Quick answer
Gerber Life Insurance Company is an A rated U.S. life insurance company founded in 1967 as a subsidiary of the Gerber baby food company. Now owned by Western & Southern Financial Group (since 2018), Gerber Life is best known for the Grow-Up Plan, a children's whole life policy that automatically doubles the face amount at age 18 with no premium increase. Gerber Life also offers term life, guaranteed-acceptance whole life (GAWL) for ages 50-80, and accidental death insurance.
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 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 |
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
Term Life
| 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: |
|
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
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
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
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
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.
Frequently Asked Questions
Is Gerber Life Insurance a good company?
Yes. Gerber Life is currently rated A (Excellent) by A.M. Best with over 50 years of operating history. The company was founded in 1967 as a subsidiary of the Gerber baby food company and is now owned by Western & Southern Financial Group, an A+ rated insurance holding company. Gerber Life has over 4 million policies in force and is the leading provider of juvenile life insurance in the United States.
What is the Gerber Grow-Up Plan?
The Gerber Grow-Up Plan is a children's whole life insurance policy designed for ages 14 days to 14 years. The policy has one notable feature: the death benefit automatically doubles at age 18 with no additional premium. So a $25,000 policy purchased on a newborn becomes a $50,000 policy at age 18 at the same monthly cost. The premium is locked in for life. The Grow-Up Plan is the most widely-purchased juvenile life insurance product in the United States.
How much does Gerber Life Grow-Up Plan cost?
The Gerber Grow-Up Plan is inexpensive because it covers a healthy child. Sample monthly rates: $25,000 face amount on a newborn, around $10-15/month. $25,000 face amount on a 5-year-old, around $11-16/month. $50,000 face amount on a newborn, around $18-26/month. Once issued, the premium is locked in for life - it never increases even when the death benefit doubles at age 18. This makes the Grow-Up Plan one of the lowest lifetime cost-per-dollar-of-coverage products available.
What life insurance products does Gerber Life offer?
Gerber Life offers four main product types: (1) Grow-Up Plan - children's whole life for ages 14 days to 14 years, coverage $5,000-$50,000, (2) Adult Whole Life - simplified-issue whole life for ages 18-70 with coverage up to $50,000, (3) Term Life - 10/15/20/30-year term for ages 18-70 with coverage up to $300,000, (4) Guaranteed Acceptance Whole Life (GAWL) - no health questions for ages 50-80 with coverage $5,000-$25,000.
Does Gerber Life require a medical exam?
No, Gerber Life does NOT require a paramedical exam for any of its primary products. Grow-Up Plan, Adult Whole Life, and Term Life all use accelerated underwriting with a small set of health questions plus prescription history and MIB records. Guaranteed Acceptance Whole Life requires no health questions at all. This makes Gerber Life one of the most accessible carriers for applicants who prefer a fully digital application without a blood draw.
How long does Gerber Life take to approve an application?
Grow-Up Plan and Adult Whole Life typically return a decision within 1-3 business days via the online application. Term Life takes 1-5 business days. Guaranteed Acceptance Whole Life is typically approved within 24 hours (since there are no health questions to verify). Gerber Life's digital application platform is among the fastest in the simplified-issue and guaranteed-issue space.
Who should buy life insurance from Gerber Life?
Gerber Life is best for: (1) Parents and grandparents wanting to lock in lifelong whole life coverage and insurability for a child via the Grow-Up Plan, (2) Applicants ages 50-80 with health conditions who need guaranteed-acceptance coverage, (3) Buyers who want a fully digital simplified-issue application with no medical exam, (4) Lower coverage amounts (under $50K for whole life, under $300K for term). For larger term face amounts ($500K+), Banner Life, Protective, and Mutual of Omaha are typically better fits.
Is the Gerber Grow-Up Plan worth it?
It is worth it for parents and grandparents who have already maxed out their own term life insurance and want to (1) lock in lifelong whole life coverage and insurability for the child regardless of future health, (2) gift a small cash-value asset that the child can use in adulthood, and (3) provide funds for funeral costs in the unlikely event of the child's death. For families that have not yet adequately covered their primary breadwinner with term life insurance, the priority should be that first.
Can adults buy Gerber Life Insurance?
Yes. While the Grow-Up Plan is for ages 14 days to 14 years, Gerber Life also offers Adult Whole Life (ages 18-70, up to $50,000 coverage), Term Life (ages 18-70, up to $300,000), and Guaranteed Acceptance Whole Life (ages 50-80, up to $25,000 with no health questions). The adult products use simplified-issue underwriting (no exam, just health questions) and are best for small face amounts where the convenience of no-exam outweighs the slightly higher per-dollar premium versus fully-underwritten coverage from other carriers.
How do I file a claim with Gerber Life?
Beneficiaries can file a claim by calling Gerber Life at 1-800-704-2180 or by visiting GerberLife.com/claims. Required documentation includes the certified death certificate, the policy number, and the beneficiary's ID. Most claims are paid within 14 to 30 days of receiving complete documentation. Beneficiaries can elect lump-sum payment or settlement options.
