If you’ve read any Globe Life Insurance reviews, you’re probably aware they offer relatively small life insurance policies with limited underwriting, mainly to cover final expenses.
This is the niche Globe Life Insurance fills, and they’re one of the leading insurance companies in this area.
That’s the main reason for applying with them, and it may be exactly the kind of coverage you need.
Globe Life Insurance Reviews – About the Company
Globe Life Insurance was founded in 1951.
The company is based in McKinney, Texas, and is a subsidiary of Torchmark Corporation.
Globe has $80 billion of life insurance in force, with 4.2 million policyholders.
It’s been the largest issuer of ordinary individual life insurance policies since 2003.
The company mainly markets its products through direct mail, call centers, and the Internet.
Globe Life Insurance – through Torchmark Corporation – has an A+ (superior) rating from insurance industry rating service, A.M. Best. They also have a rating of A+ (on a scale of A+ to F) with the Better Business Bureau, where the company has been accredited since 1952.
How Globe Life Insurance Works
Here are some of the basic features of Globe Life Insurance:
Premium payment intervals. Premium payments can be made monthly, quarterly, or annually. You can be direct billed and make your payments either online or by mail. You can also set up automatic payments through either a credit card or your bank account.
Customer service. Globe Life Insurance is available by email or by phone, Monday through Friday, 7:30 AM to 6:30 PM, Central standard time.
Fast approval times. Since Globe Life Insurance offers limited life insurance plans, application processing times are short. No medical exam is required, and health questions are needed on only some types of policies.
Policies come with a 30-day money back guarantee. If you’re unhappy with your policy for any reason, you can return the policy within 30 days and be entitled to a full refund of the premium paid. However, this isn’t as generous an offer as it seems. The typical first month premium on any policy is just $1, making the money back guarantee super easy for the company to meet.
Globe Life Insurance Products
Globe Life Insurance offers four primary insurance products:
Whole Life Insurance
Globe Life Insurance offers whole life policies with five death benefits levels:
These death benefits are much lower than what you can get with other insurance companies.
The reason is that Globe Life Insurance whole life policies, like most products they offer, are primarily intended as final expense coverage.
They provide just enough coverage for funeral expenses and lingering medical costs. They are not designed to provide living expenses for your beneficiaries.
Smaller life insurance policies cost more on a per thousand basis. But in addition, Globe Life Insurance’s whole life policies don’t require a medical exam.
That means the policies are higher risk to the company. However, you will be asked a series of health-related questions.
As a whole life policy, it does include a cash value.
That cash value grows at a guaranteed annual rate of return. You can borrow against it, or receive the cash should you surrender the policy.
Whole life policies have fixed premiums for the life of the policy.
However, with a Globe Life Insurance whole life policy, you pay just $1 for the premium for the first month.
The no medical exam provision makes sense if you believe you will have difficulty getting a policy for health reasons.
If not, a fully medically underwritten policy will provide both a higher death benefit and a lower premium on a per thousand basis.
Term Life Insurance
These policies also require no medical exam.
Term policies are available in five-year increments.
You purchase the policy, and your payments will remain level in five-year terms, based on your age.
For example, if you take a term life policy at age 43, the premium will remain level until you turn 46.
Once you do, the premium will adjust to a higher amount and remain level for another five years, from ages 46 to 50. Then at age 51, it will adjust upward again and remain level until you turn 56, when it will increase again.
Globe Life Insurance term insurance policies can remain in force until age 80 in most cases.
Accidental Death Insurance
Globe Life Insurance offers accidental death policies with a death benefit of up to $350,000.
They also allow you to increase the death benefit by 5% per year in each of the first five years. It’s available for customers between the ages of 18 and 69 and features guaranteed acceptance.
With this policy, not only is there no medical exam, but there are no health questions either.
But that’s less of a benefit than it seems at first glance.
Since the policy only pays benefits on death due to accidents, it will not pay out if you die of natural causes. That being the case, your health condition is irrelevant to the policy.
The cost of this coverage is very low compared to regular life insurance policies since the likelihood of dying in an accident is statistically very low.
NOTE: Globe Life Insurance also offers accidental death insurance as a mortgage protection insurance policy. But since it only covers death due to accidents, it’s not true mortgage protection insurance.
Child Life Insurance
Globe Life Insurance offers life insurance policies for children in amounts of $5,000, $10,000, $15,000, or $20,000.
Once again, no medical exam is required.
The company advertises “$1 for $20,000” and monthly premiums thereafter as low as $2.17.
The policies are whole life, so they build up cash value which can be either borrowed against or cashed-out upon surrender of the policy.
Since they’re whole life policies, your child can maintain them into adulthood and throughout their lives.
And naturally, the longer they maintain the policy, the greater the cash value will be. Starting a policy like this very early in a child’s life could be the first investment plan you make for your child.
Should You Purchase a Life Insurance Policy With Globe Life?
Globe Life Insurance is popular for advertising “$1 Buys $20,000 (or $50,000 or $100,000)”, but you should know that’s too good to be true.
As a matter of standard policy, they charge $1 as the first-month premium on all their policies.
After the first month, you will pay the regular monthly premium, which will be much higher.
The company gets bashed a good deal in Globe Life Insurance reviews, which isn’t entirely fair.
Yes, the policies are more expensive than comparable amounts of insurance from other companies.
But Globe Life Insurance provides policies with very limited underwriting and for small death benefits. That makes the premiums higher, but these types of policies fill a definite need.
For people who might not qualify for ordinary life insurance, Globe is a viable alternative.
It can also be an excellent choice as a supplement to another policy, such as an employer-sponsored plan. This is another important point that isn’t typically emphasized in Globe Life Insurance reviews.
However, if you’re young, healthy, and need a lot of life insurance coverage at the lowest possible price, Globe Life Insurance may not be the right choice.
If you’d like more information or you’d like to sign up for a policy, send us an email or call us at 800-277-3098.
As life insurance brokers, we work with many different carriers.
We’ll help you get a policy from Globe or another company with a better plan for you.
And our services are provided at no additional cost to you.