I’ve always had my children’s insurance as part of my workplace plan. The only reason to consider this is that your child has a serious illness or disability, which may disqualify him from getting life insurance as an adult.Īlthough in most cases I don’t love the Gerber Life Insurance policy, I think a child’s life insurance can make sense in the right situation. From a financial planning perspective, I don’t see much need for a Gerber Life Insurance product. I suspect that most parents don’t have to buy all their life insurance for their child. Is it worth buying Gerber life insurance for your child? The value of cash increases too slowly to be profitable in your child’s life. If you want to give your child access to money between the ages of 17 and 25, a life insurance plan is rarely the way to do it. After paying the plan for 17 or 18 years, a $ 50,000 policy can have between $ 3,000 and $ 4,000 cash when the child reaches school-leaving age. The problem is that the value of cash in a life insurance policy increases very slowly over time. Your child can take out loans based on the monetary value accumulated in the life insurance policy. The ad suggests that your child may be able to use the cash value to pay for college or serious expenses (such as weddings) in subsequent years. Many Gerber life insurance marketers surround part of the monetary value of the policy. When it makes no sense to buy life insurance for children In addition, when a child turns 21, he or she automatically owns the policy. This makes it a little more valuable to the child. When the insured person turns 18, the policy amount doubles (for example, from USD 10,000 to USD 20,000). We’ll discuss more on the cash value concept later. You can borrow on cash value, use interest on cash value to pay premiums, or opt out of the policy in exchange for cash value.
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