policies require doctor-backed health check-up reports before issuing a policy. But that is no longer in practice, as today, most life insurance agencies offer policies without a health report. Mostly, insurance agencies will not require a grandchild to undergo any health or medical exam. They probably won’t ask for their medical history either.

But the insurance agency may ask a few health-related questions before completing the application process. These questions are only cursory, and they don’t ask to verify their answers. 

Grandchildren without any illness, disorder or diseases from birth are most likely to get instant approval. The agencies also offer insurance for those grandchildren who are cured of any sickness, illness or disorder. Grandparents with grandchildren suffering from severe medical conditions can still approach these agencies and inquire about insurance policies for grandchildren. The maximum any agency can do is reject the offer, but they will always answer your queries.

While the agency overlooks most medical conditions, there are a few that will indeed be declined. Most insurance agencies don’t offer life insurance for grandchildren with the following disorders or diseases,

  • Sickle-cell Anaemia (they approve sickle-trait though)
  • Mental retardation
  • Spina Bifida
  • Diabetes

A few more diseases or disorders aren’t listed, but these diseases are more frequently declined insurance policies.

What are the eligibility requirements to buy Life Insurance Policies on Grandchildren

The central eligibility criterion is that you should be the legal grandparent of the child. You could be their grandmother or grandfather and have the documents to prove. With these documents, you are already fully eligible to buy insurance for your grandchild. Grandparents are not required to seek the child’s parents’ consent before applying for insurance on their grandchildren. The child’s parents’ involvement is not necessary at any stage throughout the process.

Most child insurance agencies only require the buyer to have a legal connection to the insured child. To take insurance on a child, one has to have any of the following relationships,

  • Great Grandparents
  • Grandparents
  • Parents
  • Legal Guardians
  • Step-Parents

If one doesn’t have any of the above relations to the child, they cannot apply for a life insurance policy on the child.

What are the uses of Life Insurance Policies on Grandchildren?

Buying insurance for your grandchildren is all about personal preference. People who try to research the advantages of life insurance online will only get mixed opinions. You don’t have to pay heed to them. You are the only one who should decide whether you want to take up an insurance policy.

But life insurance can come in handy in many situations and help with any financial problems. Here are a few reasons why one should consider taking up a life insurance policy on their grandchildren.

Final Burial Expenses

A primary advantage of getting life insurance on grandchildren is that they can withdraw it at any time and use it for personal expenses. This withdrawal can also help pay for a funeral if necessary, though we hope that never occurs.

Sometimes, children die during their insurance period, and holding a funeral for them can cause significant financial depletion. But if the child has insurance, then the agency can foot the bill for the funeral. A simple funeral can cost upwards of $10,000.

A life insurance policy on grandchildren can help a family facing any financial stress at any point in their lives.

Upgradable Coverage Amount Without Limits

A staple term of most life insurance policies is that the child can increase their coverage amount. They can apply for this upgrade how many times they want and during the insurance period. The agency doesn’t ask for any insurability evidence when the insured child asks for an up-gradation.

The insurance period is life-term, which means the insured child can upgrade the coverage amount at any point in their life. They can have as many upgradations as they want throughout this life-term. Even iF they develop any health issues, later on, the insurance will still cover them. Additionally, the insurance agency will allow them to upgrade their coverage amount after acquiring a medical condition (if any, during the insurance period). 

Financial Savings For The Future

A child insurance policy accumulates “cash value” throughout the insurance. This cash value is a percentage of the premium amount paid towards the policy. This amount accumulates over time and builds up to an enormous amount.

This amount of cash value is continually increasing and can help the insured child have savings to fall back on. As long as premium payments are made, the insurance period remains active, and the cash value increases. The insured child has open access to this cash value. They can withdraw it completely, at any point without citing any reason. The child or the grandparent themselves could withdraw this amount at any time to use it as a down payment, college tuition, or for any other expense they have at the time.

What is the easiest way to buy Life Insurance Policies on Grandchildren?

OUR all have an online application option. A grandparent can apply for life insurance on their grandchild online in less than 2 minutes. The process is simple and hassle-free. The online application process does not require any health exam. They only ask for the usual ID proof and other personal details.

A typical online application form for life insurance on grandchildren asks for the following details,

From the insured child

  • Birth Date
  • Gender
  • First Name, Middle Name and Surname
  • Health-related information (not for approval verification)

From the buyer of the life insurance (the grandparent/s paying for the insurance)

  • Their Relation to the insured child (Grandmother/Grandfather)
  • First Name, Middle Name and Surname
  • Gender
  • Residential Address
  • Social Security Number
  • Birthday
  • Contact Number
  • Name of Beneficiary (if you nominate someone other than yourself)
  • Account and Payment-related Information 

Once the grandparent fills the online form with the relevant details, they have to press a button to submit it for approval. Post submission, the agency’s people process the application form for approval. This process is not complicated, and if there are no severe medical conditions mentioned, it gets instant approval. Post-approval, the agency compiles the documents and mails the insurance policy to the grandparent/buyer. The mail reaches you in a few days.

Grandparents who are not comfortable with applying online can still fill out a paper application form. They can acquire a physical application form and fill it out at home and mail it to the agency. While this process can take longer due to the mailing, it is still an option. But the application may get lost in the mail, which is a risk the grandparent will have to take.

Few Other Frequently Asked Questions (FAQ’s)

This post tries to answer as many questions as possible on grandchildren’s life insurance. But for further information, we also include the following FAQ section, which can hopefully clear any remaining doubts and scepticism.

Can Grandparents buy a Life Insurance Policy for their Grandchildren?

Grandparents are legally allowed to take up a life insurance policy on their grandchildren with or without the child’s parents’ consent. If the buyer is legally the child’s grandparent, they can purchase life insurance for them.

Can the Grandparents buy Policies from Different Agencies?

Yes, a grandparent/s can purchase more than one policy for their grandchild. These policies don’t necessarily have to be from the same agency. 

Are Life Insurances on Grandchildren for their Entire Life Term?

Yes, insurance companies only offer whole life policies for grandchildren’s life insurance. Grandparents looking for a shorter policy term can include their grandchild as a term rider on their policy. A term rider does not get the same benefits as the policy’s actual beneficiary, as they are only an add-on. 

Do Life insurances for Grandchildren also accumulate cash value?

Yes, all insurance agencies without discrimination only offer life insurances with a cash value account. All insurances are life term, and the cash value will continue to increase during this term.

Which agency offers the Best Life Insurance Policy for Grandchildren?

After thorough market research, we recommend us. Their terms are the most favorable, and their premium quotes are the most budget-friendly.

Conclusion

Grandparents wanting to get the most advantageous insurance policy for life on their grandchildren who are above 17 or 18 should consider coverage. They offer the most attractive policy for life insurance for grandchildren past the legal age.