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Gerber Baby Life Insurance

I keep getting things in the mail for this company. It seems like a pretty good deal. I was just going to get the policy for 3.18 a month for 5,000 total. That way when she turns 21 she can cash it in or get more life insurance for herself. I just don't know anyone that has used the company.

Does anyone have it and does anytone think the money is worth it?

Thanks!

Comments

( 17 comments — Leave a comment )
corporatebabe
Oct. 23rd, 2007 09:19 pm (UTC)
It's not worth it. Babies and children don't need life insurance in 99.9% of cases - life insurance is appropriate for people with dependents who would be SOL if they died prematurely.

For a great in-depth discussion of when life insurance is needed, and what type is best (term is almost always better than whole life/cash policies such as Gerber's) - I recommend the book "Personal Finance for Dummies" by Eric Tyson. It's well worth the money you'll spend on it, which is more than I can say for Gerber life insurance.

http://www.amazon.com/Personal-Finance-Dummies-Eric-Tyson/dp/0470038322/ref=pd_bbs_sr_1/104-2834912-4666358?ie=UTF8&s=books&qid=1193174314&sr=8-1
(Deleted comment)
piercemedeadly
Oct. 23rd, 2007 10:31 pm (UTC)
there is no difference pricing for a funeral due to age. Its a racket.
(Deleted comment)
karmalingoist3
Oct. 23rd, 2007 10:55 pm (UTC)
My mother died this past January and it cost $2500 to have her cremated, and her ashses placed in a plastic big and then in a black plastic box with her name on a file folder label stuck on top. For all that I also got 12 certified copies of her death certificate. we did not have the funeral home provide any kind of services (we threw a private memorial per my mother's requests) and I had to pay out of pocket for her two obituaries which cost around $250 if I remember correctly.

Yeah, no one will ever convince me that funeral homes are not legalized extortion centers.
piercemedeadly
Oct. 23rd, 2007 10:29 pm (UTC)
yeah im sorry but im going to have to disagree with this statement. My son died, and out of state for that matter. It was $10,000 just to bring him home, plus the cost of funeral expenses. If someone has enough money to cover the funeral out of pocket then I would agree that you wouldnt need the insurance. You dont have to have a large policy but enough to at least cover expenses, and for some money to cover bills when you take some recovery time off.
corporatebabe
Oct. 23rd, 2007 10:44 pm (UTC)
I'm sorry for your loss. I can't even imagine.

I think that the OP should read up on what the experts have to say about infant life insurance. Like I said in the vast majority of cases it's a rip-off, but cases like yours illustrate that each situation is unique.
seymorebubbles
Oct. 23rd, 2007 10:31 pm (UTC)
I disagree! I am an insurance agent and I suggest life insurance polices from birth on, you never know what could happen. A freak illness, accident or an act of nature like a Tornado or Hurricane. Funerals can be expensive! But I suggest going to a licenced agent because the fine print on those Gerber Policies will get you every time and I mean they wont cover some things. You can get a nice policy at $10.00 per month for 50,000 that will take care of anything you might need, and can also be cashed in at age 21 or turned over into there own policy
corporatebabe
Oct. 23rd, 2007 10:40 pm (UTC)
Well, you're an insurance agent. With all due respect, I've yet to meet an insurance agent who doesn't think everyone and their brother needs life insurance, or, if they already have insurance, then inevitably they need more. It's like going into a car dealership and asking the salesman if he thinks it's a good idea for you to buy a new car.

I guess if an expensive funeral is a big deal for a given family, AND they can't afford it out of pocket, then life insurance for an infant could potentially make sense. (My religion isn't big on lavish funerals.) However, it's a much better bet to put aside money for other, likelier emergencies (such as unexpected medical bills, a period of parental unemployment, schooling costs) - and there are MUCH more practical and profitable ways of putting money aside, than cash-value life insurance for an infant.

To the OP: Don't take my word for it. Definitely check out the Personal Finance for Dummies by Eric Tyson (many libraries have it) and read the section on insurance. For one thing, YOU need life insurance if you have dependents. For another, you should have long-term disability insurance if you have dependents. When all that is straightened out, if you still have money left over and choose to invest it that way, that is the time to think about optionals like infant life insurance.
hope4jessica
Oct. 23rd, 2007 10:47 pm (UTC)
My parents took out a policy when I was a minor. I had no dependent, and didn't have any health problems. Now as I am expecting my first child... if I was to go look for insurance I wouldn't get any, since I have developed health problems since the policy was taken out, but the policy came with guaranteed options that I have coming to me till I am 40 regardless of what health I am in... They are based on my health when I was a child. I would say that the fact that by the time I am 40 I will have over 80,000 dollars in insurance was well worth the policy my father took out on me as a child.

He didn't worry about things happening then, but wanted to make sure that I could have insurance that would cover the basic expenses if something happened to me as an adult. So, if you can find policies like that... I say go for it, since it was about $100.00 a year as a child and I had options now that I am an adult....
seymorebubbles
Oct. 24th, 2007 12:36 am (UTC)
Agreed!!!
seymorebubbles
Oct. 24th, 2007 12:36 am (UTC)
I think you have been misled by an agent, I do not think anyone and everyone needs a policy, I suggest getting one for a child because for example...my son is 3, we never bought a policy on him, he is Autistic and has Severe Asthma, now we cannot get him ANY type of insurance for less then 500 bucks a month, had we got it before Diagnosis absolutely...

and just to set your mind straight...Life Insurance isnt always to pay for a funeral. For example for an adult that dies, there is the funeral, House payment, other bills, money to take care of minor children. I do not sell insurance just to do it, as I do not make a commission off my sales, if I did I would be loaded.

and FYI....never thought a tornado would hit my small mainly amish town, but it did on Thursday , had I been killed my kids would be able to live off of the policy. Never say never, because you dont know when an emergency will happen!
(Deleted comment)
seymorebubbles
Oct. 24th, 2007 12:35 pm (UTC)
Because its a medical condition, associated with medications, therapies and Illness. Just as it costs me an arm and a leg for his health insurance. According to insurance companies, children with Autism are 10X more likely to die before healthy children without Illness, I dont agree, its just how they see it.

Also a child has no assets, but if there are medical costs the insurance can be used to pay those.
corporatebabe
Oct. 24th, 2007 01:23 pm (UTC)
If you read my comments you'll see that I am an advocate of life insurance for people with dependents.
muse_de_nuit
Oct. 23rd, 2007 09:30 pm (UTC)
Personally, I think you'd be better putting that money in a savings account or investing it or maybe buying additional life insurance for yourself or your spouse instead of putting it in life insurance for your baby. I think life insurance for babies and children is a little creepy... I don't like it when there's the potential for someone to get money from a baby's death. Like the previous poster said, life insurance should be there for people with dependents who would need the money if something happened. So, unless your baby is a child movie star or is otherwise the sole breadwinner in the family, I don't think life insurance is necessary for them.
eilithyia
Oct. 23rd, 2007 09:57 pm (UTC)
While I think large policies are very creepy I think small ones are okay. I've seen people who cannot afford to bury their baby-even though they'd like to, because they have no extra money and funerals are expensive. It makes me sad seeing the tiny plaques some parents have to use until they can save enough for a tombstone. If I didn't have an extra 5-10K lying around, I'd get a small policy..I'd like my child to have a decent funeral. Of course, I don't even know if I could go on living if anything happened.... :(
sara_t_05
Oct. 24th, 2007 02:46 am (UTC)
I wish my parents had done something like that when I was an infant.

I ended up having to have open heart surgery and now I'm considered 'high risk', so I can't get life insurance if I begged for it now that I'm an adult.
chesterismyhero
Oct. 24th, 2007 02:29 pm (UTC)
I started off with Gerber Life Insurance, but they got to be too annoying. They kept calling and asking me if I wanted to up his coverage. I canceled it.

We have life insurance through my husband's job. I think Xander has $20,000 and it is only $1 a month. Mine is about the same.

My in-laws have also taken out life insurance policies on both Xander and my husband.
chamois_shimi
Oct. 26th, 2007 08:29 am (UTC)
I crunched the numbers and realized that by putting just $5 a month into a good savings account at the credit union, by the time C was 21 he'd have more money than he'd get by cashing out the Gerber life insurance policy. IIRC, the cashing-out payout is a LOT less than the policy value in event of death - essentially the cashing out is you only get back exactly what you paid in ... and no interest earned on it.

My parents got me life insurance when I was 10 or 12 or something, through the company that did their life insurance. (AAL, now Thrivent, if anyone cares.) 20*cough* years later, it's worth a whopping oh ... $500 or so if I were to cash it out. Now if I were desperate and that $500 meant the difference between starving and not starving or something, sure, that would be useful. But it's sure not much for all those years of paying in. I wish they'd been saving up and buying me savings bonds instead.

On the other hand, if something were to happen, it would be good to have. You'd probably get a better deal with whoever you have life insurance through, though.
( 17 comments — Leave a comment )

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