What Is Guaranteed Life Insurance and Is It Right for You?
What Is Guaranteed Life Insurance?
Guaranteed life insurance, also known as guaranteed-acceptance insurance, is generally for those over age 50. However, plans like the Gerber Life Guaranteed Life Plan are much more than that; they’re a way to bring you peace of mind. The unexpected can happen at any age, no matter how steadfast we are about staying healthy and keeping up with our doctors. Your plan can be used by your beneficiaries to help cover final expenses like medical bills, burial costs and unpaid debts—a practical solution to help your loved ones manage a difficult period of time.
According to the National Funeral Directors Association, the average funeral costs in 2021 are over $11,000.1 In the event of a sudden passing, these costs can be a significant weight to deal with if there isn’t a plan in place. With a guaranteed life insurance plan, you’ll be helping to ease your family’s financial burden and stress.
- No medical exam, no health questions, no hassle: If you’re over the age of 50, you are guaranteed approval regardless of health2—no time-consuming health questionnaires or assessments required.
- Cash value can serve as a financial cushion: After your initial policy years, we’ll set aside a small amount of each premium paid, called your plan’s cash value. This can serve as a useful cushion should you cash your policy out, or it can be borrowed against.3
- Lessen stress on your family during a difficult time: Help reduce the burden of your final expenses on your loved ones.
- Tax-free payouts: There are generally no taxes on a life insurance payout. This means your beneficiary or beneficiaries will receive the full amount of the policy without any unexpected deductions or taxation, unless they’re specified in the contract, after you pass.4
How Does Guaranteed Life Insurance Work?
We understand that a major factor in making financial decisions is how those decisions will affect your loved ones. With guaranteed life insurance, you’ll pay an agreed amount every month, called a premium, to maintain your policy. Once you have a plan in place, it can help you worry less about how your loved ones will afford your final expenses.
In addition to helping protect your family financially, this whole life insurance also benefits you by building cash value and not requiring a medical exam or answers to health questions.
Guaranteed life insurance, no medical exam required2
It can be tough to believe that there’s guaranteed life insurance that doesn’t require a medical exam. The Gerber Life Guaranteed Life Plan’s Graded Death Benefit—generally the first two years of your policy—is what allows us to make that offer. If your death occurs during your policy’s Graded Death Benefit period, your named beneficiary or beneficiaries will receive 110% of earned premiums. After that period, they would receive the full payout of your policy to help cover final expenses, as well as outstanding debts and similar costs.
Even if you exercise regularly, watch your diet and otherwise keep yourself in good health, it’s a smart idea to have a plan in place should the unexpected happen. Rates are also lower if you lock them in earlier.
Life insurance that builds cash value over time
The Gerber Life Guaranteed Life Plan is a cash value life insurance policy, serving as an additional financial security measure. You can borrow against it3 or receive the sum back should you decide to cash out your policy—which can help you stay flexible if your situation changes.
How Much Does Guaranteed Life Insurance Cost?
The Gerber Life Guaranteed Life Plan is a great way to maintain peace of mind without causing financial stress. Rates are locked in for life as long as your premiums are paid, and your premium won’t increase unless you decide to increase coverage or adjust the frequency of your payments. This rate lock can help you stick to your current budget while still planning ahead—here’s how Gerber Life’s plan compares to leading competitors:
| Company | Coverage | Rate5 |
|---|---|---|
| Gerber Life | $10,000 | $55.70 |
| Colonial Penn® | $9,090 (6 units) |
$59.70 |
| New York Life®/AARP® | $10,000 | $60.00 |
| Company | Coverage | Rate5 |
|---|---|---|
| Gerber Life | $10,000 | $69.70 |
| Colonial Penn® | $9,336 (8 units) |
$79.60 |
| New York Life®/AARP® | $10,000 | $80.00 |
Premium rates quoted do not include discount for automatic payment through a checking or savings account. Discount applicability varies by company.
What Are Others Saying About the Gerber Life Guaranteed Life Plan?
One of the best ways to learn if a plan is a good fit for you is to hear it from those who have tried it. You can view all of our customer reviews here, and a small selection is below:
“The peace of mind all embodied in this guaranteed life insurance policy. It gives me ease and comfort knowing I won’t be a burden among my loved ones and family when uncertainties arise.”
Feb 15, 2022
"I don’t really have more to say except the price is the best all around.”
Jan 6, 2023
Is Guaranteed Life Insurance Right for Me?
The Gerber Life Guaranteed Life Plan can be a practical and sensible solution if you don’t yet have life insurance. Coverage is guaranteed regardless of health. Get a free quote and apply today.
For more information, call us at 1-800-425-5470 or visit our Guaranteed Life frequently asked questions page. We can help you set up a Gerber Life Guaranteed Life Plan now that works best for you and your family, so that a difficult time for them later on can become a little easier.
2To be eligible for coverage you must be a U.S. citizen residing in the U.S. or permanent legal resident. Total limit of all combined Gerber Life Guaranteed Life policies is $25,000. Gerber Life Insurance Company will not issue insurance for any proposed insured when a POA or Guardianship exists on the proposed insured, except legal guardians of children.
3Policy loan interest rate is 8%. Loans may impact cash value and death benefit.
4Taxes vary by state and you should consult a tax advisor for more information. Articles and other information included on this website are intended for the general interest of our readers and are not intended to express the positions or views of Gerber Life or to provide or constitute legal, financial, health or other advice. Gerber Life makes no claims representations or warranties as to the accuracy, completeness, or appropriateness of this general interest information for your particular circumstances. If you need legal, financial, health or other services, you should contact a duly licensed professional.
5Competitor information is obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. Competitors shown were chosen based on similar products and pricing in the state of Michigan. Premium rate, product availability, underwriting classes, exclusions and other contract provisions may vary by company and/or state. Please inquire with each company for specific details.
Information obtained from insurer’s web sites as of 6/2/2023. Other coverage amounts are available—from $5,000 to $25,000. NEW YORK LIFE® , AARP® and COLONIAL PENN® are registered trademarks of New York Life Insurance Company Corporation, AARP, and CDOC, Inc., respectively; their use herein is solely intended to fairly describe and identify third parties for the purpose of a comparison under applicable trademark laws, and are not intended to suggest any relationship, affiliation, sponsorship, or endorsement.
For applicants age 50–80 (50–75 in New York) who die (for any reason other than an accident as defined in the policy) within the first two years of coverage, the death benefit will equal 110% of earned premiums. The full death benefit amount is only payable after the first two years of coverage (one year in ND).
If the insured dies by suicide within two years from the Issue Date (one year in CO, MO and ND), the only amount payable will be the premiums paid for the policy plus 10% interest, less any debt against the policy.
Policy Form ICC12-GWLP
Policy Form GWLP-20-NY
Policy Form Series GWLP-12
