Gerber Life Insurance Review: Decent, but Expensive, Option for Kids Who Might Need Guaranteed Coverage Later in Life

This life insurer is a good fit for: A person under the age of 51 who needs life insurance but is unlikely to pass a medical exam.

• Average annual costs ($300,000, 20-year policy): 35-year-old non-smoking male: $1,014, and 35-year-old non-smoking female: $726.
• Riders/Add-ons: Accelerated Death Benefit, Disability Waiver of Premium, Payment Protection, Guaranteed Purchase Option
• Simplified policy availability: Yes
• Discounts available: Save up to 10% by signing up for autopay
• Insurances offered: Term, Whole Life, and Guaranteed

Top perks

Easy application process

There's nothing at all complicated about applying for life insurance through Gerber. Although anyone who wants to apply for a $300,000 to $1 million policy must call a Gerber representative to discuss the details, the process remains straightforward.

No-exam policies available

Gerber Life offers more no-exam options than most of its competitors. However, anyone 51 or older must undergo a medical examination for any policy worth more than $100,000.

Discount of up to 10% for autopay

A 10% discount can be helpful, particularly given that Gerber Life policies tend to be expensive.

Children's whole life policy doubles at age 18

The Gerber Life Grow-Up® Plan is a children’s whole life policy. As long as the premiums are paid, the policy will remain active the child's entire life. At age 18, the coverage amount on the policy doubles. The policy also guarantees that the child can purchase additional life insurance coverage through Gerber as an adult, regardless of their health or occupation.

What could be improved

High premiums

It's tough to find a life insurance company with higher term life premium costs.

Low death benefit on no-exam policies

Each of Gerber Life's no-exam options offer only policies with relatively low death benefits.

Potentially better options on child's policy

Chances are, you can tack a child's life insurance rider onto your life insurance policy at a lower cost than you'll pay through Gerber Life.

Gerber Life term rates are exceedingly high as compared to the competition. For example, through American Family Life Insurance, a 35-year-old male, non-smoker would pay only $339.72 annually for $300,000 coverage for 20 years. A 35-year-old female non-smoker would pay only $278.76 annually. Here are Gerber Life rates for the same level of coverage:

If you're looking for term life insurance from a company with a higher rate of customer satisfaction: State Farm shines where Gerber Life does not. However, Gerber Life offers more no-exam policies than State Farm.

If you want a far less expensive policy, American Family is a better choice. However, Gerber Life offers more policy options for children and teens.

Term life

When you buy a term life policy, it remains active for a specific amount of time. For example, if you purchase a 30-year policy, it will naturally expire at the end of the 30th year. However, if you die during those 30 years, your designated beneficiaries receive the death benefit on the policy.

Whole life

As long as you continue to make the premium payments, whole life insurance sticks with you your entire life. The premium never goes up, so it's easy to budget for. A portion of each whole life payment goes toward building cash value. That's one of the reasons whole life is so much more expensive than term life.

Guaranteed life

As the name implies, guaranteed life is for those who need insurance but do not wish to undergo a medical exam. Death benefit limits tend to be low and premiums high.

Accelerated death

If a policyholder is diagnosed with a chronic or terminal illness, they can use the accelerated death rider to access a portion of their policy's death benefit to pay for a host of expenses.

Waiver of premium

In the event a policyholder becomes totally disabled, can't work, or can't pay their premiums, this waiver allows them to stop making payments until they're back on their feet. Gerber makes this rider available to whole life applicants ages 18 to 59.

Payment protection

A payment protection rider can be added to the Gerber Grow-Up Plan. If the policyholder dies or becomes disabled, this rider will keep a child's policy in force until their 21st birthday when they'll need to resume payments.

Guaranteed purchase option

Adults between the ages of 50 and 80 are guaranteed $5,000 to $25,000 in whole life coverage without having to answer health questions or undergoing a medical exam.

Applying for a Gerber Life Insurance policy can be completed in four easy steps. A potential policyholder begins by either filling out a quick online application or calling a Gerber representative. The applicant will need to provide basic information like age, sex, and state of residence. They'll also be asked to choose a beneficiary.

If the policy requires a medical exam, the next step is to select a time and place for the examination to take place. The advantage is that it can be a time and place that works for you. Exams typically involve checking blood pressure, recording height and weight, and drawing samples of blood and urine.

Finally, the application and exam results will move to underwriting for review. At that time, Gerber Life will provide a premium quote.

Age eligibility for Gerber Life Insurance depends upon the type of policy you're interested in buying. For example:

• Term life: 18 to 70
• Whole life: 18 to 70 (guaranteed whole life policies available to adults between 50 and 80)
• Children's life: New policies are written for children between 14 days and age 14.

J.D. Power Individual Life Insurance Study does not include Gerber Life in its review of customer service ratings. However, existing customers give the company a rating of 1.22 stars out of 5 on the Better Business Bureau website. Complaints appear to center around slow response times and unfulfilled promises by Gerber representatives.

Gerber Life Insurance is best suited for:

• Young, not-so-healthy applicants who wish to avoid a medical examination.
• Those solely searching for a permanent life insurance policy. Even then, they should shop around.

But you may want to consider State Farm if you're looking for a company with greater consumer satisfaction or American Family if you want a far more competitive rate.