Globe Life Insurance Review: Final Expense Coverage for the Whole Family

Globe Life Insurance Review: Final Expense Coverage for the Whole Family

A good option for accidental death insurance, but their term and whole life insurance is more expensive for healthy shoppers.

Good for

  • Coverage of funeral and other end-of-life costs
  • Policies for children and adults of all ages
  • Wide range of accidental death benefits

Bad for

  • Income replacement or large death benefits
  • Term coverage over 5 years
  • Healthy consumers

Editor's Rating

2.5/5.0

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Currently Insured?

If you’re looking for final expense insurance with limited underwriting, perhaps because you have a health issue, Globe Life offers a variety of products suited to this particular need. However, if you’re healthy or want a larger death benefit for income replacement once you pass, we recommend that you compare quotes from other insurers, as you’ll get better prices and a wider set of options elsewhere.

Globe Life only offers coverage with no medical exam so, if you’re healthy, you’ll pay higher rates for the same death benefit than you would at an insurer with full underwriting. In addition, their term life policies have a maximum term length of 5 years, so if you know that you want coverage for a longer period of time, you’ll pay higher premiums on average since the cost increases each time you renew coverage.

Globe Life Insurance Products

The Globe Life and Accident Insurance Company offers no medical exam term life insurance, whole life insurance (for adults and children), as well as accidental death coverage. While these products are all structured differently, the term and whole life insurance policies would fall within the category of final expense insurance, as they have limited payouts that are better suited to covering end-of-life costs than income replacement.

Globe Whole Life Insurance

Purchasing Globe Life’s whole life insurance doesn’t require a medical exam, but they will ask you a set of questions about your health during the application process. Since the underwriting is limited, the death benefits are as well, though this is fine if you’re interested in final expense coverage as the average funeral costs around $10,000. Globe Life offers payouts of:

  • $5,000
  • $10,000
  • $20,000
  • $30,000
  • $50,000

Globe Life’s whole life insurance has a cash value which grows over time, and is essentially the amount of money you would receive if you decided to surrender the policy. The cash value grows at a guaranteed rate annually and can be borrowed against to pay for certain things (such as an emergency hospital bill), but is not added to the death benefit.

Cost

Similar to most whole life insurance policies, premiums are level for the duration of the policy, with the only exception being the first month of coverage (you only have to pay $1). However, since there’s no medical exam, premiums will be significantly higher than if you purchased a policy from an insurer with full underwriting. The increased cost of no medical exam whole life insurance means that it’s typically only a good option if you know that you would have difficulty getting approved for coverage if you had to take an exam.

Restrictions

In New York, Globe Life’s whole life insurance payouts are even more limited, only ranging from $1,000 to $25,000, depending on your age and gender.

Globe Term Life Insurance

Globe’s term life insurance similarly has no medical exam and offers a restricted set of death benefits; you can only purchase $5,000, $10,000, $20,000, $30,000, $50,000 or $100,000 in coverage.

Cost

While Globe Life advertises level premiums for the entire policy term (the length of coverage), the maximum term available is only 5 years and premiums increase each time you decide to renew coverage. In addition, the way Globe Life determines your initial term length is somewhat unique. Essentially, Globe Life’s premiums are set according to 5-year increments of age, so your initial term ends whenever you move into a new age bracket, at which point you renew for a 5-year term with higher premiums.

To illustrate, say you decided to purchase $50,000 of coverage when you turned 52 and maintained coverage until you turned 70. Your term lengths and rates would look like:

AgeTerm LengthSample Premium
52-553 years$42 per month (after the first month, which is $1)
56-605 years$55 per month
61-655 years$80 per month
66-705 years$115 per month

Restrictions

Globe Life’s term life insurance policies are only available up to a certain age, typically 80 or 90. This isn’t a feature the company highlights, so you need to ask if considering coverage from them. A number of consumer complaints are from people that paid hundreds to thousands of dollars in premiums to Globe Life, only to live past 80 and discover that they no longer had coverage.

In addition, Globe Life only offers up to $50,000 of coverage in New York.

Globe Life Accidental Benefits Insurance

Globe Life offers accidental death insurance with an initial death benefit of up to $250,000, and this figure increases by 5% each year for the first 5 years of the policy (or until you reach age 70, whichever happens sooner). Their accidental death coverage has guaranteed acceptance if you’re between 18 and 69, meaning there are no health questions or medical exam during the application process.

As you might guess, Globe Life’s accidental death coverage only pays a claim if you die “accidentally”, according to the company’s definition. So, while they should pay your beneficiary if you die to due a sudden car crash or choking incident, your family wouldn’t receive a payout if you passed due to a disease, such as cancer.

Depending upon how you die or what hardships you face, Globe Life’s accidental death coverage has additional payout opportunities:

IncidentPayout
Accidental death of a parentIf you have coverage for your entire family, your beneficiary will receive an additional 10% of your death benefit for each of your children between the ages of 15 and 22 (up to a total of $10,000)
Accidental death while in a vehicleIf you passed in a vehicular accident while wearing a seatbelt, you beneficiary receives an additional 10% on top of your death benefit
Accidental death on a commercial airlineIf you passed while a passenger on a commercial airline, your beneficiary would receive a bonus of 100% of your death benefit
ParalysisIf you suffer from partial or full paralysis due to an accident during the term of coverage, the insurer assigns a value to your loss of mobility and pays you that amount
DismembermentIf you lose a limb due to an accident during the term of coverage, the insurer assigns a value to your loss of mobility and pays you that amount

Cost

Premiums are level for your lifetime and seem inexpensive as compared to other life insurance policies, but this is due to the restricted set of circumstances under which Globe Life would have to pay out a claim. According to the CDC, accidents only accounted for 5.4% of deaths in 2015, with the vast majority (over 67%) occurring due to diseases or medical conditions.

Restrictions

Accidental death coverage is not available in every state. If you live in New York, Globe Life offers accidental death coverage, but it’s an entirely different policy in terms of its structure. While there’s no premium for the first year, and coverage costs just $10 per year after that, the death benefit is extremely limited. Globe Life offers $3,000 each for you and your spouse, and $1,000 for each child. So, if you were on your way home from work and killed by a drunk driver, your beneficiary would just receive $3,000.

Globe Life Consumer Reviews & Complaints

While Globe Life is a legitimate company with an A+ (Superior) rating from A.M. Best, they have a disproportionate number of consumer complaints. Their 2016 NAIC Complaint Ratio, a measure of the number of complaints received as compared to the amount of business underwritten, was 5.10 (with the national median being 1.00). In other words, Globe Life received 2.83% of all complaints related to individual life insurance, even though they only make up 0.29% of the market.

Many of Globe Life’s customer complaints referenced challenges getting ahold of or getting satisfactory answer from their customer service team. Their sales team, on the other hand, is incredibly persistent with regards to calls and sending materials.

If you’re older, make sure your beneficiary has all the information necessary to file a claim, as well as details of your premium payments. Some Globe Life customers report a parent that failed to make payments due to an illness or dementia, and had trouble reinstating coverage after the policy lapsed. You don’t want to spend years paying for benefits that your family doesn’t receive once you pass.

Globe Life Insurance Payments

Globe Life premium payments can be made on a monthly, quarterly, or annual basis, depending on your preference. While they offer the option of direct billing, payments can also be made via credit card (they accept Visa and MasterCard) or electronic fund transfer from your bank.

It’s actually quite simple to manage your payment information, set up a new method of payment, and update your details through their GlobeOnTheWeb eService Center.

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