Globe Life Insurance is one of the most recognizable names in the insurance industry today, despite the fact that the company has been around for just over six decades.
The company is known for its ‘no medical exam’ policy, which appeals to a section of consumers – particularly middle-aged folks and senior citizens.
In this review, we take an in-depth look at Globe Life Insurance, the policies they offer, and the overall strengths and weaknesses of the company and their products.
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Choosing the right insurance provider is not an easy task at all, given the wide range of options available for you.
If you choose the wrong policy or an unreliable provider, you could not only end up wasting your money, but your family could be left without adequate financial protection after your passing. This is where noexam.com can help you.
At noexam.com, you can find a variety of information on the top life insurance companies in the market today and the products they offer. We aim to link you with the insurance provider of your choice by offering you all the data you need to make a poignant decision.
About Globe Life Insurance
Globe Life and Accident Insurance Company, better known as Globe Life, is a Texas-based insurance provider. Founded in 1951, the company has managed to carve a niche for itself in the industry over the past six decades.
Globe Life started off by catering to the insurance needs of rural communities in Oklahoma. Today, the company has managed to expand its presence across the country and has become a reliable and reputed name in the industry.
The company currently has over 4 million policyholders and has $80 billion of life insurance at play.
Globe Life is a wholly-owned subsidiary of Texas-based Touchmark Corporation, which is a holding company for a number of other insurance companies including American Income Life, National Income Life, United American, Family Heritage Life, Liberty National, and Globe Life Insurance Company of New York.
Financial Rating of Globe Life
Globe Life has an A.M. Best rating of A+, which is the second highest rating offered by the company. It also has an AA rating from Standard & Poor’s. These ratings are a strong indicator of the company’s financial strength and stability.
Apart from this, Globe Life also has a BBB (Better Business Bureau) rating of A+, which is a sign that a large section of their consumer base is satisfied with their services.
The Policies Offered by Globe Life
Globe Life offers term life, whole life, as well as accidental insurance policies.
Term Life Insurance
Globe Life’s term life policy allows you to choose the death benefit payout depending on your needs. Your options include $5,000, $10,000, $20,000, $30,000, $50,000, $75,000, and $100,000. There are no medical exams involved and the death benefit stays the same as long as the policy is in effect, so you do not have to worry about the amount getting reduced for any reason.
The premium for term life policies, irrespective of the death benefit amount you choose, starts at $1. This is, however, only for the first month. From the second month onwards, your premium increases, depending on your age and the death benefit amount you choose.
Globe Life’s term policies are age-specific and are designed to be renewed in five-year increments. For example, if you purchase a policy at the age of 31, you have to renew it at the age of 36, at which point your premium also increases, since you move to a different age bracket.
Whole Life Insurance
Globe Life’s whole life policy offers you five different options in terms of death benefit payout – $5,000, $10,000, $20,000, $30,000, and $50,000. There are no medical exams involved and the death benefit remains the same throughout the term of the policy.
The premium for whole life policies starts at $1 for the first month and increases in the second month, depending on your age and the death benefit you choose.
The premium you pay from the second month onwards, however, remains the same throughout the duration of the policy. Unlike the company’s term life policies, there are no age-based five-year increments in premium payments.
Globe Life’s whole life policies have a small cash value component, which grows at a steady rate throughout the policy’s term. You can borrow against the cash value component to meet your emergency expenses, if and when needed.
It is similar to a personal loan and needs to be repaid within an appropriate amount of time. If not, the outstanding amount as well as the interest owed would be deducted from the death benefit.
Whole life policies are meant to last your entire life, so there is no predetermined expiry date for them. The policy stays in effect as long as you keep making the premium payments.
Children’s Whole Life Insurance
Globe Life also offers a whole life policy for young children. The coverage amount ranges from $5,000 to $10,000, $15,000, and $20,000. The policy includes a cash value component, which accrues interest throughout the term. The cash could be accessed for emergency purposes, but it could deplete the death benefit payout unless it is paid back in full with interest.
The premium for the policy starts at $1, which is only for the first month, after which the rate schedule is revised and the premium increases depending on the policyholder’s age. Once revised, the premium stays the same throughout the duration of the policy.
The death benefit and the growth rate of the cash value component also stay the same throughout the policy’s term, irrespective of the policyholder’s age, health condition, or occupational status. Also, there is no waiting period, since the coverage starts from day one.
Globe Life’s accidental insurance policy is available for anyone from 18 to 69 years of age. It is a ‘guaranteed acceptance’ policy, which means if you are within the age limit of 18 – 69, you will not be turned down for any reason. There are no medical exams involved and you will also not be asked any questions regarding your health condition.
Accidental insurance, as the term indicates, is meant to cover the financial needs of your family only if you pass in a vehicular accident. The terms of the policy do not apply if the death is caused as a result of any other factor.
As is the case with all other Globe Life policies, the premium for the accidental insurance policy also starts at $1. After the first month, the premium amount is revised, based on your age and your policy’s death benefit payout. Once revised, the premium is locked in and remains the same throughout the duration of the policy.
Globe Life accidental insurance is also available for families. The Family Plan offers additional death benefits to your spouse and child. For instance, if your death benefit payout is $100,000, your spouse gets $50,000 and your child receives $10,000.
The policy also has a number of additional features including
Inflation Benefit – The death benefit increases by 5% every year for the first five years or until you turn 70, whichever is earlier.
Education Benefit – An additional 10% of the death benefit is paid to each of your children who are between the age of 15 and 22. The amount payable is capped at $10,000. The feature is limited to the Family Plan and not available on individual accidental insurance policies.
Seat Belt Benefit – If your death is caused as a result of a vehicular accident, and if you were wearing a seatbelt at the time, your beneficiary gets an additional 10% of the death benefit.
Dismemberment Benefit – If you lose your eyesight or a limb due to an accident, you receive a payout which is calculated based on the extent of the injuries you suffer and the loss of mobility caused as a result.
Paralysis Benefit – If you suffer from paraplegia, hemiplegia, or quadriplegia (partial or full paralysis) due to an accident, you receive a payout which is calculated based on the loss of mobility caused as a result.
Commercially Scheduled Airline Accident Benefit – If your death is caused as a result of an accidental bodily injury you suffered while onboard a commercial flight, your beneficiary is paid an additional 100% of the death benefit.
Now, let us take a look at the advantages and disadvantages of choosing Globe Life as your insurance provider.
No Medical Exam
This is by far the biggest selling point of Globe Life insurance policies. You are not required to undergo any medical examination. All you have to do is fill out an application, which has a few questions on your health condition.
If you are middle-aged or older and if you are suffering from health problems, you might find it difficult to buy sufficient coverage for yourself and your family at affordable rates. You are likely to get turned down by companies that do not deal with people from high-risk categories.
Even in cases where you get accepted, your overall insurance costs could go up significantly owing to your age and health condition. This is precisely why many people from high-risk categories open the door for ‘no exam’ policies, similar to the ones offered by Globe Life.
Simple and Convenient Application Process
The application process is quite simple, as you all you have to do is answer a questionnaire. There is no waiting period as you buy the policy directly from the company. Insurance policies are available for children and adults of all ages. You can choose to pay the premiums on a monthly, quarterly, or yearly basis, depending on your convenience.
Wide Range of Accidental Benefits
Globe Life offers one of the most comprehensive accidental insurance plans on the market today, which includes a number of additional benefits. While it cannot replace a term policy, it can be an excellent addition to a term or whole life policy and take care of your family’s needs in case of your passing.
Money Back Guarantee
All Globe Life insurance policies come with a no-risk 30-day money back guarantee. If you are not satisfied with the policy for any reason, you can cancel it within 30 days and get your money back.
Globe Life term policies have an incremental premium structure, wherein the premium is revised every five years or when you move to a new age bracket.
For example, if you buy a policy at the age of 51, your premium will be revised after five years – when you turn 56. At the same time, if you buy a policy at the age of 54, your premium will be revised after just two years, when you turn 56 because you move to a different age bracket.
It means your premiums keep increasing throughout the duration of the policy, while your death benefit remains the same.
Low Death Benefits
The death benefit for Globe Life’s term life and whole life insurance is capped at $100,000 and $50,000 respectively. In most cases, it is not sufficient to take care of your family’s financial needs after your passing.
Is Globe Life the Right Choice For You?
Like any other company, Globe Life has its own strengths and weaknesses and is not the ideal choice for everyone. The most essential aspect you need to remember, however, is that Globe Life is a simplified issue life insurance provider.
They primarily cater to a specific niche – middle-aged and older people with several health issues, for whom regular insurance policies are not an option due to their age and health condition.
If you are young and healthy, there is no reason why you should open the window for a ‘no medical exam’ policy. You could select an insurance company which requires you to undergo a medical exam and has strict underwriting policies but offers sufficient coverage for you and your family at suitable rates.
The bottom line is that Globe Life is a judicious option for people who belong to the high-risk category.
If you are old, do not have substantial financial commitments, and are just looking for a policy to cover your funeral expenses and to pay off minor debts, Globe Life term life and whole life insurance might be a salient choice for you. If you are young, healthy, and belong to the low-risk category, you have several other options to choose from.
Globe Life Insurance by Jonathan Holloway