gerber grow up plan? Life insurance for kids?

I'd look more into the uninsurable bit. More and more companies (including the one I work at) have been playing around with new modeling technology which has change a lot in terms of what is considered a risk and what is not. Now I don't think she'll be able to get the lowest rate, but I would find it hard to believe that she is completely uninsurable in the modern marketplace. Things like paternal and maternal heart conditions used to make their children rate in high risk but more and more companies are realizing there is a mix between genetics and personal lifestyle, with genetics taking more of back seat to personal lifestyle.



Don't confuse the need for proper and adequate health insurance for the need for life insurance.

My dd had open heart sugery at 4months old for Tetrology of Fallot. We tried to get her private health insurance and we could not do it. Her risk is too high.

I have not checked lately. She is 18 already and I figure she will just have to get it thru her work once she graduates.
 
My dd had open heart sugery at 4months old for Tetrology of Fallot. We tried to get her private health insurance and we could not do it. Her risk is too high.

I have not checked lately. She is 18 already and I figure she will just have to get it thru her work once she graduates.

It really depends on if they consider her a continued risk.

When I was diagnosed with thyroid cancer at age 31, I did not have any life insurance. Of course, getting cancer makes you totally look at your decisions and, only then, did I think about life insurance. About 3 years after diagnosis, I started applying. Several places were willing to give it to me; however, they wanted to attach a $150 per month rider onto it. I couldn't afford it. My physician told me to wait a few years. So, at year 7 after my diagnosis, I got life insurance (at age 38). I have a $250,000 policy that costs me $31.00 per month (plus what I get from work which has no stipulations on it for health issues).

I think the farther away your daughter gets from her "condition" without having continuing problems will make her insurable at some point.
 
It really depends on if they consider her a continued risk.

When I was diagnosed with thyroid cancer at age 31, I did not have any life insurance. Of course, getting cancer makes you totally look at your decisions and, only then, did I think about life insurance. About 3 years after diagnosis, I started applying. Several places were willing to give it to me; however, they wanted to attach a $150 per month rider onto it. I couldn't afford it. My physician told me to wait a few years. So, at year 7 after my diagnosis, I got life insurance (at age 38). I have a $250,000 policy that costs me $31.00 per month (plus what I get from work which has no stipulations on it for health issues).

I think the farther away your daughter gets from her "condition" without having continuing problems will make her insurable at some point.

Yes, but her "condition" will deteriorate. It is not like she is "fixed" if that makes sense.

At some point she may need a valve job.
 

My goodness, this topic takes me back! My parents took out small life insurance policies on each of their children. Now, I am talking about the early 1950s to early 1960s, so the insurance amounts were very modest by current standards. The policies were to cover funeral costs in the event of the child dying. The policies matured when the child reached 18. Each child was given the money from his/her policy at that time. I remember thinking how much money that was! More than I had ever seen before. I spent most of my insurance money on a really nice winter coat that kept me warm all through university, and into my early working career.
 
Yep, makes perfect sense.

Which is WHY you buy life insurance on kids--you just never know. MM's DD MIGHT be able to get insurance at work and MAYBE she can buy enough to pay for a funeral but that might be it. Anything over $50,000 from an employer comes to the beneficiary taxed unlike a private policy that comes untaxed. You can't count on getting life insurance from an employer, many do offer it but many don't. Why take the chance?

mjkacmom--personally if my financial planner advised me not to get life insurance on my kids I would fire him on the spot. It is BAD advice, period. MM's situation is exactly WHY.
 
:)My brother and I each had a policy from infancy, Globe Life. I am now 41 and he will be 40 in May. I think we both cashed them in after college and got a little bit of money back. My grandfather worked for Liberty National and I remember the days when the guy used to come by the house and visit to collect the money from Mom and Dad. I would buy it if I had kids.
 
I got one on my DD when she was little. When she turned 21, they doubled the amount to $20K for the same premium. We also were given the option to add more coverage on her separately. So we have an additional $20K on her for $8.32 a month.

With the grow-up plan the premium is so little that it just makes sense to get it. If something were to happen to her right now, this insurance would cover the expenses for a funeral. Plus since she is now pregnant, it will give her DD something as well.
 
Others have already given the answer:

You purchase a life insurance policy to replace income. The vast majority of children do not bring home an income.

For example, a father who is the sole support of his family MUST have life insurance; if his income was lost, his family would be devestated financially. The mother in this traditional-family model should also be insured because if she should die, the father would be forced to pay (quite a bit) for services she is now providing: child care, transporatation, etc. But consider the children in this situation . . . if one of them were to die, the family would not be worse off financially. They would not need to replace income.

It is wise to have a SMALL burial policy. Through my work, I can buy a $10,000 per child policy for $1 per family per year.

That's a throw-away amount of money. Before you start spending real money, calculate up what you'd have if you invested this small amount each month. What's more likely? That your child would appreciate that money when he's just getting out on his own, or him dying young? Also, they promise that your child will be able to continue this insurance as an adult . . . but do they say at what price? It won't be that low price you're paying now. If the child turns out to have a condition that makes him difficult to insure, they can simply price the policy out of a middle-class person's reach.

Bringing up a similar subject, you're much more likely to become disabled than to die while your children are small. In addition to life insurance, adults should have disability insurance. Going back to the above traditional family example, the nightmare situation isn't the father's untimely death -- the financial nightmare situation is that the father becomes disabled, runs up huge medical bills, needs extensive medical care, AND is not bringing home a paycheck OR collecting on his life insurance. Mom, now caring for both children and an ill spouse, may be unable to go get a job. Without disability insurance, this family is screwed.

All this sounds cold-hearted when you discuss it, but it's important.

While replacing income is the primary reason you buy life insurance, there are many, many other GOOD uses for it as well-including planning for estate taxes, leaving money to children and charities--and since the government didn't keep the higher estate tax limits this will now effect pretty much everyone that owns a house and has a 401K. You can also use life insurance to get more money from a pension. I agree that disability insurance is more important to most people and what you have at work isn't enough because it comes to you taxed so reduce your 60% by whatever your tax bracket is and that is what you get.
 
Hi, I have the gerber grow up plan for my two kids and I'm just wondering how many others have it? I read various articles on whether or not life insurance is worth it for children....what are all of your opinions? Am I wasting my money?

I have a rider on our regular life insurance policy for $10,000 per child. It costs very little, I think less than $10.00 per year.
 
I pay about $15 per month for both kids, the policy is 10,000 per kid. I guess if I decide to keep them insured I should shop around because a lot of you have way lower priemums. On one hand I think...its only $15 per month, but on the other hand....that adds up quick! Thanks for everyones advice!:)
 
Keep in mind that funerals are going to run more then $10,000. We did a pretty bare bones funeral for my mom, had a wake and a church service with a rented coffin then had her cremated, scattered her ashes, didn't bury her and that was $13,000. To get a buial site, not have her cremated and a headstone would have added about $7000.
 










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