Gerber Life Insurance Review: Decent, but Expensive, Option for Kids Who Might Need Guaranteed Coverage Later in Life
Review
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This life insurer is a good fit for: A person under the age of 51 who needs life insurance but is unlikely to pass a medical exam.
There's nothing at all complicated about applying for life insurance through Gerber. Although anyone who wants to apply for a $300,000 to $1 million policy must call a Gerber representative to discuss the details, the process remains straightforward.
Gerber Life offers more no-exam options than most of its competitors. However, anyone 51 or older must undergo a medical examination for any policy worth more than $100,000.
A 10% discount can be helpful, particularly given that Gerber Life policies tend to be expensive.
The Gerber Life Grow-Up® Plan is a children’s whole life policy. As long as the premiums are paid, the policy will remain active the child's entire life. At age 18, the coverage amount on the policy doubles. The policy also guarantees that the child can purchase additional life insurance coverage through Gerber as an adult, regardless of their health or occupation.
It's tough to find a life insurance company with higher term life premium costs.
Each of Gerber Life's no-exam options offer only policies with relatively low death benefits.
Chances are, you can tack a child's life insurance rider onto your life insurance policy at a lower cost than you'll pay through Gerber Life.
Gerber Life term rates are exceedingly high as compared to the competition. For example, through American Family Life Insurance, a 35-year-old male, non-smoker would pay only $339.72 annually for $300,000 coverage for 20 years. A 35-year-old female non-smoker would pay only $278.76 annually. Here are Gerber Life rates for the same level of coverage:
| Term Coverage | Annual Premium |
|---|---|
| 35-year-old male, non-smoker, $300,000 coverage for 20 years | $1,014* |
| 35-year-old female, non-smoker, $300,000 coverage for 20 years | $726* |
If you're looking for term life insurance from a company with a higher rate of customer satisfaction: State Farm shines where Gerber Life does not. However, Gerber Life offers more no-exam policies than State Farm.
If you want a far less expensive policy, American Family is a better choice. However, Gerber Life offers more policy options for children and teens.
When you buy a term life policy, it remains active for a specific amount of time. For example, if you purchase a 30-year policy, it will naturally expire at the end of the 30th year. However, if you die during those 30 years, your designated beneficiaries receive the death benefit on the policy.
As long as you continue to make the premium payments, whole life insurance sticks with you your entire life. The premium never goes up, so it's easy to budget for. A portion of each whole life payment goes toward building cash value. That's one of the reasons whole life is so much more expensive than term life.
As the name implies, guaranteed life is for those who need insurance but do not wish to undergo a medical exam. Death benefit limits tend to be low and premiums high.
If a policyholder is diagnosed with a chronic or terminal illness, they can use the accelerated death rider to access a portion of their policy's death benefit to pay for a host of expenses.
In the event a policyholder becomes totally disabled, can't work, or can't pay their premiums, this waiver allows them to stop making payments until they're back on their feet. Gerber makes this rider available to whole life applicants ages 18 to 59.
A payment protection rider can be added to the Gerber Grow-Up Plan. If the policyholder dies or becomes disabled, this rider will keep a child's policy in force until their 21st birthday when they'll need to resume payments.
Adults between the ages of 50 and 80 are guaranteed $5,000 to $25,000 in whole life coverage without having to answer health questions or undergoing a medical exam.
Applying for a Gerber Life Insurance policy can be completed in four easy steps. A potential policyholder begins by either filling out a quick online application or calling a Gerber representative. The applicant will need to provide basic information like age, sex, and state of residence. They'll also be asked to choose a beneficiary.
If the policy requires a medical exam, the next step is to select a time and place for the examination to take place. The advantage is that it can be a time and place that works for you. Exams typically involve checking blood pressure, recording height and weight, and drawing samples of blood and urine.
Finally, the application and exam results will move to underwriting for review. At that time, Gerber Life will provide a premium quote.
Age eligibility for Gerber Life Insurance depends upon the type of policy you're interested in buying. For example:
J.D. Power Individual Life Insurance Study does not include Gerber Life in its review of customer service ratings. However, existing customers give the company a rating of 1.22 stars out of 5 on the Better Business Bureau website. Complaints appear to center around slow response times and unfulfilled promises by Gerber representatives.
Gerber Life Insurance is best suited for:
But you may want to consider State Farm if you're looking for a company with greater consumer satisfaction or American Family if you want a far more competitive rate.
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