As a parent, you want to give your child the best start in life. From ensuring they have a good education to planning for their financial future, every decision counts. While college savings plans and trusts are standard, life insurance for children might not be the first thing you consider.
Yet, Gerber Life Insurance offers a unique product called the Grow-Up Plan, designed to provide lifelong protection and a savings component for your child. In this article, we’ll explore what Gerber Baby Life Insurance is, its key features, benefits, and whether it’s the right choice for your family.
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What is Gerber Baby Life Insurance?
The Gerber Life Grow-Up Plan is a whole life insurance policy tailored for children aged 14 days to 14 years. Unlike term life insurance, which provides coverage for a specific period, whole life insurance offers coverage for the insured’s entire life, as long as premiums are paid on time and in full.
The Grow-Up Plan also builds cash value over time, which can be accessed for future needs, such as education or emergencies. It’s marketed to parents and grandparents who want to secure their child’s financial future while ensuring they have life insurance coverage, regardless of future health or occupation.
Gerber Life, a trusted name in baby products for over 50 years, extends its reputation to insurance, offering peace of mind through affordable policies. The Grow-Up Plan is one of their flagship products, designed to combine protection with a savings element.
Key Features of the Gerber Life Grow-Up Plan
The Grow-Up Plan offers several benefits that make it an appealing option for parents. Here’s a detailed look at what it offers:
| Feature | Details |
| Coverage that Doubles | Automatically doubles at no extra cost when the child turns 18 (e.g., $50,000 becomes $100,000). |
| Builds Cash Value | Accumulates cash value over time, which can be borrowed against (up to 8% interest rate, may impact death benefit). |
| Guaranteed Coverage for Life | Lifetime protection; option to buy more coverage as an adult without a medical exam, as long as premiums are paid. |
| Locked-in Childhood Rate | Premiums remain fixed if paid on time, starting at pennies a day. |
| Easy Application Process | Answer four simple questions for a free quote; over 75% of applications are approved instantly. |
| Flexible Payment Options | Pay online via bank account or card; save up to 10% with EasyPay automatic deductions. |
Coverage that Doubles
One of the standout features is that the policy’s coverage amount doubles when the child turns 18, at no additional cost. For example, a $25,000 policy can be increased to $50,000, aligning with the child’s growing financial needs as they enter adulthood. This ensures the policy remains relevant as responsibilities increase.
Builds Cash Value
The Grow-Up Plan accumulates cash value over time, acting as a savings component. This cash can be borrowed against for expenses like college tuition or unexpected emergencies. However, loans accrue interest (up to 8%) and may reduce the death benefit if not repaid; therefore, careful planning is necessary.
Guaranteed Coverage for Life
As long as premiums are paid, the policy provides lifelong coverage. Additionally, the Guaranteed Insurability Option (GIO) allows the child to purchase more coverage at standard rates at specific ages (e.g., 18, 21, 25) without a medical exam, ensuring they can secure insurance even if health issues arise later.
Locked-in Childhood Rate
Premiums are determined based on the child’s age at the time of purchase and remain stable as long as payments are made on time. This makes the plan affordable, with coverage starting at just pennies a day, especially when purchased for a newborn.
Easy Application Process
Applying is simple. Parents answer four questions (child’s age, gender, coverage amount, and state) to get a free quote. Applications can be submitted online or by phone, with over 75% approved instantly, making it convenient for busy families.
Flexible Payment Options
You can pay premiums monthly, quarterly, semi-annually, or annually via bank account or credit/debit card. The EasyPay option, which automatically deducts payments, offers up to 10% savings on monthly premiums, adding to the plan’s affordability.
How the Gerber Life Grow-Up Plan Works
When you purchase the Grow-Up Plan, coverage begins immediately upon approval. Premiums must be paid regularly to keep the policy active. Over time, the policy accumulates a cash value that grows slowly in the early years but can become substantial over several decades. This growth depends on the insurer’s investment performance and any dividends, though returns are typically modest compared to other investments.
At age 18, coverage doubles, and the child becomes the policy owner. They can continue paying premiums, increase coverage through GIO, or surrender the policy for its cash value, although this will end the insurance. If premiums are missed, the policy may lapse, but a grace period usually allows for catch-up payments.
Why Choose Gerber Life for Your Child?
Gerber Life has been a trusted name for over 50 years, known for its baby products and now its insurance offerings. Here’s why parents might choose the Grow-Up Plan:
- Trusted Brand: Gerber’s reputation in baby care extends to its insurance products, providing confidence in its reliability.
- Affordability: Premiums start low, making it accessible for many families.
- Dual Benefits: Combines life insurance with a savings component, offering both protection and financial growth.
- Customer Support: Gerber Life offers easy access to support via phone (800-704-3331, Monday through Friday, 8 a.m. to 7 p.m. ET) or online at GerberLife.com.
Considerations Before Purchasing
While the Grow-Up Plan has appealing features, it may not be suitable for everyone. Here are some factors to consider:
Cost vs. Need: Whole life insurance premiums are higher than term life due to the cash value and lifelong coverage. Some experts argue that life insurance for children is unnecessary unless they have dependents, as the primary purpose is often future insurability rather than immediate financial protection.
Investment Returns: The cash value grows more slowly compared to alternatives such as 529 plans or mutual funds. For example, 529 plans offer better growth for college savings due to higher returns and tax advantages.
Alternatives: Parents might consider a child rider on their life insurance policy, which is often more cost-effective, or explore other savings options, such as custodial accounts or bank savings, for added flexibility.
Mixed Reviews: While many customers praise the plan’s simplicity, others criticize its low returns and high premiums for the coverage. Some online reviews, like those on Business Insider, mention issues with customer service responsiveness.
Parents should evaluate their financial priorities and consult a financial advisor to ensure the plan aligns with their goals.
Customer Feedback
Customer reviews offer valuable insights into the Grow-Up Plan’s real-world impact. Many parents appreciate its ease and peace of mind:
- “I got this for my newborn grandson. It’s easy to set up, and I love that it doubles at 18.” – Grandma J.
- “Five years in, and I’m happy with the policy. Customer service is great, and payments are simple online.” – Sarah M.
- “It’s a safety net for my child’s future, but I’m not sure about the investment value.” – Mike T.
Frequently Asked Questions
What ages are eligible for the Grow-Up Plan?
Children from 14 days to 14 years can be insured.
How much does it cost?
Premiums start at pennies a day, based on the child’s age, gender, and coverage amount.
Can I cancel the policy?
Yes, but surrendering early may incur charges, and you’ll receive the cash value.
What if I miss a payment?
A grace period allows catch-up payments; otherwise, the policy may lapse.
Is the death benefit taxable?
Generally tax-free, but cash value withdrawals may be taxable if they exceed premiums paid.
Can the child take over the policy?
At 18, the child becomes the policy owner and can manage or expand coverage.
Does it cover accidental death?
Yes, it covers death from any cause if the policy is active.
Can grandparents buy it?
Yes, with parental consent in some states.
How do I learn more?
Contact Gerber Life at 800-704-3331 or visit Gerber Life.
Is Gerber Life reputable?
Backed by Continental Assurance Company with an A (Excellent) rating from A.M. Best.
Conclusion
The Gerber Life Grow-Up Plan offers a unique blend of life insurance and savings for children, providing lifelong coverage and a financial foundation. Its features, like doubling coverage at 18 and locked-in premiums, make it attractive for parents seeking security.
However, its higher costs and modest returns compared to other savings options mean it’s not for everyone. By weighing your family’s needs and exploring alternatives, you can determine if this plan aligns with your financial strategy. For more details, visit Gerber Life or call 800-704-3331.
