Globe Life Insurance: Payouts And Policy Promises

Globe Life Insurance offers a range of life insurance policies, including term life, whole life, children's life, and final expense insurance. The company is known for its simple application process and affordable initial rates, making it an attractive option for those seeking quick coverage without the hassle of a medical exam. However, it's important to understand the details of their policies before making a decision. While Globe Life provides low initial premiums and flexible policy options, there have been concerns about increasing premiums, limited coverage amounts, and a high volume of customer complaints.

Globe Life's term life insurance policies

Globe Life offers term life insurance coverage worth $5,000 to $100,000, with premiums that typically increase every five years based on the policyholder's age. Unlike most term policies, which last for a set number of years, such as 10, 20, or 30 years, Globe Life's plans usually last until the policyholder turns 80 or 90 years old.

Term life insurance provides coverage for a specific period, typically ranging from one to 30 years. These policies are often purchased to provide financial protection during significant life events, such as buying a new house, getting married, or welcoming a new addition to the family. After a term life insurance policy expires, the policyholder can choose to renew the policy for an additional term, cancel the policy, or convert it to permanent coverage like a whole life policy.

Term life insurance is generally more affordable than whole life insurance, as the premiums are lower. It is a popular option due to its flexibility and cost savings. With term life insurance, if the insured person passes away during the policy term, the beneficiary will receive a death benefit equal to the face value of the policy. However, if the insured does not pass away during the policy term, the beneficiary will not receive any payout, and the coverage simply ends.

Globe Life's term life insurance rates are based on the policyholder's gender, age, and state of residence. The monthly premiums increase as the policyholder enters each five-year age bracket, which is different from typical term life insurance, where premiums remain constant over the life of the policy. The maximum amount of coverage available typically ranges from $50,000 to $100,000, although this can vary depending on the state and the age at which the policy is purchased.

Applying for Globe Life's Term Life Insurance

Globe Life offers a simple application process for its term life insurance policies, which can be completed online, over the phone, or by mail. The application does not require a medical exam, making it accessible to a wider range of individuals. The company highlights its low initial cost, with $1 buying the first month's coverage, but it is important to note that this cost increases over time.

Whole life insurance policies

Whole life insurance is a type of permanent life insurance that provides coverage for the entirety of the insured person's life. Whole life insurance policies also build cash value over time, which can be borrowed against or withdrawn by the policyholder. This cash value is built through premium payments, which never increase during the owner's ownership of the whole life policy. Whole life insurance is generally more expensive than term life insurance because coverage lasts a lifetime.

Globe Life offers whole life insurance policies for both adults and children. Their whole life insurance policies are available in amounts ranging from $5,000 to $50,000 for adults and $5,000 to $30,000 for children. Globe Life's whole life insurance policies do not require a medical exam and can be purchased online or via mail. The company offers low initial premiums, which can be appealing if you are looking for immediate, affordable coverage.

It is important to note that Globe Life has received a high number of complaints regarding issues with policyholder service, including handling claims, surrendering policies, and billing. Additionally, the company's premiums can increase significantly over time, especially for term policies. The maximum coverage amounts offered by Globe Life may also not be sufficient for all needs, especially if you require high-value policies.

When considering a whole life insurance policy, it is crucial to carefully review the terms and conditions, compare rates and coverage options from multiple companies, and ensure that the policy aligns with your financial goals and needs.

Globe Life's no-exam policies

Term Life Insurance

• Coverage amounts range from $5,000 to $100,000.
• Premiums typically increase every five years based on age.
• The plans usually last until the insured person reaches the age of 80 or 90, instead of a set number of years like most term policies.
• The first month's coverage costs $1, with subsequent rates based on age.

Whole Life Insurance

• Coverage amounts range from $5,000 to $50,000.
• Whole life insurance covers the insured for their entire life and also builds cash value over time.
• Once sufficient cash value is accumulated, policyholders can take out loans against their policy.
• Rates remain constant for life as long as premiums are paid on time.

Children's Whole Life Insurance

• Coverage amounts range from $5,000 to $30,000.
• Full coverage begins on the first day, with no waiting period.
• Benefits remain the same throughout the child's life, regardless of age, health status, or occupation, as long as premiums are paid.

Pros and Cons of Globe Life's No-Exam Policies

Pros

• Easy application process without the need for a medical exam.
• Affordable starting rates with competitive initial premiums.
• Flexible policy options, including both term and whole life insurance.

Cons

• High complaint index regarding policyholder service, claims handling, and billing.
• Increasing premiums over time, especially for term policies.
• Limited coverage amounts that may not meet all needs.

Globe Life's customer complaints and satisfaction

Globe Life has received numerous customer complaints across various platforms, with 198 total complaints filed in the last 3 years, according to the Better Business Bureau (BBB). While the company has addressed some of these issues, many customers remain dissatisfied with the resolutions.

One common complaint is the difficulty in reaching customer service representatives and the poor quality of service when they are reachable. Customers have reported long wait times, rude and unhelpful staff, and issues with policy changes, cancellations, and refunds. There have also been complaints about aggressive sales tactics, unwanted marketing communications, and difficulties cancelling policies.

In addition, Globe Life has received a high number of complaints regarding its billing practices, with customers reporting unexpected premium increases, double billing, and challenges in obtaining refunds for cancelled policies. Some customers have also expressed concerns about the legitimacy of the company and the security of their payments.

According to a NerdWallet analysis, Globe Life has drawn far more than the expected number of complaints to state regulators for a company of its size over a three-year period. The company's complaint index for individual life insurance in 2023 was 3.46, significantly higher than the industry average.

However, it is important to note that Globe Life has also received positive reviews from customers who appreciate the company's simple application process, affordable initial rates, and flexible policy options. The company offers both term and whole life insurance policies, and its plans do not require a medical exam, making it accessible to a wider range of customers.

Globe Life's application process

If you're interested in term life insurance, you can get a quote and apply for coverage online by providing some basic information, such as your state, name, email, mailing address, and age range. The website will then redirect you to the Globe Life application page, where you can see quotes for different coverage amounts. Alternatively, you can call Globe Life and speak to a representative, who will ask you a few questions and guide you through the application process.

For whole life coverage, you'll need to call Globe Life, submit an online request to connect with an agent, or request to have information sent to you by mail.

One of the key advantages of Globe Life's application process is that it doesn't require a medical exam, making it more convenient and accessible for potential customers. However, it's important to note that Globe Life has received a higher-than-expected number of complaints regarding issues with policyholder service, including handling claims, surrendering policies, and billing.

Frequently asked questions