gerber life insurance offers many types of life insurance for people in all stages of life. the grow‑up® plan is a child’s whole life insurance policy that starts protecting your child early and continues through adulthood, for financial protection that can last a lifetime.
Reading: What is gerber whole life insurance
here’s a look at how the gerber life grow-up® plan works and why buying it early can be so important and make a difference in the world for your child.
what is the growth plan for gerber life®?
The grow-up® plan is a child life insurance policy that provides lifetime coverage for the insured child as long as premiums are paid.
By definition, permanent life insurance, also called permanent or traditional life insurance, is designed to last the lifetime of the insured person. Term life insurance, on the other hand, lasts for a specific period of time, such as 10 or 30 years, depending on the insurance provider.
with the gerber life grow-up® plan, your child could have life insurance coverage beginning at 14 days of age and throughout adulthood, as long as premium payments are maintained. besides, her rate will never go up.
This makes the Gerber Life Grow-Up® Plan a great and meaningful gift to purchase for a child’s parents, grandparents, or permanent legal guardians.
how the grow-up® plan works
To maintain the policy, a monthly premium is paid. the younger your child is when you buy the policy, the lower the monthly premium will be. The child-size premium rate when the policy started will never increase as long as premiums are paid, even after your child automatically becomes the policy owner at age 21.
among the valuable benefits of the grow-up® plan:
- the fixed premium rate never increases during the term of the policy
- coverage is automatically doubled during the 18 years, at no additional cost
- guaranteed right for your child to buy more coverage as an adult (at the then standard adult rate), regardless of your child’s future health or occupation
- builds cash value, which can be borrowed if needed*
*the policy loan interest rate is 8%
Now let’s look at each of these four important benefits:
1. locked premium rate
Your child would pay the same monthly premium rate for life, even after becoming a policyholder at age 21. all your child has to do is keep paying the premiums.
This is a great benefit, as age affects life insurance premium rates. for example, buying a life insurance policy at age 50 compared to age 30 could cost three times as much.1 With the protection of the grow-up® plan at a fixed premium, your child won’t have to worry about the rising costs.
The earlier you apply for the grow‑up® plan, the lower your premium rate.
2. coverage automatically doubles over age 18
another benefit offered by the grow-up® plan is the doubling of the amount of coverage.
On the policy anniversary date during the year your child turns 18, coverage will automatically double at no additional cost. this means, for example, that if you originally purchased a $25,000 grow-up® policy, it would double into a $50,000 policy, and so on.
says a happy gerber life customer: “I love the fact that my daughter will continue to have this plan when she graduates college, and the amount doubles for her.”
Your child will get twice the coverage for the same monthly payment.
3. guaranteed right for your child to buy more coverage as an adult
according to the world health organization, chronic diseases and conditions are expected to increase by 57% by the year 2020.2 other growing health problems include diabetes, obesity, and global pandemics.
You can’t predict your child’s health, but you can rest easy knowing that with grow-up®, your child won’t be at risk of being denied life insurance later on.
grow-up® guarantees your child’s right to purchase more adult life insurance coverage, up to ten times the original policy amount, at our standard adult premium rates for their then-age for a standard policy. No questions asked, no medical exam, and regardless of whether your child’s job is full-time or high-risk.
Your child will have several occasions to purchase additional coverage, such as when you get married or have a child, times when life insurance needs to be increased to financially protect your loved ones.
4. builds cash value
Whole life insurance policies include the ability to build “cash value” over time, which represents how much the policy would be worth at any given time if you cashed in or borrowed against the policy.
This is how cash value works:
Each time you make a premium payment for a grow-up® plan, gerber life sets aside a small portion, which becomes the cash value of the policy. the longer you have the policy, the higher the cash value.
Should the need arise, you as the policyholder, or later your adult child, could borrow against the policy’s cash value* provided all premiums are paid, or return the policy for the cash value available. in some cases, you may be able to apply the cash value toward premium payments.
said a gerber life client from maryland, “i’m thankful that when i need to borrow money for emergencies, he’s there.”
However, it’s important to remember that any loan debt against the policy reduces the amount you would receive if you surrender the policy, or the amount of payment to your beneficiaries.
* the policy loan interest rate is 8%.
charging your gerber life grow-up® plan
You can borrow against the cash value of your policy to pay your premium or use it for an immediate need without losing your policy (the policy loan interest rate is 8%). or if you have to charge, no problem. You would receive the accumulated cash value that has built up over time, less any outstanding debt against the policy. just call our customer service number at 800-704-2180.
Is the grow-up® plan worth it?
it is natural and advisable to compare your needs with the benefits of a gerber life grow-up® plan. “Is Gerber Life Insurance a Good Idea?” is a valid question, as protecting your child’s future should not be taken lightly.
Whether or not you have life insurance on yourself, it’s worth considering a life insurance policy on your child. Yes, you can add a rider to your existing life insurance policy to cover your child, but doing so could leave your child uninsured when your policy ends.
In the end, you may find that it makes sense to fully invest in your child by gifting them an individual whole life policy.
Is life insurance for children a good investment?
The sooner we start thinking about our children’s future, the better off our children will be.
By enabling financial protection, the grow-up® plan makes it easy for your child to have life insurance coverage as an adult, along with the guaranteed right to purchase additional coverage as your child’s adult life evolves.
More coverage means your child can have even more financial protection, along with the flexibility and benefit of cash value.
gerber life grow-up® insurance reviews
Below are testimonials from some of the many Gerber Life customers who have given their children a financial advantage with the Grow-Up® plan. With a rating of [grow_up_rating] to [grow_up_max_rating] stars, parents and grandparents around the world say they love the grow-up® plan.
“I recommend getting the policy as soon as your child is born and has an ssn.” This mother understands the importance of getting protection as soon as possible. Remember, the sooner you get the grow-up® plan, the more cash value the policy will generate.
“It has been the easiest and best way to cover my children.” Applying for the grow-up® plan is really easy. it takes only a few minutes without medical examination. once you have the policy, all you have to do is make affordable monthly payments to keep your child protected.
“I love the savings for my son and at the same time I can use the cash value when I need it. I recommend that friends invest in their grandchildren.” customers agree that the grow-up® plan is a good investment and helps them if the unexpected happens.
“good feeling of peace of mind knowing this coverage is here if something unforeseen happens.” With the grow-up® plan, you can help provide your child with some coverage against the unforeseen, which which can give you peace of mind. We’ve been bringing comfort to families for over 50 years and we’re ready to protect yours too.
give your child a grow-up® plan
now that you know how the gerber life grow-up® plan works, you can decide if it is the best option. Start with your free quote, which will give you an idea of what the policy will cost. When you’re ready to apply, select the amount of coverage that’s right for you (remember, it doubles later!), answer a few more questions, and submit your application. that’s it!
Once you are approved, we will send you your policy, which will become effective as soon as we receive your first premium payment. Call us at 1-800-704-3331 if you have any questions about the grow-up® plan.
1glover, lacie, “Average Life Insurance Rates,” Nerdwallet, May 17, 2017, https://www.nerdwallet.com/blog/insurance/average-life-insurance-rates/
2 “The Global Burden of Chronic Disease”, Nutrition, World Health Organization, https://www.who.int/nutrition/topics/2_background/en/