January 25, 2013
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Money Matters – Part Three
The next thing I want to talk about is Gerber Life Insurance.This is the one GOOD financially sound thing that we did when we had children. Gerber (the baby food company) offers something called the ‘Grow-Up Plan’… it’s a life insurance policy for babies. As soon as our children were born, I signed up for a $5000 life insurance plan for them. It costs very little – I think I pay about $300/yr for my five children. And if something were to happen to them, I have coverage enough to handle taking care of the burial arrangements. Not a pleasant thought, but a wise one to consider.
And nicer than that, as they get older, you can ‘upgrade’ your policy to a higher amount, if you would like. Because as they get bigger, the cost of processing increases, it’s just a fact of life. But even nicer than that? They can take over the policy and continue it as adults, if they so choose.
And the bonus? When they turn 18, so long as premiums are consistently paid, the money I put into these plans will become available to my children. According to the site: “As the years go by, the policy accumulates cash value. This is money that is available if there is ever a need for ready cash as long as premiums are paid. The amount of money depends on your age, how long you have had your insurance and the policy’s benefit amount. …After 25 years, the cash value is at least equal to or greater than 100% of premiums paid. In other words, even though the policy has provided full insurance protection and all guarantees for 25 years, your child can receive a sum of money that’s at least equal to every dollar paid in premiums if the policy is turned in, assuming there are no outstanding policy loans or interest.“ So what I put in, they can get back, later. The monies aren’t just ‘lost’.
To me, this is a worthy investment. It’s insurance, it’s a ‘savings’, of sorts, and it offers options to my children in the future. It’s something to consider, anyhow. So if you’re thinking of having children in the future, or in the process of building your family now, I highly recommend you look into the Gerber plans.
Yesterday I said that it was the most important thing to plan for their futures by putting money into an IRA for their retirement/future. Today I’m saying that it’s also a good idea to plan for emergencies/disaster by doing this… and it’s an investment that you don’t lose with. So it’s definitely worth considering.
