Bad Faith and Claims Denial from Globe Life Insurance Company

Bad Faith and Claims Denial from Globe Life Insurance Company

Have you experienced Bad Faith and Claims Denial from Globe Life Insurance Company? Globe Life Insurance Company is a huge seller of life insurance policies that empathize no medical exam, low policy benefits (usually $100,000 but many smaller amounts, with most sales in the $25,000 to $30,000 policy benefits level).

Here, Globe Life describes itself:

Since 1951, Globe Life has grown in financial strength and reputation. Globe Life is proud to provide life insurance coverage to over 4 million policyholders. A.M. Best Company, an independent insurance analyst since 1899, awarded Globe Life an A+ (as of 6/16) based on their latest analysis of financial strength, management skills and integrity.  You can be assured Globe Life will be there when you need us the most.

Their venture began when the founding fathers determined their agency would market inexpensive but dependable life insurance protection to Americans who were living in rural areas. Eventually, using their loans, they opened shop in the Oklahoma communities as an insurance agency where they built and guarded their reputation of fairness.

Claims Denial from Globe Life Insurance Company

Especially because Globe Life Insurance Company sells direct to consumers on the internet, and stresses the economic value of the life insurance, their review of applications at the time the policy is purchased is not as complete as some other companies.  But if your loved one passes away during the first two years of the policy, watch out.  There will be a vigorous investigation.

Globe Life Insurance is Owned by Torchmark, Notorious for Serious Legal Issues.

Torchmark subsidiaries Globe Life and Accident Insurance and United American Insurance also came under fire for their marketing of individual health insurance policies. Some of the tactics that were highlighted included selling replacement policies that did not actually replace all of a person’s coverage. Company agents would convince policyholders that their current coverage would be discontinued at age 65, even when it was guaranteed for life, and then would offer new policies that were not worth as much. Another tactic involved offering “low cost” policies at rates that quickly shot up.

In one such case in 1989, a Greenville, Mississippi, man bought a policy with an $86 a month “teaser rate.” Torchmark did not disclose that the rate would immediately go up – and within two years, the rate had more than doubled.

Torchmark Has been Involved in Litigation Concerning Race-Based Pricing.

In the mid-1980s, half of all Alabamans who died had a burial policy from Torchmark. These burial policies were sold at a higher price to black policyholders. In 2000, a Florida court ordered the company to stop collecting premiums on the old burial policies because black policyholders had been charged more than white policyholders. Alabama regulators followed with an investigation, and in 2006, Torchmark  subsidiary Liberty National Life Insurance paid $6 million to resolve a 2,000 member class action lawsuit.

Beware Of Low Cost, No-Medical Exam Life Insurance Policies.

According to the allegations, Liberty National agents would market these policies with premiums of less than $1 to attract low-income policyholders. However, black policyholders ended up paying 36 percent more than white policyholders.

Aside from their claims, here’s how Globe can treat their paying clients:

  • Olga Hall sued Globe Life Accident Insurance Company for the proceeds of a life insurance policy she purchased on her husband and for damages she allegedly suffered because of Globe Life’s bad faith in declining to pay the proceeds. Upon investigation of the claim, Globe Life determined that Mrs. Hall answered the fifth question incorrectly, that is, whether Mr. Hall had been treated for cirrhosis within the twelve months preceding the application. After trial, the court entered judgment on the jury’s verdict awarding Mrs. Hall the amount of the insurance proceeds, plus damages for bad faith.

Additionally, just have a look at these customer reviews from Globe’s policyholders. How many of these policyholders are in need of legal counsel?

Have you suffered the unexpected loss of a loved one, only to have a claim for life insurance benefits delayed, or denied?  Do you get the feeling that the life insurance company is doing everything it can to avoid paying the claim?  Has the life insurance company sent you a letter stating that they are rescinding the policy or just sending back the premiums paid? Especially if your loved one had the policy for less than two years before passing away, the life insurance company can become very aggressive at seeking to avoid the policy payment.  Rescission is a favored strategy of the life insurance company, if the policy was issued less than two years before the death.

We can help.  Call LifeInsuranceLawyerNOW.com at (888) 997-4070, or (818) 937-0937, or send an email to us in the form on the side of the screen.  We are highly experienced lawyers, not paralegals, and we know this area.  We get right to it with you and the insurance company, and get many claims paid right away.  If court is necessary, we are regular Federal litigators and will push the life insurance company hard for the well being of you and your family.  We respect you, deal directly with you, and understand not only the law and facts, but what you are going through.  We are here to help.  Contact us as soon as possible, to get your claim paid faster.