Gerber Life Insurance: Whole Or Term?

Gerber Life Insurance offers both whole life and term life insurance plans. Whole life insurance offers lifelong coverage, while term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. Whole life insurance policies build cash value over time, whereas term life insurance does not. Gerber's whole life insurance plans include the Grow-Up Plan for children, the Young Adult Plan for teens, and the Guaranteed Life Insurance Plan for adults. Their term life insurance plans are available for adults and offer flexible coverage options with locked-in premiums.

Gerber's Whole Life Insurance for adults

Gerber Life Insurance is well-known for providing life insurance policies for children, but it also offers whole life insurance policies for adults.

Gerber's whole life insurance policies offer lifelong insurance coverage, provided you pay your premiums. Beneficiaries will receive a payout upon the death of the policyholder. Whole life insurance builds up cash value over time, providing a built-in savings component. Coverage ranges from $5,000 to $1 million, depending on the policy type.

Gerber's whole life insurance policies are available to adults aged 18-80. Policyholders can borrow against their policy at an 8% interest rate; however, a loan could impact the policy's cash value and death benefit.

For adults aged 50-80 (75 for New York residents), Gerber offers a guaranteed life insurance plan that does not require a medical exam or health questions. Enrollment is guaranteed. This plan offers coverage ranging from $5,000 to $25,000.

Gerber's Term Life Insurance for adults

Gerber Life Insurance offers term life insurance for adults, providing coverage for a set period chosen by the insured. This type of policy is popular because it tends to be more affordable than whole life insurance and allows the policyholder to choose the coverage period.

Gerber Life's term life insurance policies are available for adults aged 18 to 70 and offer coverage amounts ranging from $100,000 to $300,000, with options for higher coverage available. The period of coverage, or "term", can be set to 10, 20, or 30 years, depending on the needs of the policyholder.

One of the benefits of Gerber's term life insurance is that it provides financial protection for your family when they need it most. In the event of the policyholder's death, a term life policy can help cover expenses such as the mortgage and childcare costs.

The application process for Gerber's term life insurance is straightforward, requiring just a few simple questions, and most applicants receive a decision within about a minute. In most cases, a medical exam is not required. Additionally, Gerber offers locked-in premium rates, so your premiums will remain the same throughout the life of the policy.

If you outlive your term life policy, you have the option to renew it annually without a physical exam, or you can choose to apply for a new policy if you still require coverage.

Gerber Life Insurance is a well-known and trusted company that has been protecting families since 1967. It is a subsidiary of the Western & Southern Financial Group and offers life insurance policies in all 50 states, including Washington, D.C. The company has received an "A" (Excellent) rating from A.M. Best for financial strength, indicating its historical reliability in paying out claims and meeting financial obligations.

Gerber's Grow-Up Plan for children

Gerber Life Insurance is well-known for providing life insurance policies for children, with the option to continue coverage into adulthood. The company offers whole life insurance policies for children, marketed as the Gerber Life Grow-Up Plan, which provides lifelong insurance protection for children and helps parents save for their children's future.

The Gerber Life Grow-Up Plan is a whole life insurance policy for young children, ranging from newborns and infants to 14-year-olds. The plan offers a fixed monthly premium with coverage ranging from $5,000 to $50,000. The coverage doubles to a maximum of $100,000 when the child turns 18, and the premium remains the same. The policy can be purchased by parents, grandparents, and legal guardians.

The Grow-Up Plan is marketed as a way to provide lifetime insurance protection for children and help them save for future expenses, such as college. The policy has a "cash value," which means there is an investment balance that can be accessed. However, Gerber charges an 8% interest rate on loans taken against this cash value. The cash value of the policy grows over time, and the longer the policy is held, the more cash value it accumulates.

The Grow-Up Plan also offers the Guaranteed Purchase Option Rider, which allows the child to purchase additional coverage as an adult without a medical exam. The coverage amount can be increased up to 10 times the original amount, but the timing and amount of the increase are restricted.

While the Gerber Life Grow-Up Plan provides lifetime insurance protection and a savings component, there are some drawbacks. The investment returns on the cash value are low compared to other investment options, such as mutual funds or a 529 plan. Additionally, the premiums, while affordable, are an added cost to the family's budget.

Overall, the Gerber Life Grow-Up Plan offers whole life insurance coverage for children, providing peace of mind for parents and a financial head start for children. However, it is important to carefully consider the benefits and limitations of the plan before purchasing it.

Gerber's Young Adult Plan for teens

Gerber Life Insurance is well-known for providing life insurance policies for children, with the option to continue coverage into adulthood. The company offers whole life insurance policies for children, teens, adults, and seniors.

The Gerber Life Young Adult Plan is a whole life insurance policy for teens aged 15 to 17. Parents, grandparents, or legal guardians can purchase this policy for the teen in their family, and they will be the policyholder until the child turns 21. The plan offers $5,000 to $50,000 of permanent whole life coverage, which builds cash value over time. The coverage amount doubles when the child turns 18, and the policyholder can borrow against the policy. The premium rates remain fixed for the duration of the policy.

Gerber's Young Adult Plan can be a good option for parents, grandparents, or legal guardians seeking to provide financial security for their teens. It offers peace of mind, knowing that their child is protected regardless of future health or job choices. The plan also helps teach teens about the importance of financial planning and security.

The application process for the Young Adult Plan is simple and can be completed over the phone. There is no cost to apply, and the policy can be reviewed within 30 days before the first premium is due.

Gerber Life Insurance is a trusted company with an "A" (Excellent) rating from AM Best for financial strength. This means they have consistently paid out claims and met their financial obligations. The company has also received positive reviews for its simple enrollment process and ease of qualifying for coverage.

Gerber's College Plan

Gerber Life Insurance is a well-known provider of life insurance policies for children, but it also offers policies for young adults, adults, and seniors. The Gerber Life Insurance College Plan is a unique policy that combines life insurance with a college savings plan. Here is a detailed overview of the Gerber Life Insurance College Plan:

The Gerber Life Insurance College Plan is a savings plan designed to help parents save for their child's college education. It combines adult life insurance protection with a safe and secure way to accumulate savings for college. This plan provides guaranteed growth and the flexibility to use the money for college or other expenses. The plan has a guaranteed payout that can be used for higher education, starting a business, technical training, or even a down payment on a home.

Benefits of the Gerber Life Insurance College Plan:

• Guaranteed growth and flexibility: The plan offers a guaranteed payment of $10,000 to $150,000 when the policy matures, as long as premiums are paid. The payout can be used for college expenses or anything else.
• Adult life insurance protection: If something happens to the policyholder before the maturity of the plan, the full benefit amount will be paid to the beneficiary.
• Safe and secure savings: The cash value of the plan grows over time and is not impacted by fluctuations in the stock market. This provides peace of mind and makes planning for college easier.
• No medical exam required: Similar to other Gerber life insurance policies, the College Plan does not require a medical exam for eligibility.

Limitations and Considerations:

• Low annual earnings: The annual earnings of the Gerber Life College Plan are as low as 1.76%, which is similar to short-term bank CDs. The performance does not keep pace with college tuition inflation.
• Taxable earnings: Families must pay taxes annually on the earnings from the plan, which is not the case with a 529 college savings plan.
• Financial aid eligibility impact: While the plan itself is not reported as an asset on the FAFSA, the full plan payout may need to be reported as income, reducing eligibility for need-based financial aid.
• Refund value: If a family cancels the plan, the refund value may be less than or equal to the contributions made. The guaranteed payout is only valid if the policy reaches maturity and all premiums have been paid.

The Gerber Life Insurance College Plan can be a good option for parents who want to combine life insurance protection with a savings plan for their child's college education. However, it is important to consider the low earnings, taxable nature of the plan, and the potential impact on financial aid eligibility. It may be beneficial to explore other savings options, such as 529 plans or Coverdell Education Savings Accounts, to compare their features and choose the most suitable option for your family's needs.

Frequently asked questions