Can I Take Out Life Insurance On My Grandparents? 
You can take out life insurance on your parents if the reason is other than financial gain . The amount that can be taken out will be based on the income and net worth of your grandparents , whether they are medically insurable -LRB- although even terminally ill grandparents can get small amounts of guaranteed issue coverage -RRB- , and if they consent to signing the application and doing the exam or phone interview that may be required . If you are the owner and/or beneficiary of the policy , the amount of coverage will also depend on reason for the policy . E.g. . You could take out a a policy on your grandparents if you live with them , and you would lose your home as a result of their passing . Or if you wish to pay for their funerals . Just ask your agent ahead of time so that it will all go smoothly and you do not put your grandparents through unnecessary stress applying for a policy that the insurance company may not approve . 