Explain to me why a person would take an insurance

gracendantho26

policy out on their grandchildren.

 Please and thank you.

stillhoping

My Inlaws did for the triplets, it is one that when they become college age can be cashed in and used for college.

TigerFan

It depends on the type of policy, but some policies are similar to a savings account.  You pay X amount into the policy for X amount of years and then the money can be taken out and used for whatever.  Plus, the preminum would be much, much lower on a child.

DandelionMom

I've heard of it being done as a gift/investment.  It is bought for the child, with the parents being the beneficiary and the grandparents paying the premiums.  I think it is kind of outdated and obviously there are much better investments available but I've heard of it being done. 

belle204

my grandma did (and might still) have them  on us. i'm pretty sure it was just to help my mom out in the event we bit the dust.

joseysbride

There are all different types of policies.  Some of them can be cashed out by the child at a certain age, and used toward college or whatever. 

DandR

My IL's did for all 3 kids as a "gift" to us, sort of I guess.  Just small ones, we are the beneficiaries, so we don't have to worry about it.