In this piece of writing we have gathered some of the most frequently asked questions about Gerber Life College Plan and also provide answers to the Gerber Life College Plan Questions to extend your knowledge.
All you need to do is to stay with us till the end of this post as we all your queries answered and all your doubt fixed. So let’s begin without wasting much time.
How can the Gerber Life College Plan help you prepare for college? Read the answers to frequently asked College Plan questions below. If you can’t find the answer you’re looking for? Simply comment your question in the comment box and one of our representatives will be happy to help.
You may also want to see the Gerber Baby College Plans – Discover the various savings plans
1: What is the Difference Between the Gerber Life College Plan and a 529 Plan?
There are three main differences between the Gerber Life College Plan and a 529 plan.
529 plans must be used for college expenses — or else penalties will be incurred. The Gerber Life College Plan can be used to pay for college expenses or anything else, once the policy reaches maturity.
The value of your 529 plan may be impacted by the ups and downs of the economy, which presents an element of risk. The Gerber Life College Plan offers stable growth that isn’t impacted by economic fluctuations.
The Gerber Life College Plan is the only College Plan that also offers the additional benefit of adult life insurance.
2: What is the Rate of Return?
The rate of return varies depending upon your specific policy, its duration, and your billing frequency. For further details about your specific policy’s rate of return, please call Gerber Life Insurance.
3: How Does the Gerber Life College Plan Differ From a Bank Savings Account as a Way to Put Money Aside for College?
Unlike a standard bank savings account, the Gerber Life College Plan can guarantee how much money you’ll have after 10 to 20 years (as long as premiums are paid) and can give you the added benefit of adult life insurance protection. So, should something happen to you — the full amount of your policy is paid as a death benefit to whomever you select as beneficiary.
4: What Happens if I Stop Paying? How much would I get?
The amount you’d get back depends on when you stop paying and surrender your policy. If you are past your policy’s midway point (for a 10-year policy, the midpoint is about five years), you would get back all of the money you paid in.
5: What About Taxes?
The Gerber Life College Plan will generate some taxable income, Gerber Life Insurance will send you a statement (Form 1099) to file with your taxes.