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Life insurance for children...can they use it as college money?

Heres my idea. Gerber life doubles at age 21. I'm supposed to be able to collect all the money I put into the plan, so could I start now (my son is 6 months) and end it at 21 to pay off his college loans and what not? I'm kind of lost on what we can do for him with this money.

Public Comments

1. The 529 college savings plan will beat the pants off of the life insurance. Only do the life insurance if the death benefit is very worthwhile to you. If you go to an Edward Jones office, Scottrade office, or even many banks, they would be happy to open a 529 college savings plan for you.
2. The way I understand Gerber life is that you can cash in only $10,000 at age 25. We have been paying since she was a baby also. She is now 11.
3. You better read your plan more carefully. Unless you are buying an annuity, I don't think you get any money back on that policy.
4. You sure can do that you smart mama you! we have a policy on our son, its not gerber, but its exactly like that and thats what our plans are. cause he have the RESP's aswell but they wont be enough to cover his schooling alone, and espically not if he wants to go to university! Smart lady for looking ahead!
5. First of all you will not be able to collect all the money you put in. Most of your premiums will go to fund the death benefit coverage portion of the life insurance. You will only be able to access the cash surrender value, which is the portion of your premium that you paid above the cost of the death benefit protection. Your policy should have a schedule of the premiums, death benefits and cash values available each year of the policy. If you want your son to avoid college loans then start taking that money and investing it in one of the state 529 plans or a Coverdell IRA. Both of these plans build up tax free and your son can withdraw the money for college expenses tax free as well. Most of them have a wide variety of investment options that allow you to invest as conservative or aggressive as you choose. You will blow away this Gerber life insurance policy as far as saving for his future.
6. If you really think about it, why would you use life insurance to fund for any long term goal (retirement, college, vacation, etc)? Life insurance is a tool to provide extra income to your family in case you die. If you die tomorrow without life insurance, would your family be financially ok? You are better off opening a 529 plan. Every state has their own 529 plan, so check your state first and then check the other states. To learn more about 529 plan, go here: http://finance1o1.blogspot.com/2006/12/529-plan.html If you have life insurance on yourself, why not just add a child rider to it? The child rider will cover all your children under the age of 25.