Though a relatively young and newly established company, Globe Life has become a brand most people have heard of through their many facets of advertising.
But just because you’ve heard of a company doesn’t mean you should place your business with them. Tag along as we break down the company, their products and service, and help you understand if this company is right for you.
This Globe Life Review is our own opinion, and we strongly suggest you research many other companies before making a decision to purchase life insurance. Let’s begin.
Our Globe Life And Accident Insurance Company Review for 2017
Globe Life and Accident Insurance Company has only been doing business for just over 60 years, which is quite young in the life insurance industry. Some of the biggest and the best life insurance companies in America have been around more than 160 years, to put it into perspective, but age does not define quality, of course.
Started just 64 years ago, Globe Life found its infancy in Oklahoma in 1951. John Singletary and Ralph Reece, an idea, and a loan of $60,000 were the beginning of what we all now know as Globe Life. However, Globe wasn’t always operating across the United States; in fact, it primarily only served the local community of Oklahoma City before it began expanding.
Today, Globe Life does business all across the country, and has nearly $70 billion of life insurance on the books. As it has grown, marketing efforts primarily target seniors, or those who are over the age of 50.
Globe’s Financials & Ratings
When evaluating a life insurance company, financial ratings are one of the indicators of a carrier being secure, although they aren’t the only factor. Globe Life and Accident Insurance Company maintains good ratings from more than one rating agency.
Most notably, Globe has been awarded an “A+” by A.M Best, and an “AA-” from Standard and Poor’s, both of which are stable and secure. The company also holds a rating of “A+” with the Better Business Bureau, despite the unusually large number of complaints (this could be a warning sign to some, though we try to look at all factors as a whole).
Globe Life is actually owned and operated by the Torchmark Corp. who is traded on the New York Stock Exchange as TMK. Torchmark is a holding company for other notable insurance companies, including:
- American Income Life
- National Income Life
- Liberty National
- United American
- First United American
- Family Heritage Life
Life Products From Globe Life
Along the lines of life insurance, Globe offers term, whole and mortgage protection policies which each have specific requirements and limitations.
Starting with term, you can buy as much as $100,000 in coverage and pay just $1 for the first month. There are only a few health questions to answer.
However, your premium after the intro rate is subject to your age and age bracket. You will pay whatever the group rate is for the age bracket you’re in, but you will not pay this forever. As you move up into the next age brackets, expect drastic premium increases each time.
This is something we strongly dislike about Globe Life and Accident Insurance Company. Consumers are, of course, always looking for value, but we would consider introductory rates for a life insurance policy to be a big red flag.
You can select from death benefit amounts of:
These policies, as with other term life products, have a level death benefit. The major difference, however, is the short duration where the premium stays level. With other top term life insurance companies, you can expect to pay one price for up to 30 years. Not so with Globe Life.
On Globe Life’s website, they mention a rate schedule which will never increase. Note the word schedule in there. It’s a predetermined increase, so understand your rates will go up! They just won’t go up beyond what the schedule is at the time of approval.
In addition, because they only require a few health questions, you’re likely being pooled with higher risk applicants. Even though you may not be a high risk, you’ll be paying a higher premium to help the company offset these costs. In the end, you’re paying a higher cost per thousand than you may be able to qualify from another carrier.
With the whole life insurance product option, there are some similarities. The minimal health questions and the $1 first premium are just like the term. However, you are limited to just $50,000 in coverage. Because it is whole life, premiums never increase, but your initial monthly cost will be substantially higher than the term counterpart of the same death benefit amount.
Once again, be aware of the introductory premium. The actual cost of the insurance is going to be much, much higher.
Comparable in construction to other whole life policies, expect a level premium, a guaranteed minimum death benefit and a small cash component. While it might be advertised as accessible, be careful of building loans as the whole life policy will accrue interest. The final death benefit from Globe Life will also be reduced by any outstanding loans and interest.
If you want life insurance for your children or grandchildren, Globe does have an option with their Young American Plan®. With a whole life policy built up to $25,000 in death benefit, the child could also have access to the cash later in life, if need be, though it could deplete some or all of the death benefit over time.
If neither $50,000 nor $100,000 is enough in coverage, the next step for Globe is their accidental coverage which goes as a high as $250,000. As with most accidental policies, it is guaranteed to be issued, so there are no physicals or health questions to answer. Anyone between the ages of 18 and 69 years old may apply. Just remember, it ONLY pays for accidental deaths.
For those who are looking for life insurance as mortgage protection, they do offer up to $350,000, but it is, again, accidental. The policy will only pay a death benefit claim for those who pass in an accident.
We’re not big advocates of accidental death and dismemberment coverage, as they rarely pay out. This isn’t because the insurance company isn’t paying the claim, but rather because most people do not die in an accident, but rather health or age related causes. Therefore, the best coverage is a true life insurance policy for most individuals.
One thing to note is the reduction of value at age 70. When a person reaches 70 years of age, Globe Life’s Accident policy benefit is reduced by 50%.
Other Products from Globe
Globe also offers Medicare Supplements and car insurance. We don’t take either of these into consideration for this particular Globe review, though it should be noted they have other lines of insurance available to their clients.
Globe Life does participate in certain charitable events and gifts. In September of last year, for example, they supported youth baseball and softball by contributing to 10 different non-profit organizations in partnership with the Texas Rangers.
They’ve also paired with the Oklahoma PD to sponsor a golf tournament, sponsored a Special Olympics team and offered children’s soccer camps, and even contributed to well known charities like the United Way, Make A Wish Foundation, and more.
Our Thoughts On Globe
Although many find Globe Life insurance valuable, their products are severely overpriced. Because of their target market, direct advertising through mail, and simplified style of underwriting, Globe Life attracts many elderly or high risk individuals. Because of this, costs must rise. The introductory $1 first month is just a way to grab the attention of the consumer, which we think is slightly deceiving.
They even advertise how you can bypass speaking with an agent because their product can be sold completely through the mail and over the internet. We tend to find this oversimplification of selling, once again, a red flag.
Globe has also been fined several times over the last couple decades, have had complaints consistently, and even not paid claims.
Please review Gerber or Fidelity for better, more competitive products. There are also several other carriers who have much better coverage at lower rates, and they have simplified issue options, as well. One thing to note is Globe Life’s coverage does start day 1, so keep this in mind when comparing other choices of life insurance.
Honestly, we would not recommend Globe for anyone.
|Company Name (and Subsidiaries)||Torchmark Corporation|
Globe Life and Accident Insurance Company
Home Mortgage Group of Globe Life and Accident Insurance Company
|Company Ratings||A.M. Best (A+)|
Moody’s Investors Services (n/a)
Standard & Poor’s (AA-)
|Headquarters (Address, Phone, Web)||204 North Robinson Avenue|
Oklahoma City, OK 73184
|Policy Types Available||Term|