« All Articles

Globe Life And Accident Insurance Company vs Gerber Life Insurance Company

Insurance may help protect your family’s financial future. Many insurance companies may be able to help provide this service. They offer multiple insurance products with varying coverage amounts at different price points with a wide array of policy specifics. Even after you consider your family’s unique set of needs, research insurance products, consult with a licensed insurance professional, and determine what insurance product you would like to purchase, it may still be difficult to determine which insurance company to purchase insurance from it from.
 
This article will focus on comparing just two of many insurers: Gerber Life Insurance Company and Globe Life And Accident Insurance Company. It includes:
 
  1. Company Overviews – brief snapshot of each company
  2. Insurance Product Offerings – summary of the products each company offers
  3. Financial Strength Ratings Comparison – how the companies’ financial strength ratings stack up against one another

1. Company Overviews

 

Gerber Life Insurance Company

Gerber Life Insurance Company was founded in 1967 by Gerber Products Company, which sells baby food and baby products and has been in business since 1927.1,2
 
Western & Southern Financial Group purchased Gerber Life Insurance Company in 2018.3 Western & Southern Financial Group is comprised of a group of diversified financial services businesses that offer products and services that include but are not limited to life insurance, investments, and retirement solutions for individuals and families.4
 
Gerber Life Insurance is located in White Plains, New York. It has $50 billion of life insurance in force, that is the dollar amount of life insurance that a company has issued.5,6


 

Globe Life And Accident Insurance Company

Globe Life And Accident Insurance Company has roots that go back to 1900.7 Globe Life And Accident Insurance Company is owned by Globe Life Inc. (NYSE: GL). Globe Life Inc. is a financial services holding company that offers life and supplemental health insurance.8
 
Globe Life And Accident Insurance Company is located in McKinney, Texas. It has more than $91 billion of insurance in force (as of 7/21). Globe Life And Accident Insurance Company’s supplemental insurance products offer additional protection to more than 4.4 million policyholders (as of 7/21) in locations where the company is licensed – 49 states and the District of Columbia.7
 
The Globe Life companies issue more ordinary life insurance policies every year than any other company in the United States.9
 
 

2. Insurance Product Offerings

Gerber Life Insurance Company and Globe Life And Accident Insurance Company both offer life insurance and other types of insurance products.


 

Gerber Life Insurance Company offers the following insurance products:

 

Insurance for adults and seniors

  • Term life insurance – Term life insurance pays a stated death benefit in the event the person insured dies during the specified term of coverage. Term life insurance is only active for a specific “term” or period in time. A policyholder would generally have to renew their coverage after their term ends to guarantee another “term” of coverage.10,11,12
  • Whole life insurance – Whole life insurance is a type of permanent life insurance that provides coverage for the life of the insured. In addition to paying a death benefit, whole life insurance policies are also known for carrying a cash value component, which allows the policyholder, through the payment of premiums over time, to build cash value. Cash value is a portion of your life insurance policy that accrues interest and can be withdrawn at a later date to be used by the policyholder.13
  • Guaranteed acceptance whole life insurance – Another form of whole life insurance, which is a type of permanent life insurance that provides coverage for the life of the insured. In addition to paying a death benefit, whole life insurance policies are also known for carrying a cash value component, which allows the policyholder, through the payment of premiums over time, to build cash value. Cash value is a portion of your life insurance policy that accrues interest and can be withdrawn at a later date to be used by the policyholder.14
  • Accident protection insurance – Accidental Death and Dismemberment (AD&D) insurance provides coverage to the policyholder in the event they suffer from a covered accidental death or dismemberment. AD&D does not act as a replacement to life insurance, but rather as a supplement to an existing life insurance policy.15
 

Insurance for children

  • Whole life insurance – Whole life insurance is a type of permanent life insurance that provides coverage for the life of the insured. In addition to paying a death benefit, whole life insurance policies are also known for carrying a cash value component, which allows the policyholder, through the payment of premiums over time, to build cash value. Cash value is a portion of your life insurance policy that accrues interest and can be withdrawn at a later date to be used by the policyholder.16
This may not be a comprehensive list of all insurance coverage options Gerber Life Insurance Company offers. Visit Gerber Life Insurance Company’s website for more information about their company and insurance product offerings.


 

Globe Life And Accident Insurance Company offers the following insurance products:

 

Insurance for adults and seniors

  • Whole life insurance – Whole life insurance is a type of permanent life insurance that provides coverage for the life of the insured. In addition to paying a death benefit, whole life insurance policies are also known for carrying a cash value component, which allows the policyholder, through the payment of premiums over time, to build cash value. Cash value is a portion of your life insurance policy that accrues interest and can be withdrawn at a later date to be used by the policyholder.17
  • Term life insurance – Term life insurance pays a stated death benefit in the event the person insured dies during the specified term of coverage. Term life insurance is only active for a specific “term” or period in time. A policyholder would generally have to renew their coverage after their term ends to guarantee another “term” of coverage.18
  • Accidental benefits insurance – Accidental Death and Dismemberment (AD&D) insurance provides coverage to the policyholder in the event they suffer from a covered accidental death or dismemberment. AD&D does not act as a replacement to life insurance, but rather as a supplement to an existing life insurance policy.19
  • Mortgage protection insurance – Another form of Accidental Death and Dismemberment (AD&D) insurance that provides coverage to the policyholder in the event they suffer from a covered accidental death or dismemberment. AD&D does not act as a replacement to life insurance, but rather as a supplement to an existing life insurance policy.20
  • Medicare Supplement insurance – A Medicare Supplement insurance policy is a type of supplemental insurance policy that is sold by private insurance companies. It is designed to cover some of the out-of-pocket expenses, like copayments, coinsurance, and deductibles that Original Medicare does not cover.21
 

Insurance for children

  • Children’s whole life insurance – Whole life insurance is a type of permanent life insurance that provides coverage for the life of the insured. In addition to paying a death benefit, whole life insurance policies are also known for carrying a cash value component, which allows the policyholder, through the payment of premiums over time, to build cash value. Cash value is a portion of your life insurance policy that accrues interest and can be withdrawn at a later date to be used by the policyholder.22
This may not be a comprehensive list of all insurance coverage options Globe Life And Accident Insurance Company offers and the products and benefits listed may vary by state. Visit Globe Life And Accident Insurance Company website for more information about our Company and insurance product offerings.
 

Learn more about children's life insurance.

Our agents can walk you through your options.

Connect with an agent.

3. Financial Strength Ratings Comparison

Independent ratings agencies assign insurance companies financial strength ratings based on their financial condition and ability to pay claims. Three such independent ratings agencies are:
 
  • A.M. Best assesses the creditworthiness of and/or reports on insurance companies worldwide.
  • S&P Global Ratings provides high-quality market intelligence in the form of credit ratings, research, and thought leadership.
  • Fitch provides credit ratings, commentary, and research for global capital markets.

Additionally, the Better Business Bureau (BBB), while not an independent ratings agency, is an organization that provides insights into businesses that may be helpful to prospective customers.
   
 

Gerber Life Insurance Company

  • A.M. Best Company – Gerber Life Insurance Company has an A (Excellent) Financial Strength Rating from A.M. Best Company (as of 8/21).23 A.M. Best is the only major rating agency that rates Gerber Life Insurance Company.3
 
 

Globe Life And Accident Insurance Company

  • A.M. Best Company – For more than 45 consecutive years, Globe Life has earned an A (Excellent) rating or higher from A.M. Best Company. This reflects the strength of our balance sheet, as well as our, "very strong operating performance, favorable business profile, and appropriate enterprise risk management."24
  • Fitch – The A+ (Strong) rating we received from Fitch, "reflects Globe Life's very strong and stable operating profitability, conservative operating strategy, strong capital position, consistent debt servicing capability, and above-average reserve margins."25
  • Standard & Poor's Global Ratings – Globe Life has an AA- (Very Strong) rating from Standard & Poor’s. This demonstrates our strong, "ability to pay under [our] insurance policies and contracts in accordance with [our] terms."26
  • Better Business Bureau (BBB) – Globe Life has been accredited by the Better Business Bureau (BBB) since 1952 and holds the highest rating possible of A+. BBB accreditation standards include a commitment to make a good faith effort to resolve any consumer complaints. The A+ rating represents the BBB's opinion of how Globe Life is likely to interact with its customers.27
Read more about Globe Life’s financial strength ratings.


 

Insurance may help protect your family.

Whether you purchase insurance from Globe Life And Accident Insurance Company, Gerber Life Insurance Company, or another entity, insurance may help protect your family in times of financial difficulty. Both Globe Life And Accident Insurance Company and Gerber Life Insurance Company offer similar insurance products, including life insurance – both whole life insurance and term life insurance – for children (whole life insurance only), adults, and seniors.

Both Globe Life And Accident Insurance Company and Gerber Life Insurance Company have an “A” Excellent rating from A.M. Best Company. However, Globe Life And Accident Insurance Company is also highly rated by S&P Global Ratings, Fitch, and the BBB. Globe Life And Accident Insurance Company has been in business longer and has more life insurance in force than Gerber Life Insurance Company does.
 
Contact a licensed insurance professional or your state’s insurance commissioner if you have questions about insurance or an insurance company.

 
Sources:
  1. Gerber Life Insurance, Meet Gerber Life Insurance Company, accessed August 2021
  2. Gerber, Gerber’s history & heritage, accessed August 2021
  3. Western & Southern Financial Group, 2020 Annual Report, 2020
  4. Western & Southern Financial Group, Meet Our Family of Companies, accessed August 2021
  5. Gerber Life Insurance, Life Insurance Questions, accessed August 2021
  6. Nasdaq, Life insurance in force, accessed August 2021
  7. Internal Sources
  8. Globe Life, About Globe Life, accessed August 2021
  9. Excluding reinsurance companies; S&P Global Market Intelligence, 2020
  10. Gerber Life Insurance, Term Life Insurance, accessed August 2021
  11. Gerber Life Insurance, How the Gerber Life College Plan Works, accessed August 2021
  12. Gerber Life Insurance, Gerber Life College Plan, accessed August 2021
  13. Gerber Life Insurance, Whole Life Insurance, accessed August 2021
  14. Gerber Life Insurance, Guaranteed Life Insurance Plan, accessed August 2021
  15. Gerber Life Insurance, Accident Protection Insurance, accessed August 2021
  16. Gerber Life Insurance, Gerber Life Grow-Up® Plan, accessed August 2021
  17. Globe Life, Whole Life Insurance, accessed August 2021
  18. Globe Life, Term Life Insurance, accessed August 2021
  19. Globe Life, Accidental Benefits Insurance, accessed August 2021
  20. Globe Life, Mortgage Protection Insurance, accessed August 2021
  21. Globe Life, Medicare Supplement Insurance Policy, accessed August 2021
  22. Globe Life, Whole Life Insurance for Children and Grandchildren, accessed August 2021
  23. A.M. Best, Gerber Life Insurance Company, 2020
  24. A.M. Best rating as of 8/22. This rating refers only to the overall financial status of the company and is not a recommendation of the specific policy provisions, notes, or practice of the insurance company.
  25. Fitch’s rating as of 11/20. This rating refers only to the overall financial status of the company and is not a recommendation of the specific policy provisions, notes, or practice of the insurance company.
  26. Standard & Poor’s rating as of 10/20. This rating refers only to the overall financial status of the company and is not a recommendation of the specific policy provisions, notes, or practice of the insurance company.
  27. Better Business Bureau’s rating as of 3/21. BBB accreditation does not mean that the business's products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business's product quality or competency in performing services. BBB ratings are not a guarantee of a business's reliability or performance. BBB recommends that consumers consider a business's BBB rating in addition to all other available information about the business.
AD-1221