Disclaimer: We are not affiliated with Globe Life. This is our own Globe Life burial insurance review. It is merely our professional opinion about Globe Life and their life insurance products.
Today we have yet another review piece on another well known insurance company that competes in the burial insurance business. In this Globe Life burial insurance review, we are going to completely analyze the company and their entire final expense program.
Just below you are going to find a quick Globe Life review and a long one. The quick review is our basic overview of the company along with our professional opinion. After that, you can read on to find the full review. This one is much more detailed and thorough. We took a hard look at how their policy works, the pricing, the underwriting and all available options. In addition, we give you our take on all of it along with some handy recommendations along the way. By the end, you should know whether or not Globe Life seems like a company you want to do business with.
Our Quick Globe Life Burial Insurance Review
To begin with, Globe life has an impeccable financial rating. They operate in pretty much the entire USA. By now, you must have seen their $1 offer for life insurance. Who hasn’t really? With that, they have a unique life insurance program that primary markets to the burial insurance consumer base.
First, their flagship life insurance product they will attempt to sell you isn’t even burial insurance. Yes you read that correctly. The primary life insurance product they push is a term life insurance policy. This policy expires and the prices increases with age. Moreover, the monthly payments get ultra expensive once you pass the age of 75. In most cases, Globe Life policyholders are priced out of their coverage due to the increasing rates.
They do have whole life insurance for children which is actually very well priced. If you are in the market for whole life insurance for kids, they can certainly offer you a good price. Unfortunately, the same cannot be said about whole life for adults. If you are looking for true permanent whole life burial insurance for yourself, Globe just can’t serve you.
Globe Life has been in business since 1951. They have a A+ (Superior) rating from A.M. Best Company which is America’s leading insurance analyst since 1899. Globe Life is licensed in all states within the USA except New York. Their main headquarters are in Oklahoma City, Oklahoma.
You, like most people, are probably numb to companies that make exaggerated claims that seem totally unbelievable. Oddly enough, even in today’s age this type of advertising still exists. Late night TV ads would lead you to believe that you can be rich overnight, you can get in shape with just 5 minutes of daily exercise, and a plant extract from an oasis in a far off dessert will cure all your ailments. This method of promotion is commonplace in today’s age of advertising, and Globe Life falls right in line with this approach.
At least once per week, Globe Life will find its way into your mail box. You don’t even have to open their offer because on the outside of their envelopes they proclaim loud and proud- $1 buys you up to $100,000 in life insurance. In a utopian world, this would actually be true. However, no such world exists on earth, and $100,000 in life insurance costs MUCH more than just one dollar.
In the end, their amazing “offer” is just a marketing ploy to get you to sign up for a plan that is anything but good. Quite frankly, Globe Life is just as guilty as AARP when it comes to their dishonorable marketing practices.
Globe has two different life insurance products. They have a whole life burial insurance for children in the age range of 0-25. Their second and most popular product is a term life insurance plan. Oddly enough, Globe life does not offer whole life burial insurance to people above the age of 25.
Their whole life burial insurance for children is actually very competitively priced. However, for seniors looking for burial insurance, Globe Life falls short. If you are looking for burial insurance, you can easily find better and cheaper coverage elsewhere. Globe Life knows they can’t compete with the open market which is why they resort to their bait and switch tactic of offering $100,000 in coverage for just $1.
For all intents and purposes, Globe Life is extremely similar to AARP. They both offer a term life plan and a whole life burial insurance plan, both have incredibly dishonorable and deceptive marketing practices, and they both offer vastly inferior products compared to their competitors.
The Full Globe Life Review
If you keep in reading past this point, you will be embarking on the most comprehensive Globe Life breakdown ever written. There is no stone we did not turn over, and nothing we left out. From underwriting to prices, we have considering everything and packaged it with our professional advice to go along with it. If you desire to know all the little details about Globe and how their policies work, this full review is what you want.
Globe Life’s Whole Life for Children
Overall plan grade= A
Quick facts on this plan
- It’s a true whole life policy that will never expire
- The benefit amount will not decrease
- The monthly payment does not increase
- Competitively priced
Qualification for this plan is based on answers to two health questions. Remember these health questions relate to the children whom will be insured. If either question is answered yes, the application will be declined.
Here are the two health questions they will ask you about the children to be insured:
- Within the past 3 years, have any of the proposed insured(s) had any chronic illness or condition which requires periodic medical care?
- Have any of the proposed insured(s) ever been medically diagnosed or treated by a physician for acquired immune deficiency syndrome (AIDS), specifically for the purpose of obtaining insurance?
If the application is approved, the coverage will be effective immediately. The first payment of $1 is indeed truly what you will pay for the first month. Beginning in the second month is when the real monthly rate will begin.
This coverage is a true whole life burial insurance policy. It will never expire, the monthly price you pay (after the $1 for the first month) will never increase, and the policy will never decrease.
You can choose from a benefit amount of $5000, $10000, $15000, $20000, or $25000 per child insured. Additionally, you can elect to pay a little extra and have some living benefits coverage. If you choose this option, Globe Life would pay out an extra insurance amount if the insured should lose a limb, become blind, or paralyzed as a result of an accident. These living benefits are only in force up to age 26.
Overall, Globe’s whole life burial insurance for children is quite competitive. If you are looking for whole life burial insurance coverage for your kids or grand kids who are younger than 26, Globe is indeed a good option.
The “Term Life” Plan from Globe Life
Overall plan grade= F
Quick facts on this plan
- It’s a term life policy that lasts until age 90
- The benefit amount will not decrease
- The monthly payment increases as you age
- No waiting period if you qualify
Qualification for this plan is based on your answers to five health questions, and they do not require any kind of physical or medical exam. If you answer yes to any of their questions, you will be declined. They usually respond within a few weeks via mail.
Here are the five health questions they will ask on their application:
- Is the Proposed Insured currently disabled due to illness, confined to a hospital or nursing facility, or does the Proposed Insured require the use of a wheelchair?
- In the past 3 years, has the Proposed Insured been diagnosed or treated by a member of the medical profession for:
- Cancer, coronary artery disease, or any disease or disorder of the heart, brain or liver?
- Chronic kidney disease or kidney failure, muscular disease, mental or nervous disorder, chronic obstructive lung disease, drug or alcohol abuse, or hospitalized for diabetes?
- Acquired Immune Deficiency Syndrome (AIDS), AIDS Related Complex (ARC) or test results indicating exposure to the Acquired Immune Deficiency Syndrome virus, specifically for the purpose of obtaining insurance?
- Does the Proposed Insured have any chronic illness or condition which requires periodic medical care or may require future surgery?
If you are approved, your coverage will be effectively immediately. There is no waiting period. Per their advertisements, your payment for the first month of protection is only $1. However, your real monthly payment will begin starting with the second month of the policy. Later in this article, we will give a detailed explanation about how the pricing works for Globe Life’s term life insurance.
The most pressing issue with this plan is that it’s not even burial insurance; its term life insurance. It’s a temporary life insurance policy that expires once you turn 90. Also, the monthly premiums increase as you age. As you will hear us repeatedly say, burial insurance is ALWAYS a simplified issue whole life policy. You will also hear burial insurance go by the name of final expense insurance or funeral insurance. Regardless of which name you see, all three are always a whole life policy.
Relying on a term policy to cover your burial expenses is extremely chancy. If you outlive your policy, how then will you ensure your funeral expenses are paid for? If that is a risk you are willing to take we sincerely urge you to reconsider, but still wish you the best of luck. Most of our clients would prefer to have the security of a fully guaranteed whole life burial insurance policy, so they KNOW it will be there for them no matter how long they live.
As we have said before, Globe Life and AARP are similar in many ways. Feel free to read this complete AARP burial insurance review to see for yourself. The most notable parallel, is the way they market their insurance products. Globe Life will actively and aggressively put their term life plan in front of customers who are seeking burial insurance. If you were to do an internet search for “burial insurance”, “final expense”, or “funeral insurance”, you will surely see a paid ad at the top of your screen by Globe Life.
They understand that folks who are looking for burial insurance overwhelming want a policy that is guaranteed to last forever. What’s really disturbing is that Globe Life doesn’t even have a product for adults that is guaranteed to last forever. All they have to offer is their term life plan that expires at the age of 90.
Our conversations with customers over the years have consistently revealed that Globe fails to inform people about how their policy really works. It’s rare we encounter someone who was told up front that their Globe policy would expire at age 90, and that their monthly payments would forever increase with age.
It’s clear that Globe’s marketing plan has been designed to astonish you with miraculous offers. Their goal is to subdue your natural tendency to question something that seems too good to be true .
First, they hit you with the obvious $1 buys you $100,000 in insurance. This bait and switch advertisement needs no explanation. In case you haven’t figured it out by now, you pay $1 only for the first month. After the first month, you begin paying the real monthly price.
Every business competes for customers by adjusting their prices, features, benefits, and service. Furthermore, most consumers today realize that shopping around is the best way to get the best value for whatever they are looking for. The second step in Globe Life’s game plan is a scheme taken right out of the AARP play book, and it’s shameful. They make their product appear as if it is something else.
Here is a simple analogy to describe Globe’s marketing plan: While you look around for steak, they make you believe you found steak at chicken prices.
Now it doesn’t take a genius to understand that a permanent life insurance policy will surely cost more per month than a policy that expires at a certain age like 80 or 90. This would be like comparing the prices of steak versus chicken. Obviously chicken is always going to be cheaper.
Globe Life realizes that you, like most customers, will most likely get quotes from different burial insurance companies before you make your purchase. Furthermore, they also know that those quotes will be for truly permanent whole life burial insurance policies. They are well aware that you will not be seeking quotes for term life insurance.
As we have said, if you want a term life policy as a means to pay for your funeral expenses, you can take that risk. However, we courage you to ask yourself how you will pay for your funeral costs once the term life policy has expired. Furthermore, if you do not have your funeral and burial expenses covered, who in your family will pay for it all and how will that impact them? Again, the choice is yours; we just press you to consider these things.
Globe Life’s term life plan will surely cost less per month compared to the monthly cost of permanent whole life burial insurance plans from other companies. Their hope is for you to be so overjoyed that you found a much lower rate, along with the idea of paying $1 for the first month, that you will fail to investigate why the price is lower. In other words, they are selling you chicken packaged as steak, and they are banking on you never opening the box to discover the truth for yourself.
Most people today think there is a slim chance they will live to 90 let alone live longer than that. Statistically speaking this is a logical thought process backed by mountains of data. However in the case of Globe Life, it’s usually not a matter of outliving the policy. Remember the monthly price will continue to increase as you get older. The single biggest obstacle you will have to overcome with Globe is being able to afford the monthly payments as you get older. The payments get ridiculously expensive beyond the age of 75.
Per their website, here is the exact wording that describes their policy:
This is a modified premium term-to-age-90 product. The initial term period can either be 1, 2, 3, 4, or 5 years in duration, depending upon issue age. All renewal term periods begin at a 5-year plus one age (i.e. 21, 26, 31, 36 … 86) and will be 5 years in length except for the final term period. The final 4-year period, which will always begin at age 86, will expire and the policy will terminate at the policy anniversary following the insured’s 90th birthday.
While technically it’s true that you can maintain your coverage until age 90 if you faithfully make the payments, for most people that will never happen. If you cannot make your payment, you lose your coverage altogether. If somehow you are able to continue making the payments, your coverage will totally expire on your 90th birthday. You would not get any premiums back, and you will not get the option to renew the policy or start a new one with Globe. Your only option would be to secure life insurance with a new company. It’s incredibly important to note that obtaining a new life insurance policy at the age of 90 is tremendously difficult if not impossible for nearly all people.
For starters, there are very few companies that will actually issue a new policy to someone who is 90. Aside from that massive hindrance, your health at the age of 90 is mostly likely going to be such that you will not medically qualify should you find a company that will actually offer it to you. Yet another major issue is the monthly cost. The monthly price for life insurance on a 90 year old, will be EXTREMELY expensive. For most people, the cost alone will be prohibitive. To be ultra direct about this, anyone counting on acquiring new life insurance coverage at the age of 90 is engaging in willful delusion thinking they will be successful in doing so.
Again, the monthly payments on their term plan increase as you age. Furthermore, the ballooning payments are more often than not, totally unaffordable for most people who are on a fixed income. Commensurate with their other marketing practices, Globe Life’s explanation of their pricing is equally as reprehensible. Per their website, here is how they describe the prices for their term life plan:
- Q- Is the rate schedule guaranteed?
- A- Yes. The rate schedule is based on your current age and is guaranteed for the life of the policy.
Their wording here is incredibly misleading. They use two words in particular that allow them to technically remain honest while masking the hidden truth. The words “rate schedule” refer to the what the prices will increase to as you get older. It’s an awfully pathetic play on words. It’s not debatable that they are wording their answer in such a way as to leave you with the impression that the monthly premium will never change. This is perfectly in line with the rest of their outright dishonorable advertising procedures, so it’s not surprising.
Take a look for yourself at some sample prices below. It’s very important to understand that if you cannot afford the monthly premiums, you lose your coverage.
In a nutshell, their term life plan is terrible. It’s not burial insurance even though they would have you believe otherwise. It’s more expensive compared to what other insurance companies would offer you. Simply put, there is just no reason for anyone to buy this term life plan.
Globe Life Summary
We believe in giving credit where credit is due. With that statement, if you are looking for burial insurance on your kids or grand kids, Globe Life can offer you a quality competitively priced product. That is the ONLY circumstance which you or anyone else should ever utilize them.
If you are looking for burial insurance and you want it to last forever, Globe Life doesn’t even have a product that can fulfill your needs. Additionally, if for some reason you are looking for term life insurance, you can find much cheaper coverage from many other companies. There are literally dozens of insurance companies that will give you a fixed monthly premium and a lower monthly cost than what Globe would give you.
Sadly, their disgraceful marketing practices will continue to dupe more people into their pseudo burial insurance plan. Maybe one day they will change their ways, but we certainly won’t be holding our breath.
If you were considering buying a policy from Globe, we hoped this article helped you avoid a costly mistake. If you are in need of a burial insurance policy, give us the opportunity to earn your business. Be sure to check out our list of best burial insurance companies to help you see some companies that might serve you well. We are an independent agency that has access to all the top rated burial insurance companies in the nation. We have years of experience in this space, and will surely be able to find you the lowest price possible a burial insurance policy. Fill out the quote form to get started and we will be in touch shortly.