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Globe Life and Accident Insurance Co., a wholly owned subsidiary of the Torchmark Company, began insuring families in 1951 and now has over 3 million policyholders. They have been accredited by the Better Business Bureau since 1952 and currently hold an A+ rate through the BBB. Globe life promotes the history of the company, their A+ A.M. Best rating and reputation as a company to trust to protect your love ones when you die.
Globe Life Insurance is sold directly to the public typically through the mail and internet without the assistance of an independent insurance agent. Globe Life offers 2 basic types of life insurance policies; Term and Whole Life or “Permanent” including Level Term, Children’s Whole Life and the very popular Renewable Term called Modified Premium Term to age 90.
It’s quick, easy to understand and it’s a matter of answering a few health questions for the Renewable Term or no health questions at all for the Accidental Death Life insurance. This is what makes Globe life insurance so attractive. Consumer think it’s a no hassle way to purchase life insurance, but unfortunately many people don’t really understand what they’re buying. Make sure you read every word on the brochures so that you purchase the correct type of insurance to fit your expectations and needs.
Understand your benefits if you purchase Globe Life Insurance
The best final expense insurance is with the company that will issue the highest death benefit, for the lowest price. With that in mind, you also want to make sure that you are getting the best level of death benefits possible. Try to avoid graded and modified policies if at all possible.
Contact us to use an independent agent to help explain the nuances of these policies. A good way to understand and compare policies is by reading the exclusions, limitations, policy description, terms and conditions. These points of interest are typically in smaller print so be sure to read the “fine print” and make reference to any asterisks or footnotes. You want to make sure you’re buying the best option to fit your needs.
Many consumers purchase a policy because they are familiar with the name or know a friend or relative who has a policy and been very satisfied. You are most likely familiar with the name Globe Life because they mail out solicitation pieces and applications that you or your household may get several different times. The more you see it, the more likely you may be to inquire with them to purchase a policy.
Other companies like AARP underwritten by New York Life, and Colonial Penn sold by independent and career insurance agents offer similar types of life insurance sold directly to the public direct and primarily market their insurance products by advertising on television. These companies run a significant number of commercials during programs that seniors are likely watching. They often also use celebrities to promote their products. Colonial Penn uses Alex Tribek, the widely recognized host of Jeopardy, a person that seniors can relate to and foster a feeling of familiarity.
Why do so many people purchase Globe Life?
For purpose of this article we are going to focus on the renewable term product because it’s so affordable and that it’s what attracts most consumers to Globe Life Insurance. Most people buy a Globe Life and Accident Insurance Term policy because it’s hassle free. An insurance agent won’t show up at your door unannounced and push you into purchasing a policy. It’s simplified underwriting will only a few or no health questions.
One of the features of the Globe Life Renewable Term Life insurance for adults is the $1.00 you will pay for the first month and the low monthly rates you will pay after that initial month. This type of policy can be very useful to supplement another term policy if your health has deteriorated or you are much older which of course means it will cost more than when you purchased the original term. If you know that you won’t need the same amount of insurance in ten to twenty years this may be a good option for you. Let’s face it, $18.99 on a year old female for $20,000 of coverage sounds like a good deal. Then you turn age 51 and you’ll start paying $23.49 for the next 5 years.
There is no medical exam and some will qualify for first day coverage as soon as it is approved. Your policy will never reduce in death benefits and is guaranteed for the life of the policy. Remember the life of the policy is over at the end of the term. If you purchase $50,000 today and the policy is in force when you die, your beneficiary will get the $50,000.
Another reason is that Globe Life Insurance term policy may make sense is for those people who have medical conditions that would have prevented them from being approved for the whole life policy but they also offer a Modified Death Benefit policy. This policy is a Modified Premium Term policy that you only have to answer a few health questions. No matter what conditions you currently have or had, even treatment for cancer, Chronic Obstructive Pulmonary Disease (COPD), insulin dependent diabetes, Alzheimer’s, Parkinson’s or a recent heart attack won’t automatically make you ineligible for coverage.
What Does “Modified Death Benefit” mean?
The death benefit for a Modified is not “Level” or “Immediate” and there is a two year period of time which the insured must live through in order for the policy to pay out 100% of the death benefit. If you die during this first two year period, your family would get the premiums that you paid in over the life of the policy, and a moderate amount of interest. You may not be fully insured until after 2 years but that certainly is a small price to pay for 100% coverage beginning the third year instead of leaving your family with nothing.
Do the rates increase?
OK, that’s still not bad, but this will continue every 5 years so by the time you are 80 it’s $102.99, and if you live to age 90 your policy will end. Once the policy has ended and now you’re 90 years it will likely be very difficult to purchase another policy. You would likely have more medical conditions than you did when you were age 50. If you could find a company that you’re were healthy enough to pass, and offered new coverage to someone that age the premiums easily be $300 to $400 per month!
Different types of policies should be used for different reasons. We’re all going to die, we just don’t know when. If you told your grandparents 50 years ago that they may live to age 99, they would probably have fallen off their rocker. The truth is that age 99 is very attainable today. We have better medications, more technology, increased awareness about exercise and diet and so much more that the generations past did not have. So many people are convinced that they will die before a certain age, usually the men, and want to predict how long they’ll live so if a policy ends at a certain age that is beyond their own belief they think it’s fine. It’s not fine if your family still needed the money.
Don’t Outlive Your Policy
If you are looking for Burial Insurance in small amounts from $5,000 to $25,000 (sometimes called Final Expense or Funeral Insurance), and don’t have a savings or enough credit to borrow on, you better make sure you don’t out live your policy. Your family will at least have to pay for the cremation or the burial, plot and casket. The only way to ensure the insurance policy will last a lifetime is to purchase a Whole Life or Guaranteed UL policy.
If you purchase the Term product and outlive your policy and there is no other money, most families have to ask family, friends, church members or start a donation collection before they can even have the funeral and begin to grieve. How awful for them to know you’re just being stored in the morgue until they have enough to at least cremate or bury you in a pine box with no service, flowers or proper burial.
Get help finding the Best Final Expense Insurance
Name recognition may not be the best way to choose something so important to protect your family’s future. When, not if something happens to you, is not the time to find out how if you purchased the right type of policy so make sure you have done your homework on comparing different types of policies and different companies. The takeaway from this article is to buy life insurance it as soon as you realize you need it, the younger you are the cheaper it is. Buy the right kind of product the first time, and don’t skip the fine print.
Give a call at 614-402-5160 to help you find the company with the Best Quote!