Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Nov 21, 2021

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The Facts of Life

  • It’s possible to gift life insurance policies to individuals
  • You’ll need to prove an insurable interest to gift life insurance
  • You can also donate your death benefit to charity

Life insurance companies that allow gifting provide policyholders with a unique opportunity. With a gifted life insurance policy, you can protect your loved ones or donate a death benefit to your favorite charity.

This advanced planning can help provide a cushion for any tragedies that might happen in the future.

If you’d like to find affordable life insurance companies that allow gifting, enter your ZIP code into our free quote tool.

Which life insurance companies allow gifting?

Gifting a life insurance policy is a great way to secure the financial futures of those you care about. It can also serve as a way to donate your life insurance policy to the non-profit that’s most important to you.

Some life insurance companies have built a large part of their business model on gifting policies.

Gerber Life, for example, has the Gerber Grow-Up Plan, which allows a loved one to insure a child with a policy that doubles as a savings account for when they come of age.

Below are some rates for Gerber life insurance policies for children by age, with gender having no impact on the cost:

Gerber Grow Up Plan Rates by Age for $20,000 and $40,000 Policies
Age$20,000 policy$40,000 policy
1$13.06$25.12
2$14.00$26.92
3$14.45$27.73
4$14.91$28.65
5$15.36$29.61
6$15.86$30.47
7$16.37$31.54
8$16.94$32.55
9$17.51$33.70
10$18.10$34.80
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It’s easy to get affordable coverage for as low as $13 a month insuring a child with Gerber, mainly because life insurance companies don’t view children as risky.

Life insurance companies that don’t allow gifting want to avoid the complications of insuring someone other than the policyholder.

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What are the requirements to gift life insurance?

The gift of life insurance can provide security for loved ones. However, there are laws and requirements that you’ll need to fulfill.

To get a policy on someone else, you’ll need to prove that you have an insurable interest in that person.

What is insurable interest?

Insurable interest is proof that the death of another person would financially impact you or someone close to you.

For instance, if you wanted life insurance with grandchildren beneficiaries to protect their future, the insurance company would be likely to help you secure a policy.

Other examples of insurable interest include:

  • Insuring grandchildren with a savings component
  • Getting a policy on a spouse or primary income earner
  • Insuring a business partner with a major stake in your company

Depending on your situation, the insurance company will make a decision based on your needs and the restrictions in place.

How to Gift Life Insurance as a Grandparent

If you want to gift a life insurance policy as a grandparent to take care of your grandchildren, you can likely achieve this easily.

As mentioned above, you’ll have to prove an insurable interest in your grandchildren. Once this is done, you can either insure them or name them as beneficiaries.

Gifting a life insurance policy to your grandchildren can be an investment in their futures. A life insurance death benefit can be used for anything the beneficiary chooses.

The proceeds from a gifted life insurance policy for your grandkids could help provide:

  • College savings – With options like the Gerber Grow-Up Plan and Mutual of Omaha children’s life insurance, the child can receive a portion of the value when they come of age.
  • Provides support – If your grandchildren are at a higher risk of losing a parent, insuring the parent and naming the children as the beneficiary might help cushion a future financial blow.

Death benefits can also support any other ventures they might want to take on in the future.

How to Donate Your Life Insurance Policy

If you don’t want to give any particular person your death benefit, you have other options.

For example, some companies let you donate your life insurance death benefit to the charity of your choice. In some cases, it can be as easy as naming the charity as your beneficiary.

For the organization to receive your death benefit, you’ll need to do one of the following:

  • Name the charity as your beneficiary, and it will receive the full death benefit.
  • Transfer ownership of the policy to the charity, which will then receive the donation when you die.
  • If you want the charity to receive a little money over time, you can designate that your dividends be sent to that charity.

Any life insurance company that permits charitable giving will allow you to donate the death benefit from any policy. However, you should contact your insurance company to let them know you want to enroll in a charity-owned life insurance policy.

What are the benefits of donating life insurance?

Donating a life insurance policy can provide you with options that you may not have had otherwise.

For instance, it’s a guaranteed donation. Plus, you’ll likely donate more with the death benefit than you could have afforded by saving. According to Hampshire College, this can provide tax benefits for the year of the donation.

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What You Need to Know About Life Insurance Companies That Allow Gifting

A life insurance company that allows gifting will ensure that your loved ones are cared for no matter what.

As long as you have an insurable interest, you can take out a policy and use the benefits to take care of your family or donate to your favorite charity.

If you’d like to buy life insurance that allows gifting, enter your ZIP code into our free quote tool.