![]() ![]() The complaint brings suit under Kentucky’s False and Misleading Insurance Advertising Law and alleges Fraud in the Inducement as well. Also, since the plan’s payout must be reported as income, it has a negative impact on financial aid eligibility.Īnd once again, the complaint says that if the adults miss making a payment, they may lose all the money invested to date. It has a guaranteed payout at particular time, normally after ten or twenty years, but again, “he guaranteed payout is tiny relative to the years-long contributions made by the adults.Īccording to the complaint, the money invested in the plan is therefore taxed in a way that money invested in other college plans are not. The complaint alleges that this is not a real college savings plan but an endowment life insurance policy that provides a payout if the insured child dies. The complaint also cites “the risk of losing all value if a premium payment is missed.” Gerber’s marketing of a child life insurance plan as a means of saving, the complaint says, is “fundamentally misleading.” The complaint claims that AboveBoard Financial has determined that if the plan is continued, the cash value is less than the premiums paid for almost forty years. If the plan is continued until the child is 18, the complaint claims, the adult would have paid in $1,299.60, and the “nest egg” would be worth only $705.60. At that point, after $259.92 in payments, the cash value is $27. The complaint claims this is not actually a savings plan but a whole life insurance policy.Īs an example, the complaint says the cost of insuring a three-year-old is $7.22 a month, although no cash value is available until the fourth year of premium payment. It alleges that the College Plan “has no specific attributes designed to tailor it to the needs of college savers, and is quantifiably a worse college savings vehicle than other common college savings devices.” As to the Grow-Up Plan, it claims that it “only arguably has any net value if the covered child dies.”Īccording to the complaint, Gerber’s marketing materials “affirmatively misrepresent the actual functioning and features of the products.” They are purportedly intended to help an adult save money for a child or grandchild. Coverage that doubles Your child or grandchild’s Grow-Up Plan coverage will automatically double at no extra cost. The two products at issue in the case are Gerber’s Grow-Up Plan and College Plan. Reviews FAQs Grow-Up Plan Benefits Give your child or grandchild the Grow-Up Plan to ensure they have quality whole life insurance protection that can last a lifetime. The class for this action is all consumers in Kentucky who, within the statute of limitations and up to the date of class certification in this case, bought a Gerber Grow-Up Plan or College Plan. However, the complaint for this class action alleges that, as investments and for their stated purposes, they are worthless. The baby-face logo also appears on materials for Gerber Life Insurance Company that are designed to be purchased by parents for the benefit of their children. ![]() Gerber is known for its baby food and iconic baby-face logo. ![]()
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