Gerber Life Insurance/College Fund

There are better ways to save for college.

It sounds like, from your SWH, you are not interested in a 529. I don't understand why someone would not be but..... to each his own. In our family, there is no option regarding college (it was ingrained into our brains as children and it is one reason we run a successful business) and our daughter will come out of college debt free because we started planned before she was born. She is a Jr in high school now and actively searching for colleges and colleges are recruiting her as well.

Even if the full 529 is not used, it can be used by your children's children as well for their college.. just a thought.

So, that aside, we did not save only through 529. We have numerous savings bonds, numismatics, different types of investments through mutual funds and savings accounts.

We do not carry life insurance on any of us. We do have disability, critical care and AD&D. Our idea is that you generate your savings which would carry through in the event of death and plan accordingly. we just don't "buy" into the life insurance game..

However, we are very numbers oriented as far as savings, etc. We invest wisely and forecast often. We are very self disciplined as well and you have to be that way in order to manage funds and not "find a reason" to spend monies that are set aside for retirement, college, wedding fund, etc.

Good luck to you. You can't start saving for college early enough. Our daughter will not start until the fall of 2013 and we are already anticipating at least $60,000 per year for her tuition, room, board, expenses. This does not include the fact that we will purchase a condo the 2nd yr. It is crazy!! but an exciting process.

Better off opening a 529 than doing the Gerber thing.

I think there are better ways to save money for your child's college. And life insurance for a child is pretty dumb in my opinion. The chances of a child dying are very slim (thank goodness) so the companies make tons of money. And people can get life insurance as an adult that will cost less. SO- my opinion is that the Gerber plan is not worth the money.

I personally have life insurance for my children, not because I think they are going to die, but because of their future. If they were to ever get sick and have a pre-existing condition they would not be eligible for life insurance. This way I have a small plan for them and when they are older they can increase it, or eventually add to their own. Also as you get older your policy usually ends up increasing in premium depending on the type you choose. As long as the premiums are paid they can never be uneligable. Figure it's a small sacrafice to ensure that my boys will some day have a little policy if things were to ever turn in a different direction, and less of a burden for their future families.
I don't go through gerber though, I got a policy through my life insurance company.

A 529 plan can be used for any educational program.

The Gerber stuff is a sham. Bad idea.

ETA:
Here's why:
http://money.cnn.com/2005/09/27/pf/kids_insurance_0510/

Don't do the Gerber, it's a bad business investment

Go with 529, or a state college savings plan.

If they don't go to college? Cash it in. There will be a penalty, sort of like cashing in your retirement plan early - but I think it's basically equivalent to paying the income tax on the interest, which you wouldn't have had to pay if you had used it for education. ( I'm sure someone out there will correct me if I'm wrong!) My brother had one that he didn't use, and my parents cashed it in to help pay for MY college.

Or, if you have the discipline to do so, set them up a dedicated savings account, and put the same maximum into that, that you would the 529. You'll have to pay taxes on the interest income every year, though, so the gamble comes down to - do you want to definately pay the taxes annually, or MAYBE pay the taxes later?