Chuck Jaffe’s Stupid Investment of the Week takes on Gerber Life Insurance “The Gerber Grow-Up Plan.” I got a brochure for them yesterday. Threw it away, but then seeing this made it even more ironic.
Want it anyway? Lol. Put the money in an education savings fund. Or add a rider to your own policy. Or put the money in an ING savings account-you’ll make more money.
As Jaffe said, there’s a kid born every minute whose parents are suckers.
(note: There’s always a possibility that such policies might be useful. Insurance, after all, transfers risk. But the odds of your kid becoming uninsurable as an adult are low and this policy doesn’t help much with that anyway. If you’re worried about funeral costs, put a rider for them on your own term policy-just enough to cover it.)
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When did Gerber get into life insurance?! That’s what I want to know. I thought they made baby food.
“You can’t do two things at once and do both well.” Sounds like they’re proving that old saying.
Also, the name is kind of goofy. It sounds like they’re giving a command to themselves.
Thanks for the heads up! I don’t have kids but will check back with you for advice when I do!
I agree. They have had that a long time. I geuss that it is for the parents that eat the baby food instead of feed it to the kids. Horrible I know but, why else?? Annette
That Gerber Life Insurance thing has been ticking me off for 20 years.
I guess they do it because the numbers seem exciting. After all, most parents don’t actually expect their kids to die, so they’re seeing $$ in the future when the kid can cash out. What they don’t realize is that by putting that same money in high APY savings or in CD or investing it, they could get much more money by that time.
@ Denise, maybe I’ll ask my parents if they were ever tempted to get it for me. I find that kind of thing interesting trivia.
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