When it comes to shopping for life insurance all of the options on the market can get overwhelming.
There are many companies and most of them seem to be good, some popular, some unknown.
The best thing to do is to always work with an independent agent or agency that can do the shopping for you.
Colonial Penn and Globe Life Insurance
Unfortunately, most people let marketing guide them instead.
There are a few companies out there that aren’t always the best options for you but are the most popular due to catchy advertising.
Two of the most infamous companies for having targeted marketing but subpar offerings are Colonial Penn and Globe Life insurance.
Let’s discuss 3 reasons they are overrated and why you should always shop around.
Both of the companies offer two products that they heavily market. They do have “real” life insurance products and both of the companies are reputable.
So those that claim that they are a “scam” are far off. However, when it comes to the products they offer, they fall short to the offerings of their competitors.
Colonial Penn Life Insurance Options
Colonial Penn has its Guaranteed Acceptance product and their Whole Life final expense policy.
The Guaranteed Acceptance product is their version of guaranteed issue life insurance and offers life insurance with no exam and no health questions.
Like most guaranteed issue plans, these come with a waiting period of 2 years.
The other product is their Whole Life insurance product that comes with a cap of $50,000 worth of life insurance.
While the products they offer are of typical standard in their category, that’s where the offer ends.
They lack the traditional or customizable life insurance options that their competitors carry.
Companies like Prudential, MetLife, Banner, and more.
Globe Life Policy Options
Globe Life continues the trend of the two product offer with one of their term life insurance products, and the other a whole life final expense policy.
Their term product caps the coverage at $100,000.
It is a term till age 90, which seems like a good deal until you factor in that the rate will go up every 5 years until that point.
This is unlike a level term life insurance offered through competitors where the rate does not go up or down and is guaranteed to stay locked in.
Other term life insurance companies also offer much more coverage with limited caps.
Their whole life insurance policy is much like Colonial’s, a $50,000 final expense policy. You can do much better by shopping permanent plans with other “A” rated companies.
Cost of Globe And Colonial Penn
Both Colonial Penn and Globe Life come in at higher rates than companies in the same category.
We have helped many clients compare rates only to find that they are overpaying for coverage they can get elsewhere for less. For Colonial Penn you will want to run quotes with guaranteed issue companies like Gerber, Kemper Life, and Americo.
When it comes to Globe Life, they seem to be competitive at the outset, that is until all product details are considered.
A typical 30-year level term with a competitor will come in at about half the cost of their “term till 90” product. Keep in mind the term till 90 coverage will go up in premium every 5 years, so the rate that you see isn’t the rate that will maintain.
If we compare it a permanent life insurance product, the cost is about the same, except for the permanent product with another company will remain level the entire time. Here is a comparison of life insurance quotes below:
Poor Customer Reviews
A quick search online will turn up many complaints about both companies.
Now we don’t mean the typical “long hold times” complaints that you will find for all companies. Some of the complaints have made their way to ripoffreport.com with a customer complaint of unpaid policies.
Now if some of these the result of the 2-year waiting period, then that says something of the negligence of the initial agent to explain the policy during the application. Outside of unpaid claims, you will find reports of bad customer service, a delayed claims process, and lost documents.
Most of the complaints found are post policy approval.
Not the Best Offer
As you can see these companies fall short on most of the marks it takes to be a consumer-friendly life insurance product. Colonial Penn offers mostly funeral policies built for seniors of old age.
Whole Globe Life offers limited products built for a quick sale. Both of these companies have designed their products as such that can be sold quickly and easily. They do have strong outreach with their marketing efforts but they are far from the best coverage that you can attain.
Whether you compare them to the guaranteed issue life insurance companies or subject them to the standards of the big term life carriers like MetLife, they simply can’t compete.
What to Choose Instead?
Life insurance can be a difficult subject to try to navigate on your own. I always recommend working with an independent agent or agency to make sure you get the best coverage that you can.
Unfortunately, there isn’t just one company that is the best company for everyone out there. The right amount of life insurance, the right type of life insurance, and the right life insurance company all depends on the right one for YOU.
Like a fingerprint, the right life insurance coverage is unique to you. If company A may be perfect for one person, company B may be the best option for another.
This is why it’s important to work with a professional who can weigh all those options for you, at no extra cost to you!
If you have any questions about Globe Life, Colonial Penn, or any of their competitors, contact us today at 1-800-712-8519!