speaking of insurance

kelly&paul

does anyone have the Grow Up Plan from Gerber for their kids? I was just reading through one I got in the mail today.

cbidt*sgirl

generally you buy insurance to replace lost income and to protect those who are dependent on you for your income (or services - in the case of a sahp).  it doesn't make that much sense to insure your kids.  it wouldn't hurt to provide a cushion for them if you have extra cash, but it is generally more useful to create a savings for them or put the insurance money toward yourself.

kelly&paul

after 25 years,the cash value will be equal to or greater than all the premiums paid over the years. your dc will then have the option to turn in the policy and get back all premiums paid.

 

eta. that is what is says in the letter, so it's not really a "life insurance" , the amount you choose doubles at age 18 and they are guaranteed future insurability regardless of health or occupation and can keep the plan for the same rate you pay now.

cbidt*sgirl

unless your child has a health condition now that would make then unisurable later i think you are better off putting the money into savings or a 529 account.  they'll get that $$$ later too and it will have been earning interest (probably more than gerber rates if you choose a good 529).

 

in the case of a child with a medical problem it is a good idea to insure their insurability now.  I have a girlfriend who did that for her little girl born with a heart defect.  Luckily, most kids are pretty insurable even in their 20's and 30's when they should be getting insurance.

elm1032004

It's whole life insurance vs. term life insurance, which means you get back at least what you have paid in.  If it's not a lot and they have the option to keep the insurance coverage later in life for the same rate than it may be worth it. 

cbidt*sgirl

elm1032004:

It's whole life insurance vs. term life insurance, which means you get back at least what you have paid in.  If it's not a lot and they have the option to keep the insurance coverage later in life for the same rate than it may be worth it. 

but if it is whole life doesn't that mean you only "get back" $$ when you die?

breezee_bean

both of our children are insured for burial expenses, my and MH's time off work. 

jettagurl

I have to disagree with cbidt*sgirl above that is "doesn't make much sense" to insure a child.  My parents bought a $25K policy on me (started when I was about 2), that is now worth about $87K and I've switched it over to  pay   itself...so I'm paying nothing on a policy that would pay the remainder of my mortgage should something happen.  

Also, you  child may become uninsurable at an early age due to major medical issue....our friends have a child that had bone cancer and is now uninsurable due to that and she's 5.  I think buying whole life policy on a very young child is one of the  best things you can do for them.  We pay $12 a month per child for $100K policies.......and they'll never have to pass a medical exam, ever,  to keep it.  

Maybe if there is a high interest savings available and you can put away couple hundred a month into that savings (which isn't in our budget while I'm a SAHM)  then that would be better.  But I'd HIGHLY consider the whole life plan. 

 

cbidt*sgirl

jettagurl:

I have to disagree with cbidt*sgirl above that is "doesn't make much sense" to insure a child.  My parents bought a $25K policy on me (started when I was about 2), that is now worth about $87K and I've switched it over to  pay   itself...so I'm paying nothing on a policy that would pay the remainder of my mortgage should something happen.  

Also, you  child may become uninsurable at an early age due to major medical issue....our friends have a child that had bone cancer and is now uninsurable due to that and she's 5.  I think buying whole life policy on a very young child is one of the  best things you can do for them.  We pay $12 a month per child for $100K policies.......and they'll never have to pass a medical exam, ever,  to keep it.  

Maybe if there is a high interest savings available and you can put away couple hundred a month into that savings (which isn't in our budget while I'm a SAHM)  then that would be better.  But I'd HIGHLY consider the whole life plan. 

 

 

okay - perhaps i was only thinking from my family's perspective where it wouldn't make sense for us. If my kids stay in this area, 100K won't get them much (certainly not a house) and I can (and do) put $ into a 529 account each month for both of my children.  They can access that money at 18 for college or withdraw for another expense should they choose not to go to college.