Last updated: April 16th, 2023
Reviewed by
Grant Desselle
Licensed Insurance Agent
Table of Contents
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 Rating | A |
| S&P Rating | AA- |
| BBB Rating | A+ |
| Customer Service Phone | 800-704-2180 |
| Website | www.gerberlife.com |
| Address | Gerber Life Insurance Company 445 State Street Fremont, MI 49412 |
Gerber offers some of the industry’s best prices, providing affordable life insurance for the whole family.
Gerber offers multiple plans to provide coverage for children as well as to invest in their future.
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.
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.
Limiting coverage to $50,000 may be restrictive given the expenses that today’s young people face.
Gerber’s policies generally favor younger, healthy applicants. Health conditions can increase policy premiums, and accelerated underwriting can likewise result in a higher premium.
| Term Life Details | |
|---|---|
| Length of Coverage | 10, 20, and 30-year periods |
| Minimum Coverage: | $100,000 |
| Maximum Coverage: | $300,000 |
| Estimated Time to Approval: | Immediate (with accelerated underwriting) |
| Product Features: |
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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 is required for applicants 50 or younger seeking coverage of $100,000 or less.
Level premiums are guaranteed, ensuring that policyholders never experience a spike in cost due to age or a new medical condition.
Gerber offers whole life insurance for applicants age 18 to 70. Coverage ranges from $50,000 to $300,000.
As with their term life policies, Gerber requires no medical exam for applicants 50 or younger seeking coverage of $100,000 or less.
Policyholders have the option to borrow against the policy’s cash value at an interest rate of 8%.
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.
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.
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 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.
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.
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.
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.
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.
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.
The cash growth on this policy is taxable. Policyholders can expect to receive a 1099 form for tax season.
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.
Similar to the Gerber Life Grow-Up plan, the coverage doubles automatically at age 18.
Level premiums mean that you are locked in to a regular rate regardless of age or changing health conditions.
Gerber’s policies come with a standard assortment of riders, some of which are available at no additional cost.
For example, their website offers the following online quotes as the starting rates for some of their policies:
These are very competitive rates, allowing some room to budget in some additional riders as needed.
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.
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.
Gerber has been ranked as follows:
These ratings are indicative of a reliable company, which is what you expect when investing in your family’s future.
Brian is the founder and CEO of Insurist and carries Life, Health, and Property & Casualty licenses in all 50 U.S. states. Since 2013, Brian has been a member of Million Dollar Round Table, a designation for the top 1% of financial advisors worldwide. Brian has been featured in Yahoo! Finance, Money.com, Entrepreneur.com, Life Happens, Forbes, MSN, and Good Financial Cents. Brian’s goal is to show customers the best products, the quickest answers to their questions, and provide expert advice.
Grant's past experience includes work as a licensed sales agent for Hagerty Insurance. He has reviewed thousands of existing auto policies across the nation and issued hundreds of new ones on everything ranging from classic cars undergoing restoration to modern exotics and motorcycles.
