Is Globe Life Insurance Rated Well?

Globe Life Insurance is a legitimate life insurance company that offers term life, whole life, children's life, and final expense insurance. The company is known for its simple application process and affordable initial rates, with the first month of coverage costing just $1. However, Globe Life has received a high number of consumer complaints, with a complaint index significantly higher than the industry average. The majority of complaints involve issues with policyholder service, including handling claims, surrendering policies, and billing. It's important to consider both the pros and cons of Globe Life Insurance before making a decision about their services.

Globe Life's ratings from A.M. Best, the Better Business Bureau, and Standard & Poor's

Globe Life Inc. has been rated an A by A.M. Best, an A+ by the Better Business Bureau (BBB), and AA- by Standard & Poor's. While the company has received high ratings, it has also received more complaints than most competitors and has a disproportionate number of consumer complaints.

A.M. Best's rating of A indicates that Globe Life has an excellent ability to meet its ongoing insurance obligations. This rating is based on a comprehensive quantitative and qualitative evaluation of the company's balance sheet strength, operating performance, and business profile.

The Better Business Bureau (BBB) has given Globe Life an A+ rating, which means that the company has few to no unresolved consumer complaints. However, the BBB listing includes several one-star customer reviews, and the company has closed 91 complaints in the last 12 months.

Standard & Poor's, a business credit rating company, has given Globe Life a financial strength rating of AA-. This rating indicates that Globe Life has some minor credit issues but is extremely likely to pay back its debts. This rating reflects the company's financial stability and ability to meet its financial commitments.

Globe Life's complaint index

Globe Life Insurance has received a high number of consumer complaints, with a score of 2.75 on the NAIC Complaint Index, indicating that it has far more complaints than the average life insurance company. In 2023, its complaint index for individual life insurance was 3.46, which was significantly higher than the industry average. The National Association of Insurance Commissioners reports that Globe Life receives about 6.5 times as many complaints as a typical life insurer.

The majority of the complaints concern issues with policyholder service, including handling claims, surrendering policies, and billing. Many customers have also experienced delays during the claims process and billing issues. There have also been issues with policy cancellations and claim denials.

In 2019, there was a Globe Life insurance lawsuit settlement in which the company was ordered to pay $7.3 million in restitution for improperly denying claims.

Globe Life's term life insurance rates

Globe Life offers term life insurance for adults and whole life insurance for children. Term life insurance rates for adults start at $3.49 per month, while rates for children or grandchildren are as low as $2.17 per month. These rates are guaranteed to stay the same for the rest of the policyholder's life and are based on their present age.

The company advertises $50,000 worth of coverage for only a few dollars a month. However, it's important to note that rates may vary depending on several factors, including age, health, occupation, habits, and military status. Additionally, Globe Life's term life insurance is annual renewable, meaning that rates usually increase upon renewal.

Globe Life's term life insurance policies are time-limited, providing coverage for a specific period, typically ranging from one to 30 years. After the term expires, policyholders have the option to renew the policy, cancel it, or convert it to permanent coverage like a whole life policy.

The company offers a simple application process with no medical exam required. Globe Life is rated A (Excellent) by A.M. Best Company, based on their analysis of the company's financial strength, management skills, and integrity.

When considering Globe Life's term life insurance rates, it's worth noting that the company has received more complaints than most of its competitors, suggesting that customers may be less satisfied with the service they receive. Additionally, healthy individuals may find better rates elsewhere, as Globe Life only offers coverage without a medical exam, resulting in higher rates compared to insurers that take health into account.

Globe Life's whole life insurance

Globe Life provides both term and whole life insurance policies. Whole life insurance, also known as permanent life insurance, covers you for your entire life. It pays a death benefit to your beneficiaries after you die, and it also builds cash value over time.

The cash value of your policy won't be added to the death benefit, but it grows at a guaranteed rate over time. You can decide to borrow against the value of the policy or surrender it altogether. The monthly rate is based on the policyholder's current age and is guaranteed to stay the same for their lifetime.

The first month of coverage costs $1, after which the rate increases depending on the policyholder's age. While Globe Life's whole life insurance offers permanent coverage, it is only available for children. Adults can only purchase term life insurance, which is time-limited.

Pros and Cons of Globe Life's Whole Life Insurance

Pros

• Easy application: There is no medical exam required, making the application process simpler and more accessible.
• Affordable starting rates: Initial premiums are competitive and appealing for those on a budget.
• Permanent coverage: Whole life insurance policies offer lifetime coverage, so your family will receive benefits regardless of how long it's been since you purchased the policy.

Cons

• High complaint index: In 2023, Globe Life's complaint index for individual life insurance was significantly higher than the industry average. Most complaints involved issues with policyholder service, claims handling, surrendering policies, and billing.
• Increasing premiums: While initial rates are low, they can increase significantly over time, particularly for term policies.
• Limited coverage amounts: The maximum coverage amounts may not be sufficient for all needs, especially if you require high-value policies.

Pros and cons of Globe Life Insurance

Pros of Globe Life Insurance:

• It's cheaper than most life insurance companies.
• You can purchase life insurance for children.
• You don't have to have a medical exam.
• Offers term life and whole life insurance policies.
• Offers coverage in all 50 states.
• Rated A (Excellent) by A.M. Best Company.
• Rated A+ by the Better Business Bureau.
• Offers a range of policies online and through its network of agents.
• Easy-to-navigate website.
• Offers a mobile app for Android and Apple.
• Offers a range of supplemental health insurance and annuities.

Cons of Globe Life Insurance:

• Whole life insurance is not available for adults.
• Rates go up as you age.
• Limited online functionality.
• Offers fewer riders than most competitors.
• Higher-than-average complaint index according to the NAIC.
• Cannot file a claim online.
• Limited digital tools.
• No online chat.

Frequently asked questions