Globe Life and Accident Insurance. They Promise You the World, BUT… Let’s review Globe Life Insurance in detail.
Marketing is an integral part of selling any product. The marketing campaigns for some companies are big-budget items, with millions of dollars being spent on print, radio, television, and social media. We recognize the importance of getting the message out to consumers. We furthermore understand that there are times when the marketing is a little bit slick.
We, at Insurance for Final Expense believe that anyone looking for insurance needs to be careful. Some companies promise you the world but don’t fully deliver. It is crucial, therefore, to do a little investigation behind the advertising copy. There are laws about truth in advertising, but sometimes the words paint a different picture than reality. Globe Life and Accident Insurance company sells life insurance to the public. The product appears attractive at first glance, but scrutiny uncovers some issues.
Some Information about Globe Life and Accident Insurance
Globe Life and Accident Insurance Company is headquartered in McKinney, Texas. They have an A. M. Best rating of A+ and their Moody’s rating is A1. Other financial ratings put Global in the higher levels of the insurance industry. It is a sound commercial company
Global offers many life insurance products to the public, and there are three primary areas:
- Term Life Insurance for Adults
- Whole Life Insurance for Adults
- Whole Life Insurance for Children
Globe Life Insurance Sells Most of its Products Directly to the Consumer, Using Direct Mail or the Internet.
That should be a cause to give you pause.
Direct sales to consumers mean there is no agent involved. There is no personal contact with an insurance professional, and the assumption is the buyer knows everything about insurance policies or has very general questions that an FAQ web-page will answer. The trouble with this approach is people have different needs. A specific question about individual coverage is better explained in a face-to-face meeting with an insurance agent. The agent can investigate the unique needs of that person and arrive at an answer. Direct sales cannot respond adequately to a question about individual circumstances.
That’s the First Red Flag to Wave About the Globe Life and Accident Insurance Product. There are Others.
Some Notable Concerns…
The best way a company can sell life insurance products is to offer a lot for a little. Any insurance company that provides sizable benefits for a low premium is in an excellent competitive position. One of Globe’s marketing techniques tells a potential buyer that it is possible to buy as much as $100,000 of term life insurance coverage for only one dollar. Not true.
You would have to be crazy not to jump at this possibility. Unless, of course, you read the fine print. Globe Life and Accident Insurance offers insurance for one dollar for the first month only. After those 30 days have expired, the real rates kick in, and they are considerably higher. It does not end there.
Do you see that asterisk next to the $1*? When you scroll down to the bottom of the page, the fine print reads as follows, “*$1 pays for the first month of children’s coverage. Then the rate is based on your child’s present age and is guaranteed to stay the same for the rest of their life. Click here for full schedule. Policy Form # GWL2001 or GWLA001
*$1 pays for the first month’s adult coverage. Then the rate schedule is based on your current age and is guaranteed for the life of the policy. Click here for full schedule. Policy Form # SRTCV/SRTCV R13. Offer may vary.”
This is a term policy, and it means that after a certain number of years, or if a person reaches a set age (for Globe it is 90 years), the coverage expires. It doesn’t matter how many years you have paid a premium to the company, or that you may have spent thousands of dollars, you kiss your coverage goodbye on your 90th birthday.
A whole life insurance policy maintains the initial premium for the life of the policy. That is not the case with the Globe term insurance policy. What happens is that the policy premium goes up every five years; the final increase is for four years. That starts when you reach 86 and lasts until the policy expires on your 90th birthday. Those increases can be a drain on any fixed budget.
You do not need to have a physical examination to get a Globe term life insurance policy. Instead, you need to answer some questions. An affirmative answer to these questions can result in you being excluded from getting a policy.
Globe Life and Accident Insurance Company does not like to see hospital stays, and someone who is confined to a nursing facility or hospital can be excluded. The exclusion for health conditions is a common feature of term life insurance policies, and Globe is no different than any other insurance company in that regard. However, a senior citizen needs to take a careful look at those health conditions.
They include hospitalization for diabetes, cancer, and any disease or disorder of the heart, brain, or liver. These are all health problems that older people encounter. Diabetes is becoming increasingly more common among the elderly, so if you have diabetes, it is possible Globe will not bother too much with your application.
READ THE FINE PRINT at the bottom: … In Our opinion, this is the worst kind of policy you can ever purchase, unless you plan on dying within the next 30 days …
Globe Wants to Look at Your Prescription History and Your Medications.
That information can corroborate whether you have a condition that is ordinarily excluded from coverage. The Medical Information Bureau, or MIB, includes information an applicant submitted to other insurance companies in the past. The MIB file, like the prescription history, will corroborate if you have a condition that Globe will not cover. The bottom line is that if you have any condition that Globe asks you a question about, your chances of getting a policy are virtually nil.
Globe’ s practice of direct sales permits the company to sell the product quickly. A consumer who qualifies is thus able to get coverage without a long waiting period. Unfortunately, these direct sales do not guarantee quality customer service.
Globe has a problem when it comes to providing customer service to the insured. The National Association Insurance Commissioners keeps a record of the complaints filed on the insurance company. The complaint ratio for Globe is one of the worst in the industry, according to the Association.
The complaints can come from any number of areas. Marketing may upset somebody and, possibly, the track record Globe has in paying claims might be less than satisfactory. If you’re reviewing Globe life and accident insurance company, a good idea would be to contact the Association and find out more information about consumer complaints.
The Globe term policy ain’t cheap, to put it mildly. Other insurance companies can provide the type of coverage you’re looking at a much lower premium cost.
The Children’s Whole Life Product with Globe Insurance
Buying a whole life insurance policy for children or grandchildren is a customary way of starting financial planning for youngsters. The amount that you can get from Globe ranges from $5,000-$30,000, and the age range for the new applicant can be from the date of birth until the individual reaches 24 years old. The policy does not expire, the monthly premium rate is fixed, there is no fixed expiration date on the policy, and the policy will build cash value. The cash value may not be enough to pay for college tuition, but it can provide a nice graduation present for a young person who is heading out into the world.
Globe has a good whole life insurance policy for children. It’s a whole life policy that does require health questions to be answered, but the whole life insurance policy does not have the strings that make a term life insurance policy a hassle. We do want to point out that it’s not the best children’s insurance product on the market.
What About Final Expense (Burial) Insurance?
Final expense insurance for Globe is either the term life insurance policy or the whole life insurance policy.
Buying the term life insurance would be a bad idea. The premiums increase five-year intervals, and the policy officially expires on your 90th birthday. Okay, no one lives forever but more people are living longer. It is possible to be alive at 95, depending on your health. The term life insurance policy you depend on will have expired by the, and you have no choice with Globe Life and Accident Insurance Company other than purchasing a whole life policy. The premium, while it never changes, is going to be substantial. An affordable whole life policy might not be enough to meet your needs.
It is better to buy a whole life insurance policy when you are younger, knowing the premium is fixed for the life of the policy. Globe does not make that purchase easy.
- You still must answer those health questions. Having a health condition or living in a care facility will make applying with Global a waste of time.
- The premiums are high. You will do better financially with another insurance company.
Globe has a high consumer complaint ratio. That ought to be a concern for any prospective buyer. You should expect more than coverage alone for the premium dollars you pay. Excellent service needs to be part of the package. There are too many consumer complaints about Globe and these are probably more than just high premiums. There are other companies with a better track record of servicing the insured. Most importantly, those other companies may be more sensitive about paying claims on time.
While we do not doubt that Globe Life and Accident Insurance Company is a stable financial institution, we think that the problems mentioned above are reasons to look elsewhere for coverage.
There are many choices in the insurance industry, no doubt about that. Hundreds of companies want your business and there is no reason to look at only one. We have some suggestions for you as you start shopping.
- Be Careful about Term Insurance
We have already expressed what we think of this insurance product. If you still want to look at term insurance, then note the health questions, the expiration age of the policy, and if the rates go up over intervals of time.
- Good Health Is Your Advantage
You can review the health questionnaires of any insurance company. If you have none of the medical conditions or not undergoing any of the prohibited treatments, you probably will qualify for coverage of any insurance company. That is your best advantage.
Sick people are a greater risk and are either rejected or pay higher premiums. A healthy person can qualify for both coverage and lower premiums. You can check out the rates and compare the premiums. You can expect to pay lower rates as a reward for being healthy and staying that way.
- Use an Independent Insurance Agent
A captive agent is one who works only for one company and only sells its products. An independent agent represents several companies, permitting you to do some comparison shopping.
You can develop a working relationship with an insurance agent. Unlike Globe, a face-to-face meeting is possible and is encouraged. Agents will answer all your questions and an independent agent will look at various insurance companies define the best deal for you. Frankly, working with an independent agent allows for a better shopping experience.
Our Assistance at Insurance for Final Expense
We can help you look for the right insurance. We have the software and database access to enable us to investigate various insurance products. We represent several insurance companies and it is easy to do comparison-shopping with us. We make things as convenient as possible.
We Believe a Business Relationship is a Necessary Element of Insurance Shopping
A face-to-face meeting is easy to arrange with us, and we will meet with you at a mutually convenient time. We feel there is no such’s thing as a dumb question. At Insurance for Final Expense, we will answer all your inquiries and provide the best advice we have. We are confident you that you will appreciate our insurance expertise and the professionalism we bring to the table.
It is a smart move to do a little shopping before you settle on an insurance product. Always remember that the policy must meet your needs first. Anything less than that is a waste of premium dollars. Researching many companies takes a lot of time and effort. We can save you a considerable amount of time as well as money with our services. What might be a tedious exercise can become an enjoyable walk through the insurance world and end up with you getting the policy coverage that helps your beneficiaries.
We will be happy to provide references if you like. If you wish to do other research on us, please feel free to do so. We do not mind and are confident we will be viewed favorably under any scrutiny. We have an established reputation for client service that very few agencies can emulate. We will spend the time you require to get to know us and understand our services.
All we ask is that you contact us at your convenience and arrange a meeting with us. We will be ready to respond to your inquiries, and we appreciate any opportunity to explain what we can offer to anyone looking to buy a good insurance policy.
Gary P. Cubeta
(Serving Americans In All 50 States)