Gerber Life Insurance: Cashing Out And What You Need To Know

Gerber Life Insurance offers whole life insurance policies that accrue cash value over time. This means that after the initial policy years, Gerber Life sets aside a small amount of money each time you make a premium payment. This accumulated cash value can be borrowed against or withdrawn by cancelling the policy. The Grow-Up® Plan is a whole life insurance policy for children that offers this cash value feature, while the Guaranteed Life Plan is a similar option designed for adults aged 50 and over.

Borrowing against the cash value of a Gerber Life Insurance policy

The cash value of a Gerber Life Insurance policy is a feature of whole life insurance policies. After the initial policy years, each time you pay your premium, Gerber Life sets aside a small amount of money, which accumulates over time and becomes the cash value of your policy. The longer you hold the policy and pay the premiums, the larger the cash value grows. This cash value never expires as long as the premiums are paid.

Borrowing Against Cash Value

As a policy owner, you can borrow money against the cash value of your Gerber Life Insurance policy. This option provides financial flexibility in case of unexpected expenses or emergencies, such as car repairs, college costs, or periods of unemployment. It's important to note that policy loan interest is typically charged at 8%, and loans may impact the cash value and death benefit.

Impact on Payout

When borrowing against the cash value, it's essential to consider the impact on the policy's payout. The loan and accrued interest should be paid off as soon as possible to maintain the full payout amount. If there is any outstanding debt against the policy at the time of your death, the payout to your beneficiaries may be reduced.

Cancelling the Policy

If you decide to cancel or surrender your Gerber Life Insurance policy, you will receive the accumulated cash value minus any outstanding debt against the policy. This "surrender value" represents the actual sum of money you would receive upon terminating the policy.

Other Uses of Cash Value

In addition to borrowing against the cash value, the accumulated cash value can also be used to pay monthly premiums if you are temporarily unable to make the payments. This option helps keep your policy active and ensures continued financial protection.

Cancelling a Gerber Life Insurance policy

You can cancel your Gerber Life Insurance policy by logging into your Gerber eService account online or by calling the Gerber Life customer service phone number, 1-800-704-2180. Gerber's customer service phone line is open Monday through Friday from 8 a.m. to 7 p.m. Eastern Time (ET).

When you contact Gerber Life Insurance, a service representative may ask for the reason for your cancellation. Common reasons for cancelling Gerber Life Insurance include finding a better policy with another company, changing financial circumstances, or no longer needing the coverage.

If you cancel your policy, you will receive the accumulated cash value that has built up over time, minus any outstanding debt against the policy.

Gerber life insurance policies typically have a 30-day period where customers can cancel anytime for a full refund. However, if you cancel after the 30-day trial period, you may be charged a small penalty fee for cancellation, and you may not receive the full value of your policy.

Using the cash value to pay monthly premiums

Gerber Life Insurance offers whole life insurance policies that accrue cash value over time. This cash value can be used to pay monthly premiums in certain circumstances.

The Gerber Life Grow-Up® Plan is a whole life insurance policy for children that allows them to build a cash nest egg over time. This policy can be an ideal way for parents and grandparents to plan for their children's future. The longer the policy is held and premiums are paid, the more cash value accumulates. By the time a child turns 21 and becomes the policy owner, they will have a valuable whole life insurance policy and accumulated cash value.

In the event that a policyholder is unable to make premium payments, Gerber Life may use the policy's available cash value to pay them. This ensures that the policy remains in force and provides continued financial protection for the policyholder's family.

It is important to note that the cash value of a whole life insurance policy is distinct from its "surrender value." The cash value represents the amount the policy is worth at a given point in time if it were cashed in or used as collateral for a loan. On the other hand, the surrender value is the actual sum of money received if the policy is terminated, including any outstanding loans, interests, or premiums due.

Gerber Life Whole Life Insurance offers coverage amounts ranging from $50,000 to $300,000, with higher amounts available for those who qualify. The monthly premium amount is locked in when the coverage starts and remains the same throughout the life of the policy. By purchasing a policy earlier in life, individuals can take advantage of lower premium rates based on their age.

Receiving the cash value of a Grow-Up® Plan

The Gerber Life Grow-Up® Plan is a whole life insurance policy for children that builds cash value. The policy owner is the parent or grandparent until the child reaches the age of 21, at which point the child becomes the policy owner and is guaranteed lifelong insurance protection as long as premiums are paid.

Each time a monthly premium payment is made for the Grow-Up® Plan after the initial policy years, Gerber Life sets aside a small amount of money. Over time, this becomes the cash value of the policy, which is available for the policy owner to borrow against. The longer the policy is held, the longer the cash value builds.

If the policy is ever turned in, the policy owner will receive the accumulated cash value that has been building over time, less any outstanding debt against the policy.

The cash value of the Grow-Up® Plan can be used in several ways. The policy owner can borrow against the cash value by taking a policy loan, which is useful if you need immediate cash. This loan comes with an 8% interest rate and may impact the cash value and death benefit. If the policy owner is temporarily unable to pay the monthly premiums, Gerber Life may be able to pay them using the policy's available cash value.

When the child becomes the policy owner at age 21, they gain the valuable whole life insurance protection as well as the accumulated cash value. They also have the option to buy additional coverage as an adult, regardless of their health or occupation. At this point, the child can also choose to turn in the policy and receive the available cash value.

Eligibility for a Gerber Life Guaranteed Life Insurance plan

Gerber Life Guaranteed Life Insurance is a whole life insurance policy for adults aged 50 and above that does not require a medical exam or ask health questions. Your acceptance is guaranteed regardless of your health, and there are no medical exams to complete or lengthy health questionnaires to fill out. The total limit of all combined Gerber Life Guaranteed Life policies is $25,000 ($15,000 for South Dakota residents).

To be eligible for coverage, you must be a U.S. citizen residing in the U.S. or a permanent legal resident. The age limit is between 50 and 80 years old, except for New York residents, for whom the maximum age is 75.

Gerber Life Insurance Company will not issue insurance for any proposed insured when a Power of Attorney or Guardianship exists on the proposed insured, except for legal guardians of children.

Frequently asked questions