Some people may find that life insurance companies offer affordable rates and good coverage, while others may not be as pleased with the services offered.
It is important to weigh all the options before making a decision about which life insurance policy to choose.
See here for our full Globe Life Insurance review and see here for our dedicated piece on Globe Life Insurance rates.
Who Is Globe Life Insurance Company?
Globe Life Insurance Company is a life insurance company that offers whole, term, and universal life insurance policies. The company has been in business since 1951 and is headquartered in Oklahoma City, Oklahoma.
They are not a global life insurance company. Globe Life Insurance is licensed to sell life insurance in all 50 states and the District of Columbia.
According to the National Association of Insurance Commissioners
Globe Life Whole Life Insurance Options
Globe Life offers two main types of life insurance: a term life insurance policy and whole life insurance coverage. The company offers individual life insurance options, not group life insurance.
Term life insurance is a temporary policy that only covers you for a specific period of time, typically 10, 20, or 30 years. If you die during that time frame, your beneficiaries will receive a death benefit. If you don’t die during the term, the policy expires and you (or your beneficiaries) don’t receive anything.
Whole life insurance is a permanent policy that covers you for your entire life, as long as you continue to pay the premiums. Whole life also has a cash value component, which grows over time and can be borrowed against or withdrawn.
Some whole life policies also have an accelerated death benefit rider, which allows you to access a portion of the death benefit early if you’re diagnosed with a terminal illness and are not expected to live more than two years.
Children’s Life Insurance
Globe Life offers a children’s life insurance policy, which is a whole life policy that covers your child from birth until age 25. The death benefit remains the same throughout the duration of the policy, regardless of when your child dies.
The main advantage of this type of policy is that it’s relatively cheap – a $50,000 policy for a healthy child can cost as little as $5 per month.
The downside is that the death benefit is often too small to cover all of your child’s final expenses, especially if they die unexpectedly at a young age.
And because it’s a whole life policy, the cash value component can be a waste of money if your child never needs to borrow against it or withdraw it.
Globe Life also offers a rider that provides accidental death coverage, which pays double the death benefit if your child dies as the result of an accident.
This rider is relatively inexpensive, but it’s only available on children’s policies with a death benefit of $25,000 or less.
Globe Life Insurance Pros
First, let’s look at some of the positives of buying a life insurance plan from Globe.
Not having medical exams can be a major advantage if you have health issues that would make it difficult or impossible to qualify for coverage with another life insurance company.
Globe Life also offers guaranteed approval for people with pre-existing health conditions, regardless of how severe those conditions are.
Policies are available with death benefits of up to $100,000. This is a relatively high limit for a life insurance policy, especially if you don’t have to take a medical exam or disclose your health history.
Most life insurance policies have a waiting period before coverage begins, but Globe Life's policies start as soon as you’re approved.
This can be helpful if you have an immediate need for life insurance coverage, such as if you have a newborn child or you’re the primary breadwinner in your family.
It’s also worth noting that there is no grace period – if you miss a payment, your coverage will be canceled immediately.
While many insurance companies limit their no exam, no health questions coverage to $25,000, Globe Life burial insurance policies can suit a wider range of life insurance needs. If you are within their age restrictions, you can purchase life insurance with coverage up to $100,000 with a Globe Life Insurance policy.
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Globe Life Insurance Cons
Now, let’s take a look at the downsides of purchasing a life policy from Globe Life:
By far the biggest issue with Globe term life insurance is the fact that its rates increase every five years. While your initial death benefit will remain the same throughout the life of your policy, your premiums will increase as you get older, sometimes by as much as $100 per month.
Whole Globe Life has high financial stability ratings, the vast majority of its consumer complaints on sites like the Better Business Bureau are the result of this policy aspect. Unless you are very diligent about looking at the footnotes, a simple look at Globe Life insurance quotes will not tell you this.
Unlike a whole life insurance policy, your Globe Life policy will not have a cash value component. This means that you won’t be able to borrow against the policy or withdraw any money if you don’t die during the term.
Unlike most final expense insurance policies, Globe Life insurance policies do not have any sort of living benefits rider, which allows the insured person to use a portion of his death benefit.
Unlike most final expense coverage, which comes from this aspect of whole life insurance policies, Globe Life's policies are term life insurance policies. No matter what, your coverage will expire when you are age 89.
If you don’t die during that time frame, the policy will expire and you will no longer have life insurance coverage.
While Globe Life’s premiums are generally competitive, they can be higher than other life insurance companies.
For example, a $50,000 policy for a 30-year-old man might cost $16 per month with Globe Life, but it would only cost $12 per month with another company.
Conclusion
In conclusion, Globe Life Insurance has both pros and cons that you should consider before purchasing a policy.
On the plus side, you can get coverage without taking a medical exam or disclosing your health history. And if you need life insurance coverage immediately, Globe Life’s policies start as soon as you’re approved.
On the downside, Globe life Accident Insurance Company does not sell as many life insurance products as some other life insurance companies.
However, before you buy Globe Life Insurance, remember that premiums will increase as you get older and the policy expires at the end of the term. So if you’re considering Globe Life Insurance, compare it with other life insurance companies to ensure you’re getting the best deal.
In fact, we would recommend speaking with a licensed insurance agent, who can help you choose how much coverage you need and help you compare Globe Life policies with some of the best life insurance companies in the U.S.