Heard about the Globe Life price increase, and do you want to know more information about it? This article will help you understand Globe Life and its term life insurance product.
Our Globe Life price increase review breaks down the marketing tactics used by the company to lure people into buying their products. They are using these tactics, hoping the average visitor will not understand what they are reading. We urge you to be well educated before purchasing a Globe Life term insurance policy.
This article will dissect the fine print to help you understand Globe Life’s price increase before you decide to buy a policy.
FOR EASIER NAVIGATION:
- Globe Life Term Life Insurance
- Globe Life Price Increase
- Let’s Dissect Globe Life Fine Print
- This Is How The Policy Works
- Underwriting Globe Term Life Insurance
- Disadvantages Of Globe Life Term Insurance
- About Globe Life And Accident Insurance Company
- How Can Funeral Funds Help Me?
GLOBE LIFE TERM LIFE INSURANCE
Globe Life is a no exam life insurance; there are only a few health questions to answer.
With Globe Life term life for adults, policyholders are provided pure death benefit protection only.
Globe Life term life insurance provides protection without a cash value component. The death benefit is fixed. It is guaranteed to never decrease during the policy term as long as the premiums are paid on time. The full death benefit will be available to your beneficiary once you pass away.
Term life policy with Globe Life has immediate coverage from the day you paid the first premium. There is no waiting period with Globe life term insurance.
Globe term life insurance policy is only available up to age 90 or when your term ends after five years.
Insurance coverage is available at:
You can buy their term life policy at $1 for the first month. After the first month, your premium will be computed based on age at the time of the policy issue.
Their term life offers a 30-day money-back guarantee. If you are not satisfied with your plan for any reason, you can return it within the first 30-days, and the company will refund your premium (don’t think this is too special…all companies offer this 30-day refund policy as required by law).
Globe Life received higher than average customer complaints. Most consumer complaints are from those who paid thousands of dollars in premiums to outlive their policy when they turned 91 and realized they are not covered anymore. The term life cancels at age 90, and there is no return of premium or cash value.
Additionally, many people have to cancel their coverage in the future as their premium pricing increases every 5 years and their plan becomes too expensive. It leaves people vulnerable financially as they grow older when they need this protection the most.
GLOBE LIFE PRICE INCREASE
Globe Life offers term life insurance for a “teaser price” of $1 for the first month of coverage. You know what they say….if it sounds too good to be true, it probably is! After the first month, the premium is based on the age at issue. Term life insurance has a maximum term length of 5 years.
Globe Life pricing increases every five years because your term ends every time you move into a new age bracket. The level premium is only good for five years. If you want coverage for a longer period, you’ll pay higher rates since the premium increases every time you decide to renew coverage.
Globe Life uses different marketing tactics to lure you into buying their policies. You should review their plans before purchasing life insurance from them…like review them VERY CAREFULLY!
LET’S DISSECT GLOBE LIFE FINE PRINT
Policy description: 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 the issue age. All renewal term periods begin at a 5-year plus one age (i.e., 21, 26, 31, 36…86) and will be five years in length except for the final term period. The last 4-year period, which begins at age 86, will expire, and the policy will terminate at the policy anniversary following the insured’s 90th birthday.
- This is a modified premium term-to-age-90 product. Globe Life term insurance product terminates at age 90, after which you lose your coverage and won’t get your money back.
- The initial term period can either be 1,2,3,4 or 5 years in duration. The first term depends on your issue age. If you’re 55 years old when you purchased your plan, you will pay depending on your age bracket which is 51-55. When you turn 56, you moved into another age bracket, and Globe Life price increase accordingly. In this case, the initial term period is only one year because you moved into another age bracket when you turn 56.
- All renewal term periods begin at a 5-year plus one age (i.e., 21, 26, 31, 36…86) Just as the case above when you turn 56 you will need to renew your term and pay the price increase for that particular age bracket. Your next term renewal will be when you turn 61 years old. You will notice that you need to pay a different premium as you get older. The older you are the more expensive the premiums become.
- The policy will terminate at the policy anniversary following the insured’s 90th birthday. Globe term life insurance policy is only available up to age 90. Those who outlive their policy will no longer be covered.
THIS IS HOW THE POLICY WORKS
Your premium after the introductory price of $1 will be based on your age and age bracket. You will be charged whatever group rate is for your age, but you will not pay this forever. Globe Life insurance rate chart indicates that as you move up the age bracket, your premium increases every 5 years.
Your Globe Life term life insurance rates increase every time you have a birthday that ends with a 1 or 6 (all renewal term periods begin at a 5-year plus one age). Premium increases every five years after that.
Are you confused yet?
For example, if you are a female and buy a $20,000 30-year policy at 54, you will pay $23.49 after the first month.
- When you turn 56, you will have to pay $29.49
- When you turn 61, you will have to pay $38.49
- When you turn 66, you will have to pay $51.99
- When you turn 71, you will have to pay $70.99
- When you turn 76, you will have to pay $102.99
- Before you turn 84, you will have to pay $148.99 then the policy will terminate at 90.
It means your premiums keep increasing during the policy term, while your death benefit remains the same. You can’t find anywhere on their website that the premium is only good for five years.
Globe Life’s price increases every five years. If you are in good health, it’s not advisable to purchase this plan unless you only need five years of insurance coverage. It will be more affordable to buy 10-30 year level term policies that stay fixed for the entire term.
UNDERWRITING GLOBE TERM LIFE INSURANCE
Globe Life offers simplified issue life insurance. There are no medical exams required to qualify for Globe Life insurance, but there are five Globe Life insurance health questions you will need to answer when you apply for coverage:
- Are you currently disabled because of an illness, hospitalized or in a nursing facility, or do you need a wheelchair? (Yes – No)
- Have you been diagnosed or treated by a doctor in the past three years for the following:
- Any disease of the brain, heart, or liver disorder, coronary artery disease, or cancer? (Yes – No)
- Are you hospitalized for diabetes, chronic kidney disease or kidney failure, chronic obstructive lung disease, muscular disease, mental or nervous disorder, drug or alcohol abuse? (Yes – No)
- Have you ever been diagnosed as having, or told by a medical doctor that you have AIDS, HIV, or ARC disorders? (Yes – No)
- Do you require periodic medical care because of a chronic illness? Do you need future surgery? (Yes – No)
- In the past 5 years, is your driver’s license suspended or revoked? Have you been convicted of any felony; or are you currently incarcerated? (Yes – No)
- Do you intend to replace or change any existing life insurance policies or annuities in connection with this application? (Yes – No) If yes, list the company name.
If you answer “YES” to any of the health questions, your application will be declined.
DISADVANTAGES OF GLOBE LIFE TERM INSURANCE
PRICE INCREASES EVERY 5 YEARS
Globe Life term insurance has a level premium but with a shorter duration which is five years. The premium stays the same for five years, and the Globe Life price increase once you renew the term.
With other A-rated life insurance companies, you will pay the same price for up to 30 years. Your premium is locked in at the age you take the policy.
LOW DEATH BENEFIT
One of the most notable disadvantages of Globe Life term insurance is the low death benefit. The maximum you can get is only $100,000; they do not have many options on the coverage amount. Many life insurance providers offer a $100,000 face amount as the starting point, not the maximum.
In addition, since term life is a simplified issue with no medical exam and requires you to answer a few health questions, you are generally considered a higher risk applicant, even when you are in perfect health.
You will pay the same premium as someone in less than perfect health.
Your premium is significantly higher than if you take a fully underwritten policy. The more expensive rates of no medical exam policy are only a good option if you cannot pass the medical underwriting because of a health issue like diabetes or high blood pressure.
Globe term life tag line is “$1 buys $100,000 life insurance for adults”. It is a teaser rate designed to get you on the phone, so they can try to sell you an increasing price policy.
The only reason they can offer this price is that they are selling a modified premium term life to age 90 plan. Read through the fine print to learn that the initial $1 is only good for the first month. In the second month, you will be charged based on your age.
ABOUT GLOBE LIFE AND ACCIDENT INSURANCE COMPANY
Globe Life and Accident Insurance is a major U.S life insurance company licensed in every state except New York. In New York, they issue life insurance under the Globe Life Insurance Company of New York.
In 1980 Liberty National acquired Globe Life Insurance Company and formed a new company, Torchmark Corporation.
Globe Life Insurance is now owned and operated by its parent company Torchmark Corporation.
Other notable insurance companies under Torchmark Corporation include:
- American Income Life
- Family Heritage Life
- First United American
- Liberty National
- National Income Life
- United American
Globe Life Insurance sold direct and marketing to the public through TV ads, direct mail, online ads, and call centers.
GLOBE LIFE INSURANCE FINANCIAL RATINGS
The company maintains excellent ratings from more than one rating agency.
- A.M Best – A (Excellent)
- Standard & Poor AA- (Stable and Secure)
- Better Business Bureau – A+ (highest) accredited since January 1, 1952
The financial rating indicates that Globe Life is financially stable and can pay insurance claims on time. It also shows if the company will be financially secure and remain in operation when needed.
HOW CAN FUNERAL FUNDS HELP ME?
Finding a policy without price increases needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.
If you have a problem with your policy increasing in price, let us help you; we will work with you side by side to find a plan that fits your needs.
We will shop your case at different insurance carriers and get you the best price.
We work with many A+ rated insurance carriers that specialize in covering healthy or high-risk clients like you. We will search for all those companies and match you with the best burial insurance company that gives the best rate.
We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for insurance, burial insurance, or final expense life insurance, we can help. Fill out our quote form on this page or call us at (888) 862-9456, and we can give you an accurate quote.