The Gerber Grow-Up Plan is one of many children’s life insurance products available. With these plans, parents receive peace of mind. Your child receives guaranteed coverage for life, and the plan accumulates cash value.
Gerber Products, the popular baby food brand, first launched its life insurance subsidiary as the Gerber Life Insurance Company in 1967.
The company maintains a high rating from financial ranking companies. AM Best awarded Gerber Life an “A” (Excellent) rating in January 2019. However, besides the company history and financial stability, you may want to know more about the Grow-Up Plan.
Here is a detailed look at the Gerber Life Grow-Up Plan, including its benefits and coverage options.
The Gerber Grow-Up Plan
- #1 Children’s Life Insurance Coverage
- Permanent Protection
- Up to $50,0000 of Coverage
- Guaranteed Cash Value Growth
- Coverage Automatically Doubles at Age 18
Overview of the Grow-Up Plan
The Gerber Grow-Up Plan is a type of whole life insurance intended for children. It offers financial protection and a lifetime of guaranteed life insurance coverage.
As with other whole life insurance policies, the Grow-Up Plan includes the accumulation of cash value. This is separate from the coverage amount and is accumulated throughout the life of the policy.
While whole life insurance policies tend to have higher premiums upfront, but the premiums remain locked in for life. This tends to provide greater long-term savings compared to term life insurance.
Here is a quick overview of the main features of the Grow-Up Plan:
- Purchase options for children 14 days to 14 years old
- $5000 to $50,000 coverage
- Guaranteed coverage for life
- Accumulated cash value
- Option to keep the policy as an adult
- Coverage automatically doubles at age 18 with no increase in premium
Parents, grandparents, or permanent legal guardians may apply for the policy. The person applying for the Grow-Up Plan remains the policy owner until the child’s 21st birthday.
These insurance plans do not require a medical examination. Gerber bases the premiums on the age of the child when applying along with the total amount of coverage that you choose. This coverage does not charge extra based on gender as they use unisex rates.
It is important to note that this coverage is not guaranteed approval. However, Gerber has made a solid effort to provide life insurance coverage to children with special needs and many medical conditions such as Down Syndrome, Autism, and Cerebral Palsy, to name a few.
When purchasing the plan, you may choose coverage between $5000 up to a maximum of $50,000. After your child turns 21, he or she may keep the policy and enjoy lifelong guaranteed insurance as an adult. No matter your child’s future occupation or health, the insurance policy remains in place for life.
GERBER GROW-UP PLAN WHOLE LIFE INSURANCE
|ISSUE AGES:||14 days up to 14 years old|
|DEATH BENEFIT AMOUNTS:||$10,000-$50,000|
|RIDERS:||Guaranteed Insurability (Included)|
Payment Protection Option (Optional)
|COVERAGE DURATION:||Guaranteed to age 100|
*No Medical Exam Required
How Does the Gerber Grow-Up Plan Work?
Many people think of insurance as financial protection for debilitating accidents or death. However, these insurance plans provide security for any unforeseen expenses. They can also offer a way to save for your child’s future.
When you purchase the Gerber Grow-Up Plan, you make payments to cover the cost of the insurance. This allows you to continue receiving protection. At the same time, Gerber sets aside a small portion of the premium that you pay each month.
The money that Gerber sets aside becomes the cash value of the insurance policy, as with other cash value life insurance plans.
The Gerber life insurance plan allows you to build cash value throughout the life of the plan. If you struggle to make the premium payments, Gerber may use some of the cash value to cover the costs.
You can also borrow against the cash value of the policy at any time. The amount that you borrow reduces the policy’s coverage amount until you pay back the loan. Keep in mind that the loans are subject to an 8% annual interest rate.
If you cancel the policy or your child turns in the policy after turning 21, you receive the total cash value minus any outstanding debt.
Only you or your child at age 21 have the right to cancel the plan. If you continue paying the premiums, Gerber cannot cancel the policy for any reason.
How Do You Pay the Premiums?
As with most insurance companies, Gerber Life offers multiple payment options. You can pay the monthly premiums by mail, phone, or online. Gerber also offers the payments options of Annually, Bi-Annually and Quarterly.
Gerber also offers automatic payments from a savings or checking account. If you select this payment method, Gerber reduces the premiums by 10%.
Benefits of the Gerber Grow-Up Plan
The Grow-Up Plan is not the only whole life insurance policy available for children. However, Gerber has a long history and millions of satisfied customers. Other benefits include:
- Cash value accumulated throughout the life of the plan
- Up to $50,000 of life insurance coverage
- Guaranteed insurance coverage for life
- Premiums that remain fixed and never increase
- Coverage that automatically doubles at 18
- Option to buy more coverage as an adult
As mentioned, the plan offers coverage up to $50,000 and accumulates cash value if you continue making the premium payments. The plan also offers guaranteed coverage for life.
Locked-in Premium Rate for Life
With the Grow-Up Plan, you pay the same premium throughout the life of the policy. It never increases.
As the age of the child at the time of the application impacts the premiums that you pay, purchasing the policy at a younger age provides greater savings.
Many people wait until they have families of their own before purchasing a life insurance policy. Age, occupation, and health conditions may result in higher premiums. By getting the Grow-Up Plan now, your child can enjoy lower premiums for the rest of his or her life.
Coverage Automatically Doubles
When your child reaches the age of 18, coverage automatically doubles without increasing the premiums. For example, if you purchase a $20,000 policy, it automatically becomes a $40,000 policy.
Option to Buy More Coverage
When your child becomes an adult, he or she may keep the policy. While the existing coverage remains guaranteed for life, your child can purchase additional coverage without having to provide any evidence of insurability.
The option to purchase additional coverage is available at four specific times. Either at age 21, 25, 30, 35 and age 40. It can also be used if he or she gets married. The maximum amount of extra life insurance coverage that can be purchased is up to $400,000.
Purchasing extra life insurance coverage will change the original premium from when the life insurance was first purchased.
Payment Protection Option (PPO)
Available at an additional cost is the Payment Protection Option Rider (PPO). This rider covers all premium payments if the policy owner becomes totally disabled or passes away prior to the child turning age 21.
Potential Drawbacks of the Gerber Life Grow-Up Plan
Gerber Life insurance products do not come with many disadvantages. However, as with most whole life insurance products, the Grow-Up plan tends to have higher premiums compared to initial term life plans with limited coverage.
The plan also has an age limit. You can only apply for the Grow-Up Plan when your child is between the ages of 14 days and 14 years.
These issues may not impact everyone. With the premiums, you still enjoy more significant savings over the life of the plan as term life premiums often rise and only provide coverage for a specific period.
The longer you keep the Grow-Up Plan, the higher the savings and the cash value accumulation.
Additional Coverage Options for Children from Gerber
The Gerber Grow-Up insurance plan provides coverage for children between 14 days and 14 years of age. If your child is 15 to 17 years old, you should look at the Gerber Young Adults Plan.
As with the Grow-Up Plan, the Gerber Young Adults Plan is a whole life insurance policy. It also doubles the coverage when your child turns 18 and offers guaranteed coverage for life.
The Young Adults Plan shares features with the Grow-Up Plan, including coverage up to $50,000. However, the premiums tend to be a little higher due to the age of your child compared to the younger ages required for the Grow-Up Plan.
The Gerber Life College Plan is another option available for parents who want to save for their children’s college education. This works just like a savings account that offers guaranteed cash growth. With this program, you select a fixed monthly payment along with a duration of time in which you will make payments.
Over time, the payments will grow along with interest, and the policy will reach maturity, helping you save for college. Choose between $10,000 and $150,000 coverage.
With this plan, you receive secure growth. Instead of investing a small portion of the premiums that you pay, the College Plan provides consistent growth throughout the life of the policy.
Gerber Grow-Up Plan Sample Rates
Below are monthly sample rates for healthy children.
SAMPLE MONTHLY PREMIUM RATES
|Under 1 Year||$7.26||$10.88||$14.51||$17.44||$24.42||$34.89|
How Do You Qualify for the Gerber Life Grow-Up Plan?
Gerber Life insurance products are available in all 50 states, DC, Puerto Rico, and Canada. Gerber offers a simple application process.
To apply for the plan, you will need to provide some basic information about you and your child or grandchild. You will also need to select the coverage amount.
Applications are available in paper form as well as electronically. The electronic option will provide an all-around, convenient and faster turnaround when applying.
The underwriting team then reviews the application. If the underwriters do not require any additional information, the process should not take very long. The average approval period is six business days.
Conclusion: Who Should Consider Getting the Grow-Up Plan?
The Gerber Life Grow-Up Plan is the perfect option for any parent or guardian who wants to offer his or her child a more secure future.
The cash value of the policy continues to grow, providing a small nest egg for future expenses. Besides the accumulation of cash value, the plan ensures that your child has coverage as an adult.
You cannot predict future health conditions or accidents. With this policy, your child will not lose coverage due to poor health later. Locking in a low premium now also ensures that your child has an affordable insurance policy for life.
The Grow-Up Plan from Gerber also provides several benefits that help it stand out from other whole life insurance plans. When your child turns 18, the coverage doubles at no additional cost.
Your child never needs to worry about losing coverage. If you continue paying the premiums, Gerber Life will not cancel the policy for any reason. You can also save 10% on the premiums when you enroll in automatic payments.
With over 50 years of experience, Gerber Life remains a top choice. To give your child more security, consider applying for the Gerber Grow-Up Plan while your child is still young. The younger your child, the lower the premiums.
FAQs About Gerber Grow-Up Life Insurance Plan
Gerber Grow-Up Plan policyholders can contact customer service at 1-800-704-2180 Monday through Friday 8 a.m. to 7 p.m. (ET) Saturday 9 a.m. to 5 p.m. (ET)
Cashing out a Gerber Grow-Up Plan will require a signed surrender form provided by Gerber Life customer service.
Gerber Grow-Up Plan is a whole life insurance policy with guaranteed cash value accumulation. Parents of the child will be the owner until the child reached the age of 21. At that time, ownership will be transferred over to the adult child.
Yes. Gerber allows for a child’s parent, grandparent or legal guardians to purchase coverage on the child.
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