<span style="font-size: 8pt;">By Mike Elman</span>

Being a grandparent is a rewarding gift, and you likely love your grandchildren as much as your own children. You may even take the same responsibilities—to ensure their future is safe and opportunistic.

With that being said, many grandparents look into life insurance, as it can provide financial protection and a legacy for their grandchildren. However, with any insurance, there comes a lot of consideration and sorting through the options.

If you’re on the fence about purchasing life insurance for your grandchildren, we’ve listed the pros and cons to help you weigh all the benefits and disadvantages.
<span style="color: #ffffff;">-</span>
<h3>Pros of Buying Life Insurance for Your Grandchildren</h3>
<ul>
 	<li><strong>High value at a low cost</strong>
The perk of buying life insurance when your grandchild is young is the value of the policy. Because young children are normally healthy and have a long future, they’re easier to insure, and premiums are typically lower. We lose insurability as we age; therefore, you could get a decent amount of coverage for less than your grandchild would pay if he or she buys coverage at an older age, such as their early 30s.</li>
 	<li><strong>Steady growth in cash value</strong>
If you decide to purchase a whole life insurance policy, they typically offer cash value which accumulates for the life of the policy. This cash value could come in handy later on in your grandchild’s life should they need to use it for college or a down payment on a home.</li>
 	<li><strong>Leaving a legacy</strong>
Due to the hardships this generation’s grandparents endured in their lifetime, many Seniors are starting to gift life insurance to their grandchildren as a financial head start. Life insurance could act as a tool for teaching your grandchildren financial responsibility.</li>
 	<li><strong>Prepared for the unthinkable</strong>
Finally, a benefit of getting life insurance for your grandchildren could be the primary purpose of life insurance—to prepare for the unthinkable. In the event of your grandchild’s death, a life insurance benefit could help your children during the hardest time of their lives. Parents are often financially and emotionally unprepared for the loss of a child. Your protection can help ease the burden off the parents.
<span style="color: #ffffff;">-</span></li>
</ul>
<h3>Cons of Buying Life Insurance for Your Grandchildren</h3>
<ul>
 	<li><strong>Children don’t have an income</strong>
One of the primary functions of life insurance is to help financially support the family being left behind, especially if the insured is the breadwinner. Children don’t have to worry about this because they are dependent on their parents. Some may see life insurance as irrelevant in this case, though the coverage helps with more than supplementing income.</li>
 	<li><strong>Final expenses may not be too much of a burden</strong>
Life insurance also helps cover final expenses. If a family is financially prepared for children and has a healthy savings account, they could use their savings to pay for the funeral and burial expenses for the child.</li>
 	<li><strong>Traditional usage may not be needed</strong>
Fortunately, the risk of child mortality is relatively low. Therefore, you may not need life insurance coverage for traditional reasons such as final expenses.</li>
</ul>
To reiterate, life insurance is complex, and there are several factors to consider. Ultimately, purchasing life insurance for your grandchildren depends on your priorities and desires.

At the end of the day, you’ll be able to rest easy knowing your grandchildren are prepared for whatever their future holds with your help, even beyond the grave.

Before deciding anything, we encourage you to talk to a licensed insurance professional about purchasing life insurance for your grandchildren.