Is Globe Life Insurance a pyramid scheme

Is Globe Life Insurance a Pyramid Scheme? 2024 Update

Globe Life is a reputed insurance company serving its clients since 1951. Clients can get the insurance online and offline, i.e., over the phone. 

The company has huge financial assets of $25.5 billion. It provides nationwide coverage to its clients with different types of life insurance that benefit the beneficiaries on the death of policyholders and cover their burial and funeral expenses. The company also runs healthcare programs to accommodate consumers in case of an accident or a severe illness.

However, there have been several changes in the policy of this company, due to which some of its subscribers do not rate it positively. These consumers write negative reviews about this insurance policy on what this company is providing. 

As a result, the company has a complaint index of 2.12 in the National Association of Insurance Commission (NAIC). This complaint index is higher than the average rating of 1.0.

Consequently, people consider it to be a pyramid scheme or a sort of multi-level marketing. Is it so? We’ll discuss that. But first, we need to understand some negative customer reviews for informed decision-making. So, let’s dive in.

Consumer Complaints

People often complain about the low commissions that the company pays on insurance policies. Customers also complain about the company’s refusal to cancel the coverage plan or reimburse claims on burial and funeral expenses. Some customers have complained about getting the claims for waiting after six months.

Furthermore, consumers find it difficult to understand Globe Life policies. For example, they misunderstand the term life insurance policy to be the whole life policy.

Customers find the Globe Life website to be misleading as they do not receive the benefits that are claimed on the homepage.

All these complaints make people wonder: Is the company conducting fraudulent activities? 

Let’s find the answer to it by understanding the Globe Life insurance plan. First, we’ll start by exploring several types of Globe Life insurance.

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Types of Globe Life Insurance Plans

Is Globe Life Insurance a pyramid scheme

Term Life Insurance

The term-life plan is a unique insurance type of Globe Life where policyholders can get insurance for a specified timeframe. There are many consumers of this insurance policy from Globe Life.

You undergo a seamless process to subscribe to the term-life membership. Most applicants do not need a medical examination. You only have to answer some questions that the insurer asks. Furthermore, beneficiaries can get a payout if the policyholder dies before the policy term expires. However, the death benefits are less than $100,000, which is comparatively lesser than other insurance companies.

However, there are premiums involved in this category. Your age matters a lot when taking this special kind of insurance. The fee for it depends on the age factor. The company increases its costs every five years. It can affect you negatively and put you in a state of monetary stress. You need to be extremely crucial to selecting the plan. If you are not serious about choosing the plan, then it will become difficult for you to benefit from this insurance.

Whole Life Insurance

Whole life insurance is a life insurance type that is valid throughout the life of a policyholder. It can be a great plan for consumers as beneficiaries get a payout if policyholders pay premiums on time. It is cheaper than the term-life insurance type as the costs do not increase. If the policyholders die during the policy term, users can get benefits of up to $50,000.

Globe Life does not require you to clear medical examinations but your bodily wellness must be on the paper. You have to answer some questions related to your health. 

There is a fact that needs to be understood: you must be fit and medically healthy to get this type of insurance.

Final Expense Insurance

The final expense insurance covers all the expenses of a person after death including the deceased’s burial and funeral. The burial insurance can also cover medical bills depending on the policy terms. Some of the clients say that the insurance for the burial is better than the other kind of insurance that is related to funerals.

The compensation amount in death benefits is lower, about $5,000 to $10,000. It’s because this insurance policy specifically covers the burial, funerals, and other after-death expenses.

Children’s Insurance

Along with policies for seniors, Globe Life offers its consumers insurance policies for children and grandchildren. The parents or grandparents can be beneficiaries if a child dies during the policy term. Beneficiaries can receive the maximum death benefits of up to $30,000 while the coverage amount ranges between $5,000 to $100,000.

Mortgage Protection Insurance

The mortgage protection insurance secures the policyholder’s family members if the policyholder dies during the term. It helps pay for the mortgage loans to the mortgage provider. Beneficiaries can receive a coverage amount ranging between $50,000 and $350,000 in this insurance policy.

Accidental Insurance

The company provides a maximum of $250,000 in case of an accidental death or a physical injury caused by mishaps like disasters, road accidents, and airline crashes.

Now let’s go through some other benefits that the members can get.

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Other Benefits of Globe Life Insurance

Is Globe Life Insurance a pyramid scheme

The company also entertains its consumers in case of paralysis and rising inflation. The benefits increase by 5% annually until the insured member reaches the age of 70.

Furthermore, the company provides a 100% refund to its users on the paid amount if they cancel the insurance policy within the first 30 days of the subscription.


Globe Life is not a scam. It is a registered company and licensed in various states and also provides some reasonable benefits that you may want to consider.

However, due to its high complaint index and the magnitude of consumer complaints, Globe Life Insurance is not an ideal choice for most users and you can consider other life insurance companies in that regard.

Overall, if you want to choose a Globe Life insurance policy, carefully review the terms and policies of the coverage before opting for it.


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