Principal, LifeNet Insurance Solutions, Redmond, WA
Globe Life is well known to people looking for smaller amounts of coverage, generally up to $50,000, and are well known for charging $1 for the first month's premium. They offer a term insurance product that increases in cost as the insured gets older. The problem with this type of coverage is that it becomes extremely costly, and not affordable for most people that need smaller amounts of coverage.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Globe life's big pitch is to get up to $50,000 of coverage for $1. Sounds great right? That's only for the first month - after that you're paying normal premium amounts. One of the programs they are famous for with this pitch is their "final expense" coverage. In actuality it's age-banded term insurance going to age 90.
Age-banded term insurance can be cheaper up front for the first few years than a traditional level premium life insurance policy, but they become very expensive if you plan on keeping it long term. In short, you can end up spending a ton more in premiums over a 15-20 year period than you would have with a level premium policy.
The major drawback that a lot of people never think about is the "to age 90" part. This means that if you live to age 91, your coverage terminates immediately and you have nothing left. And at age 91, there aren't any carriers that will offer you life insurance (for any that would be, you would be self-insured within 3-4 years). You would have to look at preneed funeral insurance at that point. Traditional final expense policies are guaranteed for LIFE. I imagine you would like your policy to pay out a death benefit even if you live to age 92, 95, 98, etc...
When it comes to final expense life insurance, I already recommend going with a traditional policy that features a level premium. It's almost always the better bet in the long run.
There's many different products out there for final expense coverage so it would be in your best interest to consult with an experienced life insurance broker who can compare multiple options for you and find you the coverage at the lowest rate.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
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Age-banded term insurance can be cheaper up front for the first few years than a traditional level premium life insurance policy, but they become very expensive if you plan on keeping it long term. In short, you can end up spending a ton more in premiums over a 15-20 year period than you would have with a level premium policy.
The major drawback that a lot of people never think about is the "to age 90" part. This means that if you live to age 91, your coverage terminates immediately and you have nothing left. And at age 91, there aren't any carriers that will offer you life insurance (for any that would be, you would be self-insured within 3-4 years). You would have to look at preneed funeral insurance at that point. Traditional final expense policies are guaranteed for LIFE. I imagine you would like your policy to pay out a death benefit even if you live to age 92, 95, 98, etc...
When it comes to final expense life insurance, I already recommend going with a traditional policy that features a level premium. It's almost always the better bet in the long run.
There's many different products out there for final expense coverage so it would be in your best interest to consult with an experienced life insurance broker who can compare multiple options for you and find you the coverage at the lowest rate.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.