Globe Life and Accident Insurance Company Review

About Globe Life

Globe Life has been in business since 1951, so almost 70 years as of 2020. The company is headquartered in McKinney, Texas.

Originally, Globe Life and Accident Insurance Company was formed to market low-premium, low-coverage life insurance policies in rural Oklahoma and Texas. Over the years, Globe Life expanded its geographic reach—now issuing life insurance policies in every state but New York.

An affiliated company, Globe Life Insurance Company of New York, sells Medicare Supplement insurance in the Empire State, but not life insurance.

Globe Life Snapshot

As you can see above, the company offers a few different types of insurance policies, but relatively low-coverage final expense insurance policies remain Globe Life’s focus.

In its advertising campaigns, the company emphasizes two themes:

• “$1 buys up to $100,000 life insurance”
• A money back guaranty that lasts thirty days.

If a $1 per month premium sounds too good to be true, that’s because it is.  The $1 rate only applies to the first month of coverage.  After that, premiums are set based on the customary factors like coverage level, age, sex, and medical history.

The 30-day money back guaranty is what it sounds like.  If you’re not happy with a policy during the first 30 days after its issued, you can cancel for a full refund.  Remember, though, if the first month’s premium was only $1, the refund isn’t such a big deal.

Also, most insurance companies offer a 30 day free look period, where you can cancel the policy and receive a 100% return on your money, with no surrender charges or fees.

BUY Direct

One of Globe Life’s calling cards is that consumers can “buy direct.”  That is, you go straight to the company to apply for coverage rather than working through an agent.

Most applications are submitted online, and customer interactions are usually online or over the phone.

The direct-to-consumer model can help streamline the process and theoretically allow for lower premiums, but it can also make it more tedious for applicants or policyholders to get answers to their questions.

Globe Life Financial Ratings

A.M. Best: A+
Fitch: A+
Moody’s: NR
S&P Global: AA-
Comdex Ranking: 91

Globe Life is a top rated insurance company boasting an A+ rating from AM Best and a 91 ranking from Comdex.  The scores suggest that Globe Life’s financial position is very strong, and policyholders have essentially no risk that Globe Life will not meet its payment obligations.

Globe Life’s parent company—now known simply as Globe Life, Inc. after changing its name from Torchmark, Inc., in August, 2019—reported over $750 million in net operating income and just under $26 billion in total assets for 2019.

Globe Life has been accredited by the Better Business Bureau since 1952 and presently enjoys a A+ rating from the BBB.  With nearly 300 reviews, the company also boasts a four-star (out of 5) customer-review rating with BBB.

However, the National Association of Insurance Commissioners reports that Globe Life has drawn a greater number of consumer complaints to state insurance commissioners than what would ordinarily be expected for a life insurance company of comparable size and market share.

Products Offered by Globe Life:

• Term Life Insurance
• Whole Life Insurance
• Whole Life Insurance for Children
• Accidental Death Insurance
• Mortgage Protection Insurance (AD&D)
• Medicare Supplement Insurance

Life Insurance Policies Offered by Globe Life

Globe Life offers both whole life and term life insurance. It is important you understand the distinction between the different types of coverage, so that you are not taken by surprise if your policy comes to an end or your premium payment inc

Term Life for Adults:

Globe Life’s term offering is available for new applicants from age 18 to 79 in coverage amounts ranging from $5,000 to $100,000.  Policies are issued in five-year terms and can be renewed for additional five-year terms until the insured reaches age 90.  Premiums are level for the initial five-year term and then increase at each renewal.

Globe Life’s Term Life for Adults policy is simplified-issue no exam life insurance, which means new applicants need to complete a medical history questionnaire indicating reasonably good health, but no physical examination is required.

Globe Life’s term life insurance rates for relatively young applicants are somewhat competitive.  However, people who anticipate needing term coverage over an extended period often save money with a policy that offers level premiums over a longer initial term than the five years offered by Globe Life.

Whole Life Insurance:

Applicants age 18 to 79 and in reasonably good health are eligible for Globe Life’s whole life policy.  Coverage levels start at $5,000 and run up to $50,000, making Globe Life’s offering comparable to burial insurance policies from other carriers.

Like the term policy, Globe Life’s whole life coverage is simplified-issue, with only a written screening application required.

As whole life insurance coverage, Globe Life’s policy features fixed premiums and benefits for life, cash value that increases over time, and available policy loans.

Due to the relatively low coverage amounts, the policy is less suited to income replacement or use as a retirement-planning asset than other whole life policies.

Whole Life Insurance for Children:

Globe Life’s children’s whole life policy is available for new insureds up to age 24.  Coverage levels range from $5,000 to $30,000 and are available in $5,000 increments.

The principle advantage of a whole life policy for children is that it lets parents lock in life insurance coverage protecting kids for the rest of their lives at fixed premium rates much lower than what’s available for adults.

When the insured child reaches age 18, he or she can take over the policy or use the accrued cash value for college expenses (or any other reason).

Accidental Benefits Insurance (AD&D):

This policy isn’t pure life insurance because it only pays out if death results from a qualifying accident, but it can be a good pick for people in appropriate situations.

Coverage is available up to $250,000 for applicants from 18 to 69.  Because most illness-related deaths will not trigger coverage, the policy does not require any medical screening and is guaranteed-issue for applicants in the right age range.

The Accidental Benefits policy features fixed premiums, inflation-adjustment protection, and partial coverage for paralysis and dismemberment.

Additionally, the death benefit is increased by ten percent if death occurs due to a vehicle accident and the insured was wearing a seatbelt—or doubled if death results from a commercial airline accident.

If the “Family Plan” option is selected, spouses and dependent children are also covered at 50% and 10% of the primary coverage level, respectively.

The Family Plan also increases the policy proceeds by ten percent if the insured has dependent children between ages 15 and 22 at the time of the insured’s accidental death.

A very similar policy, which Globe Life calls Mortgage Protection Insurance, provides accidental death and dismemberment coverage up to $350,000 under similar terms, but without the Family Plan option.

Available Life Insurance Riders

The available riders offered by Globe Life are fairly limited.  That can help keep premiums down if you want a fairly standard, no-frills policy, but it also prevents a policyholder from customizing coverage to specific needs.

An Accidental Death rider increases the benefit provided by a life insurance policy if the insured’s death occurs as the result of a qualifying accident.

Globe Life FAQs

Globe Life is a big company with a large marketing budget. It has a far reach, so many people have seen an ad or two from the company. This creates a lot of interest from people who want to know what Globe Life is. The following are some of the more popular questions people ask about the company.

Is Globe Life a scam?

Globe Life is certainly not a scam. Rather, it is a highly rated life insurance company that specializes in a niche segment of the life insurance marketplace.

How Long Does It Take Globe Life to Pay Out?

Globe Life, like most insurers, will pay out promptly on any legitimate death benefit claim. However, the beneficiary will be required to provide certain documentation that provides evidence that the insured has died.

Is there a Waiting Period for Globe Life Insurance?

Many insurers offer coverage that requires a certain amount of time pass before the full death benefit is paid, but Globe Life offers burial insurance with no waiting period.