Yes — in principle, an indexed universal life policy issued or serviced by Gerber Life can be sold in a life settlement without the carrier’s permission, because the contract is your property. But the honest answer for most Gerber policyholders is that the face amount is too small for the settlement market to bid on. Gerber Life built its business on small-face, easy-to-buy coverage: the Grow-Up Plan for children, small whole life for adults and seniors, and guaranteed-issue policies in the $5,000 to $25,000 range. Life settlement buyers generally need a death benefit of $100,000 or more.
Gerber Life Insurance Company, based in White Plains, New York, licensed the Gerber name from the baby food company and was acquired by Western & Southern Financial Group in 2018. Its shelf has centered on term, small whole life and children’s coverage rather than accumulation-oriented indexed universal life. As of 2026, confirm with Gerber Life exactly which product you hold and its face amount before assuming any indexed universal life features apply — the cover page and most recent annual statement will say.
This guide covers how indexed universal life works in general, why small policies do not attract offers, and what to do instead when a settlement is not available. Pine Lake Life Solutions is not affiliated with Gerber Life or Western & Southern. Nothing here is legal, tax or investment advice.
In This Article
- Check the Face Amount Before Anything Else
- What a Gerber Grow-Up Plan Is, and Why It Cannot Be Settled
- How Indexed Universal Life Works, If That Is What You Hold
- If the Policy Is Small, Here Is What Actually Helps
- The Narrow Exceptions Worth Checking
- If Your Policy Is Large Enough, Here Is the Process
- What to Do Next
- Frequently Asked Questions
Check the Face Amount Before Anything Else
The single number that decides whether a settlement is even a conversation is the death benefit. Underwriting a transaction means ordering medical records, commissioning a life-expectancy report, legal review, escrow and closing costs. Those costs are largely fixed, so a $20,000 policy cannot support them no matter how healthy the contract or how advanced the insured’s age.
The practical threshold in the market is roughly $100,000, with the bulk of activity in policies well above that. Look at the cover page. If your Gerber Life policy is in the $10,000 to $50,000 range — typical for the products the company is known for — a settlement is not the path, and anyone telling you otherwise deserves scrutiny. See minimum policy size for a life settlement.
What a Gerber Grow-Up Plan Is, and Why It Cannot Be Settled
The Grow-Up Plan is a small whole life policy on a child that doubles its face amount at a set age at no additional premium. Families often hold them for decades. They are not settlement candidates for two independent reasons: the face amount is very small, and the insured is far too young for the economics of a secondary-market purchase to work.
If a Grow-Up Plan no longer fits your family’s plans, the options are to keep it as a small permanent policy, transfer ownership to the now-adult insured, borrow modestly against its cash value, or surrender it for that cash value. There is no settlement market for it, and there should not be. Our page on cash surrender value explains what surrender would pay.
How Indexed Universal Life Works, If That Is What You Hold
If you do hold an indexed universal life contract — from Gerber Life or any carrier — the mechanics are the same industry-wide. Interest credits track an external index, most often the S&P 500 measured on price return so dividends are excluded, over a one-year segment. The change is multiplied by a participation rate, limited by a cap and floored, usually at 0%.
The floor prevents a negative credit, not a declining account value: cost of insurance, the policy fee and per-thousand charges are deducted every month regardless of the credit. And the declared cap, participation rate and COI scale can generally be changed by the carrier within contractual guarantees. Ask for the current and guaranteed figures in writing. See indexed universal life explained.
| Typical Gerber Life Product | Usual Face Amount | Settlement Candidate? | Better Option |
|---|---|---|---|
| Grow-Up Plan (child) | $5,000 – $50,000 | No | Keep, transfer to the insured, or surrender |
| Guaranteed issue whole life | $5,000 – $25,000 | No | Accelerated benefit rider or keep |
| Small term policy | Varies | Rarely, only if convertible | Check conversion rights |
| Universal or indexed universal life | Varies | Only at $100,000+ | Request an in-force illustration |
If the Policy Is Small, Here Is What Actually Helps
Start with the riders. Many small policies include an accelerated death benefit rider that pays part of the face amount early on a qualifying terminal diagnosis, and some include chronic illness provisions. That rider can deliver cash without selling anything — read how accelerated death benefit riders work.
Next, look at cash value. A modest policy loan can cover a short-term need, though interest accrues and unpaid loans reduce the death benefit. If the premium is the problem, ask whether a reduced paid-up election is available, which ends premiums and keeps a smaller benefit. Surrender is the last resort among these, but it is still better than letting a policy lapse for nothing.
The Narrow Exceptions Worth Checking
There are three situations where a small-policy household still finds a path. First, multiple policies: if the same insured owns several contracts that together exceed $100,000 in death benefit, the aggregate may be worth reviewing, though buyers evaluate each contract separately. Second, an unexpectedly large policy: people misremember face amounts, and a policy purchased decades ago may be bigger than you recall.
Third, a terminal or seriously advanced illness, which moves the analysis from a life settlement to a viatical settlement. Viatical transactions can involve smaller face amounts because the expected holding period is short, and proceeds may qualify for a federal income tax exclusion when specific conditions are met — confirm your situation with a tax professional. See selling with a terminal diagnosis.
If Your Policy Is Large Enough, Here Is the Process
For a contract at or above roughly $100,000 with an insured aged 65 or older — younger with significant health conditions — the process runs the same as at any carrier. Free eligibility review from the cover page, formal application with a HIPAA authorization, an in-force illustration and verification of coverage from the carrier, an independent life-expectancy report, offers, closing through escrow, then the ownership change and funding.
Expect 60 to 120 days. Buyers value the policy as the net death benefit less the discounted cost of premiums to maturity, weighted by life expectancy. The federal GAO study (GAO-10-775) found typical proceeds of about 10% to 35% of face value, roughly four to eight times cash surrender value.
What to Do Next
Pull the cover page and read three things: the insurer, the face amount and the issue date. If the face amount is under $100,000, focus on riders, loans, reduced paid-up or surrender rather than a sale — and be wary of anyone who insists a small burial-type policy can be sold for a large sum.
If it is $100,000 or more and the insured is a senior, a free policy review will tell you quickly whether the secondary market is likely to bid. Send only the cover page, or call (305) 209-7183. There is no cost, no obligation, and a straight answer either way is the point of the exercise.
Frequently Asked Questions
Can I sell my Gerber Life policy?
Legally you may transfer ownership of any policy you own, and the carrier’s permission is not required. Practically, most Gerber Life policies are small-face contracts well below the roughly $100,000 death benefit that life settlement buyers require, so no offer is likely. Check the face amount on your cover page first.
Can I sell a Gerber Grow-Up Plan?
No. It is a small whole life policy on a child, and both the face amount and the insured’s age put it far outside what the secondary market buys. Your options are to keep it, transfer ownership to the now-adult insured, borrow against the cash value, or surrender it.
Does Gerber Life sell indexed universal life?
Gerber Life, based in White Plains, New York and acquired by Western and Southern Financial Group in 2018, has focused on term, small whole life and children’s coverage. Confirm with the company as of 2026 which product you actually hold before assuming indexed universal life features apply.
My policy is only $25,000 but I need money for care. What can I do?
Check for an accelerated death benefit rider, which can pay part of the face amount early on a qualifying terminal diagnosis. Consider a policy loan against any cash value, a reduced paid-up election to end premiums, or surrender. A settlement is not realistic at that size.
What if I am terminally ill?
Then the relevant transaction is a viatical settlement rather than a life settlement, and smaller face amounts are sometimes workable because the expected holding period is short. Proceeds may qualify for a federal income tax exclusion when specific conditions are met, so consult a tax professional about your situation.
Why do buyers refuse small policies?
The costs of a transaction, including medical record retrieval, a life expectancy report, legal review and escrow, are largely fixed. On a $20,000 policy those costs consume the economics entirely. That is why roughly $100,000 has become the practical floor.
How do I confirm my face amount?
Look at the policy cover page or the most recent annual statement, both of which state the face amount, policy number and issue date. If you cannot find them, call the number on your premium notice and request a copy. Then a free review can tell you where you stand.
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Related Reading
- Minimum Policy Size For A Life Settlement
- What Is Cash Surrender Value
- What Is Indexed Universal Life
- What Is An Accelerated Death Benefit Rider
- What Is A Viatical Settlement
- Terminal Illness Sell Policy
- Can I Sell A Final Expense Policy
- Sell My Gerber Life Whole Life Policy
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.