Posted on: Tuesday, December 6th, 2011

Update 2/7/2012 – If you haven’t received a life insurance quote from The Gerber Grow Up Plan, now is the time.  They have an upgraded online system that is easy to access and very user-friendly.  Check it out.  

New parents across the nation are bombarding with information about what their baby needs and the details can get lost.  One product being pushed on parents is a life insurance product for the child.  This isn’t the right product for everyone, but if you and your financial advisors decide this product would benefit you there are many to choose from including various policies from the Gerber Life Insurance Company.

Gerber is well-known for their baby food products that have been sold for decades.  Not everyone is aware that they also offer life insurance and savings plans for kids.  One of their more popular products is The Grow-Up Plan.  This policy claims to give children a jump start in life financially.  The Grow-Up Plan from Gerber Life Insurance is a whole life insurance policy that protects your kids and can provide a savings opportunity for them as well.  The Grow-Up Plan provides $50,000 of whole life insurance protection now and for no additional cost, the amount will double upon their 18th birthday.

There are numerous details in this policy that should be reviewed carefully.  Once you get the Grow-Up Plan you lock in a childhood premium rate that will never increase.  Gerber sells it as a 60% discount on what your child would otherwise pay for an adult policy.  In addition to the coverage amount doubling on their 18th birthday, the child can choose to increase coverage as they see fit once they are an adult.  They can always count on this coverage as long as monthly premiums are paid.  It’s important to ensure the premiums fit into your monthly budget and if the child eventually takes over the policy completely, they should be able to afford the payments as well.

There is a lot to consider before buying this type of coverage and it’s wise to make these kinds of decisions before the baby comes and you are overwhelmed with information overload.  Taking your time to make important financial decisions for your children should be a priority.

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