Gerber Guaranteed Issue Life Insurance Review

Written by Jeff Root

The Gerber Guaranteed Life insurance plan provides Financial comfort for final expenses. It is a valuable whole life insurance policy which can be used to cover burial costs, medical bills, or any unpaid debt. Whole life insurance means that it doesn’t have to be a specific length of time.

You can own the policy for just a few years or you can own it for the rest of your life as long as you are paying your premiums. As you continue to own the policy you will accumulate cash value and obviously the longer you have it the more cash value you will have at your disposal.

About Gerber Life

Gerber Life Insurance company has been around for almost 80 years. They are the third highest ranking company by A.M. Best, with an A rating. Their excellent rating comes from being a financially stable company.

Today, Gerber manages assets of over $2 billion dollars and most of their portfolio is high-quality Investments. When their customers call for death benefits to be paid out the company is regularly able to do so without issue.

Atop this, they have achieved some very prestigious financial ratings from the following companies:

Company Financial Rating
A.M. Best A
Moody’s N/A
Fitch N/A
Standard & Poor’s N/A

Gerber specializes in providing life insurance policies for children and individuals in college but they also do well when it comes to guaranteed life insurance policies for seniors were those who might otherwise be rejected when they undergo a health exam or fill out a health questionnaire.

Who Needs Guaranteed Issue Life Insurance?

Most older individuals who are living on a fixed income might assume that Social Security pays for final expenses. While there is truth to this, the amount that Social Security pays is only $225.

According to the National Funeral Directors Association the average cost of a funeral can range between $8,000 and $10,000 so clearly, $225 is inadequate. However, you can offset this with the guaranteed life insurance policy from Gerber.

With guaranteed issue insurance, your acceptance is guaranteed no matter your health history as long as you are between ages 50 and 80. This means there is no medical exam to undergo and absolutely no health question is still out.

When you apply it is simple. You can complete the application online in minutes and choose the amount of coverage you want ranging between $5,000 and $25,000.

Any residents of South Dakota, however, are required to have a minimum of $15,000 in coverage. With this policy, the amount you pay when you start your coverage is going to remain the same throughout the entire lifespan of your policy.

The only time that your premiums could change is if you decide to increase your coverage or how frequently you make your payment.

Gerber Guaranteed Issue Life Insurance -Advantages

For a guaranteed issue life insurance policy, there is a great deal of flexibility that Gerber offers compared to the competition. In addition to not having to undergo a medical examination.

You can choose at any given time to alter the amount of coverage you have because it is a whole life insurance policy. If you still have a few extra medical bills that you want to cover, you can increase the coverage as you get older.

If you pay off the rest of your debt as you will get older and only need to cover your funeral costs, you can reduce the amount that you have in coverage.

You also have control over when you make your payments and with what frequency. There are in some cases discounts afforded to those who pay annually no more than 10%.

So you can choose to set up your payments on an annual basis if you are able to conversely you can set up monthly payments if you are on a fixed income. If this changes you can alter your payments.

This policy is a whole life insurance policy with builds cash value. This cash value is basically money taken from your monthly premiums with Gerber set aside for your future. The longer you own the policy the more cash value you get and this can be used to cover any costs you see fit.

Gerber Guaranteed Issue Life Insurance -Disadvantages

There is a graded death benefit limitation. This means that if you pass away within the first year of your policy for any reason other than an accident your beneficiary only receives your paid premiums plus 10% interest. If you pass away because of an accident within the first two years then your beneficiary receives the full death benefit.

After the first two years if you pass away for any reason your beneficiary receives the full face amount of your policy. If you die because of suicide within the first two years of your policy issuing date Gerber will only pay your beneficiaries the premiums you have paid to date plus 10%.

The benefits given to your beneficiaries are not subject to federal tax.

There is no medical exam necessary at all and no matter your health conditions you cannot be turned it down. Moreover, once coverage begins, as long as you pay your premiums on time Gerber Life cannot cancel the insurance.

You, however, can choose to cancel coverage if you need at any point. On that note, there is a feature offered by the company called free look. This means you can have coverage for 30 days just to look at everything and figure things out.

If you decide after that point that you no longer want the coverage, you can simply return it and you will be given a full refund for any premiums that you have paid.

Gerber Guaranteed Issue Life Insurance Rates

This policy sample is for a male applicant:

Age $5,000 $10,000 $15,000 $20,000
50 $19.66 $38.41 $57.15 $75.90
55 $23.51  $46.11 $68.70 $91.30
60 $28.78 $56.65 $84.52 $112.38
65 $34.60 $68.29 $101.98 $135.67
70 $44.41 $87.91 $131.41 $174.90
75 $62.79 $138.42 $207.17 $275.92
80 $110.92 $220.92 $330.92 $440.92

This policy sample, by comparison, is for a female applicant. Note that females tend to live longer, so their payments are slightly lower:

Age $5,000 $10,000 $15,000 $20,000
50 $14.54 $28 14 $41.75 $55.37
55 $18.38 $35.84 $53.30 $70.77
60 $23.70 $46.48 $69.25 $92.03
65 $28.19 $55.46 $82.73 $110.00
70 $34.83 $68.75 $102.67 $136.58
75 $62.79 $124.67 $186.54 $248.42
80 $76.54 $152.17 $227.79 $303.42

Gerber Guaranteed Issue Life Insurance for Smokers and People with Health Concerns

As a smoker or diabetic, or anyone with health complications, the prospect of undergoing a medical exam can be daunting. Some life insurance companies require an extensive physical and answers to invasive health questions.

While others require a moderate physical and answers to only a handful of questions. However, the Gerber Life policy is guaranteed without any medical exam. Your health and physical condition don’t get in the way of you providing coverage to your family.

Just guaranteed approval option is good for people who need a simplified insurance policy with only a few medical questions and no medical exam. This life insurance plan is a simplified issue plan which means that you can get an application completed in just a few minutes.

It is a guaranteed approval product. As long as you are within the parameters you can secure coverage. There is also the option to add the accident Insurance whereby your family will still get a death benefit in the event that you passed away from an accident.

As long as, again, you are within the age range, you’re eligible to add this accident insurance without a medical exam no matter your health or occupation or any other lifestyle information. Smokers and diabetics who would otherwise be disqualified and denied coverage will benefit the most from these options.

Gerber Guaranteed Issue Life Insurance Review – Takeaways

Choosing your life insurance policy starts with figuring out exactly how much you need in coverage. Obviously, for this type of guaranteed whole life insurance policy your cap is limited to $25,000.

To figure out how much life insurance coverage you need, first figure out how many bills you still have outstanding, and the debt you have, and what your funeral costs will be. With that, you will have an idea of the face amount you need for your policy.

From there you should compare multiple companies. Gerber does offer some extra features with their guaranteed policies and obviously a guarantee policy might be a better fit for smokers or people with health concerns none the less they do have some of the more expensive plans on the market and they may not be an affordable option for you especially if you are on a fixed income.

For that reason, you want to work with a third-party broker to determine what other options you have at your disposal is any and figure out the cost based on your age, your gender, and of course the coverage amount that you need for your costs.

Finding the Best Life Insurance Rates for You

Looking for the best life insurance rates for you and your family?

Of course.  Life insurance is a large life investment, both financially, and in terms of how it affects you and your family.

As a result, it is essential to work with professionals when comparing life insurance policies.

Our independent life insurance agents represent some of the best life insurance companies on the market and are ready to speak with you.

Give us a call today, or get started using our online quoting engine for quick and easy life insurance quotes to compare the best life insurance rates for you instantly.

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