Gerber Life Insurance Review 2021

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Author: Ben Peetermans
Last updated: June 17, 2021

Our take on Gerber Life

Gerber Life Insurance, a subsidiary of Southern & Western Financial Group, is best known for their child life insurance policies. While they provide the typical range of adult products (term, whole, and guaranteed life), their true selling point is found in the coverage they offer children.

Granted, it’s not unusual for a company to offer insurance benefits in the form of a child rider or related benefit, but these other policies typically only cover such expenses as funerals or catastrophic illness. Not only is this a bit grim, but it fails to take into account the changing financial needs of today’s children.

Gerber’s policies allow parents and grandparents to provide life insurance for the next generation, which also can provide investment opportunities for college and beyond. So while it’s true that other companies offer affordable riders that can include children, Gerber’s policies can provide an extra level of care and investment.

Gerber Life Insurance Company Details
A.M Best RatingA
S&P RatingAA-
BBB RatingA+
Customer Service Phone800-704-2180
Websitewww.gerberlife.com
AddressGerber Life Insurance Company
445 State Street
Fremont, MI 49412

What we like

Competitive Prices

Gerber offers some of the industry’s best prices, providing affordable life insurance for the whole family.

Products for the Whole Family

Gerber offers multiple plans to provide coverage for children as well as to invest in their future.

Guaranteed Coverage at an Early Age

Thanks to the child life insurance plans, children can expect to receive coverage at a very early age, with an option to purchase more insurance once they grow up.

What we don’t like

Hard to Predict Children’s Financial Needs

Of course, it’s not always easy to know a child’s future financial needs, so it’s not always clear what policy to take advantage of.

Coverage for Children Limited to $50,000

Limiting coverage to $50,000 may be restrictive given the expenses that today’s young people face.

Premiums Increase Due to Health Conditions

Gerber’s policies generally favor younger, healthy applicants. Health conditions can increase policy premiums, and accelerated underwriting can likewise result in a higher premium.

Gerber Life Insurance Products

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5.0/5
While Gerber is a solid choice for children’s policies, they also offer policies for adults, some of which require no medical exam.

Term Life

Term Life Details
Length of Coverage10,  20, and 30-year periods
Minimum Coverage:$100,000
Maximum Coverage:$300,000
Estimated Time to Approval:Immediate (with accelerated underwriting)
Product Features:
  • No Medical Exam
  • Level Premiums

Gerber offers term life insurance at rates that are competitive with other providers. Coverage ranges from $100,000 to $300,000, with terms of 10, 20, or 30 years.

No Medical Exam

No medical exam is required for applicants 50 or younger seeking coverage of $100,000 or less.

Level Premiums

Level premiums are guaranteed, ensuring that policyholders never experience a spike in cost due to age or a new medical condition.

Whole Life

Gerber offers whole life insurance for applicants age 18 to 70. Coverage ranges from $50,000 to $300,000.

No Medical Exam

As with their term life policies, Gerber requires no medical exam for applicants 50 or younger seeking coverage of $100,000 or less.

Cash Value Option

Policyholders have the option to borrow against the policy’s cash value at an interest rate of 8%.

Guaranteed Life

Gerber’s guaranteed life insurance policy is intended to be used as a form of final expense insurance, covering end-of-life expenses and easing the burden on families. Coverage is available from $5,000 to $25,000, and no medical exam is required for eligibility.

Accident Protection

Gerber offers accident protection insurance in the amount of $20,000 to $100,000. This coverage can be used to cover out-of-pocket medical bills, lost wages, and other expenses in the event of an accident.

Protection for your spouse

This plan also allows you to add your spouse. If you and your spouse are between 19-69 years old, you are pre-approved for a total of $200,000.

No Medical Exam

No medical exam is required. Coverage begins as soon as you make your first payment. Level premiums mean your rates never increase with age or changing health conditions.

Products for Children

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5.0/5
Gerber’s life insurance options for children and young adults are a great way to help young people with the increasing costs of higher education.

Gerber Life Grow-Up Plan

The Gerber Life Grow-Up Plan provides life insurance for your child or grandchild. The selling point is that the benefit doubles at age 18. For example, purchasing $50,000 worth of coverage now will eventually double to $100,000.

Cash Value Accumulation

This plan also accumulates cash value, which can be borrowed against at an interest rate of 8%. This lets your child or grandchild borrow money for unexpected expenses.

Guaranteed Coverage

As long as premiums are paid, your child or grandchild has guaranteed insurance for life. They will also have the option of purchasing additional insurance coverage after they turn 18.

Gerber Life College Plan

The Gerber Life College Plan allows you to plan for your child or grandchild’s educational expenses. As long as premiums are paid, the plan pays out the full amount, ranging from $10,000 to $150,000 once it reaches maturity. If the policyholder should die before the maturity date, the benefit amount is paid to the beneficiary.

Flexible Options

This policy may not pay as much as 529s which provide for tuition expenses, but Gerber’s policy allows the money to be used for a variety of financial needs including housing, books, etc.

Policyholder Must Pay Taxes

The cash growth on this policy is taxable. Policyholders can expect to receive a 1099 form for tax season.

Gerber Life Young Adult Plan

The Gerber Young Adult Plan is designed for children between the ages of 15 and 17. The parent or grandparent remains the policyholder until the child turns 21.

Coverage Doubles at 18

Similar to the Gerber Life Grow-Up plan, the coverage doubles automatically at age 18.

Level Premiums

Level premiums mean that you are locked in to a regular rate regardless of age or changing health conditions.

Policy benefits

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Gerber offers several riders, some of which come standard with your policy.

Riders

Gerber’s policies come with a standard assortment of riders, some of which are available at no additional cost.

Common Gerber riders:

  • Guaranteed Insurability Rider – This rider allows policyholders to purchase additional insurance coverage without a medical exam.
  • Accelerated Death Benefit Rider – This rider is available for free, and will pay up to half of the death benefit if the policyholder is diagnosed with a terminal illness.
  • Guaranteed Insurability Rider – This rider allows policyholders to purchase additional insurance coverage without a medical exam.
  • Payor Benefit Rider – This rider is designed for the Gerber grow-up plan. It adds payment protection so that the plan remains active if you die or become disabled.
  • Waiver-of-Premium Rider – If you can’t pay for your policy after becoming pregnant or disabled, your coverage will continue for a predetermined period of time.

Cost

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4.0/5
Gerber’s overall affordability varies by policy.

For example, their website offers the following online quotes as the starting rates for some of their policies:

  • Term: $15.42/month
  • Accident Insurance: $0.70/day (just over $2.00/month)
  • Grow-Up Plan: $3.27/month

These are very competitive rates, allowing some room to budget in some additional riders as needed.

Higher Premiums for Some

However, not all policies have cheap premiums. For example, a 30-year-old man can obtain a 20-year, $150,000 policy starting around $32 per month, which is higher than the industry average.

Unique Plans for the Family

Applicants should consider the uniqueness of Gerber’s plans. Planning for your children’s future has never been easier thanks to the options offered by Gerber.

Granted, these policies are more expensive than adding a child rider to an existing policy. But Gerber’s plans allow greater investment opportunities and to plan for college expenses.

Ultimately, applicants should weigh the cost of Gerber’s plans against the unique benefits the company offers, which may ultimately be a greater value than their cheaper competitors.

Performance

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5.0/5
Gerber enjoys strong financial ratings, and the company’s history inspires trust nationwide.

Financial Ratings

Gerber has been ranked as follows:

  • S&P Rating: AA-
  • A.M. Best Rating: A
  • BBB: A+

These ratings are indicative of a reliable company, which is what you expect when investing in your family’s future.

Customer reviews

Customer ratings

Gerber holds an excellent score of 5 out 5 based on verified True Blue Life Insurance customers.

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About the author
Ben Peetermans author
Ben Peetermans
Life Insurance Expert
Ben Peetermans is a life insurance editor. He enjoys blogging about various topics, including finance. He has been writing about insurance since 2015. Ben has been featured in various press outlets including FOX, CBS, and NBC.