Should I Purchase Gerber Life Insurance?

Gerber life insurance is a well-known form of life insurance marketed toward the parents of young children. Gerber Life Insurance Company promises life insurance that will lock in an insurance price for your child that will never increase. In addition to the price of your insurance policy never increasing, Gerber insurance company, will double your child's coverage when they turn 21. At this point, your child can choose to purchase additional coverage. The type of insurance offered by the Gerber Life Insurance Company is called a whole life policy.

What is whole Life Insurance?

Whole life insurance commonly is sold based on premium levels. The premium starts with a higher annual premium than comparable term insurance. Whole life policies accumulate a value that you can withdraw or borrow against. There are several different types of whole life policies. Premiums may be payable for a specific number of years on a limited payment basis. Customers also may have the option of a lump sum payment. Before you decide to purchase Whole Life Insurance, you should also investigate Term Life Insurance.

What is Term Life insurance?

Term life insurance is the first form of life insurance and is considered to be 'pure insurance protection'. It provides coverage for a limited period of time, after which the insured person can drop the policy or pay annually increasing premiums to continue the coverage. If the insured person dies during the term, the death benefit will be paid to a beneficiary. Term insurance is a great way to purchase inexpensive insurance with a considerable death benefit.

How are Term Life and Whole Life Insurance Different?

The basic difference between term and whole life insurance is that a term policy is life coverage that pays on the event of death to a named beneficiary. It can be purchased for a period of one year to 30 years. Whole life insurance combines a term policy with an investment or savings. This type of policy builds cash value that you can borrow against. Whole Life Insurance policies are also referred to as forced savings accounts.

Will a Gerber Life Insurance Policy help me save money for my child?

It will help you save money if you can keep the up the payments until your child is 21 years old. In a period of 21 years, however, there are often circumstances where polices lapse for one reason or another, at which point, all of the accumulated savings are lost. It may be wiser to have a separate savings account and insurance policy. This way if the insurance policy cannot be paid for any reason, it will not affect that status of the money in your savings account.