Life Insurance with Gerber
Gerber is most famous for their baby food product line; however, they have many other products. Founded in 1967, the Gerber Life Insurance Company has provided millions of families with insurance products that not only are used for final expenses, but are also available for their children college financials, such as with the Gerber Grow-Up Plan. The Ward Group named Gerber Insurance as one of the Top 50 Performing Life and Health Companies in the US in 2009.
As an insurance company, Gerber has not extended their protection to home or auto insurance. This is a significant disadvantage to the many loyal Gerber families. Gerber has an excellent financial stability; however, there are controversies as to whether their Gerber Grow-Up Plan is considered a good investment piece.
A Review of Gerber’s Various Plans
Gerber Life College Plan
This plan covers the parent and allows the child’s college expenses to be saved. They guarantee a payout of $10,000 to $150,000, which is paid upon the death of the parent or the child reaches 18. This payout is equal to what the parent invests into the plan.
Experts believe that families could save even more if they invested the money themselves, such as in a 529-college savings plan. However, Gerber’s take is that parents will make a consistent payment and that money add’s up, like a savings plan. This is guaranteed money to build, and not gambled into stocks. So the significant benefits:
- It provides a guaranteed growth
- There is no risk in the stock market
- Provides a life insurance benefit
- Can use the money any way you see fit
The Gerber Grow-Up Plan
This whole life insurance policy is meant for children, but grows through adulthood with them. This plan is considered expensive, and when compared to a term policy, it offers a low coverage amount. However, this plan does build cash value; something families may need in the case of an emergency.
The Gerber Adult Term Life Insurance Plan
As there are many benefits for children to take on a Gerber life insurance policy, so are there for adults. An adult can sign up for Gerber’s Term life insurance policy, and in most cases requires no medical exam. So if someone is finding it hard to obtain insurance, this is a plus. However, you will pay for this convenience. This plan is higher than other term life insurance plans on the market.
The policies range from $25,000 to $1,000,000, for coverage periods of 10, 15, 20, and 30 years. The premium is guaranteed throughout the life of the policy. So a Gerber insurance policy holder can either let their policy agreement terminate at the end of their term or can renew it with no exam.
The Gerber Adult Whole Life Insurance Plan
This policy protects adults for their entire life. Just as with the term policy, the rates never increase, and there are no necessary medical exams. This is guaranteed for plans that cover up to $300,000. Just as with the Gerber Grow Up Plan, the adult whole life insurance policy builds cash value also. So anytime you need to borrow funds to cover educational expenses, mortgage, or medical expenses, these funds are there for you.
Gerber Insurance Rates
At the time of this writing, a 35 year old, non-smoking female can get a 15-year term $200,000 coverage policy from Gerber Life for $24 a month. However, using a brokerage website shows many companies matching the same coverage with rates starting at $10 through $18 a month.
So for these examples, you can see their products are expensive when you compare to their leading competitors. However, the Gerber brand name has been trusted for decades, and this very reason is why they have so many loyal customers.
Gerber Life Insurance Complaints
Gerber is not accredited with the Better Business Bureau; however, they do have an A+ rating. At the time of this writing, in the past three years, they have had 51 complaints filed. These complaints were in the following categories: Advertising, Billing, Guarantee, and problems with the product or service, all of which have now been closed.
The Major Benefit of the Gerber Grow-Up Plan
The Gerber Grow-Up Plan does seem to have its flaws to some financial experts, however, where else can you get the adult coverage under a child premium?
Their whole life policy guarantees children with policies locked in for their $5,000 upward to $50,000, of which that premium will never increase. A parent or grandparent can apply for this plan for children between 14 days to 14 years old. Moreover, that’s not all.
Once a child turns 18, the Gerber Grow-Up Plan coverage amount automatically doubles. So the $20,000 policy doubles to $40,000 and so on. There is no increase to the premiums, guaranteed. Once children take on the policy themselves, they can increase their coverage as well, up to 10 times the original coverage amount. They cannot be turned down for any reason.
The Gerber Grow-Up Plan also builds cash value. So when faced with any emergency or in need to pull funds for college, the money is there. However, the coverage amount is decreased, and the funds may be considered taxable income if not replaced.
So it seems the biggest disadvantage with Gerber life insurance is their expensive policies. However, the guaranteed coverage’s an adult can receive with Gerber seems to be worthwhile for most individuals. The Gerber Grow-Up Plan also guarantees coverage for a child for the rest of their life, with premiums that do not increase.