Gerber Life Insurance: Getting Your Money Back

Gerber Life Insurance offers a range of life insurance products for people at different life stages, including children. The Grow-Up® Plan is a whole life insurance policy for children that offers lifelong coverage as long as premiums are paid. This policy allows parents or guardians to start protecting their children early on, with coverage starting as young as 14 days old. The younger the child is when the policy is purchased, the lower the monthly premium. This premium rate is locked in and will never increase, even after the child becomes the policy owner at age 21.

The Grow-Up® Plan also includes benefits such as coverage that automatically doubles during the child's 18th year at no extra cost and the guaranteed right for the child to buy more coverage as an adult, regardless of their health or occupation. Additionally, the policy builds cash value over time, which can be borrowed against if needed. This cash value can be used for various purposes, such as covering lost income, rent, or education costs.

If you decide to cancel your Gerber Life Insurance policy, you will receive the accumulated cash value that has built up over time, minus any outstanding debt against the policy. However, Gerber Life imposes strict conditions on policyholders who wish to cancel, and you may find that you lose money by cancelling the policy before your child's 25th birthday.

Gerber Life Grow-Up® Plan

Here's how the Grow-Up® Plan works:

Locked-in Premium Rate

The premium rate is locked-in and will never increase during the life of the policy, even after your child becomes the policy owner at age 21. This means that getting a life insurance policy at a younger age can save you money in the long run.

Coverage Doubles at Age 18

The coverage amount automatically doubles during the year your child turns 18, at no extra cost. For example, a $25,000 policy would double to $50,000.

Guaranteed Right to Buy More Coverage as an Adult

Your child has the guaranteed right to buy more coverage as an adult, regardless of their health or occupation. They can buy up to ten times the original policy amount at the standard adult premium rates.

Builds Cash Value

The Grow-Up® Plan builds cash value over time, which can be borrowed against if needed. After the initial policy years, Gerber Life sets aside a small portion of each premium payment, which grows into the policy's cash value. This money can be borrowed against or the policy can be turned in to receive the available cash value.

If you decide to cancel the Grow-Up® Plan, you will receive the accumulated cash value that has built up over time, minus any outstanding debt against the policy. However, it's important to note that the cash value will be nonexistent for the first several years, and it will take 25 years for the cash value to equal the total value of the premiums paid. Therefore, cancelling the policy before your child's 25th birthday will result in a loss of money.

Cash value

Gerber Life Insurance offers a whole life insurance policy for children called the Grow-Up® Plan. This plan builds cash value over time, which can be used for various purposes.

When you make a monthly premium payment for your child's Grow-Up® Plan, Gerber Life sets aside a small amount of that money. Over time, this becomes the cash value of your policy. This money is available for you to borrow against if you ever need cash. Your child will also have the option to borrow against the cash value or receive the available cash value when they become the policy owner at age 21.

The cash value of a Gerber Life policy is equal to its "surrender value". If you cancel your policy, you will receive its full surrender value upon cancellation. However, it's important to note that the surrender value will be non-existent for the first several years of the policy. After this initial probationary period, it will grow at an accelerating rate until it eventually matches the total value of the premiums paid over the life of the policy.

The cash value of your policy can be used for various purposes. You can borrow against the cash value by taking a policy loan, which is subject to an 8% interest rate. This option may be useful if you need immediate cash and lack adequate savings. You can also use the cash value to make premium payments or turn in the policy and receive the available cash value.

It's important to remember that any loan debt against the policy will reduce the amount you would receive if you surrendered the policy or the payout amount to your beneficiaries. Additionally, policy loans may impact the cash value and death benefit of the policy.

Cancelling a Gerber Life Insurance policy

Step 1: Understand the Implications of Cancelling

Before initiating the cancellation process, it is essential to consider the implications of cancelling your Gerber Life Insurance policy. Cancelling your policy may result in losing money, especially if you cancel before your child's 25th birthday. The cash value of your policy, also known as the surrender value, takes several years to accumulate, and you may not have any surrender value during the initial probationary period. Therefore, carefully review your policy documents to understand the rate at which your policy's surrender value is growing.

Step 2: Decide on Your Cancellation Method

Gerber Life Insurance offers two methods for cancelling your policy: online or by phone.

Online Cancellation:

To cancel your policy online, you can log in to your Gerber eService account and send a message to a customer representative requesting cancellation. Alternatively, you can email Gerber customer service at *Gerber Life* and provide your application or policy number, your name, and other relevant details.

Phone Cancellation:

If you prefer to speak to someone directly, you can call the Gerber Life customer service phone number at *1-800-704-2180. Their phone lines are open Monday through Friday from *8 a.m. to 7 p.m. Eastern Time. When calling, make sure to have your policy and personal information ready for verification purposes.

Step 3: Confirm Your Cancellation

After initiating the cancellation process, it is crucial to confirm that your policy has been successfully cancelled. Gerber will typically send you an email confirmation once your cancellation is processed. If you don't receive an email, check your junk mail folder or contact Gerber again for confirmation. Additionally, if you have automatic payments set up, check your bank account to ensure that no accidental charges occur after cancellation.

Step 4: Understand the Refund Process

When you cancel your Gerber Life Insurance policy, you are entitled to receive the accumulated cash value that has built up over time, minus any outstanding debt against the policy. The cash value of your policy is equal to its *surrender value*, which you can find on your most recent statement. This value will increase over time, and once your policy has been in effect for 25 years, it will be equal to the total value of the premiums you have paid.

Step 5: Explore Alternative Options

Before finalizing your decision to cancel, consider exploring alternative options. If you are facing financial difficulties, you may want to discuss options with Gerber to find a way to lower your rates. Additionally, review the benefits of your policy and consider whether there are any changes or adjustments that can be made to better meet your needs.

Remember, life insurance is an important tool for protecting your family's financial future, and it is always a good idea to carefully evaluate your options before making any decisions.

Premium rates

Gerber Life Insurance offers a range of premium rates for its various insurance plans, which are designed to cater to different needs and budgets. The premium rates vary depending on factors such as the type of insurance plan, the amount of coverage, the age of the insured, and the state of residence.

The Grow-Up® Plan, a whole life insurance policy for children, has premium rates that depend on the chosen coverage amount, the child's age at the time of application, and the state of residence. This plan offers coverage starting at $5,000 and can provide a lifetime of insurance protection for the child, with premiums as low as $1 per week.

Gerber Life's Whole Life Insurance Plan for adults offers coverage amounts ranging from $50,000 to $300,000, with the option to increase up to $1 million for those who qualify. The premium rates for this plan are locked in and will not increase as long as the premiums are paid.

The Guaranteed Life Insurance Plan is available for adults aged 50 and above, with coverage amounts ranging from $5,000 to $25,000. The premium rates for this plan are also guaranteed to remain the same throughout the policy's duration, unless the policyholder chooses to increase the coverage or payment frequency.

Gerber Life also offers Term Life Insurance, which is generally a more affordable option compared to Whole Life Insurance. The Term Life Insurance Plan provides coverage for a specified period, such as 10, 20, or 30 years, and the premium rates remain fixed during that period.

Additionally, Gerber Life's Accident Protection Insurance offers coverage ranging from $50,000 to $250,000, with monthly premiums starting at $5.23 for a $50,000 policy. This plan provides financial protection in the event of a covered death or disabling injury caused by an accident.

It is important to note that premium rates may vary based on individual circumstances, and interested individuals should contact Gerber Life or visit their website to obtain specific quotes and information regarding their desired insurance plan.

Borrowing from the cash value

Building Cash Value

Each time you make a monthly premium payment for your child's Grow-Up Plan, Gerber Life sets aside a small amount of that money, which accumulates over time as the policy's cash value. This cash value can be borrowed against if you need ready cash.

Borrowing Process

The process of borrowing against the cash value is straightforward. You can reach out to your agent or Gerber Life Insurance directly, fill out a basic form, and if your cash value is sufficient, you will receive the funds within a few business days. There are no lengthy applications or approval processes involved.

Interest Rates

It's important to note that interest will be charged on the borrowed amount. Gerber Life Insurance charges an 8% interest rate on policy loans. This interest accrues over time, so it's in your best interest to repay the loan as soon as possible to minimize the amount of interest you pay.

Impact on Death Benefit

Borrowing against the cash value will reduce the death benefit if the loan is not paid off. If the loan remains unpaid, the outstanding balance, including interest, will be deducted from the death benefit when it becomes payable. This means that your beneficiaries will receive a reduced benefit.

Surrender Value

If you decide to cancel your Gerber Life Insurance policy, you will be entitled to receive the surrender value, which is the cash value that has accumulated in the policy. However, it's important to note that the surrender value may be nonexistent during the initial years of the policy and will gradually increase over time. After 25 years, the surrender value will be equal to the total value of the premiums paid over the life of the policy.

Alternative Options

While borrowing against the cash value can be a convenient option, it's important to consider the potential downsides, including the impact on the death benefit and the accumulation of interest. If you find yourself in need of cash and are considering borrowing from the cash value, it may be worthwhile to explore other alternatives, such as personal loans or other financial solutions, to ensure you make the best decision for your specific circumstances.

Frequently asked questions