Baby Life Insurance as a Gift
Is Life Insurance a Good Gift for a Newborn Baby?
You may have heard about life insurance for babies and wondered if you should get a policy for your child or grandchild. Here’s the scoop: baby life insurance is more than just coverage in case of a tragedy. Products like the Gerber Life Grow-Up Plan are whole life insurance policies that can provide protection for a child’s entire life and build cash value over time, helping create a nest egg for their future. Though calling it “baby life insurance” may be misleading; the Grow-Up Plan can be purchased for babies 14 days old up to 14 years old, and they can keep the coverage as adults.
Let’s look at some additional features that the Grow-Up Plan provides:
- The premium rate is locked in for life and never increases.
- The policy coverage doubles during the year your child is 18 at no extra cost. So, a $25,000 policy becomes a $50,000 policy and the rate stays the same.
- When your child reaches age 21, they become the policyholder and have the option to:
- Cash out the policy to receive the accumulated cash value
- Continue the policy at the same childhood rate
In addition to cashing out and continuing the policy, your child can buy additional coverage as an adult if they own a Grow-Up Plan policy. This is known as guaranteed insurability. Regardless of their health or occupation, they’re guaranteed the right to add to their coverage at standard adult rates. This means they will not be required to take a medical exam to be approved for additional insurance.
Baby Insurance: Another “New Baby” Expense?
We know that having a baby comes with a lot of expenses. You need all that baby gear like car seat, stroller, clothing, diapers, crib and a highchair. Then, there are the doctor’s bills and insurance co-pays. You’ll also want to consider adjusting your own life insurance policy and possibly increasing your coverage to accommodate your new family member. It’s understandable if you’re not thrilled about spending more money. Since the Gerber Life Grow-Up® Plan can be purchased by a baby’s parents or grandparents, it may be something to suggest to Nana when she asks what to get for the baby. Many grandmas and grandpas opt to purchase a Grow Up Plan rather than buy another toy or clothing. A baby insurance policy will have a lot more value in the future than another layette set or onesies they’ll grow out of in a matter of weeks.
To find out how much a Gerber Life Grow-Up Plan costs for your little one, call us toll-free at 1‑800-503-4480. Our life insurance specialists are here to help.
