Life for Kids

The Grow-Up® Plan: Be Their Hero

Did you know you have the power to give your children or grandchildren a valuable gift today which they may thank you for years from now? At Gerber Life, we make it easy for you to give kids protection for their future while building cash value. The Gerber Life Grow-Up® Plan gives parents and grandparents a way to provide the gift of guaranteed1 life insurance protection to children from 14 days to 14 years old while helping to build a strong financial foundation. Premiums are designed to be budget-friendly. And, unlike many other competitors, coverage doubles in value during age 18 without any increase in premiums. Help protect a child’s future and financially strengthen it at the same time with the Gerber Life Grow-Up® Plan.

It's so easy to complete our Grow-Up® application!

A "gift" of whole life insurance coverage that automatically doubles during age 18 at no extra cost.

• Issue ages: 14 days old to 14 years
• Up to two health questions maximum based on the child's age
• Simplified application process
• Quick Underwriting
• As long as the application is complete, a policy is generally issued within 3 days on average!

Secure Growth

•  Life Insurance College Plan grows in value over time and isn't impacted by the ups and downs of the stock market to help pay for college when your child is ready.
• Receive a guaranteed* payment of $10,000 to $150,000 when your policy reaches maturity, as long as premiums are paid.

Flexible Use of Money - for College or Anything Else

• Unlike 529 plans or educational IRAs, you can use the payout money from your Gerber Life Insurance College Plan for college expenses or anything else.
• You're giving your child a head start in life — no matter what your child's future brings.

Adult Life Insurance Protection

• If something happens to you prior to maturity, the full benefit amount will be paid to your beneficiary.
• Life insurance benefit provides greater peace of mind.

Should I save for college in my name or my child’s name?

Saving for your child’s college education represents an investment in your child’s future. After all, the average cost of a college education has been rising steadily for decades – about 7% per year according to Forbes business magazine. That trend is expected to continue indefinitely.

Similarly, a study by the National Center for Public Policy and Higher Education has found that low- to middle-income families spend about 27% of their annual income on post-secondary education costs. That figure has increased from just 13% of income in 1980 and continues to rise.

Federal Financial Aid Formulas

It’s essential to save for your child or grandchild’s education. This imperative has led some parents and grandparents to ask, “Should I save for college in my name or in my child’s name?”

Here are some considerations: When students apply for Federal financial aid, they must contribute at least 20% of their assets toward college costs. In contrast, parents must contribute 5.6% of their assets toward college costs.

For example, a child has a save-for-college account in his or her name with $10,000 in assets, he or she would have an expected contribution of $2,000 toward college costs. If the account were in his or her parents’ name, however, the expected contribution would equal only $560. Basically, a save-for college account in a child’s name lessens the amount of aid available by 20% of the account’s assets, while an account in a parent’s name lessens the available aid by 5.6% of the account’s assets.

Kiddie Tax

It once made financial sense to open savings accounts under children’s names. When children were taxed at their own rate, they generally paid much less than did their parents. However, tax laws change. The passage of the “kiddie tax” a few years ago closed this loophole.

Today, if children have investment income over a certain amount – currently $1,900 – some of it is taxed at the parent’s rate, which is usually much higher. The “kiddie tax” applies to children under age 18, as well as to those 19 to 23 years old who are registered as full-time students and have earned income that’s less than half of their support. The impact of the “kiddie tax” is mitigated when the account’s annual income is less than $1,900.

Keeping it Under Control

When a parent opens a custodial savings account for their child, it’s just that – custodial. Depending on the state, control over that money will transfer to the child when the child reaches the age of majority.  Many 18 to 21-year-olds are capable of using that money wisely, such as for college tuition and related costs Other young adults might not yet have that self-control.

Accounts in children’s and or parents’ names each offer benefits. Only you can decide what’s best for your family.

In addition, it’s important to consider not only in whose name to open a save-for-college account, but also to research the save-for-college options. One option is the Gerber Life Insurance College Plan, which doubles as a life insurance policy for the parent or grandparent during the term of the policy.

Whatever you decide, a college education will open doors for your child’s future.

Sources:
1) http://www.finaid.org/savings/accountownership.phtml
2) http://money.msn.com/college-savings/3-college-myths-that-will-cost-you-weston.aspx
3) http://www.irs.gov/taxtopics/tc553.html
4) http://money.usnews.com/money/blogs/On-Retirement/2011/12/22/should-i-save-for-retirement-or-college

Three great reasons to get whole life insurance for your child.

Our kids grow up fast, don’t they? They morph from babies to toddlers in the blink of an eye. A few years more and they’re out the door before we can catch them!

Protecting our little ones is an instinctive urge. Not only do we want to provide a safe and loving environment for them, we want to safeguard them financially. One great way to jump-start your child’s financial security is with a Gerber Life Insurance Grow-Up® Plan.

The Grow-Up® Plan is a whole life insurance policy for your child. In addition to providing a life insurance benefit of up to $50,000, the policy builds cash value over time.

So let’s take a closer look at the advantages of the Grow-Up® Plan.

Affordability

In this tough economy, people are focused on spending wisely. Consider that you can buy a $10,000 policy for a child under 1 year old for as little as $1.50 a week. Talk about affordability and wanting to spend wisely!

The whole life insurance policy’s low childhood premium rates are based on your child’s age when you apply. Life insurance premiums increase with age, so rates for babies and children are particularly easy on the wallet. It follows that obtaining life insurance for your child at the earliest possible age can make financial sense.

Also, consider that the Grow-Up® Plan premium rate that you start with never increases during the life of the policy. That’s right: The premium is locked-in at that low childhood rate.

With the Grow-Up® Plan, you can buy a wide range of coverage for your child, from $5,000 to $50,000. So if your budget is tight, you can buy a smaller whole life insurance policy and add more coverage later on.

Parents, grandparents and permanent legal guardians can purchase a Grow-Up® Plan for a child 14 days to 14 years old.

Growth

Another benefit of the Grow-Up® Plan is the cash value that you can build for your child, since, as a whole life insurance policy, it accumulates cash value over the years, as long as the premiums are paid. The adult remains the policy owner until the child reaches age 21, at which time the child becomes the policy owner. He or she will then have a choice of keeping the policy, taking a loan against the cash value if needed*, or requesting a payout. If a need arises while you are still the policy owner, you can do the same.

An additional benefit of buying this whole life insurance policy for your child is that his or her coverage automatically doubles in value during the year he or she is 18 – with no increase in premium. For example, a $10,000 policy doubles to a $20,000 policy, a $15,000 policy to a $30,000 policy, and so on. Double the insurance coverage at the same low childhood premium rate locked in for the life of the policy. Does it get any better?

When you purchase a Grow-Up® Plan for your child, you are essentially enabling him or her to have affordable life insurance for up to a lifetime. Often a young person can be priced out of having life insurance or unable to obtain it if he or she develops a serious illness or has a job or hobby that an insurance company considers dangerous or risky. However, none of these factors affect coverage for an adult child who has a Gerber Life Grow-Up® Plan – future coverage is guaranteed.

Flexibility

After turning age 21, your child also will have several opportunities to buy additional coverage – up to 10 times the original amount. So, for example, if your child had a $25,000 policy to start, he or she could purchase up to $250,000 in coverage as an adult, at Gerber Life’s standard rate for your child’s age at the time.

There’s also an intangible benefit to the Grow-Up® Plan: knowing that you’re giving your child or grandchild a gift of protection that can last for up to a lifetime. For more information, read about how the Grow-Up® Plan works.

* Policy loan interest rate is 8%. Loans may impact cash value and death benefit.

• Is the Gerber Life Grow-Up® Plan Worth It?
  6 min read Parents constantly worry about their children — it’s their job. Where are they on the growth chart? Will they get along with other kids? Will they do well in school? Am I, as a parent, doing everything I can to protect my child now and in the future?The answer is, nobody has all the answers. We all do the best we can with the information and knowledge we have on hand. That said, let’s make sure you do in fact get the information you need to make the right decisions for your child. So let’s get started.
• Have you seen the Gerber Life Grow-Up® Plan reviews?
  You may be asking yourself, is Gerber Life Insurance worth it? We believe so, but you don’t have to take our word for it. Go ahead and get your information from those who know us best. Take a look at some of the Gerber Life Grow-Up® Plan reviews and you’ll see why 87% of our customers recommend the Grow-Up® Plan.Below are testimonials from some of the many Gerber Life customers who have given their children a financial head start. With a 4.3 out of 5-star rating, parents and grandparents everywhere say they love the Grow-Up® Plan.
  "I recommend getting the policy as soon as your child is born and has a SSN." ~ Julie from Lima, Ohio.This mother understands the importance of getting protection as early as possible. Remember, the sooner you get the Grow-Up® Plan, the lower your child’s lifetime rate will be.
  "It has been the easiest and best way to cover my children." ~ tnmom23 from Salem, Virginia.Applying for the Grow-Up® Plan really is easy. It takes just minutes with no medical exam. Once you have the policy, all you have to do is make budget-friendly monthly payments in order to keep your child protected.
  "This product is a wonderful gift to my grandchildren." ~ Grandma G from Escondido, California.Grandparents know a good deal when they see one. The Grow-Up® Plan’s cash value account can help you cover unexpected expenses until your grandchild takes over the policy at 21.
  "Hands down the best decision I ever made, a lot of security for a child in many different ways" ~ Alex from New England.With the Grow-Up® Plan, you can help give your child and their family some financial security against the unexpected, which can give everyone peace of mind. We’ve been providing comfort to families for more than 50 years, and we’re ready to protect yours, too.
  "A whole life insurance policy that offers lifelong coverage.
• What is the Gerber Life Grow-Up® Plan?
  The Gerber Life Grow-Up® Plan is a whole life insurance policy you can purchase for your children from the time they are 14 days to 14 years old. You can buy a wide range of coverage for your child, from $5,000 to $50,000. This policy provides financial protection, builds cash value and can guarantee life insurance coverage for a lifetime as long as premium payments are made.Life insurance coverage that doubles
  An additional benefit of buying this whole life insurance policy for your child is that his or her coverage automatically doubles in value during the year he or she is 18 – with no increase in premium. For example, a $10,000 policy doubles to a $20,000 policy, a $15,000 policy to a $30,000 policy, and so on. Double the insurance coverage at the same childhood premium rate locked in for the life of the policy.Life insurance that’s designed to be affordable
  In this tough economy, people are focused on spending wisely. Consider that you can buy a $10,000 policy for a child under 1 year old for less than $2 a week.The whole life insurance policy’s childhood premium rates are based on your child’s age when you apply. Life insurance premiums increase with age, so rates for babies and children are particularly easy on the wallet. Plus, the Grow-Up® Plan premium rate that you start with never increases during the life of the policy. That’s right: The premium is locked-in at that childhood rate.Obtaining life insurance for your child at the earliest possible age makes financial sense.Life insurance that’s flexible
  After turning age 21, your child will also have several opportunities to buy additional coverage – up to a total of 10 times the original amount. So, for example, if your child had a $25,000 policy to start, he or she could have coverage up to $250,000 in coverage as an adult, at Gerber Life’s standard rate for your child’s age at the time.And if you’re worried that your child won’t qualify for life insurance as an adult, you may be right. Adults with health issues can often be denied life insurance coverage. With the Grow-Up® Plan, if your child develops a medical condition or poor health later, they won’t lose the coverage obtained as a kid. No questions asked, no medical exam and it doesn’t matter if your child has a full time, part-time or high-risk job.It’s a great way to ensure future insurability for your child.
  "By setting your child up with life insurance early, they have the guaranteed right to add more coverage as an adult."Here’s an important benefit of whole life insurance that every parent should know: This kind of policy builds “cash value” over time and can provide a safety net for future expenses. This is money that’s set aside with each monthly premium payment made.
  "The longer you own the policy, the more cash value the policy accumulates.
• "What is Cash Value?
  Here’s how cash value works: each time you make a monthly premium payment for your Grow-Up® Plan, Gerber Life sets aside a small amount of money. Over time, this becomes the cash value of your policy. It represents how much your policy is worth at any given point in time. You can watch the amount grow, just like your child.Both children’s whole life insurance and adult whole life insurance policies can offer a cash value component. So why get a policy while your child is still young?The answer is simple: You have time on your side. The longer you own the policy and make all the premium payments, the more cash value that the policy accumulates. By the time your child is an adult and becomes the policy owner, you’ll already have built a nest egg – which your child can continue to grow.
• How Can Cash Value Be Used?
  A great benefit of cash value is its flexibility. Here are ways you might use the cash value of the Grow-Up® Plan:• If you need immediate cash, you can borrow against your policy’s cash value by taking a policy loan.* This gives you a solution without sacrificing your life insurance protection.• If you decide to cancel the policy, you’ll receive the accumulated cash value that has built up over time, minus any outstanding debt against the policy. The same is true after your child becomes the policy owner.• If you’re temporarily unable to pay your monthly premiums, Gerber Life may be able to pay them for you by using your policy’s available cash value.The Gerber Life Grow-Up® Plan is an ideal way to plan, and build for, the future. It’s a children’s whole life insurance policy that provides valuable financial protection for you and your child.Parents face so many questions, but how to provide extra security for your child’s future shouldn’t be one of them. Call us at 1-800-704-3331 today and let Gerber Life help you pick out the best plan for your family.*Policy loan interest rate is 8%