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Gain Cash Value for Your Child with the Grow-Up® Plan

Children playing outside

As a parent or grandparent, your utmost concern is protecting your family. The Gerber Life Grow-Up® Plan, a children’s whole life insurance policy that grows as your child grows, not only provides valuable financial protection, but it can also build a small nest egg for the future.

How? Like adult whole life insurance, a benefit of Grow-Up® is that it has “cash value” that grows over time, just like your child.

What is Cash Value?

Each time that you make a monthly premium payment, Gerber Life sets aside a small amount of money. The cumulative amount — the “cash value” — represents how much the policy would be worth at a given point in time, were you to cash in the policy or take a loan* against the policy.

The amount of cash value that accumulates primarily depends on how long you have owned the policy, the face amount of the policy, whether your premium payments are up-to-date, and if there is any outstanding loan debt against the policy.

The longer that you own the policy and make all of the premium payments, the more cash value it accumulates.

How Can Cash Value Be Used?

The cash value of your Gerber Life Grow-Up® Plan can be used in several ways:

  • If you are unable to pay the monthly premium for a while, you may be able to have Gerber Life pay it by using available cash value.
  • If a need for ready cash arises, but you don’t want to lose your life insurance protection, you could borrow against your policy by taking a policy loan.*
  • If you decide to surrender your policy, you will receive the available cash value that has built up over time, less any outstanding debt against the policy.
  • When your child automatically becomes the policyowner at age 21, he or she will gain the valuable whole life insurance protection, as well as “cash value” for the future.

Learn more about the other benefits of the Grow-Up® Plan.

* Policy loan interest rate is 8%.

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