Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Grandparent buying a life insurance policy

What would you think? My dd's grandma has decided to use some of the life insurance from her husband (he died in May) to buy my daughter a life insurance plan. I still am not sure what to think, and my husband is just naturally paranoid. I am not so sure I like the idea. Feedback please.


Asked by ColleenF30 at 4:08 PM on Jul. 5, 2009 in General Parenting

Level 20 (9,305 Credits)
This question is closed.
Answers (18)
  • I worked for a lawyer one time that said life insurance for kids was not a good idea. He told his clients to open a bank account for them and it would make more money for them in the long run.

    Answer by admckenzie at 5:52 PM on Jul. 5, 2009

  • Why is he paranoid?? Does he think she's trying to off your child for life insurance???? That's odd. I mean I have a small life ins policy for both my kids through my work, but that's just to pay for a funeral if the unexpected happened. Nothing major just $5k. How much is she trying to get??

    Answer by jfblaine at 4:10 PM on Jul. 5, 2009

  • maybe the fact that her husband passed made her realize that life is short sometimes. what exactly about it bothers you? the thought of your daughter passing away or the fact that she is the one buying it? that was one of our children's babies gifts, life insurance purchased by their grandparents. my husband and myself are the primary beneficiaries, so i know it wasn't some weird way of them wanting money or anything awful like that, do i like the fact that there is that possibility (w/or w/o the policy the possibility exists) no i hate it, and don't dwell on it at all, but it's reality.

    Answer by vabchmommy at 4:14 PM on Jul. 5, 2009

  • Life insurance is designed to protect your family and other people who may depend on you for financial support. If you die and loose your income, the people that are dependant on your financial support will loose that income, so life insurance can help cover some or all of that loss depending on the policy you choose.

    You are obviously are not depending on your child for income. Do you and your husband have life insurance? If not I would say getting it for you both is a better investment.

    If she wants to contribute for the child I would suggest a college fund.

    Answer by Cassieniccole at 4:18 PM on Jul. 5, 2009

  • Actually I am the grandmother of 6... custody of one grandchild... by summers end I will have insurance policies on 4 of the 6 thru Gerber... there is nothing wrong with having it... and my dd is very happy that we are going to do this for the kids...
    It's not that we think something could happen, it's a good thing to have period...
    I would not freak out about it.... let her do it....

    Answer by gmasboy at 4:30 PM on Jul. 5, 2009

  • See I already have 10K policies on all of my children. She went out and did this on a whim without even asking me. I still haven't given her My dd's social security number. This wasn't he first experience in death either. Her son (my first husband) died at age 36, and that was 3 yrs ago. She is complaining she is going to have to find a job, yet she is using the money left to her to buy this. The more I think about it, it doesn't sound right.

    Answer by ColleenF30 at 4:37 PM on Jul. 5, 2009

  • I don't see the problem. My dad took out policies on all 4 of my kids...just in case and for their future. When they turn 21 they can keep them or cash them in for whatever they want.
    We also have policies on them through my husband's job. They are insured for $10k each which is to cover funeral expenses in case something happens to them because we are poor and could never afford funeral costs (my mom didn't have any life insurance when she died...she was a homemaker...and my dad pretty much went bankrupt paying to have her cremated).

    Answer by justanotherjen at 4:58 PM on Jul. 5, 2009

  • My grandmother has 13 grand kids and great grand kids. She bought Life Insurance from Gerber with every one. 4 of us are over the age of 18...when we turned 18 she turned the life insurance in and got the money she paid into it back and gave it to us for graduating high school. It bought my first car. She has also done it for my 2 kids and I have bought one for them as well. I look at it this way, if something were to happen to one of my kids (knock on wood really hard) I wouldn't have to pay for funeral expenses and it would give me a chunk of money I could use for my other child's education. That is also what my grand mother said she did it for. It is a "safety net" the same as it is if you and your husband got one for yourself. Good Luck on making a decision.

    Answer by 2wndrfl_btrflys at 5:07 PM on Jul. 5, 2009

  • You need to discretely check on her health and any new acquaintances she may have met. There are some people out there that prey upon elderly people by implying that life insurance will somehow keep the insured person, usually a beloved grandchild, "safe". Even if the elderly person seems to understand, they will insist they want to pay to "keep little Johnny safe". One of these slick operators might have gotten to her. Other than that, it may be one of those low-cost life insurances that come with the guarantee that at the age of 18 or 21 the child can continue their coverage--usually at exorbitant rates... If all is kosher, let her go ahead, even though it may be a waste of money, it might make her feel better.


    Answer by pagan_mama at 5:22 PM on Jul. 5, 2009

  • She needs her social security number to get it going, and I don't like handing out a ssn for any of my kids. None of the grandparents know any of my childrens social security numbers. She is supposed to see my dd on weekends and ends up making excuses to try to keep her all week. I honestly do not trust the woman, and have considered moving out of state to eliminate some of the problem. She tries to guilt trip me (no it doesn't work).

    Answer by ColleenF30 at 5:27 PM on Jul. 5, 2009