How Can I Cash Out My Gerber Grow Up Plan?

Spread the love

If you are looking forward to getting answers to questions like How Can I Cash Out My Gerber Grow Up Plan? What Does Gerber Grow-Up Plan mean? How Does Gerber Grow-Up Plan work? How to Get a Loan from Gerber Life Insurance? and Is the Grow-Up Plan Worth It?

First and foremost, Gerber Life Insurance offers different types of insurance products for different types of people. The Grow-Up Plan is a whole life insurance policy specifically designed for children and starts protecting your child at the very early stage until the child gets to adulthood and that financial protection is a type that can last a lifetime.

What Does Gerber Grow-Up Plan mean?

The Gerber Grow-Up plan is a whole life insurance policy categorically for children. As the name implies, the policy provides coverage for your children for their entire lifetime. This type of insurance policy serves as a financial safety in events of death which is very rare to likely happen.

You can get this coverage from the minimum of $5,000 to $50,000, and even parents and grandparents can apply for it. You can buy this coverage when your child is between two weeks and 14 years. When the child turns 18, the coverage amount doubles.

When the children turn 21, they become the policyholder of the coverage. One interesting thing about the Gerber Grow-Up Plan is that you have the option to build cash value because of the whole life insurance feature. This will enable people to save money for their new children and for college.

Without any doubt, the Gerber Life Insurance grow up plan is lifetime investment because you will provide coverage for your children, grandchildren even in the rare cases of death. When emergency happens, the policy will offer you a quick cash payout to cater for their funeral expenses. In addition to the benefits of the policy, the insured children will a guaranteed option to purchase additional life insurance policy in the future despite their health circumstances at that time.

How Does Grow-Up Plan Work?

To keep the policy, you must pay a monthly premium. However, you must bear in mind that the younger your child when you buy the policy, the lower the monthly premium. Even when your child becomes the policyholder at age 21, the policy amount will never increase. In other words, the premium rate will remain the same as when you bought it at the child-size premium rate. However, other benefits of Grow-Up Plan include the following:

Build cash value that could be borrowed against if you need it.
Automatic right for your child to purchase more coverage as an adult irrespective of your child’s health or occupation in the future.
Coverage automatically doubles at no additional cost when the child gets to age 18
The premium rate never increases during the life of the policy

1. Build Cash Value:

This insurance policy offers you a whole life policy and it means you have access to build “cash value” over time. This means the amount the policy would be worth at a given point in time where you are either opportuned to cash in the policy or take a loan against the policy.

Learn How Cash Value Works:

Every time you make a premium payment for a Grow-Up Plan, Gerber Life puts aside a small portion of the payment, which eventually grows into your policy’s cash value. The longer the policy you have, the larger your cash value.

As a policyholder, if a need arises or later in the future your adult child- could borrow against the policy’s cash value or decides to turn in the policy for available cash value provided you have paid all your premiums. In some cases, you might have to apply the cash value towards making premium payments.

Keep in mind that that any loan debt against your policy will reduce the amount you will receive if you surrender the policy, or the payout amount to your beneficiaries.

2. Automatic right for your child to purchase more coverage as an adult irrespective of your child’s health or occupation in the future.

Based on the research from World Health Organization in 2020, there are certain chronic diseases and conditions which are likely to rise by 57 per cent. Other increasing health conditions include obesity, global pandemics, and diabetics.

This tells us that you may not be able to determine the health status of your child but with acquiring the Grow-Up plan, you rest assured that your child’s life is safe with life insurance in the future.

Grow-Up automatically offers the right for your child to purchase more life insurance coverage when he grows as an adult, and he can buy up to ten times the original policy amount – at the standard adult premium rates for his or her age at that time for a standard policy. Another benefit of this insurance policy is that do not answer any question, no medical exam irrespective of your child’s occupation.

In other words, your child will come across various occasions to purchase more coverage which include having his own his own, getting married or other times where the need for increase life insurance will arise to financially protect loved ones.

3. Coverage automatically doubles at no additional cost when the child gets to age 18

Another amazing benefit of Grow-Up Plan is the double coverage amount, and this happens when your child gets to age 18. In other words, when your child’s policy anniversary hits age 18, the coverage will automatically double at no additional or extra cost. This means that if you bought a Grow-Up policy for your child at $25,000, when the child gets to age 18, the policy become $50,000, and many more.

4. The premium rate never increases during the life of the policy

Your child enjoys a locked-in premium rate. This means your child would pay the same child-size premium rate in the future and for life even after becoming the policyholder at age 21. However, your child must keep paying the premiums.

This is very great benefits knowing that age affects life insurance premium rates. Take for instance, if you buy life insurance at age 60 versus age 30 could cost three times as much. But with Grow-Up Plan Protection, you get a locked-in premium and your child won’t have to bother with rising costs.