Gerber Life Insurance?

[Jengerbread88]

I was just wondering if anyone had gotten Gerber Life Insurance for their kids? If you have, what do you think about it? I keep getting mailings from Gerber, and while their plans sound really good, I am keeping in mind that what they send me is, of course, MEANT to sell me on the plan.

The monthly premium for a $15,000 plan is less than $10, if I buy it before my baby turns one. They say that at age 18, the coverage doubles, but it's still the same premium. And it says that at age 25, my kid can either cash out the plan for the amount we paid in premiums, or keep the plan, with the option to buy additional coverage (even if they have health issues or are military or anything else that keeps them from qualifying for other insurances). It all SOUNDS really good.

....I just want to know if it IS good.

[Darcy Baldwin]

The pastor who married us (Russ' old pastor) told us about this during our premarital counseling. He said he'd done it with all of their kids, and it was like a savings account that the kids could cash out at 25 to continue with school, start a business, or have a down payment on a house. Whatever they wanted for.

And sure, there are some other great ways to save, but it was a good sound way to have a monthly HAVE TO to save..if you don't pay, it's cancelled and you lose the money as opposed to being good and depositing it into an account each month.

We meant to do it with both of ours, but completely forgot when it was time to do it, and missed out.

ETA...but the plan that they had sounds different than the way the plan sounds now. Unless I'm weird on the math...it's only about $3K @ 25 if you're putting in $10/month. They've made a check of a lot more $$ on it in the interest they garner from your money.

[Megan Turnidge]

I think it's a bad deal. My husband and I have life insurance and all my kids ( i have one now, but each new child is free too) are FREE riders on our policy and automatically covered for $10,000 should they die. Sure, you can cash out the plan when the kid turns 25 and you just get what you paid into it... that means that Gerber was earnign all that interest on money you gave them. You'd be better off getting a free rider on your own life insurance and then put away the same amount of money each month you would've spent on Gerber into your own investments... even just in a low earning savings account, you'd end up with more money in the end anyways.

[Sarah8914]

I don't think it's great either. While ours isn't free... for all 3 of our kids, it's less than $1 (combined) a month for $10,000 on each of them. No, we don't get anything at 25, but we're not putting tons in, so I'm okay with that!

[LenaGardner]

I was told that insuring your kids is a bad idea...if something happens, you're not losing an income, and that companies make a ton of money off of kids' life insurance policies. (this info came from my personal finance class I took in college). I always took my professor at his word as what he said made sense, and never really considered getting policies on our kids.

That being said, I do have one now; however, it is through my work and covers all 3 kids for 16 cents a month. If it weren't so incredibly inexpensive I would have declined.

[Megan Turnidge]

Originally Posted by LenaGardner

I was told that insuring your kids is a bad idea...if something happens, you're not losing an income, and that companies make a ton of money off of kids' life insurance policies. (this info came from my personal finance class I took in college). I always took my professor at his word as what he said made sense, and never really considered getting policies on our kids.

That being said, I do have one now; however, it is through my work and covers all 3 kids for 16 cents a month. If it weren't so incredibly inexpensive I would have declined.

Exactly, insurance for kids really only pays for the funeral anyways... it's not meant to give you a bunch of money if they die. I just have it because it was a free rider on our policy, and really it's WAY more important that you insure yourself than your child.

[mummytothree]

Originally Posted by mturnidge

I think it's a bad deal. My husband and I have life insurance and all my kids ( i have one now, but each new child is free too) are FREE riders on our policy and automatically covered for $10,000 should they die. Sure, you can cash out the plan when the kid turns 25 and you just get what you paid into it... that means that Gerber was earnign all that interest on money you gave them. You'd be better off getting a free rider on your own life insurance and then put away the same amount of money each month you would've spent on Gerber into your own investments... even just in a low earning savings account, you'd end up with more money in the end anyways.

Ditto this, most "good/reputable" life insurance policies allow you to add your children free. We have done the same as Megan and all our children are covered under our life insurance. It's just basically to cover funeral costs if God forbid anything ever happens to them. It's not meant to be used for anything else really.

Invest that money somewhere else where YOU are gonna collect the interest!!!!

[my2monkeys]

I have to agree with the last few comments... your money would be better spent in a different "savings" plan. My girls are included on our policy... and it gives me piece of mind that god forbid should something happen, I don't have to worry about coming up with the funds to cover the funeral.

[Jengerbread88]

You ladies have me convinced. Skipping out on that plan, and getting a savings account.

I wasn't wanting to get the life insurance so if something happened I got a payout, because that is such a terrible thing! I was mostly just hoping that if, god forbid, anything happened, they'd be okay.

I know I have a genetic health issue, and I was worried if my child got it (usually shows up later), that they would be turned down for life insurance when they ever decided to get it... that was my biggest concern... so that's why I considered it in the first place. So if THEY ever wanted it, they'd have it.

You're right. A savings account for each of them would be a lot better, and then the interest goes to them, not the company.

You guys are the best. You help me make good decisions :P