Globe Life Insurance is one of the most recognizable names in the insurance industry today, although 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, the rates, and the overall strengths and weaknesses of the company and its products.
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.
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 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 in force.
Globe Life is a wholly-owned subsidiary of Texas-based Touchmark Corporation, which is a holding company for several 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.
As of July 17, 2020, Globe Life has an A.M. Best rating of A , which is a downgrade from their previous rating of A+. It also has an AA rating from Standard & Poor. 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.
Globe Life offers term life, whole life, as well as accidental insurance policies.
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.
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.
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 rates for Globe's whole life policies depend on your age and the death benefit you choose.
The premium you pay from the second month onwards, however, remains the same throughout 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.
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 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.
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 additional features including
Now, let us take a look at the advantages and disadvantages of choosing Globe Life as your insurance provider.
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.
The application process is quite simple, as 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.
Globe Life offers one of the most comprehensive accidental insurance plans on the market today, which includes many 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.
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 policy, while your death benefit remains the same.
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.
Like any other company, Globe Life has its 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 that 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.
See also: Gerber vs Globe Life Insurance