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Life Insurance for Grandparents in 2021

Life Insurance for Grandparents

Life insurance schemes are a great boon for everyone. They are a means to save money for future use, and the returns are greater than the investment. One can take life insurance policies on any family member, be it your children, parents, or grandparents. These life insurance policies offer many beneficial features that make them an excellent investment. This article will help you make an informed decision about getting life insurance for your grandparents.

This article will have all the information on life insurance policies like options and prices, application methods, and lots more.

Can I get Life Insurance on My Grandmother or Grandfather ?

Yes, you can take life insurance for grandparents. The application form for their insurance will require their consent signature, so it is necessary to get their signature before you go ahead with the procedures. Once you have their agreement, you can take life insurance on them. Life insurance coverage of up to 50,000$ is available for these schemes, and the insurance company will let you buy these policies no questions asked. But for coverages exceeding 50,000$, they require a letter of authenticity stating that their death would set you back financially. After that, you can take a life insurance policy of above 50,000 on your grandparents.

The Different Policy Options

The Different Policy Options
The Different Policy Options

Life insurance is a very general term. There are different types of insurance policies, and each type of policy has various features. There are differences in the policy types so that people of different life situations can take them up. It is essential to know the available types so that you can make an informed choice. This information will help you select the policy type that best suits your needs and means.

The first step to determining the best policy type suited to you is figuring out what you will spend the money from the insurance on, what will you use it for? Depending on the need, you can choose the perfect policy.

For example, people wanting to get life insurance on their grandparents to pay for their final expenses, like their funeral, would do well to opt for a “policy for final expenses”. Funeral costs at today’s rates are easily more than $10,000, and taking an insurance policy to cover that is a smart investment for the future, ensuring there are no financial burdens.

In another situation, if, for example, people want to pay off the mortgage on their grandparents’ house after they are gone, they should opt for a term policy. This policy would be the best option for those wanting to pay off the remaining mortgage, and the coverage amount is decided based on the sum.

Whatever the need, a life insurance agent can more than adequately help you out. They have an in-depth knowledge base of the insurance market and can give a plethora of options from different insurance providers. Approaching an agent and describing your needs and budget is all you have to do. The agent then offers many options for insurance policies. The stress is off your hands, as they will explain every policy to you in detail, and you would not have to go through the multitude of policy offers filled with jargon by yourself.

However, this article will give you the basic information necessary for taking out a policy in your grandparents’ name. The information provided in this article is sufficient to pick out a policy on your own if you do not wish to go via an agent.

Here are the different policy types you must be aware of before investing.

Insurance Policy for Final Expenditures

Insurance Policy for Final Expenditures
Insurance Policy for Final Expenditures

Age Eligibility for New Applicants: Depending on the state of residence and their health reports, insurance for grandparents aged between 40 to 89 years of age is the common age criteria for most insurance policies.

Common Minimum Coverage Amounts: Most insurance policies give a minimum coverage of $2000.

A life insurance policy on grandparents for final expenses commonly referred to as “Final Expense Insurance” or “Funeral Insurance” or “Burial Insurance” is a policy that covers their final expenses. These terms are generally for marketing purposes; the insurance is, in reality, a smaller version of the “Life Term Insurance Policy.” This liberality of the terms is so that people can take life insurance on their grandparents, without their grandparents having to take a medical exam to certify their health. For coverage up to $50,000, insurance companies don’t ask for a health report or any other medical certification for insurances taken on grandparents.

These insurances have simple and basic terms concerning the policy, and these terms don’t vary much from provider to provider. The following are the main terms stated in an insurance policy,

  • The amount of the monthly premiums will not ever increase
  • The amount of coverage for the insurance will not ever decrease
  • There is no age-bar after which the policy will expire; it is for their whole life.
  • There is a build-up of cash value from premium payments, and you can even borrow from this build-up.

At the end of the policy term, the coverage amount is credited as a tax-free cash pay-out to the beneficiary within a day or two. The beneficiary may use the cash as they will, as there are no restrictions for its usage. If they use it for their grandparents’ funerals and there is excess cash left over, you are free to use it as you will. You can even use it to start a new insurance plan in someone else’s name. This type of insurance is very popular amongst people, as funerals cost a lot today. An average funeral or burial can cost a minimum of $10000, and it only goes upward from there.

If you are wondering how much an insurance policy for final expenses would cost, this article includes a table of general quotes of different insurance coverages and their premiums.

Insurance Policy for Term Life Insurance

Age Eligibility for New Applicants: Depending on the state of residence and their health reports, insurance for grandparents aged between 18 to 89 years of age is the common age criteria for most insurance policies.

Common Minimum Coverage Amounts: Most insurance policies give a minimum coverage of $50000.

A policy for term life insurance is a temporary insurance policy for a life term with a termination date. This is why it is referred to as “term-life” insurance, as the insurance expires after a specific term or number of years. When your grandmother or grandfather (whomever the insurance benefits) reach the coverage’s expiration date, the insurance also expires. Meaning, they would no longer have coverage under the insurance policy. The expiration could also be an age criterion, rather than a specific number of years.

Another feature of the term life policy is the variation of premium amounts. Usually, the amount for the monthly payment of premiums is a fixed sum. But some insurance providers may increase the premium amount over time, which may not necessarily reflect an increase in the coverage. For instance, Global Life and AARP are insurance companies that provide life insurance policies for seniors or grandparents. These life insurance policies are usually “term life insurance” and expire after a specific number of years. Those people who only want temporary coverage or coverage for a short time can opt for this type of policy and get coverage for a short-term liability.

An example would be taking an insurance policy on your grandparents so that you can pay off a debt or mortgage. A term life insurance is a perfect option for these reasons, as once the insurance expires and the coverage paid out, you can use it to pay off the mortgage or any other kind of debt, releasing yourself from financial burden later on in life.

The main feature of this insurance policy is the “term.” This means that you have to pay the premiums only for a specific amount of time, and within a short span, the amount comes to you. The only clash that people taking this insurance will face is their grandparents’ age. IF the grandparent/s in question is under 70, then the matter is much simplified. But once they cross 70, it can get more challenging. Between the ages of 71 to 79, it becomes much more difficult to get a term life insurance in their name. IF the grandparents are above 80, there isn’t any insurance provider who offers term life policies for them. In such cases, a whole life insurance policy is the only option. This policy is very similar to the life insurance available for newborn babies; there aren’t any options for terms, and the coverage expands over their entire lives.

Universal Life Insurance Policy

Age Eligibility for New Applicants: Depending on the state of residence and their health reports, insurance for grandparents aged between 18 to 79 years of age is the common age criteria for most insurance policies.

Common Minimum Coverage Amounts: Most insurance policies give a minimum coverage of $50000.

A universal policy of life insurance is almost a hybrid of the term life insurance and the whole life or life term insurance. It is technically a permanent policy, but it does not necessarily last forever. A universal policy of life insurance is of many kinds, and its terms and conditions can be quite complex, or they are at least worded that way. These policies are usually recommended as an investment for retirement, as people can invest in this policy to have a sufficient amount of funds saved up for their retirement years. People can also invest in this type of policy to diversify their investment portfolios. Though these policies have a market name for permanent coverage, they rarely ever last forever. These policies have lesser or cheaper premiums than other types, which attracts people the most. But the most important thing to keep in mind here is that these policies, though marketed otherwise, do not give permanent or whole life coverage.

The premiums for these policies are cheaper for the same amount of coverage as other policies. While this is its primary selling point, these policies tend to crash or expire when your grandparents reach the age of 75 or 80. When this happens, this policy turns out to be nothing more than a term life policy that lasted for a short time. This permanency is nothing but a mirage.

When looking out for seniors’ insurance or insurance for grandparents, it is better not to take up a universal life insurance policy. While the plans and the rates may seem attractive, they don’t serve their purpose in the longer run. This type of insurance is better suited for those looking for a tax-free investment.

Traditional Life Insurance Policy for Whole Life

Traditional Life Insurance Policy for Whole Life
Traditional Life Insurance Policy for Whole Life

Age Eligibility for New Applicants: Depending on the state of residence and their health reports, insurance for grandparents aged between 18 to 79 years of age is the common age criteria for most insurance policies.

Common Minimum Coverage Amounts: Most insurance policies give a minimum coverage of $50000.

As already mentioned in the introduction, traditional life insurance is a permanent type of insurance policy for the whole life term. It has unwavering or fixed guarantees for the entire duration of the policy. The guarantees are,

  • There will be no expiration date for the policy
  • The premium rates will never change
  • The Coverage amount will never change

These conditions are ironclad, and this is possibly the most dependable policy type for insuring your grandparents. This type of policy is the best option for those looking to use the coverage pay-off for more than just funeral costs. If your needs are permanent and long-term (need for the coverage), then a traditional life insurance policy is the best thing to consider for your grandparents.

The only catch here is that certain insurance providers may require a health report before approving the insurance. Your grandparents will have to possess adequate health. They should not be suffering from any chronic illnesses in order to qualify the criteria necessary for this type of insurance.

If that is not the case, you could always take on more than one final expense or funeral expenses life insurance policy so that their total adds up to the coverage amount you need.

Quotes for Life Insurance for Grandparents and Senior Citizens

The table below elucidates the actual quotes of premiums for life insurance for your grandparents. These quotes are specific to the final expenses or funeral expenses life insurances. These quotes can give you a general idea of what to expect in terms of premiums and coverage for common insurance policies targeted at grandparents and senior citizens.

If what you are looking for is not a part of this table, feel free to contact us for more information regarding the different insurance policies available on the market for grandparents.

An important point to note is that these quotes or rates may vary from state to state, gender of the grandparent, tobacco usage, medical history, preferred coverage amount, and current health status.

And finally, you can choose a coverage amount different than the ones listed below. This list is just a general outline and doesn’t reflect the vast availability of insurance policies for grandparents available on the market. These quotes are only a reference point for you to understand how much a burial or funeral can cost under current circumstances and the relative insurance policies available for them.

AGEFemale $10,000Male $10,000Female $20,000Male $20,000
45$22.61$25.45$42.01$47.69
46$23.02$26.17$42.84$49.15
47$23.55$27.02$43.89$50.84
48$24.18$27.96$45.16$52.72
49$24.48$28.52$45.76$53.85
50$24.67$29.16$46.14$55.11
51$25.45$30.30$47.70$57.41
52$25.88$31.12$48.56$59.04
53$26.62$32.20$50.04$61.20
54$27.47$33.61$51.73$64.01
55$28.40$35.09$53.60$66.98
56$29.27$36.45$55.34$69.70
57$30.06$37.91$56.91$72.61
58$30.83$39.27$58.46$75.33
59$31.70$40.82$60.20$78.43
60$32.87$42.76$62.53$82.31
61$34.51$45.38$65.82$87.56
62$36.06$47.90$68.92$92.60
63$37.72$50.52$72.23$97.83
64$39.36$53.14$75.53$103.08
65$41.01$55.76$78.82$108.31
66$43.44$59.35$83.68$115.49
67$45.86$62.93$88.52$122.66
68$48.29$66.53$93.38$129.85
69$50.81$70.11$98.42$137.02
70$53.24$73.70$103.28$144.20
71$56.63$78.36$110.06$153.51
72$60.12$82.92$117.04$162.64
73$63.93$88.01$124.65$172.82
74$67.78$93.16$132.36$183.11
75$72.41$99.53$141.62$195.85
76$78.25$106.87$153.29$210.54
77$83.51$113.64$163.81$224.08
78$88.44$119.86$173.67$236.51
79$93.41$126.23$183.62$249.25
80$98.43$132.65$193.66$262.11
81$106.21$143.00$209.22$282.79
82$113.96$153.54$224.71$303.88
83$121.31$163.41$239.41$323.62
84$128.55$173.28$253.90$343.36
85$135.90$183.15$268.60$363.10
86$174.17$220.83N/AN/A
87$186.67$242.50N/AN/A
88$198.33$264.17N/AN/A
89$210.83$285.83N/AN/A

The Explanation Behind “No Waiting Period” for Insurance Coverage Pay-Offs

A waiting period is a period during which you cannot claim any insurance. Certain insurance providers have life insurance policies for grandparents with waiting periods ranging between a few months to years. During this time, the individual cannot claim the coverage amount in the event of death unless it is by unnatural causes. The insurance provider will, however, refund the premiums with interest immaterial of the cause of death.

When it comes to a final expense or burial insurance, your grandparents can qualify for one of the three following types,

  • A waiting period of a Whole 2 to 3 Years: During the first two or three years of the premium payments, the provider is not liable to pay the insurance amount or coverage amount for natural causes. They will refund the premiums along with the predetermined interest.
  • Partial Coverage for The Duration of The Waiting Period: With this type of policy, the insurance provider is only liable to pay a portion of the coverage in the event of death. The amount varies with the time, and the company usually gives between 30-40% during the first year. During the second year, they may pay 70-80% of the coverage amount in the event of a death by any cause. Once the two years are up, the beneficiary can claim 100% of the coverage amount during pay-out.
  • No Waiting Period: This type of policy is also known as “immediate coverage.” With this type, the insurance provider is liable to pay you 100% of the insurance coverage amount in the event of death, immaterial of how many days or months it has been since premium payments started. They do make an exception in the cases of suicide or false reports of health before applying for the policy. You will not be liable for any coverage pay-off in these cases, though they will refund your premiums with the appropriate amount of interest agreed upon before-hand.

The important point to note here is, for partial or immediate coverage, you have to choose an insurance policy that includes health-related questions in the application form or the approval process. You do not necessarily have to make your grandparents take a health exam in these cases, but the insurance provider may require you to fill-up a questionnaire asking about health-related information. If the policy does not mandate this type of questionnaire, then you can take it for granted that there will be a minimum waiting period of two years or three years at the least, without any exceptions. While this may be the case, it is pretty simple for older people to get life insurance with partial or no waiting period. Final expense or funeral expense insurance policies allow for certain health risks because of the purpose they serve. These types of policies are best suited for your grandparents in case they have some ailments, as they are more likely to qualify for this policy. This is in stark contrast to life insurance policies for grandchildren, where the grandparents have to be in their prime of health to be eligible for the insurance as premium payers.

A plethora of insurance providers offer final or funeral expenses life insurance policies, and each policy differs on a few terms, including the diseases or disorders they are willing to accept. So based on your grandparents’ condition, you can choose the right one. If your preference is still for immediate coverage insurance policies, one of our agents will be more than willing to help you out. Our agents have the expertise and knowledge regarding the various policies on the market for grandparents, and they can recommend the best policy that will fit your bill. There are over fifteen different insurance providers, and our agents will be able to zero in on the one that can fulfill your needs.

Which are the Insurance Agencies with the Best Policies for Grandparents Above 80 Years pf Age ?

When it comes to insurance policies, it is hard to decide upon one specific policy that could be considered the best for everyone. This is because everyone’s needs and budgets will vary, and it is easier to find the specific policy that will suit them than find one that suits all.

A life insurance provider competes with other providers based on price and terms (conditions). They design their policies competitively on these two factors, trying to gain market popularity. This differentiation eventually ends up diversifying the market, allowing for a variety of insurance policies, each different from the other. For example, one insurance provider may accept grandparents with inherent heart conditions, but another insurance provider may not. And given the number of providers available in the market, there is at least one insurance policy that fits everyone’s circumstances.

But as mentioned before, getting an insurance policy for your grandparents after they have turned 80 can be quite tricky. Very few insurance companies offer such policies that can give coverage for people above 80 years of age. But if you are still in the market for one, the following three providers have the best insurance policies for people above 80. If your grandparents can meet their eligibility criteria, their policies are the best options out there.

Senior’s Insurance Policy from Mutual of Omaha

  • Age Eligibility Criteria for New Applicants: 45 to 85 years of age
  • Coverage Amount Range: $2,000 to $40,000
  • Waiting Period(if any): None, if the applicant’s health status complies with terms.
  • Type of Policy: Full Life Final Expense Insurance

Mutual of Omaha is an insurance provider that has been in the market for many years. They have strong financial backing and offer one of the world’s best senior life insurance policies.

Their terms and conditions for a final or funeral expense insurance policy are quite lenient, and they accept people suffering from the most common health conditions and a few rare ones as well. Their rates are also exceptional compared to others in the market. They are the lowest you will find. If your grandparents can qualify for this insurance, do not hesitate and take it up immediately. Mutual of Omaha has the best deal on life insurance for senior citizens.

Senior’s Insurance Policy from Aetna

  • Age Eligibility Criteria for New Applicants: 45 to 89 years of age
  • Coverage Amount Range: $3,000 to $35,000 (coverage amount will vary with age)
  • Waiting Period(if any): None, if the applicant’s health status complies with terms
  • Type of Policy: Full Life Final Expense Insurance

Aetna is a well-known insurance company in the health insurance market, and they also offer good insurance plans for senior citizens. They provide this insurance through one of their subsidiaries – American Continental Life.

Aetna’s life insurance for seniors is different from any other insurance regarding their age criteria. They are one of the few companies that offer insurance to people above 85 years of age. If your grandparents have crossed the age of 85, this insurance provider should be your go-to option.

Senior’s Insurance Policy from Royal Neighbours of America

 (RNA)

  • Age Eligibility Criteria for New Applicants
  • Coverage Amount Range:
  • Waiting Period(if any): None, if the applicant’s health status complies with terms
  • Type of Policy: Full Life Final Expense Insurance

RNA will probably not be a familiar name to you as they don’t have advertisements on TV. But that does not mean they are any less of a company; in fact, they are one of the topmost insurance providers since 1895. They offer life insurance for people with diabetic issues and many other health issues as well. Your grandparents will definitely qualify for their policy if they have any inherent diseases or disorders accepted by their policy.

Which of them is the best Insurance Provider?

As said earlier, insurance isn’t one size fits all. Everyone’s circumstances are different, and it is best to consult an agent for further information. Even if your grandparents are in excellent health, and you can afford any premium price, it is still best to consult an agent as they will have information on insurance policies not available elsewhere. They are the only ones who can give you the inside scoop for any kind of insurance. There will be no pressure, as our agents guide you through the options available for you so that you have a clear idea of what you are signing up for.

The Application Process

The first step to buying any type of insurance is to get their consent, even if it is for your parents or grandparents, as their signatures are always necessary for the procedures. The next step is to get in touch with one of our agents who are more than qualified to help you out. It would be best if you talked to an agent before getting insurance so that you are aware, to the fullest extent possible, of the different policies available for your needs and budget.

The application process usually follows one of the following methods:

Voice signature

In this process, everything happens over the phone. The agent gets all the details from you, and then you get on a conference call with the agent, the insurance provider, and your grandparents. The insurance provider will authenticate a few of your documents and ask you a few questions. They will also ask your grandparents’ health-related queries and on the spot state all the conditions and criteria. If everything is in order and agreement, they will ask you and your grandparents to state your full name and the date of the call. This is the voice signature. This is the final step, and after this, they will post the insurance documents to you within two weeks.

Website signature

In this process, the agent will first gather all your details and ask your grandparents the standard health-related questions. The agent will then give you a web form to fill up, and the website will provide you with a code for an electronic signature. Both you and your grandparents will receive individual codes. Post this, the insurance agency will process the application and see if you meet the eligibility criteria, and the documents will come to you by mail.

Email signature

This procedure is similar to the website signature procedure, but the application signing page is sent by mail individually to you and your grandparents. After signing, the verification process happens, and after that, the provider will mail the policy documents to you.

Paper application

While it is a rarity, some insurance companies require manual signatures from you and your grandparents. The agent can get all your information from you via phone or mail and fill-up the form. He/she can then send it to you for signing and then have it mailed to the company. After this, the usual verification process happens, and then they send the documents to you by mail.

Frequently Asked Questions (FAQs)

Can I take life insurance in my grandparents’ names?

Yes, you can get life insurance in your grandparents’ names. Even if you are paying for it, they will have to be involved in the process and sign the application form. Many insurance providers offer exclusive policies for senior citizens.

Will they need to take any health exam?

Most insurances for final or funeral expenses won’t require a health exam, but some providers may require one if your grandparents are above 80 years of age.

Yes, it is absolutely necessary to get their consent, as the application form explicitly has a blank for their signature.

Is it possible to get life insurance in my grandmother’s name?

Yes, you can get life insurance in your grandmother’s name. You will require her consent as she has to give her details and sign her approval on the form. If she is willing to have insurance in her name, then the following procedures after that are quite simple.  

Can I get final expense insurance for my grandparents?

You can buy any insurance for your grandparents, be it traditional, universal, term-life, or final or funeral expense insurance for your grandparents.