Life insurance is an important part of providing financial security for your dependents in the event of your death, and many companies offer competitively priced products to give you and your family peace of mind. Comparing life insurance quotes online is a good way of narrowing your choices, but the cost isn’t the only consideration. You need to think about the kind of service the company provides, its size and its financial strength. Gerber Life Insurance Company is one popular choice with growing families because the company offers insurance coverage for adults and children.
Company Profile
The Gerber Life Insurance Company is a financially separate affiliate of the Gerber Products Company, famous for its baby food. The company’s mission statement is to help parents raise happy, healthy children and provide financial security and protection. In addition to adult life insurance, Gerber specializes in child life insurance plans. The company’s product options, and strong financial position, make it an appealing choice for young families looking for life insurance coverage.
Size
When you’re looking for an insurance provider, you need one licensed to operate where you live. Gerber operates throughout the United States, Canada and Puerto Rico. The company has more than $45 billion of in-force life insurance through 3.3 million policies and is the 57th-largest life insurance company based on direct premiums written.
Financial Strength
Term life insurance may run for up to 30 years, while whole life insurance runs for your entire life. When you purchase a product that lasts for such a long time, it’s important to consider the financial strength of the provider so you’re confident that the company remains in business when it comes time to pay your policy benefits. Ratings from companies such as A.M. Best are a good way to assess a company’s financial strength. Good ratings indicate the company is a smart investment with the potential to continue growing, but such figures are only a representation of the overall company status. You shouldn’t consider them as a recommendation for a specific policy.
Gerber’s rating with A.M. Best is “A” (excellent). This is the third-highest rating in 13 possible categories.
Complaints
Reviewing the number of complaints a company receives gives a good indication of the quality of service it provides. The National Association of Insurance Commissioners (NAIC) publishes statistics relating to closed complaints, including complaint ratios based on different policy types. Gerber’s complaint ratio for individual life policies has decreased since 2013 and is consistently lower than the national median:
- Ratio of 0.55 in 2015
- Ratio of 0.53 in 2014
- Ratio of 0.76 in 2013
The complaint ratio is the ratio of the company’s U.S. market share of closed complaints compared to the company’s U.S. market share of individual life premiums. The national median is 1, and a ratio of less than 1 is desirable, reflecting relatively few complaints considering the company’s size. Because state insurance companies supply the data on a voluntary basis, the ratio information may be incomplete. You shouldn’t use the published complaint ratio as the sole basis for making a life insurance purchasing decision, but it can factor into your decision.
Types of Insurance
Gerber has a comprehensive catalog of insurance products, including term life, whole life and guaranteed whole life. The right product for you and your family depends on your particular circumstances.
Term Life
Gerber’s term life insurance is pure life insurance that runs for a fixed term. If you die within the term, your beneficiary receives a death benefit. If you outlive the term, the insurance has no value.
- Coverage options from $25,000–$150,000
- Rates start from as little as $8 per month
- No medical exam for customers aged 18–50 for coverage up to $100,000
- Terms for 10, 15, 20 or 30 years with guaranteed premium rate for the term duration
Whole Life
Gerber’s whole life insurance runs until your death and provides a death benefit for your family no matter when you die. Over time, the policy accrues a cash value.
- Coverage options from $25,000–$150,000
- Fixed rates for the life of the policy
- No medical exam for customers aged 18–50 for coverage up to $100,000
- You can borrow against the accrued cash value or leave it as a “nest egg” for the future
Guaranteed Life
Guaranteed life is a good option if you already have poor health because there’s no medical exam and Gerber doesn’t refuse anyone for health reasons. The policies aren’t the smartest option for healthy people simply because they don’t pay out high amounts relative to what term and whole life policies offer.
- Coverage options from $5,000–$25,000
- Fixed rates for the life of the policy
- Online application with no medical exams or health questionnaires
- Acceptance for people between 50–80 years old, regardless of health
- Accrual of cash value
Grow-Up Plan
The Gerber Life Grow-Up Plan is a whole life insurance plan for children. Parents or legal guardians apply for the plan when the child is between 14 days old and 14 years old.
- Coverage doubles at age 18
- The child takes over the policy at age 21 with the option to buy more adult coverage
- Insurability as an adult, regardless of future health
- Accrual of cash value
Conclusion
Life insurance is essential for providing your family with financial security in the event of your death. Gerber Life Insurance Company has several products to help you protect your family in any eventuality, including child life insurance plans. Use online insurance comparison tools and study the various products carefully to determine if a Gerber insurance policy is the right choice for you. Only put your name on the dotted line once you’re confident the product meets or exceeds your requirements.
