Two of the biggest names in children's life insurance are Gerber Life and Globe Life. Geber has been selling insurance policies for children since 1967. They offer the Gerber Life Grow-up policy for children under 14 and the Gerber Life Young Adult Policy for teenagers between 15 and 17. The Grow Up Plan offers several popular benefits including an automatic doubling of coverage to $100,000 when a child turns 18 if a policy was originally purchased at $50,000.
Globe Life has been in business since 1900 and offers the Globe Life Young American Plan for youth under the age of 25. Since their plan extends up to age 25, Globe Life is an appealing option for parents or grandparents looking to secure plans for older teenagers or college students. Globe life is one of the only companies that write children's life insurance policies for this age group.
Other life insurance products available from each company are listed below.
Additional Gerber Life Insurance products:
Additional Globe Life Insurance Products:
Child life insurance plans can be a good option for some families, but they're not right for every family and every situation. One of the primary advantages of any child life policy is that is you're purchasing it for someone who is very young and, hopefully, very healthy. Buying a policy for a child allows a parent or grandparent to lock in a very low rate that a child will be able to keep for the rest of their lives.
The other advantage of child life policies is that they build cash value. Over the years, the cash value will collect interest and build up. You can borrow against the value of the cash value account component of a whole life insurance policy at any time. This makes a child life insurance plan both a life insurance plan and savings account all in one policy.
All child life insurance plans will transfer to the child once that child is either 18 or 21; the exact transfer age depends on company policy. At that point, the child will take over premium payments. They'll also be able to borrow against the cash value of the account and make any changes to the policy that they need to. Some parents and grandparents consider this a valuable gift.
However, there are also disadvantages to child life insurance policies. For many families, a child life insurance policy simply isn't the best use of money. Instead of a child life insurance policy, families can choose to open a college savings account or other high-interest savings account. These accounts have much better interest rates than the cash value accounts that go along with child life insurance policies and can help families save significantly more money.
Families can still get life insurance coverage for their children by adding child riders to either or both parents' term life insurance policy. This is often much less expensive than taking out a separate child life insurance policy. Plus, riders allow you to cover multiple children all under the same rider at no extra cost.
If you are considering a child life insurance plan, there are advantages and disadvantages to both the Gerber Life plan and the Globe Life plan.
Advantages of Gerber Life child life insurance include:
Disadvantages of Gerber Life child life insurance include:
Advantages of Globe Life child life insurance include:
Disadvantages of Globe Life child insurance include:
Both Gerber Life and Globe Life also offer several types of life insurance plans for adults. You can read details about their most popular offerings below.
Gerber Life insurance plans for adults:
Globe Life insurance plans for adults:
Gerber Life and Globe Life both offer child life insurance without a medical exam. You can buy coverage quickly and policies will be active immediately after purchase. You can get started with either company by filling out a quick online form and getting a quote. From there, steps are slightly different depending on which company you're working with.
Complaints data for life insurance companies are tracked by The National Association of Insurance Commissioners (NAIC). The NAIC averages the complaints it tracks to give insurance companies a yearly score called a complaint index. The standard or average score on the NAIC complaint index is 1.0. Any company with a score lower than 1.0 has received fewer complaints than average and any company with a score that is higher than 1.0 has received more complaints than average.
Geber Life currently has an NAIC complaint index of .81. This means they receive fewer complaints than the industry standard. Conversely, Globe Life currently has an NAIC complaint index of 1.2. This means customers have complained slightly more about Globe life.
Life insurance companies are rated by financial rating institutions on their ability to meet their financial obligations now and on how likely it is they will be able to continue meeting those obligations in the future. These ratings indicate how financially strong a company is and are a good indicator of its reliability.
Both Gerber Life and Globe Life are generally ranked well by financial rating companies. You can see recent ratings for both companies below.
Globe Life financial ratings:
Gerber Life financial ratings: