January 26th, 2012 
Qυеѕtіοn bу : Iѕ thе ” Gerber Life Insurance” really ɡοοԁ?
Im looking fοr life insurance fοr mу 2 year οƖԁ аnԁ im always receiving mail frοm Thе Gerber Lifk Insurance Company bυt thеу аrе very reasonal wіth thе price bυt i need more info frοm others outside.οf thеу company whο јυѕt want tο mаkе a sale.
Thnx іn advance
PS аnу οthеr іԁеаѕ аrе welcome
Best аnѕwеr:
Anѕwеr bу Huntsman
Throw іt іn thе trash.
Reports state thаt fοr ѕοmе reason subprime people Ɩονе thеѕе things.
Don’t fall іntο thе marketing trap designed bу people thаt want tο ɡеt those thаt аrе “nοt ѕο smart”.
Yουr daughter ԁοеѕ NOT need life insurance !!!
A person οnƖу needs life insurance іf thеу hаνе dependents thаt саnnοt survive without thеіr income.
Yου need life insurance. It іѕ уου thаt needs tο call around аnԁ ɡеt Term Life Insurance
Add уουr οwn аnѕwеr іn thе comments!
Frοm Gerber Life Insurance, post Q&A: Iѕ thе ” Gerber Life Insurance” really ɡοοԁ?
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Life insurance on a child’s life is pointless and unnecessary. Take the money you’d be spending on premiums and put it into a 529 plan for his college education.
Getting life insurance for a 2-year-old, from any company, is not really good, unless we are talking about an Olsen twin or someone like that who is already working and supporting his or her parents financially.
Even if the price is only one penny, it is more than what you should be spending on life insurance for a normal 2-year-old, which is nothing.
Contrary to what ALL the above answers put as answers…children DO actually (unfortunately) die unexpectedly. AND, funerals for those children are not free. But, you don’t need to get a separate policy for them. Just put them as a rider on your own policy. The only advantage to getting permanent coverage on a child is to insure that they can have coverage later in life. But, if you’re going to get a “real” policy then at least get a “real” policy with a legitimate amount of coverage. Otherwise, put them on yours and call it a day.
I’ve been a financial advisor for close to 20 years and my children do not have a http://www.gerber-life-insurance.com/go/gerberlife/” rel = “nofollow”>Gerber Life Insurance policy. It’s a waste of money in my opinion.
Gerber is a fine insurance company – but I think that life insurance on children is a ripoff. A major waste of money. You will find agents here that disagree with me, but I’m an agent, and a mom, and I have three kids, and don’t have life insurance on ANY of them.
Basically its a whole life policy where your premiums are paid for two things: The insurance and the cash value. While premiums may seem very low (about $216/year for $25,000 coverage), a 35 year old man that is healthy can purchase a 20 year term policy with $250,000 for about the same price! In the first 2 years of the policy, no cash value is accumulated. After that, you will get 1 to 3% interest on the cash value. I’m not sure how they determine how much of your premiums goes into the cash value. At age 18, the coverage doubles and premiums stay the same. So that means you were paying lots of premiums before the coverage doubled. When your child reach age 21, ownership of the policy is transferred from you to your child and your child can get ten times the coverage.
If you (or your child at age 21 or older) wanted take money out of the policy, you can borrow from the cash value. You will be charged 8% annual interest. When you pay this loan back, the interest goes to the insurance company. It’s similar to you withdrawing money from your savings account, but the bank giong to charge you daily interest until you put the money back. If you or your child cancels the policy while there’s a loan balance due, you will be responsible for income tax on the loan balance if the child is under 21. If the child is 21 years old or older, your child will be responsible for income tax on the loan balance. Surrender charge will apply on the cash value if you or your child cancels the policy. If the child dies and there is a loan balance, this amount plus interest plus missed premiums will be deducted from the face amount of the policy. All the cash value is kept by the insurance company.
In summary:
1) Its very expensive.
2) It gets a very low rate of return
3) No withdrawals allowed. You either borrow and pay 8% interest OR cancel the policy and pay surrender charges.
4) Lose cash value upon death of the child, but at least they pay the death benefit to you.
5) One policy per child
My recommendation:
Get a term policy on yourself. Most people only need 20 years. Some need 10 or 30 years. Financial experts say you should get coverage of ten times of your annual gross income. But every situation is different, so I would go with a company that can find the exact amount of coverage you really need or determine the amount of coverage you need by yourself. A good start would add all your debts. If you have $300,000 in total debts, then you going to need at least $300,000 in coverage. A 35 year old who is healthy and gets a 20 year level term with $300,000 coverage will cost about $20 to $25 per month. I used to own a 20 year level term with $250,000 coverage at age 23 and pay about $18/month. I now own a 30 year level term with $500k coverage at age 30 and pay $475/year for it.
If you are married, add a spouse rider to your policy. If you really want to put coverage on your child, you can add a child rider with a minimum of $5000 coverage to a maximum of $25,000 coverage. A child rider covers all children from 14 days old to age 25. At age 25, the child can get his or her own life insurance, regardless of health status. By adding these riders, your entire family can be protected in one life insurance policy. If you were to get individual life insurance policy for each member of your household, it will cost you lots of money.
I don’t know your other goals, but I’m guessing retirement and funding your child’s higher education (college) are 2 of the things you want to accomplish. Its kind of impossible for me to tell how much you need to save every month to accomplish both these goals. But I can give you some pointers. For retirement, you want to open a Roth IRA. You want to invest in mutual funds because mutual funds has historically out-perform the stock market in the long run. I invest $400/month in 4 different mutual funds. If the average annual return on my investment is 10%, in 20 years I will have about $306,000 saved. I would be 43 years old and plan to retire at age 60. So at age 60, I will have about $1.8 million. I’m being conservative with 10% because the mutual funds I have done 14% average annual return from 1980 to 2009.
I don’t have any kids, but if I did, I would open a 529 plan for my child to fund his or her higher education. There are other plans that can accomplish this goal such as Coverdell and UGMA/UTMA accounts. A Roth or Traditional IRA can even fund for your child’s higher education, but I would only use an IRA for retirement.