A good life insurance policy provides the peace of mind that comes from knowing your family has financial security in the event of your death, yet in 2014, only 57% of people in the United States had life insurance, according to statistics published by the Insurance Information Institute.
The stats reveal that 65% of Americans think insurance is too expensive, yet companies such as Globe Life and Accident Insurance Company offer inexpensive coverage. By using an online life insurance comparison tool, it’s possible to find policies that match your needs and budget. Globe Life has a small menu of products, which makes purchasing insurance easier to understand but also limits your coverage options.
Globe Life Company Profile
Globe Life dates back to 1951, when two men founded an insurance agency to provide inexpensive cover in Oklahoma. Today, as a wholly owned subsidiary of the Torchmark Corporation, Globe Life provides life insurance products to over 4 million policyholders throughout all U.S. states, except New York, specializing in simplified plans that make it easy to purchase insurance for adults and children. Notable company features include:
- $77 billion of in-force insurance
- A+ financial rating with A.M. Best
- A+ rating with the Better Business Bureau (BBB)
- BBB accredited since 1952
Coverage Options
Globe Life offers whole life and term life insurance. Whole life insurance provides protection for your entire life, paying a death benefit, and accruing a cash value over time, which you may draw a loan against or withdraw for use. Term life insurance only runs for a limited period and doesn’t have any value if you outlive the term.
Term Life Insurance
In general, term life policies are available at much lower rates than whole life, making them a good choice for anyone on a budget, anyone looking to supplement other forms of insurance, or anyone who only requires cover for a short period. Globe Life’s term policies feature:
- Coverage for $5,000, $10,000, $20,000, $30,000, $50,000 or $100,000
- No medical exam, just a short health questionnaire
- No waiting period
- Rates from $3.49 per month ($1 for the first month only)
- Fixed rates for the term of the policy (usually five years)
Whole Life Insurance
Globe Life offers whole life insurance for adults and children. This type of policy has a built-in savings component for the future, as premium overpayments accrue a cash value. The cover features:
- Adult coverage for $5,000, $10,000, $20,000, $30,000, or $50,000
- Child coverage for $5,000, $10,000 or $20,000
- No medical exam, just a short health questionnaire
- No waiting period
- Rates from $2.17 per month for children
- Rate schedules determined by age, with the first month’s coverage for $1
Other Products
Globe Life also offers a range of other insurance products. These include auto insurance, accidental death insurance, mortgage protection insurance and medicare supplement plans.
Insurance Complaints
When you choose a life insurance product, consider all aspects of the company, including its customer service and history of complaints. Globe Life receives a much higher ratio of complaints for its life cover compared to the national median of 1, according to data published by the National Association of Insurance Commissioners.
- Ratio of 5.61 in 2015
- Ratio of 8.27 in 2014
- Ratio of 7.43 in 2013
- Ratio of 4.95 in 2012
The complaint ratio is the company’s U.S. Market Share of closed complaints compared to the company’s U.S. Market Share of premiums for a specific policy type. A value greater than 1 indicates more complaints than is usual for a company of its size.
Insurance Prices
Globe Life determines its insurance prices based on your age. After paying the $1 introductory price for the first month, the premium increases in line with your age at the point you purchased the insurance and then remains the same for the life of the policy. Be aware that Globe Life’s term life insurance is only available in five-year terms, and while premiums start from as low as $3.49 per month, they are likely to increase each time you renew. Constantly renewing the policy may be more expensive than purchasing coverage from a company that offers term policies that last for 20 or 30 years.
Choosing Globe Life Insurance
Globe Life offers inexpensive term and whole life insurance with a special introductory offer price of $1 for the first month. A limited selection of products makes buying a policy straightforward, and as there are no health examinations, it’s possible to get instant cover, although there is the possibility of Globe Life rejecting your application based on your answers to a health questionnaire.
The narrow product range means you may not be able to get a policy that exactly matches your requirements, and products that don’t require a health exam may actually be more expensive for healthy people, as they don’t get the good health discounts that many other companies offer. Consider these pros and cons carefully, and compare products from other companies using an online quote tool before committing to a purchase.
