Product Review: Gerber Guaranteed Issue Life Insurance Plan
When most people hear the name Gerber, they think baby food. But the fact is that Gerber also offers insurance products through its affiliate, Gerber Life Insurance. Gerber’s Guaranteed Issue Life Insurance Plan offers a smaller amount of coverage that could be a great fit for those looking to cover the cost of final expenses. It offers a simple application with no health or medical questions and guaranteed approval. But before you consider Gerber’s guaranteed issue product, we want you to know all of the facts. In this post we will review the Gerber Guaranteed Issue Life Insurance Plan to help you determine if it is the right plan for you.
Gerber Guaranteed Issue Life Insurance Plan Details
The Gerber Guaranteed Issue Life Insurance Plan is a whole life policy that offers lifetime protection and builds cash value. It is available for those ages 50 to 80 and offers coverage amounts ranging from $5,000 to $25,000. Approval is guaranteed regardless of your health but the policy will have a graded death benefit for the first two years.
Gerber Guaranteed Issue Life Insurance Plan Highlights
- Simple Underwriting – No health questions or medical exam. You will be approved regardless of your health. Even if you have serious health issues such as heart disease, COPD or diabetes, you can’t be turned down for coverage.
- Simple Application Process – Applications usually consist of a single page of very basic questions. Applications can be taken over the phone or completed by mail.
- Coverage Lasts Your Entire Life – This plan is a whole life policy which means that it covers you for your entire life. If you’re goal is final expense coverage or leaving funds to your heirs, you can be assured that it will be there when you need it most.
- Rates Will Not Increase – Once you lock in your premium rate with this plan, it will not increase. This is not the case with some other guaranteed issue products.
- Builds Cash Value – This product allows you to build cash value that you can borrow from in the future if needed. It should be noted that if you borrow from the cash value, it will reduce your death benefit by the same amount plus interest.
- Competitive Rates – Guaranteed issue products come with higher premiums since there is no medical underwriting whatsoever. The rates for Gerber’s Guaranteed Issue Life Insurance Plan, however, are among the least expensive in the industry.
- Financially Stable Issuer – Gerber is a name you can trust. The company has more than $45 billion of life insurance in force. It is A rated by A.M. Best and conservatively manages its investments to ensure financial stability. Anyone who buys a policy from Gerber should feel comfortable that it will be able to pay its obligations.
Gerber Guaranteed Issue Life Insurance Plan Sample Rates
Here are some sample rates for male and female applicants at various ages. The rates quoted are monthly rates.
Rates for Males
| Age | $10,000 | $15,000 | $20,000 |
|---|---|---|---|
| 55 | $46.11 | $68.70 | $91.30 |
| 60 | $56.65 | $84.52 | $112.38 |
| 65 | $68.29 | $101.98 | $135.67 |
Rates for Females
| Age | $10,000 | $15,000 | $20,000 |
|---|---|---|---|
| 55 | $35.84 | $53.30 | $70.77 |
| 60 | $46.47 | $69.25 | $92.03 |
| 65 | $55.46 | $82.73 | $110.00 |
Drawbacks to the Gerber Guaranteed Issue Life Insurance Plan
- Graded Death Benefit – One of the reasons why Gerber can offer guaranteed approval is because it comes with a graded death benefit attached. How does the graded benefit work? If you die within the first two policy years, your beneficiaries will only receive all premiums paid into the policy plus 10% interest unless the death is accidental. If the death is accidental and happens within the first 2 policy years, the full death benefit will be paid. Once two policy years have passed, your beneficiaries will get the full death benefit regardless of the cause of death.
- Higher Premiums – We touched on the fact that guaranteed issue products have higher premiums than other types of life permanent life insurance. Although Gerber offers competitive premiums, guaranteed issue life insurance should not be purchased for the sake of convenience. You may qualify for better rates with another type of permanent life insurance product even if you have moderate health issues.
Is the Gerber Guaranteed Issue Life Insurance Plan Worth it?
Everyone’s situation is unique. If your health has put you in a situation where you have no other option other than guaranteed issue life insurance, Gerber’s Guaranteed Issue Life Insurance Plan could definitely be a good fit for you. Guaranteed issue life insurance should really only be used as a last resort for life insurance coverage. You should work with an independent agency like ours that can show you multiple permanent insurance options from several companies to find the best fit for your particular situation. If you are interested in learning more about Gerber’s Guaranteed Issue Life Insurance Plan or want to explore your options, give us a call at 888-687-9444 or email us at info@archstoneagency.com.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about life insurance, help you assess your planning needs or provide a complimentary review your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
