Can grandparents buy life insurance on grandchildren?

Yes, grandparents can purchase life insurance on their grandchildren with parental consent. While the primary motivation is not income replacement, there are compelling reasons grandparents consider this strategy.

First, a whole life policy on a grandchild locks in lifelong insurability at the lowest possible rates—a child's premiums are a fraction of adult rates, and the policy stays in force regardless of health issues the grandchild develops later. If the grandchild becomes uninsurable as an adult, a childhood policy remains their permanent coverage.

Second, the cash value accumulation in a whole life policy can serve as a college funding supplement or a "head start" gift. After the grandchild reaches adulthood, ownership can be transferred to them along with accumulated cash value.

Nevada grandparents with estate planning concerns sometimes use this strategy as a multi-generational wealth transfer tool, alongside more traditional vehicles. The death benefit is tax-free, and cash value growth is tax-deferred.

Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance carrier. Agents in our network can walk you through policy structure options and carriers.