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Things to consider when choosing life insurance

With the many options available for family life insurance you may need someone to help you understand the different choices and terminology. Gerber Life takes the guesswork out of family life insurance with articles that answer such questions as, "How does life insurance work?" and "How do I get life insurance?" Whether you're looking for a policy for an infant, child, adult or senior, we've got you covered when it comes to answering your questions about life insurance.

  1. Life Insurance: Facts vs Myths

    September 27, 2021

    Happy parents playing with their newborn son on bed

    While many of us understand the value of life insurance, millions of families don’t have enough coverage or any coverage at all. In fact, 41 million Americans think they need life insurance coverage but don’t have it (source: LIMRA, 2020).  Since the COVID-19 pandemic, the interest in life insurance has increased. So, what’s the holdup? Many people are concerned about the cost or whether they qualify.

    Since September is Life Insurance Awareness Month, this is a great opportunity to address some common misconceptions about life insurance.

    Myth 1: Life insurance is expensive

    Fact: Premiums cost less than most people think

    According to a LIMRA International survey, cost was the top reason for not getting life insurance. The same survey found that over half of Americans overestimated the cost of coverage by as much as three times the actual cost of Term Life insurance. Especially for young people, life insurance can cost as little as a few cups of coffee.

     

    Myth 2: I don’t need life insurance right now 

    Fact: Getting life insurance while you’re young can pay off later

    Getting life insurance while you’re young and healthy can help you lock in lower rates. Also, even if you’re not the breadwinner, Whole Life insurance can help family members pay for expenses such as childcare. Not sure if now is the right time to buy life insurance? Check out our article on the different life stages when you should get insured.

     

    Myth 3: I can’t get life insurance because of my health condition

    Fact: Many life insurance policies do not require medical exams

     In most cases, adults can get term life insurance without taking a medical exam* and those between age 50 and 80 automatically qualify for Guaranteed Life Insurance regardless of health.

    *Gerber Life Term Life insurance requires a medical exam for those age 51 and over and who apply for more than $100,000 in coverage.

     

    Myth 4: I have life insurance through work, so I don’t need more coverage

    Fact: Many employer-sponsored policies don’t provide enough coverage

     Most employer-sponsored life insurance policies don’t offer enough benefits and you lose your coverage when you change jobs. Many employers’ life insurance can only offer a fraction of what your family may need which is why a supplemental life insurance policy could be the right choice for you.

     

    Myth 5: Getting life insurance is complicated

    Fact: You can get coverage online, often in minutes

    These days you can go online to get a quote almost instantly and you can get approved for coverage the same day.

     

    Questions? Ready to get insured? Call 1-800-704-2180 to speak to a Gerber Life Insurance specialist.

     

    WB-47 (0921)

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  2. Can I Buy Life Insurance for My Parents?

    December 1, 2020

    Daughter Taking Care of Mom

    It used to be that your parents worried about your finances as you grew up. But now that you’re an adult and your parents are older and perhaps retired, the roles may be reversed: it’s your turn to fret over their financial wellbeing. Especially if they rely on a fixed income, you’ll want to make sure they protect each other and their family with life insurance.

     

    Here’s the big question: If one parent passes away, will there be enough money for the surviving parent to live on?

    If your parents have life insurance policies already, then they can use the benefits to cover final expenses and everyday expenditures. But if they’re not insured, the surviving parent may have trouble covering living expenses and rely on their adult children to make ends meet. That’s not something you or your parents would want to experience. To help your parents settle into retirement and avoid that unfortunate scenario, you can suggest one of three insurance options from Gerber Life for older adults.

     

    Before we go on, let’s answer a frequently asked question: Can you buy life insurance for your parents?

    You cannot buy life insurance for just anyone, however, you can buy life insurance for someone else if you have their consent and “insurable interest” – which just means their death would impact you financially. So yes, you can buy life insurance for your parents. And if they cannot afford to pay the premiums, you can pay the premiums for them.

    Gerber Life has several options for seniors, depending upon their age.

     

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  3. Taking Advantage of Your Life Insurance Tax Benefits

    June 12, 2019

    Making sure that your family has greater financial security for the future is certainly the most important reason to have life insurance. However, there are two benefits that you may not be aware of that can help both you and your beneficiaries: A tax-free benefit payout, and a tax-free loan against your policy.

     

    Benefit Payouts Are Tax-Free

    When you pass away, naturally it won’t be an easy time for your family.  Along with their grief, they will be dealing with your final expenses and other necessary arrangements.

    The life insurance payout that your beneficiaries receive will help eliminate some stress. And the fact that the payout is not taxable is certainly a great benefit too.  Your beneficiary or beneficiaries will be able to use the entire payout amount without having to worry about paying taxes on it later.

     

    Take Out a Tax-Free Loan

    Your beneficiaries aren’t the only ones who can get a tax break with life insurance. If you have a permanent life insurance policy – a whole life policy – it most likely includes a cash value component. If so, you can reap benefits through its cash value.

     

    Here’s how:

    For each premium you pay, Gerber Life sets aside a small percentage of your payment, which grows month after month into what becomes the cash value of your policy. The available cash value represents how much money you’d get back if you ever decided to cancel your policy. It also can be a small source of ready cash that you could borrow against if needed.

    When you borrow against the cash value of a permanent life insurance policy, you’ll be charged interest (the percentage for a Gerber Life policy loan is 8%), but you won’t have to pay taxes on the loan amount because it’s not considered a distribution of income.

    As long as you pay back the policy loan and interest, the payout to your beneficiaries won’t be affected. However, if there is debt against the policy at the time of your death, the amount owed would be deducted from the beneficiary payout.

    Buying life insurance for your family is one of the smartest financial decisions you can make. Call us at 1-800-704-2180 to learn about our permanent life insurance policies.

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  4. Life Insurance Pricing Factors

    February 14, 2019

    Life insurance is something most people can benefit from no matter where they are in life, but life insurance prices aren’t the same for everyone. In fact, you may be surprised at what can increase life insurance rates. Here are some of the top things life insurance companies look at before pricing your plan.

     

    Life insurance pricing factors - What determines your life insurance premium?

     

    These are just some of the many factors that could impact your life insurance premium. Know them all and be sure to do your homework before selecting a policy. Get your free Gerber Life Term Life Insurance quote today.

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  5. 7 Things Millennial Parents Are Doing Right

    December 18, 2018

    No matter which generation we’re a part of, we want the best for our children and we’re willing to put in the work to make that happen. However, the United States is a very different place from what it was 20 or 30 years ago.

    Millennial parents have challenges, resources and opportunities that their parents never faced or envisioned, which has led to some very big differences in how millennials approach parenting.

     

    1. Starting families later

    new parents - woman checking pregnancy test

    The current median age for getting married is 30 years old, compared to 23 years in the 1970s.1 With more women pursuing careers and with prices and expenses increasing, family life seems to be put on hold.

     

    2. Better informed

    millennial parents - couple cooking

    With so much knowledge at our fingertips thanks to the internet, today’s parents are searching for how-to tips for parenting. Millennials are strategic thinkers, interested in what has worked for other parents and what hasn’t.  Google found that three out of four parents are open to parenting tips they find on YouTube.2

     

    3. Dads are stepping up

    millennial parenting - dad playing with child

    Nowadays, new fathers play a bigger role at home than did previous generations of dads. They strive to be “perfect” and are interested in learning everything they can about parenting.3 As super dads, they are more involved with tasks like baby-proofing, changing diapers, making important purchasing decisions and more.

     

    4. Health conscious

    millennials - woman running with dog

    Millennials tend to be more health conscious than previous generations.  They carry their health consciousness into their parenting style, aiming to serve as positive, healthy role models.

     

    5. Dialogue is a priority

    millennial dads - father talking with son

    Millennial parents look for ways to be more “present” and involved, and let their kids be part of the decision-making process. Breaking away from “helicopter parenting,” they give their kids choices. Instead of pushing them to strive for perfection, they keep it real by having candid conversations with their little ones.

     

    6. They don’t define themselves as only a mom or dad

    millennials - woman painting

    “Millennial parents can do it all,” the saying goes. They prioritize their kids while still doing other things that make them happy. 75% of millennials say they’ve “continued to pursue personal passions” since becoming parents.3

     

    7. Saving more for the future

    saving money - piggy bank

    Once kids come into the picture, it seems like saving for retirement is kicked into high gear. To put this in perspective, boomers are saving about 5% of their income for retirement. But the Millennial generation is saving twice as much, with a very financially responsible 10% of income going into retirement savings!4

    And, of course, any sound retirement plan includes life insurance, so that spouses and children are financially protected if the unexpected happens.

     

    Wrapping it up…

    Yes, the parenting world we live in today is very different from previous generations. And Millennials may not be doing things the same way their parents did. New challenges require new approaches, and millennial parents are rising to meet those challenges. They seem to be doing parenting right.

     

    1 – “Millennials Coming of Age,” Goldman Sachs, 2015,  https://www.goldmansachs.com/insights/archive/millennials/

    2 – “Marketing to Millennial Parents? Here’s How They’re Redefining Parenting for Their Generation,” Think with Google, March 2017,  https://www.thinkwithgoogle.com/consumer-insights/marketing-millennial-parents-youtube-insights/

    3 – “Millennial Dads Turn to Digital in Their Moments of Need” Think with Google, June 2015,  https://www.thinkwithgoogle.com/consumer-insights/millennial-dads-turn-to-digital-in-moments-of-need/

    4 – “Millennial Parents Outpace Gen X, Boomer Parents on Retirement Savings,” Nerdwallet survey conducted online by Harris Poll, Aug. 2017, https://www.nerdwallet.com/blog/investing/parents-retirement-study/

     

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