The short answer is yes, it is completely possible.
A word of precaution, in the case of a grandchild who is a minor, it might be preferable or smarter to have the proceeds paid to a trusted person instead of directly to the child. This should be a person that you trust to use the money for the child’s benefit.
In some cases, when the amount of money is substantial enough, consider having a lawyer set up a trust. A financial institution’s Trust Department will be set up by your lawyer to administer the fund.