- 3700 S Stonebridge Dr
- McKinney, TX 75070
- (800) 742-6787
- Financial strength: AM Best rating A
Globe Life Non-Medical Policies:
Renewable Term to 90 is offered as $1 buys $50,000 on their website. Be aware that this policy is a minefield.
It is referred as a final expense or funeral insurance alternative, but it is not and you will figure it out by yourself.
It is Non-Medical, but similarly to other non-medical policies it may be graded with higher rates, depending on the prescription medication found on your record.
Who will pay for your funeral expenses when you turn 91 years old?
First of all, to be funeral or burial life insurance it can not terminate before the person dies. This policy expires at 90, so even before you turn 91 you don’t have life insurance anymore. Unfortunately, at 91 years old there is no life insurance company that would approve you anymore.
Would you keep paying for a life insurance policy if the payment went up 10 times?
Secondly, a final expense life insurance has to stay affordable so the insured can keep paying for it, otherwise it will lapse and end prematurely. By stay affordable we mean the life insurance premium can not go up. It is kind of obvious, so I assume that most of the senior applicants are not aware of it.
This renewable policy’s premium stays fixed in each 5 year band. The first raise may be in less than 1 year, and if you get this policy at 50 years old by 86 (the last 5 year band) your payment would have gone up more than 10 times. In other words, if you start a policy for $1 on the first month and it goes to $20 on the second month, when you turn 86 your payment will be more than $200. Most people stop paying for it much before 86 years old.
How does Globe Life Renewable Term compare to a regular 30 years Term Life Insurance?
As you see, renewable term does not properly replace a Final Expense Life Insurance policy. Should you add renewable term to pay for a large debt like home mortgage or auto loan? Again, there is no comparison. It is hard to believe that they keep raising the rates every 5 years, but it is true. Check a recent mail piece that they send to you. (see a print-out bellow)
|Female with Good Health|
|Start at 55|
Company X: A Rated
The picture is not very clear, but it says:
- Premiums increase as you enter each new five-year band.
- This is a term to age 90 product.
- The initial term period can be 1, 2, 3, 4 or 5 years in duration depending upon issue age.
- The policy will terminate at the policy anniversary following the insured’s 90th birthday. This means it will terminate before you turn 91 years of age.