My Generation and Beyond: Leaving a Lasting Legacy
Give Your Grandchild a Lifetime of Possibility
“The presence of a grandparent confirms that parents were, indeed, little once, too, and that people who are little can grow to be big, can become parents, and one day even have grandchildren of their own. So often we think of grandparents as belonging to the past; but in this important way, grandparents, for young children, belong to the future.”
– Fred Rogers
Spending time with your grandchild fishing, baking, going to the beach, visiting the zoo, or attending a sporting event is a wonderful way to strengthen the bond you share. But you can also support their future in a way that continually grows with them and helps them reach financial milestones for years to come.
Ways You Can Support Your Grandchild’s Future
A Gift for Life insurance policy allows you to help financially support your grandchild at different stages throughout their life, such as funding education, buying a first home, starting a business, supplementing retirement income, or even providing long-term security. 1
Did you know?
- The average cost of college in 2025 in the United States is $38,270 per year, which includes tuition, books, supplies, and daily living expenses. 2
- A 2023 report found that 50% of U.S. students ages 16 to 25 expressed a desire to start their own business. 3
Like many grandparents, you may have savings you want to pass on to your loved ones if something happens to you. In fact, 3 in 10 Americans define financial success as being able to leave an inheritance. 4
Buying a life insurance policy for your grandchild lets you provide for them during your lifetime and gives you the opportunity to see how your money is supporting them while you are still alive. It’s a gift that provides tax friendly access to the policy’s money, potential Living Benefits Riders, and a potentially tax-free inheritance provided by the death benefit. 5
The Best Time to Purchase Your Grandchild’s Gift for Life
The earlier you purchase life insurance for your grandchild, the better. When children are young, policies are typically less expensive and it’s easier to get them insured while they are healthy.
Give the Gift Every Grandchild Deserves
Celebrate National Life Insurance Month by doing something grand. Create lasting financial support for your grandchild through a Gift for Life. Meet with your financial professional and work together to design a lifetime gift that supports generations.
When is a good time to implement a Gift for Life?
Now. When your grandchild is young, the life insurance policy is generally less expensive than when bought as an adult, may lock in insurability when they are healthy, and has the potential to build cash value.
How is the life insurance policy structured?
You, the grandparent, may be the owner and beneficiary of the life insurance policy on the life of your grandchild while your grandchild is young. This allows you to control the policy and have access to the policy values until your grandchild is an adult and financially responsible. Because you are the policy owner, the policy premium payments are not a gift. You should also name a contingent owner of the policy, such as your spouse or your grandchild’s parent. Alternatively, if you have a revocable living trust, it could be the policy owner.
Do I have to own the policy?
No. Your child (the parent of your grandchild) may own the policy or you may create an irrevocable trust to be the policy owner. If you choose either of these options, you will not control the policy and you will be making gifts to fund the policy premiums.
Do I need to involve my child, the parent of my grandchild?
Yes, if your grandchild is a minor, their parent, as their legal guardian, will have to provide consent for you to purchase the policy.
When should the policy be transferred to the grandchild?
Generally, once your grandchild is a young, responsible adult, you should consider transferring the policy to them. This transfer of the policy is a gift from you to your grandchild, the insured. You should consult with a qualified legal expert before making this gift.
What should I do to get started with planning?
- Discuss the Gift for Life with your adult child (your grandchild’s parent).
- Determine your budget for each grandchild’s policy.
- Talk to a financial professional to discuss life insurance policy options.
Yining Eads
Yining Eads is an attorney of National Life Group Advanced Sales Team. She received her J.D. degree and Tax LL.M. degree from the University of Washington School of Law. She is admitted to the State of Washington Bar Association, and she speaks both English and Mandarin Chinese. Before she joined National Life Group, she was in private practice with focuses on estate planning and tax dispute resolution practices. In her practice, Yining has helped high-net-worth individuals and families design sophisticated wealth passing plans. She is also an expert in cross-border planning and has assisted individuals and families that have ties with the United States to minimize U.S. gift and estate taxes.