Fast application, age-based pricing, and a lengthy claims process make this insurer more like “Mr. Right Now” than “Mr. Right.”
2018 Review of Globe Life Insurance
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: quick short-term coverage for young people with preexisting conditions
Globe Life offers a solution to two common challenges of shopping for life insurance: lengthy application processes and high prices for people with preexisting medical conditions. Globe Life’s unique term life insurance pricing is based solely on age, but you can lock into a rate in only five-year increments.
No medical exam and age-based rate increases every five years makes Globe’s term life insurance a decent short-term option for young people with health issues.
We don’t recommend the company’s whole life policies because these types of policies provide the most value over the long term and sticking around with Globe may not be wise. One ratings entity says the company’s financial stability may decline soon,1 and Globe has a high complaint ratio.2
Things to consider about Globe
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.3 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.
Globe’s term life rates are based entirely on age and don’t depend on your health or lifestyle choices. The company establishes age brackets and assigns a group rate to all policyholders in a five-year range. As you age out of your current bracket, you can renew your policy at the higher rate assigned to your new age bracket.
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:
- You don’t need to fill out lengthy questionnaires or complete a medical exam
- You don’t have to decide on a term length
- You can avoid salespeople through a fast online process
- Premiums increase every five years in progressively larger jumps
- Filing a claim may be a difficult process
- Rates are typically higher than fully-underwritten policies
Globe Life insurance products
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||Year Range||Medical Exam Required?||Rider Available?|
|Term Life||$5,000–$100,000||Option to Renew every 5 years||No||Yes|
|Accidental Benefits||Up to $250,000||Option to Renew every 5 years||No||Yes|
|Children’s Whole Life||$5,000–$20,000||Life||No||Yes|
*Table created using information available at globelifeinsurnace.com as of October 15, 2018.
Globe Life product details
Overall, Globe’s coverage options include much smaller death benefit payouts than other policies on the market, which can surpass $1,000,000. Globe’s higher-value plans (Accidental Death Benefits and Mortgage Protection) are accident insurance policies, not life insurance.
Accidental Death Insurance covers death or loss that results only from accidents, not from health conditions, assault, or other kinds of harm.
Term Life Insurance4
The industry name for Globe’s age-based pricing model is “modified premium term insurance to age 90,” and with Globe, you can choose coverage from $5,000 to $100,000 death benefits. You won’t have to take a medical exam.
Whole Life Insurance5
Globe’s whole life insurance policies build cash value over time and come with a 30-day money back guarantee. The application process does not require a medical exam.
Accidental Benefits Insurance
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. 6
Children’s Life Insurance7
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.
Mortgage Protection Insurance8
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 history and financial strength*
*All ratings current as of 10/15/18. Ratings reflect the evaluations of rating agencies but are not intended as a recommendation to purchase from any company. Rating agencies may update, suspend, or withdraw their ratings at any time.
Financial rating entities give Globe strong ratings with some stipulations. S&P gives Globe its second-highest rating AA- with a minus to show it’s at the lower end of the category. Fitch places Globe at the high end of its highest score (with an A+), putting Globe just above BBB (satisfactory) but below AA (a quality company with some risk).
A.M. Best gives Globe an A+. As of July 2018, however, A.M. Best demoted its outlook about the insurer from “stable and affirmed” to “negative.” This rating shift means Globe’s performance may decline in the next couple of years.
Finally, Globe had much higher complaint rates in 2017 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 3.50, meaning Globe receives 3.50 more complaints than average.
How Globe’s premiums stack up
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 every five years according to a preestablished schedule.
|50-year-old male (monthly rates)||25-year-old female (monthly rates)|
*Rates current as of 10/18/2018. Gathered at Globelifeinsurance.com.
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.
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.
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?
Either way, we can help. At TermLife2Go, we’re licensed, independent agents who sell several brands of life insurance. We’ll help you find the right policy for your unique situation. Start today with a life insurance quote.
*A.M. Best’s financial rating scale is the following: A++ (Superior), A+ (Superior), A (Excellent), A- (Excellent), B++ (Good), B+ (Good), B (Fair), B- (Fair), C++ (Marginal), C+ (Marginal), C (Weak), C- (Weak), and D (Poor). A.M. Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. An FSR is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer’s claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. An FSR is not a recommendation to purchase, hold, or terminate any insurance policy, contract. or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser.”
- APNews.com, “A.M. Best Revises Outlooks to Negative for Torchmark Corporation and Its Subsidiaries”
- NAIC.org, “Consumer Information Source”
- GlobeLifeInsurance.com, “About Globe LifeGlobeLifeInsurance.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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