Among the options from Gerber Life Insurance are plans for young folks.
Gerber Life’s Grow-Up Plan
The Gerber Life Grow-Up Plan is a whole life insurance policy that you can buy for children from age 14 days to 14 years. A parent, grandparent or permanent legal guardian can buy $5,000 to $50,000 of coverage for a child. The coverage amount automatically doubles when the child turns age 18. For example, a $25,000 policy would double to $50,000, as long as the premium payments are up to date.
No medical exam is required, but you must complete a health questionnaire. Gerber Life says it rejects less than 2% of applications for its Grow-Up Plan coverage each year for medical reasons.
The child becomes the policyholder at age 21. They can choose to continue paying premiums at Gerber Life’s standard adult rates for their age at that time, with no medical exam, or end the coverage and receive the accumulated cash value.
Premiums for the Gerber Life Grow-Up Plan can start as low as $3.70 a month for $5,000 in coverage for a child less than one year old (if payments are automatically deducted from a checking or savings account).
The Gerber Life Grow-Up Plan builds cash value over time and enables the child to buy extra coverage as an adult. A cash value loan at an interest rate of 8% can be taken out.
Young Adult Plan
Gerber Life’s Young Adult Plan is geared toward people ages 15 to 17. Parents, grandparents and permanent legal guardians can apply for this coverage. The teenager becomes the policyholder at age 21.
This plan supplies whole life insurance coverage, with the policy building cash value; the coverage amount doubles at age 18. A healthy teen can get $5,000 to $50,000 of whole life coverage. This coverage must be purchased by phone.
Gerber Life College Plan
Gerber bills its Gerber Life College Plan as an alternative to a traditional college savings account for putting away money to pay for a son or daughter’s college education (or to cover other expenses).
Gerber Life says the plan can guarantee how much money a plan’s owner will have after 10 to 20 years (as long as premiums are paid). That’s coupled with adult life insurance coverage. If you, the policyholder, were to pass away, then the full benefit amount of the policy is paid as a death benefit to your designated beneficiary.
As long as the premiums are paid, the plan’s guaranteed payout will range from $10,000 to $150,000 when the policy matures, Gerber Life says.
The company notes that withdrawals from the plan are taxable. The rate of return on cash value depends on the policy, the policy’s duration and the billing frequency.