Gerber’s Grow-Up Plan. For College Savings?
Courtesy of Paul Price
If you watch TV you have probably seen the ubiquitous ads for the Gerber Life Grow-Up Plan. A group of young parents sit around a table asking if the others have started saving for college expenses yet.
One handsome couple says, “We have” and launches into high praise for Gerber Life’s plan which offer ‘guaranteed, safe growth’. Products like these are almost always bad investments. I went directly to their website to check out the details.
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The main focus of the television commercial is on college savings. Get started early, Gerber tells you. That is good advice. What does their plan provide towards this goal? How much does it cost?
Let’s analyze exactly what they are offering.
#1) A whole–life insurance policy for a child or grandchild.
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Life insurance is meant to provide for dependents if a breadwinner or caretaker parent dies. Does a very young child have any dependents to protect? For 99.99% of toddlers this life insurance coverage is totally unnecessary.
Keep Reading: The Grow-Up Plan for College Savings. Really? – GuruFocus.com.
