Mom to Mom

[drizzellla]

When I was born my parents bought a paid up life insurance policy. The policy was paid up when I turned 18 years old for $1,000. I took the dividends in cash for many years and a number of years I was getting about $150 per year. I decided a few years ago to change the dividend option. I changed it to paid up life insurance. The poilcy is now valued at almost $5,000.

[jaxs mom]

I think it's a complete waste of money as do the people I know that work in the insurance industry. 

[jaxs mom]

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@Mz iMac wrote:

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@Starpolisher wrote:

Does anyone have any experience with this for a grandchild? Do you think it's a good idea to be able to give to them when they are old enough to take over the premiums? It will allow them to afford life insurance at the price that it would cost to buy today. Would appreciate opinions(not BASHING). TIA

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Do GEN X folks take out life insurance or for that matter, continue to take over payments of one?

P.S.  Never mind.  I watch SNAPPED.  So I already know the answer.

Carry on.......

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Yes, we do have life insurance. But we aren't dumb enough to buy it on babies. 

[Financialgrl]

Agree with jackthebear.  I had no kids but was extremely involved in my brother's and sister's children's lives (3 of them) and when the oldest 2 were 8, I began dollar cost averaging $ each month into the stock market in segregated line items away from my funds.  Because they were so young I invested it rather aggressively and when the youngest hit 21 years of age, I had my financial advisor send me a check for the total amount in those line items, cashed it out and wrote 3 equal checks for the 3 "kids".

It grew for 15 years and it was worth thousands of dollars to each, not a mere $90!   I had no issue investing aggressively bc I'd not told anyone I was doing this so there were never any expectations for the money and seriously, this was like found money to them so it would have been okay no matter what the amount!

[ccassaday]

Life insurance on a child is a waste of money. Life insurance is there to protect your spouse and children if you should pass. I had a similar one that my parents gave me. We could either cash it in or keep paying on it. I cashed it in and got about 600 dollars. Why not set a fund up you deposit every month so the money grows that they can use for college or have access to when they are a adult. My dad is getting ready to retire. He had some stock in his company he cashed in. Then our advisor set up w fund. All three grandchildren will get about 10k by the time they are adults.

[missy1]

I see no problem with having Gerber Life on your child.

[missy1]

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@jaxs mom wrote:

I think it's a complete waste of money as do the people I know that work in the insurance industry. 

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@jaxs mom

Explain why please?

[ajsidney12]

When my daughter was born in March I was researching this as well.  Most of the reviews and comments I found were very displeased with how this benefit was paid out (if paid at all), and on average many commenters said they would not pay for this service again (through Gerber that is). That was enough for me to decide not to move forward with this plan.

[A60_Chevy]

I purchased the plan for my child an Honor Student until the first year of college.  All of the values that was taught from home the University twisted and my adult child became angry with and close with them.  

To make a long story short the friends left my child "needed some time off".

Gerber Grow UP dropped her after I paid the full premium.

My kid had 2 full ride scholarships but when they are not under our care anymore with the good value system things change.  

10 years later single with children I get a phone call saying Mommy I start school this fall.  The payment is coming out of my adult child's pocket.  We can pay for it and the world can take it away through negative influences.  No help from mom, I paid my school loan on time every month for ten years.

[A60_Chevy]

That makes a lot of sense set up a monthly fund instead.  If the child decides to go in a different direction of life the money can be use for something special.  Gerber and my child taught me a good lesson.. BOY did it HURT!