We provided solution to questions like; How Do I Cash Out My Gerber Grow Up Plan? What is the Gerber Grow-Up Plan? How does the Grow-Up Plan Work? Is the Grow-Up Plan Worth It?
Gerber Life Insurance offers many types of life insurance for people in all stages of life. The Grow‑Up Plan is a whole life insurance policy for children that starts protecting your child early on and continues into adulthood, for financial protection that can last a lifetime.
Here’s a look at how the Gerber Life Grow-U Plan works, and why buying it early on can be so important and make all the difference in the world for your child.
What is the Gerber Grow-Up Plan?
The Gerber Grow-Up Plan is a whole life insurance policy specifically for children. As the name implies, the policy will cover your children for their entire lifetime. Although it’s very unlikely that your child will pass away anytime soon, it’s comforting to know that there is a financial safety net in place should something happen.
Coverage is available from $5,000 to $50,000, and parents or grandparents can apply for it. The policy must be purchased when the child is between two weeks and 14 years old. When the child turns 18, the coverage amount doubles.
When they turn 21, they will become the policyholder. Since the Gerber Grow-Up Plan is a whole life insurance policy, it offers the option to build cash value. Some people like to use this to save money for college or other future prospects for the child.
The Gerber life insurance grow up plan is absolutely a worthwhile investment.
You’ll have insurance protection so that if your children or grandchildren were to pass away, it would provide a quick cash payout to cover their funeral costs.
In addition, the insured children will have the guaranteed option to purchase additional life insurance later in life regardless of their health circumstances at that time.
How the Grow-Up Plan Works
To maintain the policy, one pays a monthly premium. The younger your child is when you buy the policy, the lower the monthly premium. The child-size premium rate when you started the policy will never increase as long as premiums are paid — even after your child automatically becomes the policy owner at age 21.
Among the valuable benefits of the Grow-Up Plan:
- Locked-in premium rate never goes up during the life of the policy
- Coverage automatically doubles during age 18, at no extra cost
- Guaranteed right for your child to buy more coverage as an adult (at what the standard adult rate is at that time), no matter your child’s future health or occupation
- Builds cash value, which could be borrowed against if needed*
*Policy loan interest rate is 8%
Now let’s look at each of these four significant benefits:
1. Locked-in Premium Rate
Your child would pay the same child-size monthly premium rate for life even after becoming the policy owner at age 21. All your child needs to do is keep paying the premiums.
This is a huge benefit, given that age affects life insurance premium rates. For example, buying a life insurance policy at age 50 versus age 30 could cost three times as much. By having Grow-Up Plan protection with a locked-in premium, your child won’t have to worry about rising costs.
The sooner you apply for the Grow‑Up Plan, the lower the premium rate.
2. Coverage Automatically Doubles During Age 18
Another benefit the Grow-up Plan offers is the doubling of the coverage amount.
On the policy’s anniversary date during the year that your child’s 18, the coverage will automatically double at no extra cost. This means, for example, that if you originally bought a $25,000 Grow-Up policy, it would double into a $50,000 policy, and so forth.
Affirms one happy Gerber Life customer: “I love the fact that my daughter will continue to have this plan when she graduates college, and that the amount will double for her.”
Your child will gain twice the coverage for the same monthly payment.
3. Guaranteed Right for Your Child to Buy More Coverage as an Adult
According to the World Health Organization, chronic diseases and conditions are expected to rise by 57 percent come the year 2020. Other rising health concerns include diabetes, obesity and global pandemics.
You can’t predict your child’s health, but you can rest easier knowing that with Grow-Up, your child won’t risk being denied life insurance later on.
Grow-Up guarantees the right for your child to buy more life insurance coverage as an adult — up to ten times the original policy amount — at our standard adult premium rates for his or her age at that time for a standard policy. No questions asked, no medical exam and regardless of whether your child’s job is full-time or high risk.
Your child will have several occasions to buy additional coverage, such as upon getting married or having a child — times when there’s a need for increased life insurance to financially protect loved ones.
4. Builds Cash Value
Whole life insurance policies include the ability to build “cash value” over time, representing how much the policy would be worth at a given point in time were you to cash in the policy or take a loan against the policy.
Here’s how cash value works:
Each time you make a premium payment for a Grow-Up Plan, Gerber Life sets aside a small portion, which grows into the policy’s cash value. The longer you have the policy, the larger the cash value.
If a need arose, you as the policy owner — or subsequently your adult child — could borrow against the policy’s cash value* as long as all premiums are paid, or turn in the policy for the available cash value. In some instances, you might be able to apply the cash value toward making premium payments.
Noted a Gerber Life customer from Maryland: “I’m thankful that when I need to borrow money for emergencies, it’s there.”
However, it’s important to remember that any loan debt against the policy reduces the amount you’d receive if you surrendered the policy, or the payout amount to your beneficiaries.
* Policy loan interest rate is 8%.
- You may also want to know: Gerber Life College Plan Questions And Answers
How Do I Cash Out My Gerber Grow Up Plan?
You can borrow against the cash value of your policy to pay your premium or use for an immediate need without forfeiting your policy (policy loan interest rate is 8%). Or if you must cash out, no problem. You would receive the accumulated cash value that has been building over time, less any outstanding debt against the policy. Just call their customer service number at 800-704-2180.
Is the Grow-Up Plan Worth It?
It’s natural and advisable to compare your needs with the benefits of a Gerber Life Grow-Up Plan. “Is Gerber Life Insurance a good idea?” is a valid question, since protecting your child’s future shouldn’t be taken lightly.
Some food for thought:
Whether or not you have life insurance for yourself, it’s well worth considering a life insurance policy for your child. Yes, you could add a rider to your existing life insurance policy to cover your child, but doing so could leave your child without insurance when your policy ends.
In the end, you may find that it makes sense to fully invest in your child by giving the gift of an individual whole life policy.