Can you take out a life insurance policy on your grandmother? That question, like most on this website, cannot be answered with a straight yes or no.
If your grandmother lives with you and you share in her income and expenses, you should be able to take out a policy of at least $100,000 on your grandmother. If you are buying a policy so that you can pay for her funeral, you should be able to take out at least $15,000 on her.
If neither of those are the case, you may not be allowed to take out a policy on your grandmother. It depends on the circumstances, the company, and the type of policy you are buying.
Insurance fraud often involves people taking out life insurance on older persons who have a short life expectancy, by younger people who have no financial interest in the lives of the Insured. Life insurance companies each strive to prevent that type of fraud in their own way, and thus you will find different regulations involving whether or not a grandchild can take out a policy on a grandparent. Suffice it to say that if the cause is legitimate, it is usually OK to take a life insurance policy out on a grandmother.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
As long as your grandparent qualifies to be insured and is willing to go along with the process, including application and medical underwriting, and gives you permission, yes. There must be an "insurable interest" for a person to take out a life insurance policy on another person, and relatives generally fit that description. Your grandmother must qualify by being of an insurable age, usually under 85, in some cases 80 or younger.
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If your grandmother lives with you and you share in her income and expenses, you should be able to take out a policy of at least $100,000 on your grandmother. If you are buying a policy so that you can pay for her funeral, you should be able to take out at least $15,000 on her.
If neither of those are the case, you may not be allowed to take out a policy on your grandmother. It depends on the circumstances, the company, and the type of policy you are buying.
Insurance fraud often involves people taking out life insurance on older persons who have a short life expectancy, by younger people who have no financial interest in the lives of the Insured. Life insurance companies each strive to prevent that type of fraud in their own way, and thus you will find different regulations involving whether or not a grandchild can take out a policy on a grandparent. Suffice it to say that if the cause is legitimate, it is usually OK to take a life insurance policy out on a grandmother.