![]() Come up with a premium payment every month that’s rather exorbitant for the value you’ll receive, as you’ll understand in a minute.Īt the end of the agreed-upon term, Gerber Life Insurance Company will send you a check for the payout you specified.And no, even though it would be much, much cheaper to insure the child instead of the parent or grandparent, Gerber won’t let you do that. Generally, you’ll want to insure whoever will be making the monthly payments, since the policy will pay off if the insured person dies. Tell them when you want to have the money – anywhere from 10 to 20 years from now.Tell Gerber Life Insurance Company how much money you want to have for college.Without this feature, if the insured person didn’t die during the term, the term policy would simply expire – evaporate – at the end of the term, and all the premiums paid would just go to increase the insurance company’s profits.Īs a parent or grandparent of a child who will presumably attend college someday, Gerber says you only need to do four things: It includes an expensive feature that causes the policy to pay off whether the insured person lives or dies. Gerber puts a term life insurance policy on one of the parents. How Gerber Uses Life Insurance to Help Families Save for College If the insured individual dies prematurely, the payout is made upon the insured’s death. The payout is guaranteed by Gerber Life Insurance Company, so families know from the start the amount they will receive at the end of the term. The payout at maturity is the total of all premiums paid, plus a small amount of interest. The Gerber College Savings Plan is a type of life insurance for adults called “return of premium term life insurance.” The policy matures in 10 to 20 years, typically at the time the child is expected to start college. What Exactly Is the Gerber College Savings Plan? Check out the book The Bank On Yourself Revolution, the New York Times best-seller about the best way to use life insurance as the foundation of your family’s wealth-generating strategy.īut the kind of life insurance Gerber uses in its cookie-cutter one-strategy-for-all-people is not an efficient way to save money – or buy life insurance. It’s true: Using the right kind of life insurance can be an excellent savings strategy. Forty years later, Gerber’s started selling life insurance … promoting it as a way to save money to put Baby through college. Suze Orman and Dave Ramsey: Let’s debate!ĭan and Dorothy Gerber started selling baby food in 1927.Explore the benefits of Bank On Yourself.Request Your FREE Business Owner Analysis. ![]()
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