Gerber Life Insurance is recognized as a dependable and long-standing life insurance provider that offers a variety of plans to meet diverse needs. It is highly regarded among the top companies in the industry.
In this assessment, we delve into an extensive evaluation of Gerber Life Insurance Company, delving into its advantages and disadvantages, plan offerings, pricing, and customer satisfaction ratings.
Pros and Cons of Gerber Life Insurance
- Availability of life insurance policies without medical exams
- Life insurance options tailored for children under 18
- Inclusion of riders in some policies
- Limited coverage amounts for most plans
- Limited options for policy customization
Advantages Explained
Availability of Life Insurance Policies Without Medical Exams
Gerber provides term and whole life simplified issue policies that necessitate only a few medical queries. Additionally, it offers guaranteed issue life insurance for individuals aged 50 or older, often waiving medical underwriting requirements.
Life Insurance Options for Children Under 18
The Gerber Life Grow-Up Plan is specifically designed for children, offering whole life insurance to establish financial security early on. It provides lifelong coverage and cash value growth, with coverage ranging from \(5,000 to \)50,000. Upon the child reaching 18, the coverage amount doubles while maintaining the same premiums. This coverage is applicable to children aged one through 17.
Inclusion of Riders in Some Policies
Two of Gerber Life’s insurance options come with automatic riders:
- Guaranteed Purchase Option Rider: Automatically integrated into Gerber Life Grow-Up Plans, this rider enables adult children to purchase additional coverage at specific policy anniversary dates or life events, irrespective of their health or occupation.
- Accelerated Death Benefit Rider: Included in the Fabric by Gerber Life term life insurance policy, this rider allows policyholders to access a portion of the death benefit if diagnosed as terminally ill with 12 or fewer months to live.
Disadvantages Explained
Limited Coverage Amounts for Most Plans
While Fabric by Gerber Life offers up to \(5 million in term life coverage, other Gerber Life policies provide significantly lower limits. For instance, child life insurance offers coverage up to \)50,000, and whole or term life coverage offers up to \(300,000. Although the company mentions coverage options exceeding \)300,000 up to $1,000,000, eligibility must be confirmed through a representative.
Limited Policy Customization
In comparison to other life insurance providers, Gerber Life offers a restricted array of life insurance riders and optional coverage. While two policies automatically include riders at no extra cost, the only other optional rider available is a waiver of premium rider for the Gerber Life Whole Life Policy. Currently, no additional customization options are available.
Gerber Life Insurance Plans
From term life to plans tailored for older individuals, Gerber presents a diverse selection of insurance plans.
Term Life Insurance Plan
Gerber’s term life insurance offers temporary coverage with level rates for a specified period, typically being the most cost-effective life insurance type. It provides 10-, 20-, and 30-year term policies for adults aged 18 to 70, with coverage ranging from \(100,000 to \)300,000. Eligibility for coverage exceeding $300,000 requires consultation with an agent.
In many instances, obtaining term life coverage through Gerber does not mandate a medical examination, although the likelihood may increase for applicants over 50.
Whole Life Insurance Plan
Gerber’s whole life insurance policy ensures lifelong coverage, guaranteeing that beneficiaries receive the benefit regardless of the insured’s time of death. This form of insurance accumulates cash value over time, offering a savings component that can be utilized for borrowing or withdrawal if necessary.
The whole life insurance policy by Gerber provides coverage between \(50,000 and \)300,000 (with potential eligibility for up to $1 million through direct consultation with an agent) for individuals aged 18 to 80. Policy loans incur an 8% interest rate, impacting the policy’s cash value and death benefit upon borrowing. Premiums remain fixed as long as payments are current.
Gerber Life Insurance College Plan
The Gerber college plan combines life insurance with a savings feature, ensuring a predetermined sum after 10 to 20 years while also delivering adult life insurance coverage. In the event of the policyholder’s demise, the full benefit amount transitions into a death benefit for the designated beneficiary, ranging from \(10,000 to \)150,000 upon policy maturity.
Gerber Life Grow-Up Plan
The Gerber Grow-Up plan offers whole life insurance for children up to 17 years old, providing coverage from \(5,000 to \)50,000 without necessitating a medical examination. The coverage amount doubles when the child reaches 18.
Upon turning 21, the child assumes the policyholder role and can either continue coverage or receive the accrued cash value. Gerber also offers a comparable Young Adult plan for children aged 15 to 17.
Guaranteed Life Insurance Plan
Designed for individuals aged 50 to 80 facing challenges in securing coverage elsewhere, Gerber’s guaranteed life insurance provides acceptance and lifelong coverage without a medical exam. Coverage ranges from \(5,000 to \)25,000 with a graded death benefit.
In the event of non-accidental deaths within the initial two policy years, the death benefit is limited to paid premiums plus 10%. Subsequently, the full death benefit is disbursed to the beneficiary.
Fabric by Gerber
Fabric by Gerber Life introduces a term life insurance policy offering coverage from \(5,000 to \)5 million. Term lengths vary from 10 to 30 years in 10-year increments. The policy incorporates an accelerated benefit rider at no additional cost. The application process is streamlined online, often eliminating the need for a medical examination.
Accident Protection Insurance
Gerber’s accident protection policy differs from life insurance, functioning as an accidental death and dismemberment policy. It provides benefits in cases of accidental death or disabling injuries, assisting with medical expenses and lost wages. Fixed coverage amounts range from \(50,000 to \)250,000, with no medical exam or health questionnaires required for individuals aged 18 to 69.
Gerber Life Insurance Pricing
Gerber Life Insurance premiums may exceed those of its competitors in certain scenarios. Premium rates depend on various factors, including the selected coverage type and amount, age, smoking status, and location. For child life insurance, considerations include the child’s age, your age, and the chosen plan, term, and coverage.
Gerber Life Insurance Financial Stability
Gerber Life is supported by its parent company, Gerber Products, and is affiliated with the Western & Southern Financial Group. Both Gerber Life Insurance Company and Western & Southern Financial Group boast an A+ (Superior) rating from the financial rating agency AM Best, signaling a stable financial outlook and a robust capacity to fulfill claims obligations.
Gerber Life Insurance Accessibility
Gerber Life Insurance caters to individuals of diverse ages and health conditions. The guaranteed acceptance policies by Gerber are tailored for individuals over 50 who may encounter challenges in obtaining coverage elsewhere. Many Gerber policies are accessible without requiring medical examinations.
Availability
Gerber Life Insurance policies are accessible nationwide, although product availability varies by state. For instance, in New York, applicants can apply for accident protection but not for Gerber term, whole, or guaranteed life insurance. To determine product costs and availability in your state, utilize the online quote tool on the website.
Contact Information
Gerber provides multiple avenues for customer support from Monday to Friday, between 8 a.m. and 7 p.m. EST. New customers can apply through the website or by contacting Gerber Life Insurance customer service. Once you possess a policy, you can seek assistance regarding billing, death claims, and cash-value loans. To terminate Gerber Life Insurance coverage, reach out to Gerber customer service or utilize the contact form on the website.
User Experience
Gerber’s website is designed to be user-friendly and straightforward. It furnishes details about policies, coverage options, and facilitates obtaining quick quotes. For quotes exceeding $300,000 in coverage, a phone call is typically required. By establishing a profile on Gerber’s website, you can manage premium payments, access policy documents, apply for loans, and modify beneficiaries.
Gerber Life Insurance Customer Satisfaction
Gerber’s website features a mix of positive and negative reviews for each plan type, with generally favorable ratings. Notably, 81% of 155 reviewers recommended Gerber’s guaranteed life plan, and 86% of 1714 reviewers endorsed the Gerber Life Grow-Up plan.
Positive reviews highlight the helpful customer service provided by the company and the peace of mind associated with Gerber coverage. Conversely, negative reviews often center on payment and billing issues.
As per the NAIC, Gerber Life has a slightly elevated number of complaints (an index of 0.30 above the national average) compared to similar companies. Western and Southern, Gerber’s parent company, holds an A+ rating from the BBB but has garnered predominantly negative customer feedback based on four reviews and four closed complaints in the past three years.
Gerber Life Insurance FAQs
What is Gerber Life Insurance?
Gerber Life Insurance, established in 1967 by the Gerber Products Company, is a life insurance provider offering adult and senior life insurance policies, along with the Grow-Up plan and college plan policies for children.
How does Gerber Life Insurance work?
Gerber offers a range of life insurance plans, including term life, whole life, college plan, guaranteed acceptance, and accident protection. Policyholders make regular premium payments, and in the event of the insured’s demise during the policy term, beneficiaries receive the death benefit.
Is Gerber Life Insurance reputable?
Gerber Life Insurance enjoys a strong reputation, boasting decades of experience and diverse coverage options that appeal to many individuals and families. Based on customer reviews on the website, a majority of customers recommend Gerber. The parent company of Gerber holds an A+ rating from the BBB.
Is Gerber Life Insurance a worthwhile investment?
The value of Gerber Life Insurance as an investment hinges on individual needs, budget, and preferences. If you seek reliable coverage without medical exams or aim to initiate a financial safety net for your child, Gerber may align with your requirements.
When can a Gerber Life Insurance policy be cashed in?
The ability to cash in a Gerber life insurance policy varies based on the policy type. Term life insurance policies typically lack a cash value component, while whole life policies incorporate one. As premiums are paid beyond the initial policy years, a portion is allocated toward cash value. Borrowing against the available cash value incurs an 8% interest rate, potentially impacting the death benefit.
Evaluation of Gerber Life Insurance
In assessing Gerber Life Insurance, we scrutinized the following aspects:
- Policy Offerings: A comprehensive analysis of the life insurance products provided by Gerber.
- Pricing: Obtaining sample insurance quotes to assess affordability and competitiveness in the market.
- Financial Stability: Reviewing Gerber’s financial robustness and stability.
- Accessibility: Evaluating the company’s availability, restrictions, and user experience.
- Customer Satisfaction: Considering customer reviews to gauge the overall satisfaction level among Gerber policyholders.
Summary of Money’s Gerber Life Insurance Review
Gerber Life Insurance emerges as a reputable and established provider offering a broad spectrum of life insurance plans catering to the needs of individuals and families. With its no medical exam policies, guaranteed acceptance options, and child-centric plans, Gerber distinguishes itself in the market. However, given the relatively modest coverage amounts on most policies and limited customization opportunities, it is advisable to thoroughly compare options before making a decision.