OP here- thanks. It sounded to me like it had to be burial covereage insurance too. Thanks for clarifying!

Anonymous wrote:Pay for a burial if needed. That's the only thing they're good for. It's not a good "investment."

former agent and agree with this ++

My understanding is that it is a gimmick and not worth the investment. I read a lot of financial magazines - which makes me an authority

Life insurance is to replace loss income in case the earner dies, it shouldn't be use as an investment vehicle...and stick to term life, once the kids or family can be independent it should no longer be needed.

It is for poor people who cannot afford a burial if their kid dies. I'm only half-joking - I know people who took out policies on their kids, and that is what they told me. I assume that is what the saleman told them. Here's something explaining the basic idea, and why it's not a good investment: http://www.smartmoney.com/spend/family-money/do-newborn-babies-need-life-insurance-14879/

Pay for a burial if needed. That's the only thing they're good for. It's not a good "investment."

In my understanding, if your kid develops a condition later in life that would make them uninsurable for life insurance, they will at least have this policy as long as they continue to pay for it.

I used to think kids life insurance was a creepy concept, but never looked into the whole life insurance option, which is what I am guessing (perhaps incorrectly) that those Gerber Life plans are.

I have never had whole life insurance myself, so my understanding of it as an investment is limited. From what I gather you are paying into a "fund" that you can tap into later should you need to while still alive....?

_If_ these kids plans allow them to start out with a chunk of money at the time they turn 18 that they can use towards something else, that is great, but then....why not just put money aside for them? Does it somehow accrue differently when in one of these "life insurance" plans?

If anyone knows about this, please explain. And thanks in advance!