![]() Gerber Life’s Young Adult Plan is identical to its Grow-Up Plan, except that it’s for teens between the ages of 15 to 17. By contrast, you would have to purchase multiple Grow-Up Plans if you had more than one child for whom you wanted coverage. A child rider is likely to be less expensive and will cover all your children with a single premium. That said, if you do want this sort of coverage for your children, you might do better by buying a child rider on your own life insurance policy. Therefore, the primary value of a Gerber Life Grow-Up Plan is its initial death benefit, since it’s sufficient to easily cover the costs of a funeral and counseling for family members should your child pass away. To illustrate, we compared quotes and guaranteed cash values for the Gerber Grow-Up Plan, assuming you bought coverage for a male baby who was born recently.Īs these figures show, the cash value in a Gerber Grow-Up Plan takes decades to become sizable, and even after it doubles in size, the death benefit is much smaller than an adult would typically need. ![]() ![]() Further, even if your child held on to the policy for 25 years, say, the cash value would still likely be too small to cover large expenses, such a wedding. In addition, the Grow-Up Plan is similar to other whole life insurance policies in that it will often take three to four years before you have any cash value, as early premium payments go to paying the insurer’s fees.Īs a result, should you wish to surrender your policy within the first few years of coverage, you would receive little to no money back. The downside is that, since child life insurance is quite inexpensive, the policy’s cash value does not accumulate much money. The Grow-Up Plan’s cash value grows at a guaranteed rate over time so that, after 25 years, it should equal or be greater than the amount you’ve paid in premiums. A $25,000 policy would turn into a $50,000 policy, then, without any rise in premiums. However, the policy’s death benefit will double when the child turns 18.
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