Fast application, age-based pricing, and a lengthy claims process make this insurer more like “Mr. Right Now” than “Mr. Right.”
Globe Life and Accident Insurance Company is a subsidiary of Torchmark Corporation providing a total of $80 billion of coverage to 4.2 million policyholders.1 While Globe’s been around the block long enough to achieve long-term financial stability, the company has received criticism for its lengthy claims process and poor customer service.
If you’re young, have a preexisting condition, and need life insurance coverage fast, Globe Life insurance can be a great way to get immediate coverage while you explore other options. Stick with them for more than a few years, however, and your premiums could rise sharply, and your family could end up fighting for a payout long after your final expenses come due.
Globe Life and Accident insurance policies
Globe’s term life insurance products are what sets the company apart from competitors, but they offer other forms of coverage too, such as no exam whole life policies for children and adults, as well as accident insurance and mortgage protection policies.
|Product Type||Coverage Range||Medical Exam Required?|
|Accidental Benefits||Up to $250,000||No|
*Table created using information available at globelifeinsurnace.com as of 12/17/2019.
Globe term life insurance2
With Globe, you can choose coverage from $5,000 to $100,000 death benefits. You won’t have to take a medical exam. After the first month of the policy, the rate schedule is based on your current age and is guaranteed for the life of the policy.
Globe whole life insurance3
With Globe’s whole life policy you can get up to $50K in coverage and it will accumulate a cash value. The application process does not require a medical exam. After the first month of the policy, your rates are based on your age and stay the same for life, so you wouldn’t see an increase in your rate.
Globe accidental benefits insurance4
Globe guarantees acceptance if you’re between 18 and 69 years old, and you won’t have to take an exam or answer health questions. Policies come with perks, such as an inflation benefit that raises the payout over time while premiums remain the same, at no additional cost. Keep in mind, Globe Life will pay a claim for accidental death, but only if the death meets their definition of an accident as stipulated in the contract. So read that fine print carefully!
Globe children’s life insurance5
Children’s life insurance policies start at $2.17 per month. Death benefit options are $5,000, $10,000, $15,000, and $20,000. Each policy builds cash value that the policyholder can gift to the child later in life.
Globe mortgage protection insurance6
Rates start at $5.50 per month and acceptance is guaranteed if you’re between 18 and 69 years old. Policies include complementary riders such as the common disaster, dismemberment, and paralysis benefits.
Globe Life insurance company rates
While Globe’s “$1 buys $100,000” slogan sounds great, critics call it misleading. This introductory rate applies only to your first month of coverage. After that, you’ll pay the regular price.
Globe’s website also states that your rate schedule is guaranteed for the life of your term life policy, but that doesn’t mean your rate will stay the same. Rather, it means your premiums will increase due to a predetermined schedule set by Globe life insurance.
Unfortunately, Globe Life doesn’t show rates or the option to get a quote online. If you would like more information about their life insurance they will send it to you through the mail.
Things to consider about Globe
Health and pre-existing conditions aren’t a concern
Globe’s term life rates are based entirely on age and don’t depend on your health or lifestyle choices. As you age, you can renew your policy at the higher rate.
Minimal coverage options
Death benefit options are low compared to many competing insurers, so you may not get the level of coverage you want.
Still, a Globe Life insurance policy could be a solid option if you need an easy way to get some coverage quickly while you look for the right long-term policy.
Before making a final decision, make sure you’re aware of the pros and cons of Globe’s term life insurance:
- No health exam or questionnaire
- No set term lengths
- Term premiums can increase
- Almost no information online
- Filing a claim may be difficult
- Rates are higher than with an exam
Globe Life history and financial ratings
Table created using information available at AMBest.com, Moodys.com, and FitchRatings.com. Table created using NAIC.org and dat is specific to individual life insurnace. Data effective 12/17/2019.
Financial rating entities give Globe strong ratings for financial stability.
It is important to note that while A.M. Best gives Globe an A+ rating, in July 2018, A.M. Best demoted its outlook about the insurer from “stable and affirmed” to “negative.” In September of 2019, they have reevaluated the status of globe and have moved them from “negative” to “stable”.
Finally, Globe had much higher complaint rates in 2018 than average. That’s according to the National Association of Insurance Commissioners (NAIC), an organization that monitors and analyzes complaints against insurance companies across all 50 states. Globe’s complaint ratio is 8.23 for individual life insurance, meaning Globe receives 8 more complaints than average.
Globe Life claims and customer service
Reviews of Globe Life are mixed. Reviewers on ConsumerAffairs.com gave the company an average of fewer than two stars,9 while ConsumersAdvocate.org reviewers gave it four. 10 Both scales are out of five stars. Many of the complaints are related to poor customer service and lengthy claims processes, and some beneficiaries have sued Globe Life for punitive damages.
In 2017, consumers throughout the US filed 74 official complaints against Globe—a large number for the dollar amount of premiums they collected. According to the National Association of Insurance Commissioners, Globe’s complaint ratio of 3.50 for individual life insurance policies means it’s received significantly more complaints than other insurers.
Globe promises to process claims within 10 to 15 business days of receiving claims paperwork in the mail. It does not guarantee a prompt payout, but you can check the status of your claim by calling their customer service department at 1-888-650-4081.
Bottom line: There’s probably a better solution than Globe Life
For most people, Globe Life won’t be a great fit long term. But if you need to go from “proposed insured” to “insured” as quickly as possible, this insurance provider could be a great short-term solution.
Plenty of folks find applying for life insurance coverage a daunting process. Either they’ve been denied a policy before due to preexisting medical conditions, prefer to avoid exams and needles, or don’t want to deal with a lengthy application process.
Globe offers a solution to application woes, but their policies may come with some trade-offs like fewer death benefit options, higher rates, and potential disputes for any claims you or your beneficiaries may file.
Looking for a better solution? With a whole life policy, you could lock in a rate for the rest of your life. Or, if you need insurance for only a few years, why not choose a 10-, 20-, or 30-year term life policy that lets you lock in your rate for the entire term?
FAQs about Globe Life
Still have questions about Globe Life? These FAQs may help.
Can you cash in your Globe Life insurance policy?
Globe Life’s whole life insurance policies build cash value without having to add a rider, but their term life policies do not. This is an industry standard for these types of policies.
Is Globe Life insurance reliable?
Globe Life gets some high marks for financial stability, but its customer service and claims process have received a lot of complaints. You could find other insurance companies with higher reliability.
Does Globe Life have life insurance for seniors?
Yes, seniors can buy insurance from Globe Life, but it may cost more than the policies provided by many other insurers.
- GlobeLifeInsurance.com, “About Globe Life
- GlobeLifeInsurance.com, “Term Life Insurance”
- GlobeLifeInsurance.com, “Whole Life Insurance”
- GlobeLifeInsurance.com, “Accidental Benefits Insurance”
- GlobeLifeInsurance.com, “Whole Life Insurance for Children and Grand Children”
- GlobeLifeInsurance.com, “Mortgage Protection Insurance”
- ConsumerAffairs.com, “Globe Life Insurance”
- ConsumersAdvocate.org, “Globe Life Insurance”
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