I'm looking for a good life insurance policy for my 7 month old daughter. I want something that she can eventually take over and will be a decent size for her. I also would like the premiums to stay close to the same so I don't have to worry about her being able to afford it later in life. Has anyone tried the Gerber life program..what are your thoughs on it? Thanks!
2007-02-19 03:37:41 · 7 answers · asked by fuzzyfoot1 2 in Business & Finance ➔ Insurance
I don't want if for a savings, we have that setup for her already. I am interested in it because it is a $10,000 policy to begin with then doubles to $20,000 when she is 21 and then $100,000 when she is 28 and she still only will have to pay $6 a month. I just got coverage for less the policy amount and more than double the cost..I am thinking it will save her money in the long run..Plus if anything did happen where I needed money I can pull out a % of what was put in. Is it still a bad idea??
2007-02-19 06:11:48 · update #1
If I were speaking to you, I would ask you "What is your main reason for buying life insurance for your child?" Life insurance is meant to protect the income of family's breadwinners. If you or your husband dies, your child can continue to live comfortably.
A child, on the other hand, is technically a liability, not assets that needs protection. You are not going to count on the child to put food on the table, are you? While you are considering a $10,000 policy on her, in the future when she is earning a living and having dependants, she will need lot more coverage than that. Sure it may double when she turns 21, but what good is a $20,000 policy going to do?
Gerber Life tries to sell the plan as a great way to build for college. Their policies are laden with hidden costs and fees, which gives the rate of return on cash value a low rate. 529 plans would be the best choice to save for college.
If I were you, I would check whether you and your spouse have enough life insurance coverage. Most families are under-insured. Is your coverage currently 8-10 times the amount of your annual gross income? For example, if you make $30,000/year, do you have a $300,000 policy?
Did you know that if you and your combine the life policies together, that the cost per thousand coverage decreases? Its like when you see a sale at the supermarket such as buy 5 apples for a total of $1 instead of paying 1 apple for $0.35 each.
Anyway buying life insurance on a child is generally a bad idea. Unless you are living in Iraq, then that's another story.
2007-02-19 08:17:42 · answer #1 · answered by Anonymous · 6⤊ 0⤋
Gerber Life Program
2017-01-18 17:56:55 · answer #2 · answered by ? 4 · 0⤊ 0⤋
OK, well, IMO, life insurance for infants is a waste of money. You're BETTER off if you just put your $10 a month in a jar on the shelf. That way, if ANY of your kids pass away, you can use the money for ANY of them.
"Decent Size" isn't going to be an infant life policy. All you're going to get NOW is burial, MAYBE $10,000. It doesn't GROW, the longer you pay into it, and you don't get any interest.
Life insurance for children is NOT an investment - it's an extremely profitable line of busines for the insurance company, for people who are bad at math.
2007-02-19 04:18:34 · answer #3 · answered by Anonymous 7 · 2⤊ 0⤋
DONT DO IT
It is safer to put the money in a piggy bank then in a rip off insurance program. If you want insurance get a rider on your policy if you want savings put it in an investment account.
Life Insurance is to replace income which is needed by dependants. Unless your baby has an income you don't need to insure for its loss.
2007-02-19 03:56:36 · answer #4 · answered by Ryah B 2 · 2⤊ 0⤋
Life insurance is great...For heirs and successors.
If you want to do something for your child, start putting a little money each month into a trust account at the bank, when you can, increase the amount.
When you get it up to $1,000, Buy a no-load Balanced mutual fund at the bank in the same "trust", add to it when you can
Over 20 years this will grow and help pay for college or university.
2007-02-19 04:04:03 · answer #5 · answered by bob shark 7 · 2⤊ 0⤋
The experts I have read do not recommend life insurance on kids. It is rare for kids to die, and the policies are too expensive for the low odds of a kid dying. You need life insurance if an adult dies, but not a child. Read these links. They explain it better than I can.
2007-02-19 06:40:21 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Don't do it. Life insurance is to protect loss of income, for the most part. A child does not bring in income, unless they are doing commercials and/or ads. It is a waste of money.
2007-02-19 04:34:10 · answer #7 · answered by nurse ratchet 6 · 2⤊ 0⤋