If you or your child borrows from the policy, you must repay it with 8% interest. The longer you have the policy, the more cash value the policy accumulates. The Gerber Grow-Up Plan has a death benefit (if your child dies, the beneficiaries receive this amount) and the cash value that has accumulated. If he or she does so, your child will pay the standard adult rates at that time. The only time the premium may change is if your child adds coverage once he owns the policy (after age 21). At 18, the coverage automatically doubles, again with the same premium. The younger your child is, the less the premiums cost.Īs long as you continue paying the premiums, your child has coverage and those premiums never increase, even in adulthood. When you get the Gerber Grow-Up plan for your child, you select the coverage and pay the premiums. So while you’re setting your child up for potentially low-cost life insurance, it’s really protection for his or her future family.
Typically, though, life insurance benefits your child’s beneficiaries – such as his or her spouse and children. This is a question with multiple answers.Ĭould your child benefit from life insurance? All kids could benefit in some manner, especially with a whole life policy that accumulates a cash benefit. So, for example, if you took out a policy for $20,000, it would be worth $40,000 on your child’s 18th birthday. The policy’s death benefit doubles when your child turns 18-years old. They won’t need to go through underwriting or a medical exam. Once your child turns 21-years old, he or she can add more coverage, as long as the premiums are paid until that point. If there are unforeseen circumstances (such as death), you have the money and insurance coverage available.Įven outside of terrible circumstances, your child may use the cash value for college, a wedding, or other large expenses. You or your child can use this in a few ways.
The Gerber Life Grow-Up plan also has a cash value. Locking in low rates now, while they are young, will ensure they have affordable life insurance as they become adults. The Gerber Life Grow-Up Plan is a policy for parents who want to get insurance for their young child (between the ages of 14 days and 14 years old). Today, the company has over $50 billion worth of life insurance in force. Western & Southern, through Gerber Life, has policies that insure adults, seniors, and children. Instead, it’s owned by a financial group (Western & Southern Financial Group) that licenses the Gerber trademark. Gerber Life Insurance doesn’t have an affiliation with the Gerber baby food brand.
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