Life Insurance for children?

[Khristine]

I'm looking into saving up for Khristianna's college fund.

I've received this thing in the mail, and was wondering if i should apply for it.

www.gerberlife.com

it's called the grow up plan

it's basically life insurance for Tianna, till she's 21 it doubles and she can cash it out or something of that nature.

or should i just open an account and just put money in there every month lol (i am so tempted i might spend it LOL)

anyone have this or anything like this for their kids? should i apply?

[Janet]

I've rec'd those in the mail many times and have thought the same thing. We ended up just putting it in savings and then when there was enough transfering it to CD's. The thing is now....we have to be careful, our savings is drawing more then the CD's now...so we just leave it there until the rates get better. Plus, whenever we might have a little extra...we put it in his savings and I don't think you can do that with the Gerber Plan. Bottom line is you have to check it out really good, (we never did check it out completely) and do what is best and easiest for you to save.

I do recommend if you think you may have trouble leaving it alone...it may be a good idea. That is one reason we switched it to CD's...we couldn't touch it in case of emergency without a big penalty that we weren't ready to pay.

[DianaB]

Don't those insurance plans for children start out real cheap and get more expensive as they get older? I think that you'd be better off putting the money in savings for the child as opposed to insurance.

[Tink]

You can buy whole life insurance through any life insurance company and accomplish the same.

One good way to save is to have a set amount directly deposited from your pay before you even see it. you can buy a trust or savings account, CD etc FOR the child in their name with another responsible adult as custodian. This way YOU can't touch it. Once gifted, it's out of your control. IF you choose to do this, just make sure the custodian you choose is someone who won't touch it either. It can be set up to only be withdrawn at a certain age. I would suggest setting it up so that it can't all be withdrawn at one time either.

[SweetCuteness]

You can buy whole life insurance through any life insurance company and accomplish the same.

One good way to save is to have a set amount directly deposited from your pay before you even see it. you can buy a trust or savings account, CD etc FOR the child in their name with another responsible adult as custodian. This way YOU can't touch it. Once gifted, it's out of your control. IF you choose to do this, just make sure the custodian you choose is someone who won't touch it either. It can be set up to only be withdrawn at a certain age. I would suggest setting it up so that it can't all be withdrawn at one time either.

The whole life insurance is VERY inexpensive and it gains interest. They do not get a lot more expensive like a lot of the other things you see advertised. IMHO, whole life insurance is the best way to go. And if your kids decide to keep it as life insurance, they can do so - or they can take it out at a certain age to use for school. I would go speak to an actual insurance agent (shop around at a couple companies). My whole life insurance is for $100,000, and it's $3.57/month. Just to show you how inexpensive they are, if you were to put $3.57 just in a savings account every months for 18 years, you'd only have $771.12 - see, it saves you a ton of money.

Federal regulation says it has to begin to gain interest after a 3 years I think. Plus, if they don't use the entire fund for college, they'll still have what's left over in life insurance.

[HALEY]

i went to a stock broker for our sons college fund, my sister got that for her kids and set me up with that when Micah was born, it was 500.00 down and 50.00 a month, plus all the extra money he gets for Birthdays, Christmas etc. i throw it in there for him. i really don't understand it to much, but my sister is very smart when it comes to stocks so i trust her..

and his life insurance i got it thru work, and so does my husband so i can't help you there. we both have 5,000 on him now when he gets older i will increase it. to 20,000.

[Tink]

Haley, that's a very good idea. I wish I'd have started something like that for my kids when they were little. It will be an absolute God-send to have when he reaches college age. Well done!

[Marilyn]

I listen to Dave Ramsey a lot when I'm driving, and he does not recommend whole life insurance. He says you can get a better return with other methods of investment. He does recommend term life.

For savings for college there are several different fund options. It would be best to discuss this with a good financial adviser not connected with an insurance company.

If you have no idea where to go... and believe me I do not work for Dave Ramsey, just listen a lot.....you can go to his website, daveramsey.com and click on "endorsed local provider". There you can find a financial advisor in your area who can help you with sound inventment informaton so you can make an educated decision.

Hope this helps. We have a financial advisor, not one of Dave's, but one that we trust who has helped us with investment guidance & in improving our return on our investments. Would highly recommend this, but you need to find one who really loves what they do and will work with you. I had one through a major investment company who did not do as well as the one we have now.

Wish you the best!!!!

[HALEY]

Haley, that's a very good idea. I wish I'd have started something like that for my kids when they were little. It will be an absolute God-send to have when he reaches college age. Well done!
My sister 6 year old has the same stocks as i do and she already has 20,000 in her accounts for college, that is wonderful.. My sister helps me a lot she watches stocks daily she is very smart with that stuff, i don't understand it at all, i received the paperwork and took it over her house wrote out a check and she did the rest..
Cause i know im not going to have the money for college, i have a special savings right now for a new car for him when he turns 18. 16 years old forget it.. he'll have to wait. i might put like 20-50 in it a month, put at least ill have a good down payment on a new one for him... i'm trying to be good with our money....