So, you’ve decided to buy life insurance for your child. Smart move! Here’s what you need to know to get started.
If you have a term life insurance policy of your own, you know it provides protection only for a specified period of time, known as a “term.” However, only adults can own term life policies.
Whole life insurance is designed to protect the policy holder for a lifetime, rather than just for a term. Also unlike term life policies, you can buy whole life insurance coverage specifically for your child. This is really important – it means that your child as an adult will already have a life insurance policy and won’t have to worry about being turned down because of future health or medical issues.
With the Gerber Life Grow Up Plan® whole life insurance for children, you can lock in the best possible rate now while your child is young and healthy, and that rate will never increase. Even when your child becomes an adult at age 21 and becomes the policy owner! That’s because rates are based on the age of your child when you apply for a policy.
In addition, you’ll have a life insurance policy that builds cash value over time, a feature that you won’t find with term life insurance.
It’s like an extra financial safety net. Every time you make a payment, Gerber Life puts a little aside, which increases your policy’s cash value. You could let the cash value grow as a nest egg for your child’s future. Or, your child as an adult could turn in the policy for the available cash value. Or, you could take a loan against the cash value, such as for a financial emergency or if you temporarily need extra money for paying a bill.
The sooner you buy a whole life insurance policy for your child, the more time that your cash value has to grow. That’s a great financial opportunity that you won’t ever get with a term life policy.
Seems like an obvious choice now, right?
First, you buy a policy and lock in an affordable premium rate that will last a lifetime for your child, of course as long as premiums are paid. The cash value grows over time, and you can borrow against the policy’s cash value to cover unexpected expenses while your child is growing up. During age 18, your child’s coverage doubles automatically, at no extra cost. For instance, a $10,000 policy becomes $20,000, and there’s no increase in the premium. The policy then transfers to your child at age 21.
So if you’re looking to give your child a lifetime of financial protection, a lifetime locked-in premium rate, a nest egg for the future, no worries about qualifying for life insurance as an adult, and greater peace of mind for the years ahead, then whole life insurance is your next smart move.