Gerber "grow-up" Insurance Plan

Q: Does anyone have any experience with the Gerber "Grow-Up" Insurance Plan? This seems to be a good investment, but I've been trapped by marketing hype before.

A: Why do children need life insurance? In general, anyone with no dependents has no need for life insurance. If you want to put some money aside for a funeral, invest in a mutual fund. Then, in 18 years when you haven't used it you'll have some money for college instead of the insurance company having it. In the horrible, and hopefully unlikely event a child dies, this policy is only intended for final expenses. It is very obviously not a college savings program, nor as the previous poster so calously implied, a way to make money off one's children. It is a term police, not any kind of whole-life policy that would accrue cash value, and grow as the child got older. A term policy is a policy where the amount of the benifit paid stays the same for the lenght of the policy, and the policy is for a specific length of time, and many of them can be renewed. The cost is locked in at the original rate, but when it is renewed, the cost can go up, depending on age, and any health factors. Whole life policies, such as a Univeral Life policy, are just that, for the entire life of the person, as long as they pay the minimum premium. The rate is also locked in at the beginning of the policy, and thus these policies can be very inexpensive for children. The whole life accrue cash value, at different rates, depending on the program, and how much you throw into it. A term policy is different. It is simple a safety net, so that if the unthinkable ever did happen, the grieving family would have a way to pay for their expences, without facing bankruptcy, or the loss of their home, or incurring a huge debt. It is a good investment for that purpose, pure protection. If you need a savings vehicle, you might want to talk to a qualified financial planner and get some advice. (as opposed to know-it-alls on a newsgroup!!) (Iused to be an insurance agent, can you tell?)

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