The Gerber Life Parenting Blog

How Does Gerber Life Calculate My Life Insurance Premium Rate?

April 22, 2014

Multi-Generational Family PortraitMany factors contribute to what kinds of life insurance a family purchases and how much is spent. Young families may peg life insurance protection as a budget must-have, to have some financial security should the primary breadwinner die prematurely. Families on a budget may want to pay their insurance premiums monthly, as the paycheck comes in. In the same vein, many factors contribute to how insurance companies establish insurance rates.

How are premium rates determined for life insurance?

The premium rate for a life insurance policy depends on the kind of policy – whole life insurance or term life insurance – and factors such as the age of the buyer and the amount of coverage. Gerber Life Insurance offers both whole life insurance, which can last a lifetime, and term life insurance, which covers a set period of years. Generally, whole life insurance covers a longer time span and has a guaranteed payout and is more expensive than term life insurance.

Once a family or individual has pinpointed which kind of life insurance best suit their needs, they must select a coverage amount. For example, Gerber Life’s Whole Life Plan1 and Term Life Plan2 offer between $25,000 and $150,000 coverage. Generally, the higher the coverage, the more costly the premium will be. With Term Life, the length of time of the policy also will affect the premium rate, meaning, for example, that a 10-year term policy will cost less than a 15-year term policy for the same amount of coverage.

The age of the buyer at the time of purchase is another factor that affects life insurance premiums. Since premium rates rise with age, buying life insurance at a young age can be a budget-conscious way to go.

Other factors that affect life insurance premium rates include the state where you live, your gender, your health, and whether you use tobacco products. In most cases, a medical exam need not be required for having a Gerber Life life insurance policy. An example of a scenario where a physical exam would be required is if you are age 51 or older and are applying for more than $100,000 in whole life insurance coverage.

Families and individuals can find peace of mind by including life insurance protection in their monthly budgets – and in doing so, they need look no further than Gerber Life.


1 Policy Form Series WLP-07
2 Policy Form Series SLT-05

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