How true is Globe Life insurance?

Answer 1

Globe Life and Accident Insurance is a part of the Torchmark Corporation. It is authorized in many states to write children's life insurance, life insurance for adults, disability insurance, and several other lines of insurance. It is a real insurance company in that respect.

You may be referring to its practice of mass mailings and other advertising of policies designed for children. The policies are touted as costing only $1, but that is for the 1st month only; premiums increase thereafter based upon the child's age (as do other term life insurance policies). Despite this, it may be a good idea, if finances and other circumstances allow, to begin an insurance program for a child early. This is mainly because as a child matures, health problems may develop or become disclosed that make later insurability difficult or unduly costly.

Keep in mind that term life insurance does not accumulate cash value; instead, it is more like "renting" the protection that insurance affords. If the then-current premium is not paid, the insurance lapses (terminates). Premiums rise over time based over the insured's age (although there are variants of term insurance that fix premiums at a given amount for a stated period of time--such as 15 year level term). This is in contrast to whole life insurance which is more costly (due to the accumulation of cash value), but for which the premium remains the same over time.