Colonial Penn vs Gerber Life: Comparing Life Insurance Options
When it comes to life insurance, choosing the right provider can make all the difference. Two popular names in the industry are Colonial Penn and Gerber Life, each catering to different needs. While Colonial Penn focuses on providing final expense coverage for seniors with their unique guaranteed acceptance policies, Gerber Life is well known for its child and family-focused plans. In this article, we’ll compare Colonial Penn and Gerber Life, examining their offerings, pricing, and suitability for different types of customers.
Company Backgrounds
Colonial Penn
Colonial Penn has been providing life insurance for over 60 years, primarily serving seniors. The company is best known for its Guaranteed Acceptance Life Insurance plan, which does not require medical exams or health questions. This makes it an attractive option for individuals aged 50 to 85 who may have difficulty qualifying for traditional life insurance due to age or health conditions. A hallmark of Colonial Penn is their $9.95 plan, a pricing structure that appeals to those looking for affordable monthly premiums.
Gerber Life
Gerber Life, on the other hand, is a household name, known for offering life insurance for children and families. Established in 1967, Gerber Life’s Grow-Up® Plan is one of the most recognized life insurance products for children, providing lifelong protection at a fixed rate. The company also offers various term and whole life insurance policies for adults, making it a strong contender for families looking for affordable coverage.
Types of Policies Offered
Colonial Penn
Colonial Penn offers only Guaranteed Acceptance Life Insurance, a simple policy designed for seniors between the ages of 50 and 85. Here’s how it works:
Guaranteed Acceptance Life Insurance: There is no need for medical exams or health questions, making it accessible to nearly anyone in the age range. However, the coverage amounts are based on a unit system, which is where the well-known $9.95 plan comes in. Each unit costs $9.95 per month, but the coverage amount per unit depends on your age, gender, and location. Typically, one unit offers a modest amount of coverage, which may be less than $1,000 in death benefit for older applicants. This policy is ideal for final expenses like funeral costs but may not be sufficient for larger financial needs.
Gerber Life
Gerber Life offers a broader range of policies that cater to different demographics:
Grow-Up® Plan: This unique policy allows parents or grandparents to purchase whole life insurance for children between the ages of 14 days and 14 years. The plan builds cash value and automatically doubles coverage when the child turns 18 at no extra cost.
Term Life Insurance: Available for adults, Gerber Life’s term policies offer coverage amounts up to $300,000 with competitive premiums.
Whole Life Insurance: Like Colonial Penn, Gerber Life’s whole life insurance provides permanent protection and builds cash value over time.
Guaranteed Life Insurance: Similar to Colonial Penn’s offering, Gerber Life’s guaranteed issue policy is available for adults aged 50 to 80, with no medical exam required.
Policy Pricing and Affordability
Colonial Penn
Colonial Penn’s life insurance plan is known for its $9.95-per-month price per unit. While this is an attractive price point, it’s important to understand that the actual coverage provided by each unit is relatively low, especially for older individuals. For example, for a 75-year-old, one unit of $9.95 might only provide around $700 to $1,000 in coverage, meaning you’d need to purchase multiple units to get a reasonable death benefit. This plan is best suited for those looking for a low-cost way to cover final expenses, such as funeral costs, and not for those seeking significant life insurance protection.
Gerber Life
Gerber Life offers competitively priced policies, particularly for children and families. The Grow-Up® Plan is an affordable way to provide lifelong coverage for children, and their term life insurance policies offer higher coverage limits at reasonable rates for adults. The Guaranteed Life Insurance plan for seniors is similarly priced to Colonial Penn, but Gerber Life may offer slightly higher death benefits in some cases.
Coverage Options
Colonial Penn
Colonial Penn’s Guaranteed Acceptance Life Insurance is designed to cover final expenses, offering coverage amounts typically ranging from a few thousand dollars to about $10,000, depending on how many units are purchased. The $9.95 per unit price is fixed, but the actual death benefit varies based on age and gender. For seniors in their 70s or 80s, this means purchasing multiple units might still result in relatively modest coverage amounts compared to traditional life insurance policies.
Gerber Life
Gerber Life’s Grow-Up® Plan provides coverage amounts starting at $5,000, which doubles automatically when the child turns 18. Their term life policies offer up to $300,000 in coverage, while their whole life insurance policies build cash value over time. For seniors, the Guaranteed Life Insurance plan provides coverage up to $25,000, similar to Colonial Penn’s offering, but without the unit-based system.
Eligibility Requirements
Colonial Penn
Colonial Penn’s Guaranteed Acceptance Life Insurance is available to anyone between the ages of 50 and 85, with no medical exams or health questions required. The key appeal of this policy is its accessibility, especially for seniors who might otherwise be declined for traditional life insurance. However, it comes with a graded benefit, meaning that full coverage is not available until after the first two years, unless the death is accidental.
Gerber Life
Gerber Life offers coverage for a wider range of age groups. The Grow-Up® Plan is available for children aged 14 days to 14 years, while adults can apply for term and whole life insurance. Their Guaranteed Life Insurance is available to seniors aged 50 to 80, with no medical exam required, making it similar to Colonial Penn’s offering but with potentially more flexible coverage options.
Target Audiences
Colonial Penn
Colonial Penn is best suited for seniors who want guaranteed acceptance life insurance with no medical exam or health questions. The $9.95 plan is appealing to those on a fixed budget who want a simple and affordable way to cover final expenses. However, its limited coverage amounts may not make it the best choice for those looking for significant life insurance protection.
Gerber Life
Gerber Life is ideal for families seeking life insurance for their children or individuals looking for affordable term and whole life insurance. The Grow-Up® Plan is particularly appealing to parents and grandparents who want to lock in lifelong coverage for their children at a young age. Gerber Life’s policies are also suitable for seniors looking for flexible final expense coverage.
Customer Reviews and Satisfaction
Colonial Penn
Colonial Penn receives mixed reviews from customers. Many appreciate the ease of obtaining coverage without a medical exam, especially seniors who have struggled to find affordable insurance elsewhere. However, some customers feel that the $9.95 plan is misleading because the coverage amount per unit can be quite low, particularly for older applicants.
Gerber Life
Gerber Life generally receives positive reviews, particularly for the Grow-Up® Plan. Parents and grandparents appreciate the simplicity of purchasing a policy for their children, and the automatic doubling of coverage at age 18 is a big selling point. For adults, Gerber Life’s term and whole life policies are seen as affordable options with reliable customer service.
Pros and Cons of Colonial Penn
Pros:
No medical exam required for guaranteed acceptance life insurance.
Affordable $9.95 per unit pricing for basic coverage.
Simple application process, particularly for seniors.
Cons:
Coverage amounts are limited and vary by age and gender.
Multiple units are required for substantial coverage, which can increase costs.
Graded death benefit for the first two years (only accidental death is fully covered).
Pros and Cons of Gerber Life
Pros:
Offers life insurance for children and adults, catering to a wide age range.
Affordable pricing, especially for younger applicants.
Grow-Up® Plan provides lifelong coverage with automatic increases.
No medical exams for guaranteed life insurance, similar to Colonial Penn.
Cons:
Coverage amounts for seniors may not be as high as some competitors.
Policies aimed at children may not appeal to those looking for larger death benefits for adults.
Who Should Choose Colonial Penn?
Colonial Penn is a great choice for seniors looking for guaranteed acceptance life insurance or final expense coverage. If you’re over 50 and don’t want to undergo a medical exam, Colonial Penn provides a simple and affordable option with the $9.95 plan, though you’ll need to understand the limited coverage it offers per unit.
Who Should Choose Gerber Life?
Gerber Life is ideal for families, especially those seeking affordable coverage for their children through the Grow-Up® Plan. It’s also a good choice for adults seeking flexible term and whole life insurance policies without breaking the bank. Gerber Life’s guaranteed life insurance is a competitive option for seniors who don’t want to undergo medical exams.
Conclusion
Both Colonial Penn and Gerber Life offer valuable life insurance options, but they cater to different needs. Colonial Penn is ideal for seniors looking for a guaranteed acceptance life insurance policy, especially with its affordable $9.95 plan for basic coverage. On the other hand, Gerber Life excels in providing life insurance for children and families, particularly through its Grow-Up® Plan. Evaluate your specific needs to determine which company provides the best coverage for your situation, and consult with a licensed agent if needed.
FAQs
What is the biggest difference between Colonial Penn and Gerber Life?
Colonial Penn focuses on providing life insurance for seniors, particularly with the $9.95 guaranteed acceptance plan, while Gerber Life offers a wide range of options for children, families, and adults, including the well-known Grow-Up® Plan for children.
Does Gerber Life offer guaranteed acceptance policies for seniors?
Yes, Gerber Life offers Guaranteed Life Insurance for adults aged 50 to 80, which does not require medical exams, similar to Colonial Penn’s guaranteed acceptance life insurance.
Which company offers better coverage for children?
Gerber Life is better suited for children, thanks to its Grow-Up® Plan, which provides lifelong coverage that doubles when the child turns 18.
Is Gerber Life more affordable than Colonial Penn?
For children and families, Gerber Life is often more affordable. For seniors seeking final expense coverage, both companies offer competitive pricing, though Colonial Penn’s $9.95 plan is unique in its unit-based pricing structure.
Can I get a policy without a medical exam from both companies?
Yes, both Colonial Penn and Gerber Life offer guaranteed acceptance life insurance policies that do not require medical exams, making them attractive options for seniors and those with health concerns.
