Globe Life and Accident Insurance Company has an A+ rating from A.M. Best. If you’re considering this company for your next life insurance policy, my Globe Life Insurance Review should help.
Hundreds of insurance companies sell life insurance policies. All this competition can be great for new policyholders, but it can also complicate finding the best plan for you.
Mix in the paid online reviews and misleading TV commercials and it’s easy to understand why shoppers get confused about life insurance products.
We’d like to help. Our independent life insurance agency represents the biggest and best life insurance companies in America.
In This Review:
Globe Life Insurance Company
We get a lot of questions about Globe Life Insurance Company, so let’s see how the company and its products stack up against other top life insurance providers.
Globe Life and Accident Insurance Company is based in Oklahoma City. This company has taken pride in providing insurance policies for its customer base since 1951.
A lot of people who ask about Globe Life have seen its “$1 for $50,000 worth of life insurance coverage” ads.
If cost isn’t a factor, and you’re in a hurry to get insurance coverage, Globe might just be for you.
However, before selecting Globe Life as your provider, you’ll want to consider some important factors.
Facts About Globe Life
- BBB Rating: A+
- A.M. Best Rating: A+
- NAIC Complaint Index: 3.72
- Date Founded: 1951
- Based in: McKinney, Texas
- Former Corporate Name: Torchmark
- Phone Number: 800-811-3927
- Coverage In Force: $82 billion
- Policyholders: 4.2 million
- Availability: all 50 states through various subsidiaries
Globe Life Insurance Products
Term life insurance is the go-to policy if you need a large death benefit such as $1 million or more.
Term life lasts for a specific amount of time and then expires. Because it’s temporary and simple, term life costs less than whole life insurance.
Globe Life offers term and whole life insurance policies:
- Term Life Insurance: Globe Life offers a term policy but its coverage amount won’t exceed $100,000 — a very small payout if you’re young and have a family to protect.
- Whole Life Insurance: Globe Life’s whole life insurance offers up to $50,000 — this policy could last the rest of your life, and it slowly accrues a cash value you can borrow against or cash out later in life.
- Children’s Life Insurance: Globe Life’s children’s whole life insurance could provide $30,000 in whole life coverage for minors. Since children don’t typically earn income or have debts, I tend to be skeptical about the necessity of these plans.
- Simplified Issue: This is the no-exam life insurance policy I talked about earlier. You’d have to answer some health questions to qualify but you wouldn’t need a health exam. Unlike some no-exam policies, you won’t have to complete a waiting period to get coverage in force.
- Final Expense Insurance: This policy is designed to provide a small payout — enough to cover your funeral or small debts. It’s a whole life, guaranteed issue policy which means just about anyone can get coverage.
For most shoppers, I recommend a simple term policy without the bells and whistles that could save you money in premium dollars month to month.
Again, my problem with Globe is its increasing life insurance rates. In the first month of coverage, you’ll pay a great price — $1.
Over time you’ll have to pay more and more. Eventually, you’ll be paying a lot more than you would pay elsewhere.
And the company’s 30-day money-back guarantee will return your $1 if you decide you don’t want the coverage after all. It won’t return the inflated life insurance rates that add up in the subsequent months.
I believe any independent insurance agent would tell you the same.
Other Products Globe Life Can Provide
Globe Life also provides:
- Accidental Benefits Insurance: This kind of insurance pays after an accidental death such as an accident at work or a collision on the highway. Some term life products add in extra accidental death insurance coverage for free; others call this provision dismemberment coverage.
- Mortgage Protection Insurance: This coverage would pay off your mortgage if you died with a balance on the loan. Term life can do a better job since it pays your family and not your mortgage lender. Your family could use the payout as they saw fit.
- Medicare Supplements Insurance: Medicare doesn’t pay 100 percent of medical costs so this insurance could kick in and help reduce medical costs for people 65 and older.
How Much Does a Globe Life Insurance Policy Cost?
Let’s get back to that $1 for a $50,000 life insurance policy you’ve seen on TV. This advertising gimmick draws consumers because it seems to simplify life insurance.
But this offer refers to a guaranteed rate schedule where your insurance premiums will continue to rise every five years.
The rates may seem inexpensive at the beginning, but the rates will continue to go up at scheduled intervals.
Quality life insurance maintains a level premium — from the first month on — unless you take action to lower the premium by using the policy’s cash value. You should never see scheduled increases in a policy’s premiums.
So ultimately, you’d pay much more to Globe Life by the end of your policy than you would if you chose another insurance provider to provide the same death benefit and terms.
Sure, in the beginning, Globe offers an excellent deal — and it’s so easy to understand. But eventually, your premiums will go through the roof. That’s how they make money on these policies.
How to Buy Globe Life Insurance Policies
The application process for potential policyholders goes through Globe’s network of licensed agents. You can also buy directly on Globe Life’s website.
Chances are the captive agent will tell you about Globe Life’s A+ rating with A.M. Best. This is a superior rating, and it means Globe has top-notch financial strength. A.M. Best is an independent credit agency serving the life insurance industry.
You’re less likely to hear about Globe Life’s NAIC complaint index. This is a number compiled by the National Association of Insurance Commissioners.
On this complaint index, 1.0 represents the median number of complaints per policyholder. Globe Life has a 3.72 complaint index. This means the company has almost four times as many complaints as the median number of complaints.
Globe’s Better Business Bureau rating of A+ shows the company at least listens and responds to these complaints which is good news. You can read some of the complaints on the BBB’s site.
How to File a Claim
You’d need to reach out to Globe Life’s customer service department to file a claim. Beneficiaries must provide a death certificate before Globe Life will pay a claim.
Another complicating factor you won’t see in the TV ads is the impact of your existing health conditions on life insurance.
Health conditions complicate life insurance. That’s just the way it works because underwriters have to consider your risk of mortality. Often, a medical exam or a series of health questions tell the insurance company about your health.
If you’re in less than perfect health, Globe Life is most likely not right for you. Instead, you’ll need to find an insurer
In just about every case, their insurance plans are going to be more expensive than other options.
No-Exam Life Insurance
If you’ve ever been turned down for life insurance coverage because of a pre-existing condition, don’t assume that you can’t be insured. No medical exam policies offer another option for anyone rejected for life insurance in the past.
Globe Life offers a no medical exam policy that allows you to buy “$10,000 for $1”. The premise of the plan is similar to the $50,000 for $1 plan. You’ll pay higher premium payments as time passes.
Your health should never prevent you from finding the best life insurance for your needs; there are companies that offer no medical exam policies that may be best for you.
Globe Life may not be one of them, but several other companies have liberal underwriting that can help high-risk applicants who have conditions like diabetes or cardiovascular problems.
Calculating Your Life Insurance Needs
Before you buy a life insurance policy — either a no exam or a traditional policy — you should first calculate your insurance needs so you’ll know how to start shopping.
Not having enough insurance protection could leave your loved ones with leftover bills and debts if you died unexpectedly.
Your policy’s death benefit should consider your existing debts and your annual income. If you died, would your life insurance policy be able to replace your annual income? It should replace your income for 5 to 10 years.
Policyholders also want coverage to pay off existing debts such as the mortgage, auto loans, private student loans, and credit card debt. If you’re heavy on debt, you’ll want a larger death benefit.
The perfect size policy provides just enough coverage to protect your loved ones from losing ground financially as they recover from losing you.
Alternatives to Globe Life Insurance
While Globe is a well-known life insurance company, other companies can do better for most shoppers. I’d suggest:
- AIG Direct – A great option for just about any type of policy, due to their size and financial stability.
- Fidelity – One of the top options for no exam and final expense policies.
- Haven Life – They have the fastest turnaround for term life insurance. This includes no medical exam for many people under age 55. Get instant life insurance quotes online.
How To Lower Your Premiums
Regardless of the life insurance company and type of insurance you choose, you can lower your premiums when you know how to shop.
A huge factor is your health and tobacco status. If you smoke, vape, or use smokeless tobacco products, you’ll pay a lot more for insurance from any quality life insurance company.
If you can quit using tobacco and limit your use of alcoholic beverages you can qualify for lower premiums with any individual life insurance policy. In fact, if you’re listed as a smoker you’ll pay at least twice as much for the same coverage, and possibly more!
Another way you can save money is by driving more carefully. Insurers check your driving records. Speeding tickets, DUIs, or at-fault wrecks can increase your life insurance rates.
Of course, your health is harder to control, but if you have a few months before you plan to apply, trying to lose a few pounds could help a lot. If your blood pressure and cholesterol decrease, you’ll have an easier time getting coverage.
Globe Life Review Recap
I’ve tried to provide a fair company review without bashing an A+ rated life insurance provider. But the bottom line is you can probably find better coverage than you’d get with Globe Life. This is especially true if you have a complex health history.
Our agency specializes in high-risk insurance policies, and we work with over 30 different life insurance companies.
Nobody wants to think about his or her death, but failing to plan for the worst could leave your family with even more pain in the form of massive amounts of debt and other final expenses.