The Gerber Life Parenting Blog

Life Insurance Glossary: Defining the Two Basic Kinds

July 8, 2014

Multi-Generational FamilyAs a parent or grandparent, you know the importance of preparing for your family’s financial future. You know that it’s equally important to take steps to ensure that your family is financially protected, even if you were no longer around. You may know that you need life insurance, but with so many options to choose from, it can be challenging to decide which kind is right for you.

Whole Life Insurance

As its name suggests, whole life insurance is an insurance policy that can provide coverage for your whole life. If you have the Gerber Life Whole Life Insurance Policy1, for example, your premium will never increase during the life of the policy once you lock in your rate, regardless of your future age, health or occupation. Whole life insurance offers a cash value benefit as well, which allows you to borrow against the policy for its available cash equivalency.*

Term Life Insurance

Term life insurance is a short-term life insurance solution with low premiums and high benefits, for a pre-determined length of time or “term.” As a parent, you may choose a term life policy that provides enough coverage to ensure that your children and other beneficiaries are well cared for in the event of your death. Gerber Life offers term life insurance2 for 10, 15, 20 or 30 years. Premiums vary according to your age, health, and lifestyle habits. A term policy does not accumulate cash value over time, but its premium rate will not increase for the duration of your policy’s term.

Making an Informed Decision

A life insurance policy shouldn’t be a rash decision. Choosing the right policy for your family means determining your short and long-term goals. Whether you want to ensure that you have coverage for life, your beneficiaries are financially cared for after your death, or that you accumulate money while paying your premiums, there’s a life insurance policy for you.

For a free quote or to learn more about the different kinds of life insurance policies available from Gerber Life, please visit our website.


1 Policy Form Series SWLP-13, Policy Form ICC13-SWLP
  Policy Form ICC13-HWLP, Policy Form Series HWLP-13
2 Policy Form Series SLT-05
  Policy Form ICC11-LTL, Policy Form Series LTL-11

*Policy loan interest rate is 8%

Please note: 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.