Table of Contents Hide
- Gerber Life Insurance Company Policy and Products
- Pros and Cons of Gerber Life Insurance Company
- Customer Reviews & Complaints about Gerber Life Insurance Company
- Gerber Life Insurance Company Payments
- Gerber Life Insurance Policy on Cancellation
- Gerber Life Insurance Cost
- Can I customize my Gerber Life Insurance policy?
- How do I file a claim with Gerber Life Insurance?
- What happens if I miss a payment on my Gerber Life Insurance policy?
- How do I know if Gerber Life Insurance is right for me?
- How do I renew my Gerber Life Insurance policy?
- Is Gerber Life Insurance only available in the US?
- Gerber Life Insurance Company FAQs
- What happens to Gerber Life Insurance when child turns 18?
- How long does Gerber Life take to pay out?
- What is the Gerber Life Grow Up Plan?
Gerber Life Insurance was launched in 1967 by the Gerber Products Company, a company well-known for its baby food and the world-famous Gerber infant. They now have more than $50 billion in life insurance in force. They sold about 283,000 new life insurance policies in 2019.
Gerber life insurance specializes in insurance for young children, including babies and infants, and offers term, whole, accidental death, and guaranteed issue policies. So, the Gerber Life Insurance policy may be a suitable alternative for parents who wish to safeguard their child from the unexpected or who want to save for the future. Let’s see the reviews and policies of Gerber Life Insurance.
Gerber Life Insurance Company Policy and Products
Gerber offers a variety of life insurance policies for children, adults, and the elderly. The majority of Gerber’s insurance options are a type of whole life insurance, and they are their finest policies. They also offer term life insurance, though we would prefer other insurers for term policies over Gerber.
#1. Gerber Life Insurance Grow up Plan
Gerber Life’s Grow-Up Plan is a whole life insurance policy that you can buy for your children or grandchildren between the ages of 14 days and 14 years. The Grow-Up Plan is similar to a traditional whole life insurance policy in that it has level premiums and accumulates cash value, but there are a few key differences:
You are the policyholder until the child reaches the age of 21. When they reach the age of 21, they become policyholders and have the option to acquire additional coverage without having to undergo a health examination.
Grow-Up Plan insurance for the child can only be purchased in amounts ranging from $5,000 to $50,000. The policy’s death benefit, however, will quadruple when the child reaches the age of 18. A $25,000 policy would therefore become a $50,000 policy, with no increase in premiums.
The cash value of the Grow-Up Plan grows at a guaranteed pace over time, so that after 25 years, it should equal or exceed the amount you paid in premiums. The disadvantage is that, while kid life insurance is relatively cheap, the policy’s cash value does not accumulate much money. Furthermore, the Grow-Up Plan is similar to other whole life insurance policies in that it can take three to four years before you see any cash value, as early premium payments are used to cover the insurer’s fees.
As a result, if you decide to cancel your policyHOME INSURANCE: Best Insurance Companies and Policy within the first few years of coverage, you will receive little to no money back. Furthermore, even if your child keeps the policy for 25 years, the cash value would most certainly be insufficient to cover big expenses such as a wedding.
To demonstrate, we compared quotes and guaranteed cash values for the Gerber Grow-Up Plan, assuming you purchased coverage for a recently born male baby.
Quotes for Gerber Life Insurance Grow up Plan
|Initial Death Benefit||Monthly Premium||Guaranteed Cash Value After 25 Years|
As these numbers illustrate, the cash value in a Gerber Grow-Up Plan takes decades to accumulate, and even when it does, the death benefit is significantly lower than an adult would ordinarily require. As a result, the major benefit of a Gerber Life Grow-Up Plan is its initial death benefit, which is sufficient to cover the costs of a funeral and counseling for family members if your kid dies.
However, if you desire this type of coverage for your children, you may be better off purchasing a kid rider on your own life insurance policy. A child rider is less expensive and will cover all of your children with a single payment. If you had more than one child who needed coverage, you would have to purchase numerous Grow-Up Plans.
#2. Young Adult Plan by Gerber Life Insurance
Gerber Life’s Young Adult Plan is identical to its Grow-Up Plan, with the exception that it is designed for teenagers aged 15 to 17. The only major difference between the policies is the cost of the Young Adult life insurance coverage, which is more expensive.
#3. Gerber Life Insurance College Plan
Gerber Life’s College Plan is an endowment life insurance policy rather than a standard college savings fund, such as a 529 plan. Endowment policies, like whole life insurance policies, generate cash value at a guaranteed rate and have level premiums.
In contrast to a whole life policy, coverage with an endowment policy is limited to a set number of years. If you die within the time of coverage, your beneficiaries will get the whole face value of the policy. If, on the other hand, you live longer than the period of coverage, you will receive the policy’s face value, which will be equal to its cash worth at that point.
Gerber College Plans have face values ranging from $10,000 to $150,000 and are priced according to your health, as you will be the one insured for the duration of the coverage.
Gerber’s endowment life insurance policy is known as a College Plan since the funds are intended to be used to pay for your child’s education. However, as an endowment life insurance policy, Gerber’s College Plan differs significantly from other college savings options, such as 529 plans. This is how it differs:
- The premiums are not deductible by the state.
- You have no say in how your cash worth is invested; instead, the policy’s value at maturity is guaranteed.
- Colleges do not take endowment life insurance into account when calculating financial aid.
- You are free to spend the money however you want, not just on schooling.
While the College Plan provides life insurance coverage, it does not give all of the benefits of conventional life insurance policies. The most significant difference is that your cash value investment gains are not tax-free, which diminishes the overall benefits of the policy. Given the policy’s low returns, merely purchasing term coverage and investing in an alternate college savings account would most likely be more profitable.
Assume you’re a 35-year-old parent who recently had a child and costs to save enough money to pay for your child’s education expenses 20 years from now. Gerber’s College Plan would cost $436.02 per month for $130,000 in guaranteed coverage. You would have paid $104,645 in premiums over a 20-year period. When the premiums paid are subtracted from the policy’s coverage amount, the gain before taxes is only $26,355. That figure indicates an average rate of return of only 2.1 percent during that time span. Even that yield would be lowered further if taxes were included.
Gerber’s College Plan may be an excellent alternative if you are concerned about your capacity to contribute to a college savings plan on a consistent basis or are particularly risk-averse. Returns are guaranteed, and if you have an emergency and need money, you can access the policy’s cash value either through a loan or by surrendering the policy.
Policy loans have an 8% interest rate, but you can keep the money for as long as you need it. Surrenders are expensive at the beginning, and no cash value is normally accumulated for the first three years of coverage. However, after you reach the policy’s midpoint, you will be entitled to recuperate the whole of all premiums paid.
#4. Whole Life Insurance from Gerber Insurance
Adults can also get whole life insurance from Gerber Life, with policy death benefits ranging from $25,000 to $150,000. Gerber’s whole life insurance works in the same way as their child insurance in that it has level rates and accumulates cash value. However, their adult policies allow you to add a premium rider waiver. This rider is more expensive, but it gives you the option of continuing coverage without paying premiums. That is if you are totally disabled for more than 6 months.
Gerber whole life insurance policies are available without a medical exam if you are under the age of 51 and want less than $100,000 in coverage. If you’re not in good condition and don’t require a lot of coverage, Gerber Life is a suitable option for simple issue whole life insurance. Most insurers who sell such policies provide up to $50,000 in whole life coverage without requiring a medical evaluation. Furthermore, if you have a bad health rating, Gerber’s premiums are substantially cheaper than those you may get with fully underwritten coverage.
However, a term life insurance policy may be a better option for you. Because whole life insurance is relatively expensive, this option may be less expensive. And, if you are unable to obtain a policy that is large enough to cover your needs, you may end up spending a lot of money on an insufficient answer.
#5. Gerber Term Life Insurance
Gerber’s term life insurance offers coverage ranging from $25,000 to $150,000 and does not require a medical exam if you are under 50 and want a death payout of up to $100,000. Term duration can be 10, 15, 20, or 30 years, and you can convert it to a whole life insurance policy if your needs alter. If you reach the end of your term and need a few additional years of coverage, you can renew for a 5-year term at the same health rating. However, after you reach the age of 65, you will no longer be entitled to renew.
If you’re seeking fully underwritten or simple issue term life insurance, we don’t suggest Gerber Life. Even if you have health difficulties and would struggle to pass a medical exam, several insurers provide no medical exam term policies with larger maximum death payouts. Furthermore, Gerber’s term life insurance prices are much higher than those found elsewhere for simplified issue policies.
#6. Gerber Guaranteed Acceptance Life Insurance
Gerber offers guaranteed acceptance of whole life insurance to seniors between the ages of 50 and 80. This policy accumulates cash value and has level premiums, but death payouts are restricted to $5,000 to $25,000. There is a two-year waiting period during which the entire death benefit will not be given if you die for any reason other than an accident. Instead, your beneficiaries would receive the total of the premiums paid plus 10% interest. As a result, if you died as a result of a heart attack or sickness, your family would receive very little in life insurance proceeds.
Gerber’s coverage is quite basic, as many guaranteed acceptance policies include a minimal maximum death benefit and a waiting period. Gerber, on the other hand, has lower rates for this product than most other insurers.
Remember that guaranteed acceptance insurance is substantially more expensive than other types of life insurance. This is because the insurer gets no health information and hence assumes you’re a high insurance risk. This insurance is usually only worth considering if you have a serious pre-existing ailment, such as kidney failure that necessitates dialysis, or if you are unable to do basic activities without assistance.
#7. Gerber Accidental Death and Dismemberment Insurance
Accidental death and dismemberment insurance pays rewards to your family if you are killed or injured in an accident. Because you’re less likely to die as a result of an accident, it’s usually less expensive than regular life insurance (since mishaps account for only about 5 percent of deaths).
When compared to other insurers, Gerber Life’s premiums for accidental death and dismemberment insurance are relatively affordable, especially if you’re older or have any health conditions. Their AD&D insurance is guaranteed acceptance, which means that no medical tests or health questions are required, and rates are not based on your age. However, policies are limited to $100,000 in death benefits and are only offered to those aged 19 to 69.
|Death Benefit||Monthly Premium|
Gerber Life would pay out varying amounts of money based on the severity of your injuries after an accident, which is a common process for AD&D insurance. Here’s how it works:
- If you die, your beneficiaries will get the entire death benefit of the policy.
- Gerber Life will pay out 50% of the death benefit if you lose one eye, one foot, or one hand.
- Gerber will pay 100 percent of the death benefit if you lose two limbs, both eyes, or an eye and a limb.
Please keep in mind that Gerber Life will not compensate you if you lose your hearing, speech, or ability to move as a result of an accident. Some insurers, in addition to covering limb loss, provide coverage for these types of disabilities if you want greater coverage.
Pros and Cons of Gerber Life Insurance Company
#1. Medical examinations may not be required for whole or term life insurance policies:
While most insurance firms require all applicants for term and whole life insurance policies to undergo medical exams, Gerber Life may not. You may be able to acquire coverage without taking a test if you answer the health questions on the application correctly and are of a certain age.
#2. Guaranteed issue policies are available:
Gerber Life offers guaranteed issue policies to customers aged 50 to 80. There are no medical tests or health questions to take, and acceptance is guaranteed.
#3. If you sign up for automatic payments, you can get a discount on your monthly premiums:
If you sign up for automatic payments from a savings or checking account, you can get a discount on your monthly premiums.
#1. Gerber Life provides relatively limited coverage amounts.
While other firms allow you to purchase $1 million or more in life insurance, Gerber Life’s maximum amount of coverage is a $300,000 term or whole life policy.
#2. Rates that are higher than average:
Gerber Life’s premiums are often higher than those of other firms. Lower rates are likely to be found elsewhere if you are in good health and ready to submit to a medical exam.
#3. While Gerber Life has licenses in all 50 states, including the District of Columbia, not all of its plans are accessible in every state. Your selections may be more limited depending on where you live.
Customer Reviews & Complaints about Gerber Life Insurance Company
The NAIC complaint ratio for Gerber Life Insurance Company is 0.68, indicating that they receive a disproportionately low number of bad reviews in comparison to the amount of business they write. Furthermore, many policyholders give Gerber Life high marks for enrollment, complimenting how easy it is to sign up for a policy and qualify for coverage.
However, there have been some negative reviews about the company. These are mostly centered on issues that some customers encountered when attempting to receive payment from Gerber Life, which makes it one of the worst life insurance firms in the business. Customers complain about having difficulty collecting money from Gerber, whether they are attempting to surrender a policy, take out a policy loan, or file a claim following the loss of a family member.
Gerber Life’s marketing messages have also received a lot of critical reviews. In other situations, clients thought they were boosting their coverage when, in reality, they were getting a completely new policy.
Other reviewers were perplexed by Gerber’s Grow-Up Plan and College Plan, as the company has highlighted the Grow-Up Plan’s financial worth as a method to help pay for college. If you’re thinking about getting coverage from Gerber Life or another insurer, be sure you know exactly what you’re getting. The costs of canceling coverage, as well as the related difficulties, make it worthwhile to double-check these data.
Gerber Life Insurance Company Customer Complaints
According to three years of statistics from the National Association of Insurance Commissioners, Gerber received more than the expected number of complaints to state regulators for life insurance for a company of its size.
Gerber Life Insurance Company Payments
Gerber Life insurance payments can be made by check or online. While many insurers allow you to charge directly from a checking or savings account, Gerber Life also allows you to pay with a credit card. Furthermore, if you set up automatic billing, you will receive lower premiums for some products, such as accidental death insurance.
Some insurance companies allow you to tailor your coverage by adding riders, also known as insurance endorsements, to your policy. Under some conditions, you can add coverage, include more family members, or receive your death benefits early with certain riders.
Unfortunately, Gerber Life only offers a single rider, so your options for customizing your policy are restricted.
On Grow-Up Plans, the only possible rider is the guaranteed purchase option life insurance rider. This rider is included at no additional cost with your policy. It allows your child can purchase additional coverage after they reach the age of 21, at the usual adult premium rates, with no medical exam.
Your child gets 90 days after reaching the age of 21 to purchase adult life insurance, and they can purchase up to ten times the original coverage amount, for a total of $100,000 in insurance.
Index of Complaints
Gerber Life Insurance provides excellent customer service.
Every year, the National Association of Insurance Commissioners (NAIC) publishes company complaint ratios. A complaint ratio is a figure that represents the number of complaints the NAIC gets in relation to the company’s market share.
1.0 was established as the industry standard by the NAIC. Any complaint ratio less than 1.0 is considered better-than-average, while any ratio more than 1.0 is considered worse-than-average. Gerber Life Insurance Company’s complaint ratio is 2020 was 0.40, which was lower than the industry average. 4
Gerber has maintained continuously low complaint ratios for the previous three years, receiving fewer complaints than would be expected for a company of its size.
AM Best is a credit rating service that assigns Financial Strength Ratings (FSRs) to companies in the insurance business. Its FSRs are its assessments of a company’s ability to satisfy its financial, contractual, and policy commitments. A good grade shows that a company is financially stable and capable of paying its claims.
Gerber Life Insurance Company received an A (Excellent) rating from AM Best in 2020, highlighting the company’s balance sheet soundness and operating performance.
The J.D. Power 2020 U.S. Life Insurance Study did not include Gerber. According to the survey, 23 major life insurance firms were ranked based on their product offers, costs, and customer interactions.
Gerber Life Insurance Policy on Cancellation
Most businesses provide a 10-day free trial period during which clients can review and cancel their policies without penalty.
Gerber Life takes a step further by providing a 30-day free trial. You have 30 days from the date of receipt to review and accept your policy. If you decide you no longer want your policy, you can cancel it and receive a full refund of any premiums paid.
After the free look period, cancellation policies differ depending on your policy, so carefully review your contract. You can, for example, cancel your Grow-Up Plan at any moment. You will receive the accrued cash value, less any existing debt.
Call 800-704-2180 to cancel your policy.
Gerber Life Insurance Cost
Gerber Life is typically more expensive than the average cost for those in high to outstanding health.
Rates vary depending on where you live, your gender, age, and smoking history. The rates listed below are for a whole life policy and include the automatic payment discount.
|Coverage Amount||35-Year-Old Female, Non-Smoker||35-Year-Old Male, Non-Smoker|
Gerber Life, like other life insurance firms, requires you to select “male” or “female” when getting a quote and applying for coverage; there is no nonbinary option. Being nonbinary does not preclude you from obtaining life insurance coverage. However, most organizations’ underwriting processes have not been modified to reflect a knowledge of gender concerns.
Gerber Life offers a variety of life insurance plans aimed at young families with children. It may be a good option for you if you want coverage that protects your children while also helping them save for their college education.
Gerber Life policies, on the other hand, may be more expensive than plans from other life insurance firms. It also has rather limited coverage restrictions. With a maximum coverage value of only $300,000, a Gerber Life policy is unlikely to be enough to adequately care for your family’s requirements if you die.
Consider New York Life if you want policies with better coverage amounts and competitive prices. New York Life offers term, whole, and universal life insurance policies with a variety of policy amounts to select from. It also includes a number of riders that allow you to tailor your coverage, including chronic care and living benefit riders.
In the 2020 J.D. Power Life Insurance Study, New York Life was second out of 23 life insurance companies.
|Gerber Life Insurance||New York Life|
|Market Share||Not applicable||Second-largest in the U.S., 6.35%|
|Number of Plans||7||9|
|Dividends for 2023||Not applicable||$1.8 billion|
|Wellness Program Discounts/Quit Smoking Incentives||Not applicable||Not applicable|
|Service Method||Phone, web||Agents|
|AM Best Rating||A (Excellent)||A++ (Superior)|
|Price Rank||Fair||Better Than Most|
Our life insurance company reviews are based on a quantitative approach that evaluates each insurer based on their stability and dependability, customer service, claims experience, product diversity, and cost. We compare the conditions of each policy type offered, including possible coverage amounts, optional riders, and premium payment choices, to those of other major life insurance providers. Finally, we consider how the company is regarded by third-party organizations in order to assess its dependability and general reputation.
Can I customize my Gerber Life Insurance policy?
Yes, Gerber Life Insurance allows you to customize your policy to meet your specific needs and budget. A representative can help you choose the coverage options that are right for you.
How do I file a claim with Gerber Life Insurance?
To file a claim with Gerber Life Insurance, you will need to provide proof of the policyholder’s death and any other required documentation. A representative can guide you through the process and answer any questions you may have.
What happens if I miss a payment on my Gerber Life Insurance policy?
If you miss a payment on your Gerber Life Insurance policy, your coverage may be cancelled or terminated. You may be able to reinstate your policy, but it’s best to contact a representative for more information.
How do I know if Gerber Life Insurance is right for me?
Gerber Life Insurance may be right for you if you’re looking for coverage to protect your family’s future. A representative can help you determine if Gerber Life Insurance is the right choice for you based on your specific needs and budget.
How do I renew my Gerber Life Insurance policy?
To renew your Gerber Life Insurance policy, simply contact a representative, and they can assist you in renewing your coverage.
Is Gerber Life Insurance only available in the US?
Gerber Life Insurance is currently only available in the US.
Gerber Life may be a suitable option if you want to buy life insurance for your child to assist them in getting a head start as young people or if you want a supplemental policy for yourself. If you are under the age of 51, you can qualify for most of its insurance policies without having to take a medical exam, and you can start receiving coverage as soon as you submit your first premium payment.
However, its coverage quantities are relatively modest, and its prices are higher than those offered by other insurance firms. If you’re prepared to search around and submit to a medical checkup, you can probably get more comprehensive coverage at a lower cost elsewhere.
Gerber Life Insurance Company FAQs
What happens to Gerber Life Insurance when child turns 18?
The coverage will automatically double on the policy’s anniversary date during the year your child turns 18 at no extra cost. This implies that if you first purchased a $25,000 Grow-Up® policy, it would double into a $50,000 policy, and so on.
How long does Gerber Life take to pay out?
When it matures in 10 to 20 years, the Gerber Life College Plan is an individual endowment policy with an adult life insurance benefit that gives a guaranteed payout of $10,000 to $150,000.
What is the Gerber Life Grow Up Plan?
The Gerber Life Grow-Up® Plan is a children’s whole life insurance policy that can offer your child or grandchild with lifelong insurance protection as long as premiums are paid.