The Gerber Life Insurance company is well known for its child life insurance offerings. However, you may not know that the company also sells small-term and whole life insurance policies for adults. The company also offers no medical exam policies for seniors ages 50 to 80.
If you’re considering a Gerber Life policy for your child, it’s important to see beyond its TV advertisements. You’ll want to consider the advantages and drawbacks of Gerber Life insurance for children. If you want a savings vehicle for your child, you might consider a better alternative.
Keep reading for a Gerber whole life insurance review.
A Quick Take On Gerber Whole Life
As far as insurers go, Gerber Life is middle-of-the-road. If you browse life insurance reviews, you’ll see that the company ranks anywhere from average to good. For instance, it ranks average in areas such as customer service.
Gerber is a well-known brand. Nevertheless, the company’s financial strength isn’t ideal for a company of its stature. Still, it’s taking steps to improve its financial health.
It’s nearly impossible to disassociate Gerber’s whole life insurance from Gerber the baby food. The Gerber name has been around since 1967. The company is under new management but still going strong.
Originally, Gerber’s whole life insurance was associated with the baby food company. The food company sold off Gerber Life to Western & Southern Financial Group in 2018. However, the insurer uses the Gerber name and logo as part of its licensing agreement with the baby food company.
Today, Gerber’s whole life offers children’s, whole, term, accident, and guaranteed life insurance. In total, the company offers seven insurance products.
Policyholders make plan payments monthly. As far as pricing, its insurance products are more expensive compared to other options. You can find a better alternative by shopping around.
Gerber Whole Life Insurance Review
Again, Gerber Life offers several insurance products. The following is a brief look at its plans.
Life Grow Up Plan
The Gerber Life Grow-Up Plan is a whole life insurance policy for children. It provides coverage options that range between $5,000 and $50,000.
Parents, legal guardians, and grandparents can apply for a Gerber Life Grow Up Plan policy. Children between the ages of 14 days and 14 years old are eligible for a plan.
At age 18, the amount of coverage doubles. Then, when a child turns 21, they become the owner of the policy.
There’s also a Gerber Life insurance product available for teens. In addition, parents or grandparents can purchase insurance policies for children between the ages of 15 to 17.
Gerber Life College Plan
Gerber promotes its Life College Plan as a savings plan that’s also adult life insurance. It’s a type of “endowment insurance policy.”
In other words, it pays a lump sum on a certain date or when the insured passes. The payout date is the earlier of the two.
Usually, a parent is the beneficiary of this kind of policy. Therefore, the payout will go to the parent in the event of the child’s untimely passing. If all goes well, however, the child will receive the payout on their graduation day.
Parents can purchase this coverage in amounts that range from $10,000 to $150,000. The return rate of the policy varies. Here, it’s important to note that policy returns are taxable income.
Gerber Term Life
Gerber also offers 10-year policies. You can also purchase a policy that covers either 20 or 30 years. These adult policies provide coverage between $100,000 and $300,000.
Most people do not require a medical exam for a Gerber term life policy. Also, the approval for a Gerber term life policy is fast. However, adults over 51 who want more than $100,000 of insurance coverage require a medical exam as part of the approval process.
Gerber Whole Life
Gerber’s whole life policies are available for adults with coverage amounts ranging between $50,000 and $300,000. The company does consider medical history during the application process for its whole life policies.
In most cases, however, a medical exam is not required. But, again, individuals over the age of 51 will need a medical exam if they’re applying for more than $100,000 of coverage.
Gerber Guaranteed Issue Whole Life for Seniors
This Gerber policy is for adults between the ages of 50 and 80. Seniors can apply for $5,000 to $25,000 of whole life coverage.
As the name of the policy implies, there’s no medical exam required for acceptance. All qualifying applicants are guaranteed coverage approval.
Gerber Accidental Death and Dismemberment Insurance
The Gerber Accidental Death and Dismemberment Insurance plan provides a benefit if someone passes or is diagnosed with a disabling injury. A disabling injury may include the loss of a hand, foot, or eyesight due to an accident.
However, its accident protection insurance varies slightly from life insurance. For example, it will not pay out if a covered individual passes due to an illness or natural causes.
Benefits of Gerber Life Policies
Again, the name Gerber instills confidence. Indeed, the company has been around for years, and it will most likely remain for years to come.
One of the biggest benefits of Gerber Life is that many of its whole and term life policies don’t require a medical exam. But, of course, this is a requirement with most other insurance companies. But, of course, there’s a catch—more on that in a moment.
Another benefit of a Gerber Life policy is that you can qualify for a discount with automatic payments. Policyholders can use either their checking or savings accounts to sign up for the discount.
The Drawbacks of Gerber Life Insurance
Here is where the benefits of Gerber Life insurance start looking less attractive.
Gerber Life insurance has a relatively low coverage amount. Most insurers provide $1 million or more in life insurance coverage. However, the maximum coverage with a Gerber term or whole life policy is only $300,000.
Also, Gerber Life charges more than most of its competitors. The monthly premiums for Gerber Life plans are high. If you’re in exceptional health and have no problems taking a medical exam, it’s in your best interest to search elsewhere for better rates.
Also, not all Gerber Life insurance plans are available in every state. Therefore, based on where you live, you may have limited options if you seek coverage through the insurer.
Gerber Life Additional Riders
Gerber’s limited additional riders is another drawback of the insurer. Most insurers allow policyholders to purchase extra endorsements.
For example, an extra endorsement might enable you to add coverage. Another endorsement might allow you to add additional family members. Yet other endorsements might enable you to access death benefits early under certain conditions.
Gerber Life policies, however, only have one available rider. Accordingly, your ability to customize a Gerber policy is highly limited.
The only rider that Gerber Life offers is the guaranteed purchase option. Also, it’s only available for Gerber Life Grow Up plans.
With the Gerber Life Grow Up Plan guaranteed purchase rider, a covered child can buy additional coverage once they turn 21. The additional coverage is available at adult premium rates. Also, there’s no medical exam required for the coverage.
Your child must purchase the coverage 90 days after turning 21. However, they can purchase up to 10 times more than the original coverage amount.
Still, Gerber limits the coverage amount to a maximum of $100,000. So the only positive aspect of the Gerber Life Grow Up Plan rider is that it’s free.
Looking Beyond Gerber Life for Your Insurance Needs
There are quite a few choices other than Gerber Life Insurance that are better for young families with children.
You may want coverage to protect your children. You may also want to save towards their college education. Instead of turning towards Gerber to fulfill both these needs, it’s better to split your strategy.
You can begin by searching for an insurer who will provide you with better coverage and options. Meanwhile, you can save towards your children’s college tuition by researching a separate vehicle that builds cash value, such as a 529 college savings plan.
As for whole life insurance, well-known providers such as MassMutual, Foresters, Penn Mutual, Ohio National, or New York Life may serve as a better alternative.
You might realize great savings and enjoy much better benefits by consulting with a trusted whole life insurance broker.
Learn More about the Coverage You Need Today
Hopefully, our Gerber whole life insurance review has provided you with the information you need to make an informed decision. However, if you’re searching for life insurance coverage for your family, an experienced and trustworthy life insurance broker can help.
Top Whole Health specializes in helping consumers just like you find the right whole life insurance. Our site can provide you with the best whole life insurance quote for your needs instantly. We’re the top source for finding the best insurance products for your family in seconds.
Also, we provide a wealth of information about choosing the right life and car insurance on our blog. So please feel free to browse our site and learn more about insurance at any time.
Contact Top Whole Life today at (855) 946-5353 or connect with us online for a fast and free quote.