Gerber whole life plan- long

jms08

What do you think about gerber life insurance? I'd be paying around $35 a month for $50,000 coverage. and if DH does the same, the baby will obviously get 100,000 if anything happens to both of us. the rate never increases our whole life..

?Dh seems to think insurance (all types) are just a scam to get money and never really do anything. its hard for me to even argue about this with him, cause my dad died when i was young, and if he had life insurance, my mother's and my life would be alot easier. and his parents never got life insurance, so he says "i dont know anyone that has life insurance.. we dont need it. lets just put money into a savings account for our baby"

So my main questions are, what do you think of the gerber whole life plan compared to others, and if you have any suggestions as to how I can help DH understand its not a scam and that most people get life insurance when theyre expecting.

Redrose101307

i'm not 100% positive but i think you can borrow against it at some point in the future, so it's not like it's just sitting there.

janice74

I don't know about the Gerber Life Insurance, but we have State Farm. ?It was on of the first things we did when I got pregnant. ?There is no one in my family (or DH's) who would ever imagine going without life insurance and we all make good livings. ?It is a tough thing to think about your own death, but your DH needs to do the right thing.

mrsmel

i have a minor plan through work, but our big one is through my dh's professional association. it's pricey, but the payout is great if it ever came to that. the nice thing is that each year you don't, well, die, they give you a part of your premium back. very unscam-like.

 

TheNewMrsCfont

I signed up for additional life insurance through my work benefits.  My DH thought it was silly bc we are young and healthy, but anything can happen at any time.  He will have 60k of student loans from grad school after graduating, that god-forbid anything happens to him, I would still have to pay back. 

I pay about $10/month, but its through my work and I think its at a discount.  They also base your coverage on salary (like 3x your salary, etc).   

afg

I think life insurance is a must. You just never know what is going to happen and I'd prefer to leave my husband and baby with something to make their lives easier. the plan you mentioned sounds a bit on the expensive side. I'd check with your insurance provider to see what they offer. Mine is much less with State Farm and that rate does not increase either. It obviously depends on your health, BMI, etc.

majors31

i don't know the details about gerber, but in general whole life plans are not the way to go.

generally whole life is for people that are looking to supplement their retirement at some time in their life and receive annuity payments from them - this is the only time they are really an ok investment.  still not the greatest though.

term life insurance is much cheaper for more coverage and generally the rate is for a term - hence the name 10,15,20 years.  i pay much less than $35/month for A LOT more coverage. $50,000 won't go as far as you think it will, after funeral, hospital bills, etc.

it is a personal choice.

good luck

spectater

I don't know about Gerber, but you need life insurance.  Putting aside if you had to raise your child by yourself, what if BOTH of you were in an accident and died?  I don't know your family situation, but I have a lot of family that could take on our child, and I would never want to burden a family member with the responsibility of raising my child without leaving them a way to provide for him/her. 

jms08

majors31:

i don't know the details about gerber, but in general whole life plans are not the way to go.

generally whole life is for people that are looking to supplement their retirement at some time in their life and receive annuity payments from them - this is the only time they are really an ok investment.? still not the greatest though.

term life insurance is much cheaper for more coverage and generally the rate is for a term - hence the name 10,15,20 years.? i pay much less than $35/month for A LOT more coverage.?$50,000 won't go as far as you think it will, after funeral, hospital bills, etc.

it is a personal choice.

good luck

?

I noticed the Term life was a lot cheaper for a lot more coverage, but I'm scared in 20 years when it renews, the cost will sky rocket, and I wont be covered for the past 20 years I paid for it..?

FLVintageBride

jms08:

majors31:

i don't know the details about gerber, but in general whole life plans are not the way to go.

generally whole life is for people that are looking to supplement their retirement at some time in their life and receive annuity payments from them - this is the only time they are really an ok investment.  still not the greatest though.

term life insurance is much cheaper for more coverage and generally the rate is for a term - hence the name 10,15,20 years.  i pay much less than $35/month for A LOT more coverage. $50,000 won't go as far as you think it will, after funeral, hospital bills, etc.

it is a personal choice.

good luck

 

I noticed the Term life was a lot cheaper for a lot more coverage, but I'm scared in 20 years when it renews, the cost will sky rocket, and I wont be covered for the past 20 years I paid for it.. 

Most companys also offer 30 year term if you feel you need longer coverage.  Most parents (unless they are independently wealthy with no debt) should have some amount of term life insurance to provide for their children should they die.  MH and I will both be insured for enough to pay off our mortgage and provide income replacement for some period of time if we die.  The reason term life insurance is usually 20-30 years is b/c by then your children will likely be out of the house and, in theory, you will have built enough wealth to where your spouse no longer depends upon your income.

Whole life insurance, such as the Gerber Grow Up Plan, is usually a waste.  There are far better investment vehicles out there if you are looking to maximize your returns. 

Dunkin

Life insurance is for the people who are left behind.  In 20 years, what would you need to insure?  Your house would be close to paid off, your child grown, no childcare costs, and you should have a good size portfolio at that point as well.  Term life is generally looked at as the way to go - if you pass, your DH would need to cover childcare costs, mortgage costs, college, hospital costs, that adds up to a lot more than $50k.  A term life policy is a lot cheaper for a LOT more coverage, in case that something happens.  And for most people, after that 20 year time frame is up, you are self insured.  Talk to the ladies on the money boards as well to get pros and cons of what type of poilcy, but I agree with you, you DO need some type of coverage.  The best scenario is where you never have to use it.  But if you do, your loved ones are taken care of.

majors31

jms08:

majors31:

i don't know the details about gerber, but in general whole life plans are not the way to go.

generally whole life is for people that are looking to supplement their retirement at some time in their life and receive annuity payments from them - this is the only time they are really an ok investment.  still not the greatest though.

term life insurance is much cheaper for more coverage and generally the rate is for a term - hence the name 10,15,20 years.  i pay much less than $35/month for A LOT more coverage. $50,000 won't go as far as you think it will, after funeral, hospital bills, etc.

it is a personal choice.

good luck

 

I noticed the Term life was a lot cheaper for a lot more coverage, but I'm scared in 20 years when it renews, the cost will sky rocket, and I wont be covered for the past 20 years I paid for it.. 

there are really a couple schools of thought and you really have to do what is best for you. 

i pray that in 20 years, i will be in a much different place than i am right now.  that is what we strive and the track we are on financially, so in 10 - 15 years when my plans renew, i shouldn't need nearly as much coverage.

with the whole life, you can generally cash them in and/or borrow against them (although, i don't recommend borrowing).  if you are sure that the rates will never go up, you can also get that coverage and term for the difference.

like is said, it is really a personal choice, just giving you a different perspective and i understand what you are saying and especially with your father dying at a young age (i am sorry, by the way, that sucks beyond comprehension).  just don't let that scare you into doing something that may not be the right thing for you.

LilCMom

I think you should talk more to DH about it and then to an agent - if you think about it $100k is not very much if something happens to both of you...that would hardly pay off a house in most places, let alone any other debts you have.

LilCMom

TheNewMrsCfont:

I signed up for additional life insurance through my work benefits.  My DH thought it was silly bc we are young and healthy, but anything can happen at any time.  He will have 60k of student loans from grad school after graduating, that god-forbid anything happens to him, I would still have to pay back. 

I pay about $10/month, but its through my work and I think its at a discount.  They also base your coverage on salary (like 3x your salary, etc).   

I am commenting because my husband is an insurance agent so we talk about this stuff a lot - you point out it seems pointless when you are young but that is the best time to get it because you are healthier so you get better rates...as soon as you have even the smallest health issue it makes it harder to get life insurance if you don't have it.

armywife4ever

I can't help you out a whole lot here considering my husband and I have insurance though the Army. We pay about $13 a month for $400,000 worth of insurance for him and about $6 for $100,000 for me.  My daughter also has insurance through the Army which is free upon their birth.

 

I believe that life insurance is a must. You never know what is going to happen to you. God fobid a month after your babies born you could have an accident and die. You would want to have your husband and child financially taken care of.

benoitfan

Insurance is a must.  Lots of options though, so best to speak to an insurance agent/broker to make sure you get what's best for you.  I work in finance and we deal with insurance quite a bit.  Depending on your age and health, you can likely get WAY more (like 5-8x the coverage) with a term life policy at a slightly higher cost.  At least you can in Canada.  Also, you probably want to be the bene of a policy on your hubby and him to be the bene on your policy, that way should something happen to one of you, the other can use that money to take care of any debts and carry on with the family.  You should also consider having a will drawn up if you haven't already.