Do I need life insurance for my baby?

I am about to have a baby, and see lots of ads for the Gerber Life Insurance for children, but don't know if I need it. The price seems to be less than what I would have to pay at my job. Is this something I need?

First a point of clarification: I am a Husband and a Father first, a Life insurance agent/ Financial Advisor second.

Now to answer your question, I would not recommend you go through Gerger Life if your child does not have any health issues. If you can, I would go through a true insurance company.

Reasons that people should insure their children:

1) It is hard enough to think about losing your spouce to an untimely death, now try to imagine how much time you would need to greeve for the loss of one of your children, how much time would you need to take off from work, how much would that cost you in the form of your salary?

2) If #1 isn't enough to convince you know this, especially around this time of year when the weather is hot, more children will be around water, and there will be a time when the people suppervising them swimming will not be looking, and it only takes a short moment for the worst to happen.

As I said above, I am a Husband and Father first, a life agent/ financial advisor second. I have over $1.2MM of coverage on my 2 1/2 month old son. I have this all in a whole life insurance policy, not a term policy. Before all the termites come out of the woodwork, let me explain how this particular contract works.

I pay $7,000 a year for 20 years at which point I don't have to pay a dime ever again in premiums, no matter what, it is a fully paid up policy. By the time my son is 17 there will be over $200K for my son's college education (oh and by the way this is on the gauranteed part of the illustration.. not the non-gauranteed where it is over $300K). I will be using this policy to supplement his 529 plan. When he turns 30 he will be able to borrow $100K for a down payment on a home. When he is 65 years of age he will have $85K a year for 20 years to help supplement his retirement, and over the course of this policy he will be able to pull out well over $2MM and my wife and I will only put in $140K. If he lives to 100 he will still have well over $1.3MM WITHOUT ever paying a dime back in loans to go to his heirs. Even if he did, the loan rate is equal to prime + .25% which is lower than the capital gains tax currently at 15% but scheduled to go up in 2011 to 20%.

Now for any mutual fund out there to beat this it would have to every year (note: not on average but every single year) be positive 10% better! That hasn't happend in the history of the stockmarket!

Now if the premium I stated is too high for budget,(I don't know what your financial situation is), you could do combination of both term and CVLI, and convert the term over the years to Cash Value Life Insurance. It will change the numbers drastically, but atleast you have some available cash on hand that is guaranteed and not at the whim of the markets. And please don't get me wrong, you need to have some money in the market especially if there are long term goals involved, but what ever you do, please insure you child, God forbid, anything happen them, you would be crushed, and it would take you a very long time to recover, but by the insurance with the frame of mind that you wont need the insurance part, but you will need some sort of living benefit part.

No. Gerber Life is completely unnecessary. They basically sell you burial insurance with the ridiculous come-on that it will "protect your child's insurability". Here's the reality - in 20 years, that token coverage will be worthless. Hopelessly inadequate even for burial at that point.

Save your money. It's a sucker deal.

well for the husband/father first and agent second...you better quit your day job as an advisor cause your advice is so wrong . dont you know yourself that if you child dies you wont get a penny back from all the paid up whatever you call it policy? how can you afford a 2.5 mill policy that is paid up? man you are a real brain doin that. putting all that money in a low interest rate of less tha 2%? stupid stupid stupid. but you got what you bought good luck with that...

No. I don't insure any of my children. The Gerber plan is the most expensive policy, for the least amount of coverage.

You're better off just saving the money. You'll have more in pocket when your child turns 18.

If you want to get life insurance on your kid, a simplified issue or guaranteed issue policy will generally be more expensive than a regular policy that your current independent agent could sell you. There are many different types of policies out there depending on what your goals are and your budget. Go talk to an independent insurance agent, or a few while you're at it.

Its very importent that u have a life insurance.Its no metter that policy is urs or ur child. There are some plans that make it possible to cash in on unused payments when your children become college age. You should also have life insurance on yourself and your spouse/significant other. It would be a good Idea to get several quotes. Also, the sooner you get a policy, the less likely there will be pre-existing medical conditions. The policy builds cash value. Your child can keep the policy when they are an adult. Also it doubles, then triples, in value at certain ages. It is a good idea to purchase life insurance for your baby for a number of reasons. It will be there for them to use to borrow against for college expenses, it guarantees them life insurance coverage for when they are adults, and God forbid something happens to them before their time, it is there for expenses in a tragedy. It is a good investment in their futures,

It depends on your own specific situation.

The truth about life insurance is this - "It's only truly good if you need it."

How does that apply to you and your baby to be? Well, if your child should pass away, there are funds to provide for the child's final expenses. And, if your child grows up, but becomes sick, unable to get life insurance, that child is guaranteed coverage with the plan.

So, it really depends on how you want to look at it.

Either you believe in the benefits of life insurance, or you don't.

Before you choose Gerber Life, take a look at Globe Life's Plan for children as well at http://www.term-life-online.com/life-insurance-for-children.html

That way you can compare the benefits of both and have two options to consider.

I hope that helps!

Best of luck with your new baby.

I am still wrestling with this question and my daughter is a year and a half. She doesn't bring money in and that is what u want insurance for- to cover the loss of income for many reasons. I can add her to our policy as a child rider for up to 25k at $15 per month, this rider will also cover any other kids we have while still paying the one price. If I do it, it will be to cover the funeral. I haven't found many "good" reasons to do this. Most financial planners say not to insure your kids- very rarely do they die compared to us older folks. So, both mortality tables and finances say NOT to insure your child. I would also recommend staying away from whole life policies such as Gerber. If you do it, cover your baby with term- it will cost you far less.

It is always smart to carry life insurance on your children. There are some plans that make it possible to cash in on unused payments when your children become college age. You should also have life insurance on yourself and your spouse/significant other. It would be a good Idea to get several quotes. Good luck !

definitely. how would you pay for the funeral if something bad happens?? God Bless.

It is a good idea to purchase life insurance for your baby for a number of reasons. It will be there for them to use to borrow against for college expenses, it guarantees them life insurance coverage for when they are adults, and God forbid something happens to them before their time, it is there for expenses in a tragedy. It is a good investment in their futures, I have it on my son.

Yes. The sooner you buy life insureance, the cheaper the premium. Also, the sooner you get a policy, the less likely there will be pre-existing medical conditions. The policy builds cash value. Your child can keep the policy when they are an adult. Also it doubles, then triples, in value at certain ages.

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