Gerber Life Insurance: Down Syndrome Coverage Explained

Gerber Life Insurance has been accused of hypocrisy by parents of children with Down syndrome. While the company's baby food brand appointed Lucas Warren, a baby with Down syndrome, as its first spokesbaby, its sister company, Gerber Life Insurance, has been accused of denying insurance coverage to children with the same condition. This has sparked outrage among parents, who claim that Gerber is exploiting Lucas' cuteness for marketing purposes while simultaneously discriminating against children with Down syndrome. The controversy has led to calls for Gerber to address the issue and clarify its coverage decisions, with some even considering litigation.

Gerber's response to criticism

Gerber Life Insurance has been criticised for its lack of coverage for children with Down syndrome. While the company reviews applications on a case-by-case basis, several parents claim that Gerber Life denied their children coverage or told them to reapply when their kids were older. In response to this criticism, Gerber Life has stated that they “issue policies per each child's unique situation" and that this includes "issuing some policies that cover children with Down syndrome".

However, the company's vague response has prompted further questions from concerned families. The proportion of applications for babies with Down syndrome that are approved for coverage, the criteria for approval or rejection, and whether these criteria are applied consistently across all applicants remain unclear.

Gerber Life's response to the criticism has been deemed inadequate by some. The company's decision to delete comments from affected families on their Facebook page and to take down the "Welcome Lucas" page due to the insurance coverage issue has been interpreted as an attempt to defuse the issue and avoid negative publicity.

In addition, Gerber Life's statement that they "cover a number of children" with Down syndrome has been called into question by those who shared similar experiences of rejection. The company's lack of transparency about the approval and rejection criteria for children with Down syndrome has led to continued dissatisfaction and a demand for clearer answers.

Gerber Life's response to the criticism has also been contrasted with their marketing strategies. The company heavily promotes its products to young families with newborn infants, emphasising the ease of applying for insurance. However, when specifically asked about coverage for babies with Down syndrome, the company has been unresponsive.

The controversy has led to calls for Gerber Life to reorient its response, welcoming both Lucas, the "Gerber Baby of the Year," and families with babies born with Down syndrome to their life insurance plans. By addressing the concerns of these families and demonstrating a commitment to fairness and inclusivity, Gerber Life can rebuild trust and foster long-term relationships with their customers.

Customer reviews of Gerber

Gerber Life Insurance has been accused of denying life insurance to children with Down syndrome, with several parents claiming that the company either rejected their applications outright or told them to reapply when their children were older. This has led to accusations of hypocrisy, as Gerber's baby food brand appointed a child with Down syndrome as its "spokesbaby" in 2018. In response, Gerber Life has stated that it issues policies on a case-by-case basis and that it does provide some policies that cover children with Down syndrome.

Reviews of Gerber Life Insurance on ConsumerAffairs and Trustpilot show a range of experiences. Some customers have praised the company for its friendly and clear communication, as well as its low premium rates. One customer wrote, "I grew up trusting the name Gerber so I took out policies several years ago for my grandchildren...I was super surprised at the low premium I had to pay."

However, other reviews highlight issues with the company's customer service and sales tactics. One customer complained about the difficulty of cancelling policies, with uncooperative and discourteous representatives. Another review warned others to be careful with the company, stating that they processed a payment even though the customer had not submitted their application. There are also complaints about Gerber Life Insurance's marketing practices, with one reviewer stating that the company continued to contact them daily, even after being asked to stop.

Overall, Gerber Life Insurance's customer reviews are mixed, with some praising the company's affordability and customer service, while others express disappointment and frustration with their experiences.

The Gerber Grow-Up Plan

Gerber Life's Grow-Up Plan is a whole life insurance policy that you can purchase for children aged between 14 days and 14 years. The policy offers lifetime insurance protection for your child, with plans starting at $5,000. For as little as $1 a week, you can give your child a lifetime of protection, helping to equip them for adult responsibilities.

The Grow-Up Plan is a typical whole life insurance policy with level premiums that build cash value over time. However, there are a few key differences. Until the child turns 21, you are the policy owner. When they turn 21, they become the policy owner and gain the option to purchase additional coverage without any health assessment.

The Grow-Up Plan's cash value grows at a guaranteed rate, and after 25 years, it should equal or exceed the amount paid in premiums. The policy's death benefit will also double when the child turns 18, with no rise in premiums.

The downside is that, as child life insurance is inexpensive, the policy's cash value does not accumulate a large sum. It will also take three to four years before any cash value is available, as early premium payments go towards the insurer's fees. Therefore, if you surrender the policy within the first few years, you will receive little to no money back.

The primary value of the Grow-Up Plan is its initial death benefit, which is typically enough to cover funeral costs and counselling for family members in the event of your child's passing.

If you wish to cover multiple children, you may be better off purchasing a child rider on your own life insurance policy, as this will likely be less expensive than multiple Grow-Up Plans.

The Gerber College Plan

Gerber Life Insurance offers a College Plan that provides adult life insurance protection and helps parents save for their child's college education. The plan is an individual endowment policy that matures in 10 to 20 years and provides a guaranteed payout of $10,000 to $150,000. This payout can be used for college expenses or anything else, such as starting a business, technical training, or even the down payment on a home.

The Gerber Life College Plan is a safe and secure way to save for your child's future. The cash value of the plan grows over time, without the risk of market fluctuations, and offers guaranteed growth. This means that parents can know from the start how much their child will receive at the end of the term, making it easier to plan for college expenses.

The Gerber Life College Plan also provides adult life insurance protection. This means that if something happens to the parent before the policy matures, the full benefit amount will be paid to their beneficiary. This life insurance benefit provides greater peace of mind and financial protection for the family.

The Gerber Life College Plan is a flexible and reliable way to save for your child's future, offering guaranteed growth and the option to use the payout for a variety of expenses. However, it is important to note that the investment earnings from the plan are taxable, and the performance may not keep pace with college tuition inflation.

The Gerber Young Adult Plan

Gerber Life's Young Adult Plan is a whole life insurance policy for young people aged 15 to 17. The policy is designed to provide permanent protection for teenagers, regardless of their future health or career choices.

The Young Adult Plan offers $5,000 to $50,000 of permanent whole life coverage for young people in good health. The coverage doubles automatically when the insured turns 18, with no increase in the monthly premium. For example, a $10,000 policy doubles to $20,000, and a $15,000 policy doubles to $30,000.

The Young Adult Plan is available to parents, grandparents, or permanent legal guardians of teenagers. The policy owner is the parent, grandparent, or guardian until the teenager turns 21. The premium rates remain the same for the duration of the policy, and Gerber Life cannot cancel the insurance once coverage has begun, as long as premiums are paid.

The Young Adult Plan can be purchased by calling Gerber Life, and there is no cost to apply. The application process involves answering a few simple questions about yourself and the teenager you are applying for. Over 75% of applications are approved within seconds.

Frequently asked questions