Jane Dotson
Life insurance is a way for beneficiaries to cover bills after the policyholder's passing. Globe Life Insurance offers a mix of term and permanent life insurance. Term life insurance policies are meant to provide coverage for a specified amount of time, and Globe's term life insurance policy is only available until the policy anniversary following the insured's 90th birthday. Permanent life insurance policies are meant to provide coverage for the insured's entire life, and as long as premiums are paid on time, they do not expire.
| Characteristics | Values |
|---|---|
| Type of insurance | Term life insurance |
| Coverage | Ends at 90 years of age |
| Premium | $1 for the first month |
| Premium computation | Based on age at the time of the policy issue |
| Premium increase | Every five years |
| Grace period | Yes |
| Money-back guarantee | 30 days |
| Renewal | Not possible after 90 years of age |
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What You'll Learn
Globe Life's term life insurance ends at 90
Life insurance is a way for your beneficiaries to cover some of the bills after your passing. There are two types of life insurance policies: Whole Life Insurance and Term Life Insurance. Whole Life Insurance lasts for the life of the policyholder, meaning that in most cases, you will not outlive your life insurance. Term Life Insurance, on the other hand, is taken out for a specified amount of time, usually for 5, 10, 15, or 30-year periods.
Globe Life Insurance offers both term and permanent life insurance. Their term life insurance policy is available only up to the age of 90. This means that if you outlive your policy, you will no longer be covered and won't get your money back. The initial term period can be 1, 2, 3, 4, or 5 years, and the first term depends on your issue age. For example, if you purchase a plan at 55 years old, you will pay based on the 51-55 age bracket. When you turn 56, you move into another age bracket, and your price increases accordingly.
It's important to note that Globe Life's term life insurance rates increase with age. After the introductory price of $1 for the first month, your premium will be computed based on your age at the time of the policy issue. Additionally, Globe Life has received a high volume of consumer complaints, mainly from those who paid premiums but outlived their policy when they turned 91. Therefore, it is crucial to carefully review the terms and conditions of any life insurance policy before purchasing it.
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Permanent life insurance vs. term life insurance
Life insurance is available in two types: permanent life insurance and term life insurance. Permanent life insurance provides coverage for the whole life of the policyholder and does not expire as long as the premiums are paid on time. Term life insurance, on the other hand, provides coverage for a specified period, such as 5, 10, 15, or 30 years, and is generally more affordable than permanent life insurance. It is important to note that term life insurance does not accumulate cash value and simply expires at the end of the term.
Permanent life insurance, also known as whole life insurance, is a more robust and flexible asset in a long-term financial plan. In addition to providing a death benefit, it features a cash value or savings benefit that can be used by the policyholder in a variety of ways, such as for emergency funds, paying for a wedding, or starting a business. The premium amount generally remains level throughout the insured's lifetime, providing stability and peace of mind. Permanent life insurance can also be a valuable financial tool, helping individuals build wealth and accumulate cash value that can be used during their lifetime. This cash value can be withdrawn, borrowed against, or listed as an asset when applying for credit.
Term life insurance, as the name suggests, is intended to cover death-related financial losses for a specific period. It is a simple and relatively inexpensive way to obtain life insurance coverage. If the insured person dies during the term, their beneficiaries receive a payout. If the policy expires before the person's death, there is no option to cash out, and the policy simply terminates. Term life insurance is often chosen by individuals who plan to save money through other investments to cover their dependents' living expenses after the insurance policy ends.
It is worth noting that guaranteed universal life insurance policies can provide coverage until the age of 90 or beyond. These policies work similarly to term life insurance, locking in rates up to a specific age. They offer the flexibility to cancel the policy at any time without penalty and only pay for the cost of coverage.
When deciding between permanent and term life insurance, it is essential to consider your specific circumstances and financial goals. Consult with a financial advisor to make an informed decision that best suits your needs.
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Nonpayment and grace periods
Non-payment of premiums can lead to a lapse in coverage for both term and whole life insurance policies. However, some companies offer a grace period to catch up on payments and maintain coverage. This grace period varies among insurers and is based on policy-specific terms and conditions. If you cannot afford your monthly premium but still require life insurance, Globe Life offers various options to lower your premium amount while retaining coverage.
It is important to understand the implications of non-payment, as your coverage may lapse, and you may lose any accumulated cash value. Additionally, your beneficiaries will not receive the death benefit. To reinstate a lapsed policy, you may need to pass a health exam and pay back missed premiums. The time limit for reinstatement varies from insurer to insurer.
The type of life insurance policy you choose also affects your coverage duration. Whole life insurance, also known as permanent life insurance, provides coverage for the entire life of the policyholder. Term life insurance, on the other hand, offers coverage for a specified period, usually 5, 10, 15, or 30 years. Some term life policies are also available until a specific age, such as 90, 95, or 100.
While permanent life insurance policies generally do not expire as long as premiums are paid on time, some may end between the ages of 100 and 121, depending on the policy and company. If the policy ends at a certain age, the death benefit is still payable. With term life insurance, the coverage ends when the specified term is over, and the insured may have the option to convert to a permanent policy or renew the term.
Age is a critical factor in life insurance rates, with a significant increase typically occurring after 50. It is advisable to secure a life insurance policy before turning 50 to obtain more favourable rates and options.
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Reduced paid-up or non-forfeiture options
Life insurance policies are available in two types: permanent life insurance and term life insurance. Permanent life insurance policies are meant to provide coverage for the whole life of the insured, whereas term life insurance policies are meant to provide coverage for a specified amount of time.
Permanent life insurance policies do not expire as long as the premiums are paid on time. However, some permanent life insurance policies can end between ages 100 to 121, depending on the policy or company. On the other hand, term life insurance policies have specified terms that vary, with common term lengths being yearly/renewable or 5-year terms.
Now, let's focus on the concept of "reduced paid-up or non-forfeiture options" in the context of life insurance:
Reduced paid-up insurance is a type of non-forfeiture option offered by whole life insurance companies to their policyholders. Non-forfeiture means that even if you cancel or convert your policy, you still receive some value from it. This value can come in the form of a partial refund of premiums, a reduced benefit based on premiums paid, or the cash surrender value of the policy.
With reduced paid-up insurance, you can give up your existing coverage and receive a guaranteed death benefit without having to pay any additional premiums. This option is suitable for those who can no longer afford the premiums but want to retain some benefits from their policy. It is important to note that reduced paid-up insurance may result in losing certain riders, such as disability benefits.
Other non-forfeiture options besides reduced paid-up insurance include cash value surrender, where you forfeit your policy and receive the accumulated cash value in a lump sum, and extended-term insurance, where you use the accumulated cash value to purchase a new term life insurance policy with a death benefit equal to the original policy.
When considering reduced paid-up or non-forfeiture options, it is essential to review the specific options available from your life insurance company, as not all options are offered by every carrier. Additionally, consulting a financial planner or life insurance agent can help determine the best course of action for your specific situation.
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Guaranteed universal life insurance
GUL policies are popular among seniors seeking lifetime protection without investment complexities. They are straightforward and easy to understand, with fixed premiums that do not change throughout the policy's life. This makes them a good option for those who don't want to actively monitor their policies. Additionally, GUL policies are often cheaper than other forms of permanent life insurance because they do not prioritise cash value growth. While GUL policies technically have a cash value account, they typically accumulate minimal cash value.
When compared to regular universal life insurance, GUL policies for older applicants are usually more affordable due to the minimal cash value growth. GUL policies can fill the gap when term life insurance becomes unavailable or expensive for older individuals. They offer coverage for older applicants, with issue ages reaching into the 80s.
It is important to note that GUL policies do not function as investment vehicles. Instead, they focus on providing pure protection for your loved ones. Therefore, if you live a long life, your beneficiaries may receive nothing if the policy ends at a certain age and you outlive it. However, you may be able to extend the coverage, but the new premiums could be significantly higher.
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Frequently asked questions
Globe Life Insurance offers term life insurance, which provides coverage for a specified amount of time. The term life insurance policy ends when the policyholder turns 90. After this, the policyholder loses coverage and won't get a refund.
Term life insurance is a type of life insurance policy that provides coverage for a specified period, usually for 5-, 10-, 15-, or 30-year periods. It is different from whole life insurance, which lasts for the entire life of the policyholder.
If you outlive your Globe term life insurance policy, your coverage will end, and you will no longer be eligible for a death benefit or a refund of premiums paid. It is important to be mindful of when your plan ends and consider renewing or switching to whole life insurance.
Some alternatives to consider if you want life insurance coverage beyond the age of 90 include guaranteed universal life insurance, which can provide coverage until age 90, 95, 100, or beyond. Protective and Pacific Life also offer competitive rates for seniors, with policies renewable up to age 95.
