Life Insurance and College Savings

NIHA Posted: Feb 06, 2003 12:02 PM

Life Insurance and College Savings

For all you moms, do you have either of these for you babies? Did you start them as soon as they were born? Do you mind telling me what programs you'r using?

Thanks!!

Elizabeth Posted: Feb 06, 2003 12:03 PM

Re: Life Insurance and College Savings

LOL we are meeting with someone tonight about this! I will report back

kptoys Posted: Feb 06, 2003 12:14 PM

Re: Life Insurance and College Savings

I have Gerber Grow Up for Emma. The highest one you can get I think its $9 a month till shes 20.

I have a 529 plan and upromise for college.

michele31 Posted: Feb 06, 2003 02:10 PM

Re: Life Insurance and College Savings

What is Gerber Grow Up? I have never heard of it before.

JustJodi Posted: Feb 06, 2003 02:20 PM

Re: Life Insurance and College Savings

We opened a savings account for billy that he cant have till hes a certain age.
We put money in it every month.
We were going to open up a college savings for him but only thing about that is if he doesnt go to college ( which I pray is not the case) that he would not be entitled to the money and if you wanted to take it out there were stiff penalties..

So we thought a basic savings was good, he can use it for college or for anything else he wants to when he is old enough..

We do not have a life insurance policy on him.
Maybe its not a bad thing to have but I dont think it is completely neccasary and I would be surprised to hear if many did this..

kptoys Posted: Feb 06, 2003 02:31 PM

Re: Life Insurance and College Savings

Jodi - Is his savings account under his SS #? If it isnt you can save $ on taxes if you put it in his name.

Re the Insurance - Gerber has a plan that when Emma turns I think its 18 or 21 she will get $30,000.00. It will be her money to do with as she pleases. (Maybe at that time it will pay for one credit at college ) The rate doesnt increase over the next 21 years. I thought it was a good plan. I dont look at it as life insurance. I pray to God that I will never collect it. I just think about it as a good savings plan for my daughter. JMO

JustJodi Posted: Feb 06, 2003 02:35 PM

Re: Life Insurance and College Savings

No actually.. its not in his name..I mean it IS but its in trust for him.. it's def under my husbands SS #.

Hmmmmm thanks for the tip.. maybe I'll look into changing it. I mean its not like we do anything but make deposits..

kptoys Posted: Feb 06, 2003 03:01 PM

Re: Life Insurance and College Savings

you can put up to $750 tax free

NIHA Posted: Feb 06, 2003 03:14 PM

Re: Life Insurance and College Savings

kp-
I was thinking of getting a policy for DH and I, so that god forbid anything happens to us, she/he will get the $$ (not the other way around).

kptoys Posted: Feb 06, 2003 03:22 PM

Re: Life Insurance and College Savings

OOOOOOOOH..
I have $250k term & $100 whole.
FH has $500k term & $500k whole.

We got them when I was prego in case something happened to either of us she would be taken care of. Its a great idea to be protected like that.

jennbaby Posted: Feb 06, 2003 03:29 PM

Re: Life Insurance and College Savings

FH & I have life insurance & will put baby on it of course but what is Gerber Grow up?

michele31 Posted: Feb 06, 2003 03:47 PM

Re: Life Insurance and College Savings

All parents should have Life Insurance and a Will. I know it is an awful thing to consider but if you don't have it in writing the State can decide who will raise your child, if you are not here to do so. Also, there could be huge family fights over a child, thus breaking up a family even more. I don't have a child yet but I do consider who would I want to be the guardian if something were to happen to Scott and I. Not sure yet, it is a hard decision.
My brother has asked me to be the guardian for his son, God forbid something happend to my SIL and him. Of course I always knew that I would step-in if needed, but it is really hard to think about.

JustJodi Posted: Feb 06, 2003 05:46 PM

Re: Life Insurance and College Savings

Bill and I have a 2 million dollar policy we put with our son as the benificiary....
I dont think it was term though.. I cant remember how long it was for.. pretty sure like 30 or 40 years.

edited to say that I thought the question was if any of the moms had life insurace ON there children, which I said no..I read it wrong..

Fran M Posted: Feb 06, 2003 06:26 PM

Re: Life Insurance and College Savings

I think the Gerber Grow up is a typical Whole Life policy for your child. Basicly a flat premium rate is paid for x number of years. When the payments are complete the policy can be taken as cash or an annuity (with applicable tax payments) sometimes it converts to a higher value life policy.

Its not a bad place to put some money away because you are not paying any tax on the earnings. In addition, if something happens that makes your grown child uninsurable they will still have this policy.