There are three main differences between the Gerber Life College Plan and a 529 plan.
The rate of return varies depending upon your specific policy, its duration, and your billing frequency. For further details about your specific policy's rate of return, please call us at 866-503-4487.
Unlike a standard bank savings account, the Gerber Life College Plan can guarantee how much money you'll have after 10 to 20 years (as long as premiums are paid) and can give you the added benefit of adult life insurance protection. So, should something happen to you — the full amount of your policy is paid as a death benefit to whomever you select as beneficiary.
The amount you'd get back depends on when you stop paying and surrender your policy. If you are past your policy's midway point (for a 10-year policy, the midpoint is about five years), you would get back all of the money you paid in.
The Gerber Life College Plan will generate some taxable income, Gerber Life Insurance will send you a statement (Form 1099) to file with your taxes.