Gerber Life Insurance is a real option, but it has trade-offs you need to understand before buying
Gerber Life Insurance is a subsidiary of Nestlé that sells life insurance directly to consumers, mostly through mail and online. The company is financially stable and has been operating since 1967. However, Gerber is known for selling may provide-issue policies — meaning they accept almost anyone without medical underwriting — and those policies come with higher premiums and lower payouts than traditional term or whole life insurance from other carriers.
Whether Gerber is right for you depends on your health, your budget, and what you actually need the insurance to do. If you have serious health problems and cannot get coverage elsewhere, Gerber may be your only option. If you are healthy and can may have access to for standard rates, you will almost always pay less with a different company.
Key Takeaways
- Gerber accepts applicants with pre-existing conditions and does not require a medical exam, which makes it accessible but expensive compared to standard policies.
- Gerber's premiums are significantly higher than term life insurance from companies that do medical underwriting, sometimes two to three times the cost.
- Gerber policies have a waiting period — usually two years — before the full death benefit pays out if you die of natural causes, though accidental death pays immediately.
- Gerber is financially sound and regulated by state insurance departments, so the company itself is unlikely to fail, but you should compare quotes from at least two other insurers before deciding.
How Gerber's may provide-issue model works and why it costs more
Gerber does not ask health questions or require a medical exam. You answer a few basic questions about your age and occupation, and if you meet the age requirements, you are accepted. This is called may provide-issue insurance, and it exists because some people cannot get approved for standard life insurance due to diabetes, heart disease, cancer history, or other conditions.
The trade-off is cost. Because Gerber accepts people with serious health problems without medical screening, they charge higher premiums to cover the risk that more of their customers will die sooner. A 60-year-old in good health might pay $30 to $50 per month for a $25,000 Gerber policy. That same person could buy a $250,000 term life policy from another company for $20 to $30 per month, because the underwriting process filtered out the highest-risk applicants.
Gerber also builds in a waiting period, usually two years. If you die of natural causes during that time, Gerber returns your premiums to your beneficiary instead of paying the full death benefit. Accidental death pays the full amount immediately. This waiting period protects Gerber from people who know they are terminally ill and buy coverage right before they die.
When Gerber makes sense and when it does not
Gerber is a reasonable choice if you have been denied coverage by other insurers or if you have a serious health condition and have not yet applied anywhere. Before you buy from Gerber, you should still get quotes from at least one or two other companies, because some insurers with medical underwriting will still cover people with pre-existing conditions at standard or near-standard rates.
Gerber does not make sense if you are in good health and have never been denied coverage. You will pay far more than you need to. Term life insurance from companies like Term4Sale, PolicyGenius, or direct quotes from carriers like State Farm or Mutual of Omaha will be cheaper and give you more coverage for the same monthly payment.
Gerber also does not make sense if you need a large death benefit — say, $500,000 or more. Gerber's policies max out at $50,000 to $100,000 depending on your age, so if you have significant financial obligations, you would need multiple policies or a different type of insurance altogether.
Gerber's financial stability and customer complaints
Gerber Life Insurance is owned by Nestlé and is regulated by state insurance departments. The company has an A.M. Best financial strength rating of A (Excellent), which means it has the reserves to pay claims. You do not need to worry about Gerber becoming insolvent and leaving your beneficiaries without a payout.
Customer complaints about Gerber center on three things: high premiums, the two-year waiting period, and difficulty canceling policies. The National Association of Insurance Commissioners (NAIC) tracks complaints by company, and Gerber's complaint ratio is not unusually high, but it is not unusually low either. Most complaints are about the cost and terms of the policy itself, not about claims being denied.
How Gerber policies compare to term life and whole life insurance
Gerber sells primarily whole life insurance, which means you pay premiums for life and the death benefit is may provide to pay out whenever you die (after the waiting period). Whole life is more expensive than term life, but it never expires and builds a cash value you can borrow against.
Term life insurance, by contrast, covers you for a set period — 10, 20, or 30 years — and is much cheaper. If you outlive the term, coverage ends and you get nothing back. Term life is what most financial advisors recommend for people who need coverage while they are raising children or paying off a mortgage.
The comparison matters because Gerber's whole life premiums are high even for whole life. If you are healthy enough to may have access to for standard rates, you could buy a 20-year term policy from another company for a fraction of what Gerber charges, and use the savings to invest or save for retirement. You would come out ahead financially in most scenarios.
What to do before you buy from Gerber
If you are considering Gerber, take these steps first. Get at least two quotes from other life insurance companies — use online quote tools or call directly. You do not need to provide medical records; most companies will give you a preliminary quote based on health questions alone. This takes 10 minutes and will show you whether you can get standard rates elsewhere.
If you are denied by other companies, then Gerber becomes a real option. If you are approved at standard rates, compare the monthly cost and death benefit. Calculate how much coverage you actually need — a common rule of thumb is 10 times your annual income, though your situation may differ. Then decide whether Gerber's higher cost is worth the may provide acceptance and lifetime coverage.
Read the policy documents carefully, especially the waiting period clause and any restrictions on occupations. Gerber excludes some high-risk jobs, and the waiting period rules vary slightly by state. Ask Gerber directly if you have questions about what happens if you die during the waiting period or if you move to a different state.
Frequently Asked Questions
Does Gerber Life Insurance require a medical exam?
No. Gerber is may provide-issue, which means you answer health questions but do not have to take a medical exam or provide medical records. This makes it faster to get coverage, but premiums are higher because Gerber accepts applicants with serious health conditions.
What happens if I die during the two-year waiting period?
If you die of natural causes during the first two years, Gerber pays your beneficiaries the premiums you paid, not the full death benefit. If you die in an accident, the full death benefit pays immediately. After two years, any death pays the full benefit.
Can I cancel a Gerber policy if I change my mind?
Yes, but Gerber has a 30-day free look period, after which cancellation fees may apply. Some customers report difficulty reaching Gerber to cancel, so send a written request by certified mail and keep a copy. You should also contact your bank if premiums are being auto-drafted.
Is Gerber Life Insurance a scam?
No. Gerber is a legitimate, regulated insurance company owned by Nestlé. However, the high premiums and waiting period mean you are paying more for less coverage than you would with standard life insurance if you can may have access to for it. That does not make it a scam — it makes it expensive and designed for people who cannot get coverage elsewhere.
How much does a Gerber life insurance policy cost?
Costs vary by age, the death benefit amount, and your state. A $25,000 policy for a 60-year-old typically costs $30 to $60 per month. Younger applicants pay less. The only way to know your exact cost is to get a quote directly from Gerber or compare it to quotes from other companies.