What can I do with my Gerber Life Insurance (I'm 22 y/o)?

Question

For as long as I can remember, my Dad has always been paying into a Gerber Life Insurance policy for me. However, I just got a letter from the insurance company, asking if I want to continue my policy, I'll have to send in my premium.

I've done that and all but what I don't understand is how this particular policy benefits me? Why should I continue to pay into this? Can I ever cash out this policy? When I am in retirement (or something like that)?

Answer 1

If this is the same type of policy I bought for my grandaughter, this is a whole life policy which will jump from $5,000 to $10,000 when you reached 21, and your insurability will be guaranteed, no matter what your physical condition.  

Plus there is a cash surrender value which should be several hundred dollars, depending on when the policy was purchased by your dad.

You need to call your customer rep. before you make a decision regarding this matter.

Answer 2

Call Gerber's customer service line and ask for an explanation of your policy, if there is any cash value, and if it can be applied to a paid up policy, etc. No one here knows what your Dad bought for you 22 years ago. Another thing you can do is read your policy. Generally, kid's insurance is rather expensive. As an adult, if you are in good health and a non-smoker, you can probably purchase a better policy, with more of a death benefit and savings component. The purpose of insuring children is to protect their insurability in case they become ill and cant get insurance as an adult. If there is some equity in your policy, you can borrow some if it, tax free, and not pay it back. All of the complexities of your policy should be discussed with your agent or the customer service department...

And good luck, whatever you decide!

Answer 3

If the letter didn't say, then you should call up Gerber and see how much cash value is in the policy.  

Unless you are very sick you should be able to go out and see if you can find a policy with a much higher face amount for your premium dollars.  You may also need to assess your current life insurance needs.  If you are single without a spouse or children relying on your income you may not need life insurance at the time.  If you have people that rely on your income then this Gerber policy probably not enough to protect your dependents.