Gerber Insurance: College Plan
Many are aware of Gerber Insurance for their children through life insurance products and savings plans, but not everyone knows about their plan specifically designed for college savings. For as little as about one dollar per day, Gerber offers a college plan for your child. The way it works can be a little confusing so before you purchase this endowment life insurance policy, be sure you understand all the ins and outs.
Basically, with the Gerber Life College Plan you choose how much you can afford to set aside each month and then Gerber guarantees a benefit payment of $10,000 to $150,000 when it's time for your child to attend college. The main perk to this type of savings is a guaranteed return without any concerns over stock market fluctuations. In addition to this, life insurance guarantees the full benefit is paid to your child even if you're no longer here.
Costs vary greatly. Gerber claims to work with you on monthly premium options according to their website. They tell you how much your benefit will be once you give your monthly payment budget amount. According to Gerber, the value of the Gerber Life College Plan will increase through the length of the policy which can be very appealing for many. Once the policy reaches maturity, you will receive the full benefit paid which they say will be larger than the amount of your premiums paid over time. This may be true, but obviously, with good investment skills, you could make more in the stock market. A guaranteed payout is hard to pass up for many though.
With the average cost of a 4-year public college lingering around $25,000 per year for out-of-state students and average rate increases of about 4-6% per year, it's crucial to start saving as soon as possible for your child's education. Financial aid and scholarships do not always cover the costs associated with going to college so many parents will pay out-of-pocket expenses to send their child away. There are many saving options for your review, so be sure to do your homework before purchasing a policy or stocks. Meet with an expert to ensure you are making the best decision for you and your family.