Can (or should) my wife and I buy an adequate life policy on one or both of my daughter and son-in-law if my two grandkids (age 3 and 7)
become our charges if one or both of their parents were to be killed?
I’m thinking the cost to raise them though college could be in excess of o.5 million. Is this idea reasonable? We are financially secure but nor to that extent. Any other options or thoughts? The parents are 39 and 35. We are 71 and 66. Can such coverage even be obtained on someone other than yourself? Probable cost? Thanks Terry!

Terry Says:  In order to buy life insurance on someone’s life, you need to have what is called “insurable interest.”  And I’m afraid that just the possibility of having to raise your grandchildren would not qualify.  What you SHOULD do is discuss this with your adult children.  They can probably buy inexpensive term life insurance on their own lives, and set up an estate plan that would create a trust to handle payouts to minor children (who cannot become beneficiaries).  Every parent should do this — it’s part of their responsibility.  Go to to check prices of 20 year level-term policies.

And yes, they do need an “estate plan” –either a simple will or a revocable living trust.  And in that plan, they would specific who they would choose to be guardians for their young children.  (Please don’t be surprised if they don’t chose you!) That would be a great Christmas gift for them.  And if  they can’t afford life insurance even at low term rates, then maybe you could make an annual gift, in the form of a check for the amount of the premium!  Just make sure they use it to pay the premium on the life policy.

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