Globe Life Inc. (GL)

Globe Life sells inexpensive life insurance to middle-income households through its own agents.

The policies are small in amount and sold to people large insurers do not visit: cover for funeral costs, protection for a modest-income family. The agent works for this company alone rather than shopping the market — hence control over the channel and over price.

The economics are durable: premiums are small, such policies are rarely cancelled, and claims fall due decades later while the money is invested throughout. The vulnerability is agent recruitment: growth depends on how many people are hired and kept, and turnover in this trade is high. Risks: mortality, interest rates and complaints about sales practices. The dividend is token; buybacks are very active.