Gerber Life College Plan
The sooner you start, the more you can save
Save for college with the benefit of adult life insurance
Why you should start saving right away
College may seem far off, but the simple fact is that the sooner you start saving for college, the more time that your money has to grow and the less you have to save each month to reach a sizeable amount.
It’s easy to get started with the Gerber Life College Plan
|1||Choose a fixed monthly payment that fits your budget – we promise that it will never go up!|
|2||Decide when you want your money, between 10 and 20 years|
|3||Receive a guaranteed payment of $10,000 to $150,000 when your policy reaches maturity|
It's that easy! Just complete the application (which asks a few health questions, because our plan provides adult life insurance), and sign a couple of forms. You can apply online or over the phone at 866-503-4487. Our trained College Plan specialists are available to answer questions and help you decide on a policy that suits your needs.
How the Gerber Life College Plan works
The Gerber Life College Plan is an endowment life insurance policy that provides guaranteed growth and adult life insurance protection. You decide how much you can afford to set aside each month, and then you receive a guaranteed benefit payment of $10,000 to $150,000 when it's time for your child to enter college in 10 to 20 years.
Endowments such as the Gerber Life College Plan have been around for many years and are popular because they offer a secure, stable way to save money for the future. With an endowment, you don't have to worry about economic ups and downs – you know how much money you'll have at maturity.Show More ▼ See chart: start small and save big
|Save as little as:||Your college fund grows to:|
|About $1 a day||$10,0001|
|About $3 a day||$25,0001|
|About $6 a day||$30,0001|
1For a plan with an 18 year duration for a healthy 25 year old female.
This policy has exclusions, limitations, and terms under which the policy may be continued in force or discontinued. We will provide costs and complete details of coverage. As with any financial matter, consult your financial consultant or tax advisor for advice concerning your particular situation.
A risk-free way to pay for college and much more
Unlike stocks and mutual funds, the Gerber Life College Plan does not go up and down in value due to economic conditions. It's economy proof! And – unlike 529 plans or educational IRAs, which require that the money be used for higher education only – money from the Gerber Life College Plan may be used for any purpose upon maturity.
Why the Gerber Life College Plan can be better than a bank account
A regular bank account allows you to take out money whenever you need it, if you use your savings for little things here and there, and there might not be much left when college rolls around. The Gerber Life College Plan, on the other hand, helps you to commit to saving for college, and gives you the extra security of adult life insurance protection.
If you need cash for an emergency, the Gerber Life College Plan allows you to withdraw some of your money. You may take a loan from the cash value of your policy as long as you continue to pay your premiums. However, policy loans are charged an interest rate of 8% and, if not repaid prior to maturity, your final payout will be reduced by the amount of your loan and any loan interest still outstanding. Not taking a loan will assure that money is saved for college.
Stable, fixed rates of return for safety and guaranteed growth
The Gerber Life College Plan focuses on safety and security, so that you will be paid as promised. Your premium will never increase, and you'll never lose a penny to investment risk or interest rate declines.Show More ▼
With the Gerber Life College Plan, you won't have to worry about interest rates falling or stock market fluctuations. Your money is guaranteed never to lose value due to economic conditions. Plus, you have the added benefit of adult life insurance protection – your child is guaranteed to receive the entire benefit amount even if something happens to you. If you are looking for security, the Gerber Life College Plan can help provide a solid foundation for your college savings strategy.
With the Gerber Life College Plan, you get back every penny you put in.
Your benefit amount is guaranteed. This means that as long as you pay all of your premiums in full, you are guaranteed to receive the full benefit amount of the policy at maturity. (If you take out a loan against your policy, any outstanding loan amount and interest will be subtracted.) Gerber Life assumes all of the investment and interest rate risk.
|No Stock Market Risk|
|Life Insurance Benefit|
|Use of Money not Limited
to Just College Expenses
*If invested in stock
Compare the Gerber Life College Plan to other ways to save for collegeClick to see a full chart
Gerber is a name you know and trust
For almost 50 years, Gerber Life Insurance Company has been providing reliable life insurance to millions of families, helping people like you to provide better opportunities and a more financially secure future for their children. We are a financially separate affiliate of the Gerber Products Company, a name you've probably known since you were a baby.
In June 2013, for the 14th consecutive year, Gerber Life received an "A" rating from A.M. Best, an impartial reporting firm that rates insurance companies on financial stability, management skill and integrity. This rating is the 3rd highest awarded out of thirteen possible categories.
A word about taxes
During the first few years, it's not likely that you will owe any income taxes on your policy. Later, as the cash value in your Gerber Life College Plan grows, it will generate taxable income in the same way that a bank savings account or mutual fund would.Show More ▼
Because the College Plan grows in value, the IRS considers it an investment and taxes it like other investments, even though the policy is a life insurance policy.
In most cases, the taxes that may be due are minimal. To help you plan, we will send you a tax form ("1099-R") each year that your policy generates taxable income. The income shown on your 1099-R should be reported on your tax return.
What to expect after your application is approved
After we approve your application, we'll send you a notice containing important income tax information. The notice will provide a more detailed explanation of your policy, including your expected taxable income and cash value and other benefits for each policy year. You will need to sign this tax form, return it to us, and choose a payment option to activate your policy.
Your Tax Options
You have two choices for tax withholding requirements. You can either:
|1||Have Gerber Life withhold 10% of the taxable income on your behalf, or|
|2||Tell Gerber Life to NOT withhold 10% of the taxable income and instead pay the tax as you normally would. (We recommend Option #2 so that the amount of your final payout is not reduced, but you should consult your tax advisor for advice.)|
If your needs change, you can change your withholding choice by sending us a written request.
Free Guide for Parents
"Jump Start Your Child's Future: 5 Easy Steps for Raising Smart Kids."
The Gerber Life College Plan
Mon-Fri 8am - 9pm, Sat 9am - 5pm ET866-503-4487