You are here maybe because you heard about the Globe Life price increase and you want to know more information about it? This article will help you understand Globe Life and their products better.
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 of time, you’ll pay higher rates since premium increases every time you decide to renew coverage.
Let’s look at the fine print from Globe Life about this insurance:
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 five years in length except for the final term period. The last 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.
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!
FOR EASIER NAVIGATION:
ABOUT GLOBE LIFE AND ACCIDENT INSURANCE COMPANY
Globe Life and Accident Insurance Company was founded by Ralph Reece and John Singletary back in 1951 in Oklahoma City, Oklahoma.
Globe Life Insurance Company has been selling direct and marketing to people through direct mail, TV ads and online ads. They offer no-medical exam policies and ask only a few health questions.
GLOBE LIFE INSURANCE PRODUCTS
Globe Life offers easy to obtain life insurance policies with the tagline “$1 Buys $100,000 Globe Life Insurance”. Their advertisement provides $100,000 coverage for only $1 for the first month, targeting people who want instant policy at a low price.
The products offered by Globe Life include:
- Term Life Insurance for adults
- Children’s Life Insurance
These products can be purchased in various ways – including online, over the phone, and through the mail. These life insurance policies require no medical exam just a few health questions to qualify.
TERM LIFE INSURANCE FOR ADULTS
With Globe Life term life for adults, policyholders are provided pure death benefit protection.
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 policy issue.
The application process is quick and easy. Globe Life is a no exam life insurance; there are only a few health questions to answer.
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 term life insurance provides protection without a cash value component. The death benefit is fixed. It is guaranteed to never decrease during the term of the policy 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. Your beneficiary will receive the full death benefit payout even if you die the next day after the policy is in force.
Globe term life insurance policy is only available up to age 90 or when your term ends after five years. Most consumer complaints are from those who paid thousands of dollars in premiums just to outlive their policy when they turned 91 and realized that 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 increase every 5 years and their plan becomes too expensive. This leaves people vulnerable financially as they grow older as this is the time they need this protection the most.
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?
- 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?
- 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?
- Have you ever been diagnosed as having, or told by a medical doctor that you have AIDS, HIV, or ARC disorders?
- Do you require periodic medical care because of a chronic illness? Do you need future surgery?
- 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?
- Do you intend to replace or change any existing life insurance policies or annuities in connection with this application? If yes, list the company name.
DISADVANTAGES OF GLOBE LIFE TERM INSURANCE
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 $100,000 face amount as the starting point, not the maximum.
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.
In addition, since term life is a simplified issue with no medical exam and require you to answer 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”. This 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.
GLOBE LIFE PRICE INCREASE
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.
It means your premiums keep increasing during the term of the policy, while your death benefit remains the same. You can’t find anywhere on their website that the premium is only good for five years.
This is how the policy works:
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 you 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 84.
Globe Life price increase 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.
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 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 final 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.
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.
When shopping for life insurance, get the help of independent life insurance agency like Funeral Funds to compare prices and plans from multiple companies to get the best product at the best price.
HOW CAN FUNERAL FUNDS HELP ME?
Trying to find 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 work with you every step of the way to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time anymore searching for multiple insurance companies because we will do the dirty work for you.
We will shop your case to different insurance carriers and get you the best price.
We work with many A+ rated insurance carriers that specialized in covering healthy or high-risk clients like you. We will search for all those companies to get the best burial insurance with the best rate. We will match you up 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, or 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.