AboutWillard R. Brumbaugh, LUTCF, CSFP Expertise I can handle questions concerning life insurance, it`s tax implications, how to determine what is appropriate, and how it fits in one`s estate and retirement planning.
Experience For 2 1/2 years I was an expert on AskMe.com, where for most of that time I was ranked #1. I have been a moderator (instructor) for the Life Underwriters Training Council. I have been licensed since 1969.
Organizations I belong to: National Association of Insurance and Financial Advisors - California
and the Inland Empire Estate Planning Council.
I hold the professional designation of Life Underwriters Training Council Fellow.
Question Hello, and thank you for your willingness to help out.
I recently got a brochure from the Gerber Life company asking if I'd like to participate in their life insurance program for my daughter.
Insofar as the coverage is concerned, there is a small benefit ($5000) until she is 21 years old, when she becomes the owner of the plan and can continue to participate for the same cost ($3.18/month) until she is 28 when she can purchase additional coverage (up to $150,000) for a commensurate premium. All of this is building cash value throughout.
Since it is affordable it is attractive. There is no question that other avenues for savings on her behalf are already in place (she is 3 months old), but what are the advantages to this program, vs. the benefits?
The program is called the GROW-UP plan and can be found at www.gerberlife.com.
thank you again for your help
Tim
Answer Dear Tim,
This is a distressingly good offer. I say this because it is the only direct marketing life insurance offer that I have seen that I cannot beat.
Its only weakness is that it is specific to one child, whereas a child term rider on your or your wife's policy would cover all qualified children with one small premium. Usually children born after this rider is in force are automatically covered once they are 15 days old and out of the hospital. Even if the newborn has health problems.
The equity that would build up in the policy is a beneficial accident of design. In the long run any difference in premium between this policy and a term policy will be more than compensated for in the build up of the equity.
Willard R. Brumbaugh, LUTCF
www.accex.net/MrIns/MrIns.htm
