Project Open Book is an initiative where parents can upload a photo of their child into a mosaic on the Gerber Life Facebook page. In return, they will be supporting childhood literacy and entered in a drawing for a chance to win a $1,000 VISA® gift card. For every photo uploaded, Gerber Life will donate $1 to Reading is Fundamental (RIF), the nation’s largest non-profit organization supporting children’s literacy and which provides books to children in underserved communities across the country. The goal of Project Open Book is to raise $10,000 for Reading Is Fundamental.
Insurance for Families
Things to consider when choosing life insurance
The many options available for family life insurance can create a need for someone to help you understand the different choices and terminology. Gerber Life takes the guesswork out of family life insurance with articles that answer such questions as, "How does life insurance work?" and "How do I get life insurance?" Whether you're looking for a policy for an infant, child, adult or senior, we've got you covered when it comes to comprehensive information about life insurance.
A term life insurance plan is a good way to provide peace-of-mind, knowing that your loved ones will have the income they need to maintain their current standard of living if you die. Losing a spouse or parent is hard enough without financial concerns during this difficult time.
To determine exactly how much term life insurance coverage you’ll need, follow these steps.
- Discuss your burial wishes with your loved one and estimate funeral expenses, typically between $5,000 and $15,000.
- Calculate your debt, including your mortgage. Your family will be able to live on less if they can pay off all outstanding debt in one lump sum from your life insurance settlement.
- Include college education for your children. Estimate college costs to rise by about 5 percent per year. If your child intends to work to pay for part of school, you may get away with slightly less.
- In most cases, you won’t need to replace 100 percent of your income, especially if your spouse works as well and you’re already paying for childcare. Instead, estimate amounts totaling 50 percent of your pre-tax earnings until your retirement.
- Subtract income from other sources to get a final term life insurance coverage estimate. Any investments you have that your spouse can tap into (not counting retirement accounts) can help defray life insurance costs.
You’ll want to reassess your term life insurance coverage requirements over time, as your debt drops, your salary rises, or if your family or living conditions change. Look for a flexible policy that permits you to change the amount of coverage over time.
- Are insurance rates fixed or variable? Variable rates on a term life insurance policy can give you a nasty surprise with your budget. If the policy does have variable rates, find out the exact terms and amounts.
- Is the policy renewable at the end of your term? You’ve paid a lot of money into a life insurance plan. Make sure you can renew it at the end of the term to continue your coverage uninterrupted. You may also want to find out if a medical examination is required at the end of the term before renewal.
- What exclusions exist with the policy? Many term life insurance plans have reasonable exclusions—but you’ll want to find out what they are so your loved ones don’t find themselves without term life insurance coverage if something happens to you.
Many single people have no dependents, therefore, they can get away with a modest insurance policy that will cover their funeral expenses when they die. But when you get married, buy a house, and become a parent, your lifestyle expenses mount. There’s a lot to think about and to pay.
Here are just some of the expenses you’ll want covered for your spouse and children. Insurance can help take care of it all.
Is it ever too early to start shopping around for life insurance for your baby? Baby life insurance is more than just coverage in case something terrible happens to your baby or child. Baby life insurance in the form of a whole life insurance policy like the Gerber Life Grow-Up Plan actually creates a solid nest egg for your child.
The baby life insurance policy coverage doubles during the year your child is 18, and provides premium rates at up to 60% less than plans purchased as an adult. When your child reaches age 21, he or she has the option to:
- Cash out the policy to reinvest or pay for adult expenses
- Extend the policy at lower rates than they would get if they were to apply for a new life insurance policy as an adult
The Gerber Life Grow-Up Plan cannot be canceled by the insurer for any reason, and your child will not be turned down for additional coverage through the plan, as long as premiums are paid.