Are you currently researching the market of life insurance trying to work out if Globe Life is the best life insurance company for you? If so, let us lend a helping hand and guide you through the process a little.
Previously, we have assessed some of the most popular life insurance providers within the market and today we have another in the shape of Globe Life Insurance. After going through a brief history of the company, we will have a look at their products, official ratings, and then finish with pros and cons so you get the full overview of the insurer!
2017 Review of Globe Life Insurance
Globe Life Brief Overview
Opening right at the beginning of the 1950s, Globe Life and Accident Insurance Company has now been in business for over 65 years. During this time, they have built a solid reputation of helping families through losing a loved one and ensuring that the death benefit is paid in full.
Originally, it was two individuals that borrowed capital to provide protection for those in Oklahoma alongside their own $60,000 investment. Nowadays, nearly $70 billion of insurance is in force with nearly four million customers.
Globe Life Policies
While Globe Life does not market itself as a final expense or burial insurance company, with face amounts maxing out at $100,000 and the companies emphasis on no medical exam policies, it does appear to fit the mold.
Most of the time, it is the products that make or break an insurance company as this is integral to the business. With this in mind, we will take you through the different types of life insurance Globe Life offers so you can see whether they meet your demands or not.
First and foremost, they offer term life insurance where the sole focus is on the death benefit at an affordable price per month. Furthermore, Globe Life is actually known for their term life insurance protection which can be added for just $1 on the very first month as long as the coverage is $100,000, $75,000, $50,000, $30,000, $20,000, $10,000, or the smallest option of $5,000. After the first month is over, your age at the time of issue will be considered for your premium.
Throughout the life of your term, the premiums will remain at exactly the same level which means that you will pay the same at the end of your term as you do now. Also, we should note that the application process is incredibly simple and requires a few easy questions regarding your health. Furthermore, you can also make use of a 30-day money back guarantee which means that you have a period of one month where you can change your mind, return the policy, and have your money returned.
With the no exam whole life option, the death benefit will be available but it will be accompanied by a cash value component which grows over time and is tax-deferred. Your coverage is fixed and your benefits can never be cancelled or reduced. As with most whole life policies, the cash value can grow substantially over the course of years and decades. Other than this, it generally follows all the other main terms of a whole life plan just as you would see with other providers.
Young American Plan
If you want to protect your children and have them covered at a young age, the Young American Plan will allow for coverage of up to $25,000 and it also has a cash value component as we saw with whole life insurance. If you are trying to save for them to go to college, this is a great plan to have in place because the amount will grow without having to worry about tax until it is finally withdrawn.
For the first month, the premium will be just $1 before then considering the age of the child to formulate a premium. Once this premium has been decided, it will remain consistent through the years regardless of age and even the health of the child. Furthermore, it should also be noted that this insurance comes with the 30-day money back guarantee we discussed previously.
Mortgage Protection Insurance
Finally, we have two smaller options that aren’t as popular but can still be important to the right audience. As the title suggests, this is a policy that will allow the mortgage to be paid should you get involved in an accident or are left unable to pay in any shape or form. In the event of an accidental death, coverage of up to $350,000 can be obtained and the premiums will remain the same from the first day to the last. For this option, you will need to be between the ages of 18 and 69.
Accidental Death Coverage
Finally, you can increase your coverage to include accidental death between the same ages we have just seen for the mortgage protection insurance. Between these ages, acceptance is guaranteed and up to $250,000 of extra protection can be added. Once again, there is no medical examination and the premiums will be locked in forever.
Globe Life’s Official Ratings
So far, this Globe Life review looks very good and the company looks appealing and for good reason. However, this would all go up in smoke if they had terrible reviews from the official agencies that look into various factors of the business.
Starting with the financial side of the insurer, we should state that as of June 2016 Globe Life has an A.M. Best rating of A+ which is seen as ‘Superior’. When looking into buying life insurance, this should be one of the first things you look for because it assesses the company’s ability to pay their claims. With a brilliant rating, Globe Life is in a great position to pay claims both now and long into the future.
In terms of the customers, this is where it is a little split because the Better Business Bureau (BBB) gives a rating of A+ which means that the company excels in resolving customer issues.
However, recent data from the National Association of Insurance Commissioners sees Globe Life with a score of 5.61. Consider the average number in the life insurance industry is ‘1’, Global Life is well above the average and sees many more complaints than most other companies. So that all companies, big and small, can be compared, complaints are weighted depending on market share so this is a poor result for Globe Life.
Pros to Globe Life
Now that we have all the basic information covered, we should move onto the pros and cons so you can see exactly where the benefits come from as well as whether the negatives would be detrimental to your decision.
No Medical Examinations
If you have been suffering with health conditions in the past or are still struggling today, the fact that there are no medical examinations means that you can obtain coverage without worrying about said problems. However, there is of course a flip side to this in that the insurance company will automatically assume that you have below average health which results in higher premiums. If this is your last option and you are fine with paying a bit more than you would if you took an exam, this is a good option for you.
Superior A.M. Best Rating
As we saw earlier, there has been many Globe Life reviews but none matter as much as the official ratings of A.M. Best and these are fantastic for the company. Compared to some other companies on the market, Globe Life actually has a young history but the ‘A+’ rating as of June 2016 is worthy of a competitor who has double the amount of time in business and experience. If you want to invest in a secure policy, you won’t find many more secure than Globe Life.
Globe Life Insurance Rates
When we look at the face amounts that are offered by this company, the pricing that go with it are actually reasonable and competitive. When we compare them to other companies in the same niche, you will be getting a very good rate. If you couple this with the strong financial ratings, you can be set for years to come. However, we should point out that this might not be the solution for you if you are young and healthy. Generally, you will find better rates with a medical examination so this is something to consider.
Fixed Death Benefit
Once you have decided upon a face value for your policy, you can be certain that this is the amount given to your life insurance beneficiary when you pass. With some companies, the beneficiary only receives a percentage of the amount or the death benefit can even fall over time. With Globe Life, the death benefit is fixed which is good news if you are planning the money to go towards debts or funeral costs.
Variety of Options
When it comes to choice, Globe Life offers one of your best options because there are policies for all different ages as well as different face amounts. Although term life insurance will expire with no option to renew, there are a wide range of choices. Furthermore, final expense whole life insurance is also available with coverage options from $5,000 up to $50,000. Once the policy has been installed, the face amount and premiums remain stable for life.
Finally, we should also point out that Globe Life has a glowing reputation and starting a policy with them is a safe choice because it is like buying a popular brand of car or food. Over the years, Globe Life has successfully protected and grown their brand name. Although there are some companies that are larger in size, this is still a strong option.
Cons to Globe Life
As you can imagine, it isn’t all good news though so let’s take a look at the negatives that come with a Globe Life insurance policy.
$1 Life Insurance
At first, this seems like a brilliant deal that all insurance companies should offer and then you sit there and really think about it – should insurance really be bought for $1? Sure, we live in a world where one dollar stores are regular but should the protection of our families balance on this $1 needed to start the policy? Just be aware that after the first month your premium will adjust to match your age.
Not All Premiums are Fixed
Throughout this Globe Life review, we have talked about how the premiums remain the same on some of Globe Life’s policies. However, some customers have found how wrong this can be. If you aren’t careful, the price may continue to rise each five-year period which leaves you paying considerably more in the future. Check the fine print of your policy to make sure the premiums remained fixed for the life of the policy.
No Medical Examination
‘You also put that as a pro’ – this is true, but for a young, healthy person this is bad news. If you are in good health, you should look for a policy that includes a medical examination because this will see you pay much less over a period of years.
Globe Life Review Summary
Now, you should have all the tools you need to make a wise decision regarding the future of yourself and your family. If you aren’t sure, call us and talk to a professional today!