When applying for life insurance, there are many different variables that you need to be aware of. Certainly, these will include the type and the amount of protection that you are purchasing – as you will want to ensure that your loved ones have enough funds to move forward, should the unexpected occur.
One quality life insurance carrier that has been in the business for nearly half a century and a great reputation is Gerber Life Insurance Company. Gerber received an honorable mention for our top list of the best life insurance companies and continues to provide quality coverage and customer service.
History of Gerber
Gerber entered into the life insurance industry back in 1967. Its mission was primarily to provide life insurance for young families that were on a limited financial budget.
As the same company that provides other essential products for babies and growing families, Gerber Life Insurance Company shares a common goal, and that is “to help parents raise happy, healthy children.”
The company also strives to be the brand that parents trust to help them with achieving protection for their families, as well as their financial security. One of the key ways in which they do this is by offering affordable child life insurance policies, as well as policies for adults.
Headquartered in Fremont, Michigan, the company offers its insurance coverage products both in the United States and in Canada, as well as in Puerto Rico.
Review of Gerber
Over the past five decades, Gerber Life Insurance Company has grown considerably. The company has so far covered more than 3.3 million people with its insurance policies.
The company prides itself on being with families “every step of the way.” It manages its financial portfolio very conservatively to help with ensuring long-term growth, as well as its overall financial stability.
It also makes it easy to learn about its products and its services. The company has numerous helpful links listed directly on its website, including one on understanding life insurance, as well as information on all of the different types of coverage products that it offers.
Customer service representatives can be reached via toll-free phone between the hours of 8:00 a.m. and 9:00 p.m. Monday through Friday (Eastern time), and between 9:00 a.m. and 5:00 p.m. on Saturdays if a policyholder has any question or concern.
Financial Strength and Stability of Gerber Life Insurance Company
Gerber Life Insurance Company is strong and stable from a financial standpoint, and it has an excellent reputation for paying out its policyholder claims. As of May 2015, the company is rated by A.M. Best as an A, which is considered to be Excellent.
Even though they are not an accredited company through the BBB (the Better Business Bureau), the insurer has been provided with the grade of A+ through this entity (on a grading scale of A+ through F).
Throughout the time period of the last 36 months, Gerber Life Insurance Company has closed 68 complaints through the Better Business Bureau – 24 of these within the past year. Of these total 68 complaints, 45 of them centered on issues with the company’s products and/or services, while 11 focused on the firm’s advertising and/or sales, ten focused on the company’s billing and/or collections, and delivery and guarantee/warranty issues accounted for one complaint each. For additional information, as well as written customer reviews, the Better Business Bureau’s website can be reviewed.
Types of Life Insurance
Gerber Life Insurance Company offers a wide variety of different life insurance products to choose from. These include the following:
Whole Life Insurance
Whole life is a form of permanent life insurance. This type of coverage will provide death benefit protection, along with a cash value component. Because of that, the policyholder can accumulate a nice amount of savings, in addition to having life insurance coverage. The cash grows at a set guaranteed rate of interest.
The cash value is also able to grow tax-deferred. This means that there is no tax due on the gain of the funds in the account until the time it is withdrawn – allowing it to grow and compound a great deal over time. These funds can be borrowed for any purpose the policyholder wishes.
With whole life insurance, the coverage will remain in force for the “whole” of the insured’s lifetime – as long as the premium is paid. The amount of the premium will remain the same – regardless of the insured’s increasing age, and even if the insured contracts an adverse health issue in the future.
At Gerber, whole life insurance can be purchased with face amounts of between $25,000 – $150,000 for applicants who are between the ages of 18 and 50 years old. In most cases, those who are between these ages can apply for up to $100,000 in life insurance with no medical exam necessary.
Term Life Insurance
With term life insurance, you get pure death benefit protection only. There is no cash value build up like there is with whole life. Therefore, these policies are usually much more affordable – especially if the applicant is of a younger age, and in relatively good health overall.
Gerber Life offers term life insurance coverage options that range between $25,000 and $150,000 – and with premiums that begin as low as only $8.00/month. For those who are between the ages of 18 and 50 years old, term life coverage of up to $100,000 in face amount may be able to be purchased without the need to take a medical examination as a part of the underwriting process.
The terms of coverage that can be purchased Gerber Life Insurance Company are 10 years, 15 years, 20 years or 30 years. And, with each of these term life plans, the premium rate is locked in for the life of the policy.
For those who wish to ensure that loved ones are covered by life insurance for a funeral and other final expenses, Gerber Life Insurance Company offers a burial / final expense life insurance policy. This is referred to as Gerber Life’s Guaranteed Life Insurance Plan.
For those between 50 and 80 years old, acceptance into this plan is guaranteed – regardless of their health history. These are policies with no medical exam required for underwriting purposes. All that is needed is to complete an application for coverage – which can be done online.
This policy can be obtained with coverage amounts of between $5,000 and $25,000. And, because it is a permanent life insurance policy, it will also include a cash value component that grows on a tax-deferred basis.
Because accidents can happen to anyone, at any time, Gerber Life Insurance Company offers accident protection insurance so that loved ones can be protected financially. This coverage provides protection against accidental death, as well as a disabling injury.
The amount of coverage that is provided in these policies can range between $20,000 to $100,000, and these funds can provide assistance for loved ones in paying for medical expenses, lost wages, or other types of costs.
This protection is available to those who are between the ages of 19 and 69, and to their spouses. There is no physical examination that is required as a part of the qualification process, meaning that an individual will be able to qualify, regardless of their health and/or occupation.
The benefit amount in a Gerber Life Insurance Company accident protection policy can never be reduced once an individual qualifies, and the amount of the monthly premium can never be increased.
Gerber Life College Plan
Gerber Life Insurance Company also provides a way for families to help their children save for a college education through insurance. The plan grows in value – yet is not impacted by the fluctuating stock market.
With this plan, the policyholder can receive a payment, guaranteed, between $10,000 and $150,000 when the policy matures – provided that premiums continue to be paid. And, unlike a 529 college savings plan, the money from this plan can be used for college costs or anything.
Gerber Life Grow-Up Plan
While nobody wants to think about losing a child, unfortunately, the unthinkable can occur. This is why having life insurance coverage on a child can be an important financial move. Through Gerber Life Insurance Company’s Grow-Up Plan, whole life insurance can be purchased for a child for just pennies per day.
This policy provides death benefit protection of between $5,000 to $50,000, along with a cash value that will grow tax-deferred over time. These policies may be purchased for children between the ages of 14 days to 14 years. The amount of the premium will never go up – regardless of the insured’s increasing age. And, provided that the premium remains paid, the policy will continue to accumulate cash value build-up. Also, the amount of the policy’s coverage will double during age 18 automatically.