Best Rating For Globe Life Insurance: Am's Assessment

Globe Life Insurance is a life insurance company that offers a range of policies, including term, whole, and final expense insurance. The company has been in business for over 50 years and is known for its convenient no-medical-exam options for many of its policies. Globe Life has received an A (Excellent) rating from AM Best, a global credit rating agency, based on its financial strength, management skills, and integrity. This rating indicates that Globe Life is committed to providing superior service to its policyholders and has the financial stability to fulfil its obligations. However, it's important to note that Globe Life has received some customer complaints regarding policy cancellation and refusal to pay out claims.

AM Best gives Globe Life an A (Excellent) rating

The rating assures customers that Globe Life is committed to providing every policyholder with a lifetime of superior service. With a strong balance sheet, very strong operating performance, a favourable business profile and appropriate enterprise risk management, Globe Life is in an excellent position to honour its ongoing insurance obligations, such as paying out claims.

In addition to its excellent financial strength rating, Globe Life also boasts high customer satisfaction. In J.D. Power's 2023 US Life Insurance Study, Globe Life received a score of 798, compared to the industry average of 790. The company also ranked second out of 22 companies in J.D. Power's ranking of individual life insurers for customer satisfaction.

With a history dating back to 1900, Globe Life offers a range of life insurance products, including term, whole and final expense policies, that are available in all 50 states. The company's no-medical-exam coverage options make it a convenient choice for many consumers.

Globe Life's customer satisfaction is rated lower than average

In May 2023, Globe Life had a complaint index of 2.81, significantly higher than the average rating of 1.0. This indicates that overall customer satisfaction for Globe policyholders is lower than average. Common customer complaints included a refusal to cancel policies and a refusal to pay out death benefit claims, regardless of the active status of the policy.

However, it is important to note that Globe Life has also received positive feedback from customers who have found the company's representatives to be helpful and informative. Additionally, Globe Life has been recognised for its corporate sustainability efforts, including its contributions to community needs and initiatives addressing food insecurity, at-risk youth, and health advocacy.

While Globe Life's financial strength and ratings from credit agencies are generally positive, the company's customer satisfaction ratings are lower than average, suggesting that there is room for improvement in terms of customer service and addressing customer complaints.

Globe Life offers a range of insurance products

Globe Life Insurance is a prominent provider of life insurance products, offering a range of options to meet diverse customer needs. The company has been in business for over six decades and is well-known for its commitment to financial stability and customer satisfaction. Here's an overview of the insurance products offered by Globe Life:

Term Life Insurance

Globe Life provides term life insurance policies, which offer coverage for a specific period. These policies are available with terms ranging from one to 30 years, giving customers flexibility in choosing the duration of their coverage. The maximum death benefit for term life insurance is $100,000, which is lower than what most other insurers offer. However, Globe Life stands out by not requiring a medical exam for this type of policy, making it convenient for individuals who want a straightforward application process.

Whole Life Insurance

Whole life insurance is a permanent form of coverage that remains in effect as long as the premiums are paid. Globe Life offers whole life insurance options, but the application process involves working with an agent or purchasing coverage by mail. The company provides whole life coverage of up to $50,000 in death benefits. While a health questionnaire is required, there is no need for a full medical examination.

Final Expense Insurance

Final expense insurance, also known as burial insurance, is designed to cover funeral, burial, and other end-of-life expenses. Globe Life's final expense coverage functions as a term policy, with death benefits ranging from $5,000 to $100,000. The application process is similar to term life insurance, with instant online applications and no waiting periods for most applicants.

Children's Life Insurance

Globe Life offers life insurance plans specifically for children, providing up to $30,000 in benefits. These plans feature locked-in premiums that remain unchanged as the child grows older. Like other Globe Life policies, children's life insurance does not require a medical exam, making it convenient for parents seeking coverage for their kids.

Mortgage Protection Insurance

This unique form of insurance is designed to protect individuals with mortgages. Globe Life's mortgage protection insurance takes into account rising inflation rates, increasing the death benefit by 5% each year until it reaches a 125% bump. This feature is particularly beneficial for those with adjustable-rate mortgages. It's important to note that this coverage is an accidental death and dismemberment policy, paying out only in the event of an accident.

Supplemental Health Insurance

In addition to life insurance, Globe Life and its subsidiaries offer supplemental health insurance options, including accident insurance, cancer insurance, critical illness insurance, hospital insurance, and ICU insurance. These policies provide financial support for various medical expenses that may not be covered by standard health insurance.

Riders and Customization

Globe Life offers riders, which are additional provisions that enhance the benefits of a life insurance policy. The company highlights its accidental death benefit rider, which provides extra financial protection in the event of an accidental death. This rider can be added to both whole and term life insurance policies.

In summary, Globe Life offers a diverse range of insurance products, including term and whole life insurance, final expense insurance, children's life insurance, and mortgage protection insurance. The company also provides supplemental health insurance options and riders for additional customization. With its experience, financial stability, and focus on customer satisfaction, Globe Life aims to cater to a wide range of insurance needs.

Globe Life has subsidiaries or divisions such as American Income Life and Liberty National

Globe Life Inc. (formerly Torchmark Corporation) is a life insurance company that has been in business for over 50 years. It was founded in 1951 and began by marketing affordable life insurance to Americans in rural areas. Today, it is an industry leader, maintaining up-to-date technology and administrative systems, and is recognised as a familiar and dependable company.

In July 2020, AM Best downgraded the Financial Strength Rating (FSR) of Globe Life Inc. and its subsidiaries to A (Excellent) from A+ (Superior). This rating reflects Globe Life's strong balance sheet strength, very strong operating performance, favourable business profile, and appropriate enterprise risk management. Despite this, the rating downgrade was influenced by the company's relatively low level of risk-adjusted capitalization.

Among Globe Life's subsidiaries or divisions are American Income Life (AIL) and Liberty National. AIL is a wholly-owned subsidiary of Globe Life Inc., licensed in 49 states, the District of Columbia, Canada, and registered to operate in New Zealand. It also has a wholly-owned subsidiary, Globe Life National Income Division (NIL), which is licensed in New York. AIL is one of the largest providers of supplemental insurance coverage to labour unions, credit unions, and associations. It was founded in 1954 by Bernard Rapoport with \$25,000 in borrowed capital, and has since grown into a profitable insurance company with a unique niche in the marketplace. AIL has combined assets of almost $9 billion and more than $88 billion of life insurance in force as of 2023.

Liberty National is another subsidiary of Globe Life Inc., which was included in the AM Best rating downgrade in 2020.

Globe Life is headquartered in Texas

The company's executive offices are located in both Oklahoma City and McKinney, Texas. With its strong financial foundation and positive reputation, Globe Life has consistently earned high industry ratings. As of June 2020, Globe Life held an A (Excellent) Financial Strength Rating. This rating reflects the company's strong balance sheet, very strong operating performance, favourable business profile, and appropriate enterprise risk management.

Being headquartered in Texas has likely contributed to Globe Life's success and recognition in the state. The company has established significant partnerships with well-known Texas-based organisations, such as the Texas Rangers Major League Baseball Team and the Dallas Cowboys. These partnerships have further solidified Globe Life's presence in Texas and the surrounding areas.

Additionally, Globe Life's Texas headquarters enables the company to have a strong understanding of the local market and the specific needs of its customers in the region. This local knowledge can be advantageous in developing tailored insurance products and services that resonate with Texas residents. The company's presence in Texas also facilitates easier access to its services for Texans, whether through direct mail, internet, or call centre sales.

Overall, Globe Life's headquarters in Texas has played a strategic role in its growth and reputation, allowing the company to establish strong local connections and effectively serve its customers in the state and beyond.

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