Did you know $1 could buy you $50,000 of life insurance coverage? I didn’t either, but apparently Globe Life Insurance offers just such a plan. As burial insurance specialists, we often are asked about the $1 coverage option. So I decided to do a little research on my own.
It turns out that Globe Life Insurance is offering $50,000 of life insurance coverage with a $1 premium for only the first month of coverage. If you fill out the application and send in $1, they will offer $50,000 in life insurance coverage so long as you are approved for the policy. With the approval, they will send a response offer with the long-term cost of your monthly premium.
If you’re like me, this feels like a gimmick or a sales pitch to entice people rather than clearly stating up front the terms of the policy. If you are enticed by this offer, you should look at three important criteria to confirm that the policy meets your needs.
Before purchasing this policy, talk to one of Globe Life Insurance’s licensed representatives and ask three simple questions. First, ask if the policy has a waiting period, meaning that the policy would not fully kick in until the waiting period has been completed. The typical waiting period is two years. If the insured passes away during the waiting period, the policy would simply pay back the monthly premiums paid plus interest. The full death benefit would not be paid unless the insured survives beyond the waiting period.
Secondly, you should ask the licensed representative if the Life Insurance policy has a fixed monthly premium. Some of their policies are advertised as a fixed premium. However, the premium is only fixed for a five-year period. After that five years is over, the premium will increase as you age, oftentimes making it unaffordable in later years.
The third question to ask the representative is: Will the policy ever cut off or terminate? In other words, does the policy cover you for the rest of your life, or will it end at age 80? If you’re buying a policy for the purpose of covering your burial or final expenses, you want to ensure that the policy is still in place regardless of your age when you pass away.
Once you have the answers to these three questions, we highly recommend that you contact a few burial life insurance agencies to compare the price of Globe Life policies with policies available from other A-rated companies. More often than not, people can find better coverage at a cheaper price if they’re willing to take the time to compare policies.
If you have questions about your existing policy or would like to find out more about available senior life insurance options, you can call us directly at 866-699-1884. We are licensed in most states and would be glad to assist in any way that we can.