Back to Whole Life Insurance Plan Whole Life Insurance Questions What is whole life insurance? Whole life insurance provides permanent life insurance coverage for your entire life, as long as you pay your monthly premium, and builds cash value over time. By comparison, term life insurance offers protection for only a specified period of time and does not build cash value. Why do people choose whole life insurance? One of the key benefits of whole life insurance is having life insurance for your lifetime. You can lock in an affordable premium rate that will never increase for as long as you own the policy, making your payments predictable and easier to plan your budget. Whole life insurance builds cash value over time, providing an extra financial safety net for the unexpected. What is “cash value”? Each time that you pay your premium, the insurance company sets aside a small amount, which builds up over time as the policy’s cash value. The longer you hold the policy, the more cash value the policy builds. If a need arises, and as long as premiums are paid, you could borrow against the available cash value* to help cover lost income, rent or mortgage payments, education costs, or other expenses. Or, you can turn in the policy later on and receive the available cash value. *policy loan interest rate is 8%. What coverage amounts are available? The Gerber Life Whole Life Policy offers coverage from $50,000 to $300,000 to fit various needs and budgets. Choose a coverage amount that works best for you. Find out how affordable your premium can be with a free quote. Will my whole life insurance monthly premium payment go up each year? No, the amount you pay when your coverage starts is the same amount that you‘ll pay throughout the life of your Gerber Life Whole Life Policy. The sooner you apply, the lower your lifetime premium rate, since premiums are based on your age when your policy starts. Can I borrow from the cash value of my whole life insurance policy? As long as premiums are paid, you can borrow against the available cash value that has built up in your Gerber Life Whole Life Policy. *policy loan interest rate is 8%. Do I have to pay back money that I borrow from the policy? That’s your choice. You could pay back the borrowed money plus accrued interest, to make your policy whole. Or, if you chose not to pay it back, then the money borrowed plus accrued interest will be deducted when the policy's death benefit is paid or the policy is cashed in. Is a medical exam required? A medical exam is not necessary in most cases. Coverage is dependent on answers to health questions. A physical may be necessary for applicants who are age 51 and older and apply for more than $100,000 of coverage. Can Gerber Life cancel my whole life insurance policy? No. Once coverage begins and for as long as premiums are paid, Gerber Life cannot cancel your Whole Life insurance policy. You are the only person who could cancel the coverage.