<PAGE>

                                                                     EXHIBIT 4.5

                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                           TORCHMARK CAPITAL TRUST I

                          DATED AS OF NOVEMBER 2, 2001
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                               TABLE OF CONTENTS

                                                                           Page
                                                                           ----

                                   ARTICLE I
                         DEFINITIONS AND INTERPRETATION

Section 1.1    Definitions and Interpretation                                1

                                   ARTICLE II
                              TRUST INDENTURE ACT

Section 2.1    Trust Indenture Act; Application                              4
Section 2.2    Lists of Holders                                              4
Section 2.3    Reports by The Preferred Guarantee Trustee                    5
Section 2.4    Periodic Reports to Preferred Guarantee Trustee               5
Section 2.5    Evidence of Compliance With Conditions Precedent              5
Section 2.6    Events of Default; Waiver                                     5
Section 2.7    Event of Default; Notice                                      5
Section 2.8    Conflicting Interests                                         6

                                  ARTICLE III
                          POWERS, DUTIES AND RIGHTS OF
                          PREFERRED GUARANTEE TRUSTEE

Section 3.1    Powers And Duties of The Preferred Guarantee Trustee          6
Section 3.2    Certain Rights of Preferred Guarantee Trustee                 8
Section 3.3    Not Responsible For Recitals or Issuance of Preferred
                  Securities Guarantee                                      10

                                   ARTICLE IV
                          PREFERRED GUARANTEE TRUSTEE

Section 4.1    Preferred Guarantee Trustee: Eligibility                     11
Section 4.2    Appointment, Removal And Resignation of Preferred
                 Guarantee Trustee                                          11

                                   ARTICLE V
                                   GUARANTEE

Section 5.1    Guarantee                                                    12
Section 5.2    Waiver of Notice and Demand                                  12
Section 5.3    Obligations Not Affected                                     13
Section 5.4    Rights of Holders                                            14
Section 5.5    Guarantee of Payment                                         14
Section 5.6    Subrogation                                                  14
Section 5.7    Independent Obligations                                      14

                                       i
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                                                                           Page
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Section 5.8    Taxes                                                        14

                                   ARTICLE VI
                   LIMITATION OF TRANSACTIONS; SUBORDINATION

Section 6.1    Limitation of Transactions                                   15
Section 6.2    Subordination                                                16


                                  ARTICLE VII
                                  TERMINATION

Section 7.1    Termination                                                  16

                                  ARTICLE VIII
                                INDEMNIFICATION

Section 8.1    Exculpation                                                  16
Section 8.2    Indemnification                                              17

                                   ARTICLE IX
                                 MISCELLANEOUS

Section 9.1    Successors and Assigns                                       17
Section 9.2    Amendments                                                   18
Section 9.3    Notices                                                      18
Section 9.4    Benefit                                                      18
Section 9.5    Governing Law                                                19
<PAGE>

                    PREFERRED SECURITIES GUARANTEE AGREEMENT

     This GUARANTEE AGREEMENT (the "Preferred Securities Guarantee"), dated as
of November 2, 2001, is executed and delivered by Torchmark  Corporation, a
Delaware corporation (the "Guarantor"), and The Bank of New York, as trustee
(the "Preferred Guarantee Trustee"), for the benefit of the Holders (as defined
herein) from time to time of the Preferred Securities (as defined herein) of
Torchmark Capital Trust I, a Delaware statutory business trust (the "Issuer").

     WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"), dated as of November 2, 2001, among the trustees of the Issuer
named therein, the Guarantor, as sponsor, and the holders from time to time of
undivided beneficial interests in the assets of the Issuer, the Issuer is
issuing on the date hereof 4,400,000 preferred securities (and up to an
additional 660,000 preferred securities if the underwriters exercise their
overallotment option in full), having an aggregate liquidation amount of
$110,000,000 (and up to an additional aggregate liquidation amount of
$16,500,000 if the underwriters exercise their overallotment option in full),
designated the 7 3/4% Trust Preferred Securities (the "Preferred  Securities").

     WHEREAS, as incentive for the Holders to purchase the Preferred Securities,
the Guarantor desires irrevocably and unconditionally to agree, to the extent
set forth in this Preferred Securities Guarantee, to pay to the Holders of the
Preferred Securities the Guarantee Payments (as defined herein) and to make
certain other payments on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the purchase by each Holder of
Preferred Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Preferred Securities
Guarantee for the benefit of the Holders.

                                   ARTICLE I

                         DEFINITIONS AND INTERPRETATION

     Section 1.1    Definitions and Interpretation.  In this Preferred
                    ------------------------------
Securities Guarantee, unless the context otherwise requires:

          (a) capitalized terms used in this Preferred Securities Guarantee but
not defined in the preamble above have the respective meanings assigned to them
in this Section 1.1;

          (b) terms defined in the Declaration as at the date of execution of
this Preferred Securities Guarantee have the same meaning when used in this
Preferred Securities Guarantee unless otherwise defined in this Preferred
Securities Guarantee;

          (c) a term defined anywhere in this Preferred Securities Guarantee has
the same meaning throughout;
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          (d) all references to "the Preferred Securities Guarantee" or "this
Preferred Securities Guarantee" are to this Preferred Securities Guarantee as
modified, supplemented or amended from time to time;

          (e) all references in this Preferred Securities Guarantee to Articles
and Sections are to Articles and Sections of this Preferred Securities
Guarantee, unless otherwise specified; a term defined in the Trust Indenture Act
has the same meaning when used in this Preferred Securities Guarantee, unless
otherwise defined in this Preferred Securities Guarantee or unless the context
otherwise requires; and

          (f) a reference to the singular includes the plural and vice versa.

     "AUTHORIZED OFFICER" of a Person means any Person that is authorized to
legally bind such Person; provided, however, that the Authorized Officer signing
                          --------  -------
an Officers' Certificate given pursuant to Section 314(a)(4) of the Trust
Indenture Act shall be the principal executive, financial or accounting officer
of such Person.

     "CORPORATE TRUST OFFICE" means the office of the Preferred Guarantee
Trustee at which the corporate trust business of the Preferred Guarantee Trustee
shall, at any particular time, be principally administered, which office at the
date of execution of this Agreement is located at, The Bank of New York, 101
Barclay Street, Floor 21 West, New York, NY 10286 Attention: Corporate Trust
Administration.

     "COVERED PERSON" means any Holder or beneficial owner of Preferred
Securities.

     "DECLARATION" has the meaning assigned thereto in the recitals hereto.

     "EVENT OF DEFAULT" means a failure by the Guarantor to perform any of its
payment or  other obligations under this Preferred Securities Guarantee.

     "GUARANTEE PAYMENTS" means the following payments or distributions, without
duplication, with respect to the Preferred Securities, to the extent not paid or
made by the Issuer: (i) any accumulated and unpaid Distributions (as defined in
the Declaration) that are required to be paid on such Preferred Securities to
the extent the Issuer shall have funds available therefor, (ii) the redemption
price (the "Redemption Price"), and all accumulated and unpaid Distributions to
the date of redemption, to the extent the Issuer has funds available therefor,
with respect to any Preferred Securities called for redemption by the Issuer,
and (iii) upon a voluntary or involuntary dissolution, winding-up or termination
of the Issuer (other than in connection with the redemption of all of the
Preferred Securities or the distribution of the Debt Securities to the Holders
in exchange for Preferred Securities as provided in the Declaration), the lesser
of (a) the aggregate of the liquidation amount and all accumulated and unpaid
Distributions on the Preferred Securities to the date of payment, to the extent
the Issuer shall have funds available therefor, and (b) the amount of assets of
the Issuer remaining available for distribution to Holders of Preferred
Securities then outstanding upon the liquidation of the Issuer (in either case,
the "Liquidation Distribution").

                                       2
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     "GUARANTOR" has the meaning assigned thereto in the recitals hereto.

     "HOLDER" shall mean any holder, as registered on the books and records of
the Issuer, of any Preferred Securities; provided, however, that, in determining
                                         --------  -------
whether the holders of the requisite percentage of Preferred Securities have
given any request, notice, consent or waiver hereunder, "Holder" shall not
include the Guarantor or any Affiliate of the Guarantor.

     "INDEMNIFIED PERSON" means the Preferred Guarantee Trustee, any Affiliate
of the Preferred Guarantee Trustee, or any officers, directors, shareholders,
members, partners, employees, representatives, nominees, custodians or agents of
the Preferred Guarantee Trustee.

     "INDENTURE" means the Junior Subordinated Indenture dated as of November 2,
2001 between the Guarantor and The Bank of New York, as trustee, or, if amended
or supplemented as provided herein, as so amended or supplemented or both, and
shall include the forms and terms of a particular series of securities
established as contemplated thereunder.

     "ISSUER" has the meaning assigned thereto in the recitals hereto.

     "LIST OF HOLDERS" shall have the meaning set forth in Section 2.2.

     "MAJORITY IN LIQUIDATION AMOUNT OF THE PREFERRED SECURITIES" means, except
as provided in the terms of the Preferred Securities, or except as provided by
the Trust Indenture Act, a vote by Holder(s), voting separately as a class, of
more than 50% of the liquidation amount (including the stated amount that would
be paid on redemption, liquidation or otherwise, plus accumulated and unpaid
Distributions to the date upon which the voting percentages are determined) of
all Preferred Securities.

     "PERSON" means any individual, corporation, estate, partnership, limited
liability company, joint venture, association, joint stock company, trust,
unincorporated association or government or any agency or political subdivision
thereof, or any other entity of whatever nature.

     "PREFERRED GUARANTEE TRUSTEE" means The Bank of New York, until a Successor
Preferred Guarantee Trustee has been appointed and has accepted such appointment
pursuant to the terms of this Preferred Securities Guarantee and thereafter
means each such Successor Preferred Guarantee Trustee.

     "PREFERRED SECURITIES" has the meaning assigned thereto in the recitals
hereto.

     "PREFERRED SECURITIES GUARANTEE" has the meaning assigned thereto in the
recitals hereto.

     "RELEVANT JURISDICTION" means the United States.

                                       3
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     "RELEVANT TAX" means any present or future taxes, duties, assessments or
governmental charges of whatever nature, imposed or levied by or on behalf of
any Relevant Jurisdiction or any authority therein or thereof having the power
to tax.

     "RESPONSIBLE OFFICER" means, with respect to the Preferred Guarantee
Trustee, any officer within the Corporate Trust Office of the Preferred
Guarantee Trustee, including any vice president, any assistant vice president,
any assistant treasurer or other officer of the Corporate Trust Office of the
Preferred Guarantee Trustee customarily performing functions similar to those
performed by any of the above designated officers, and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of that officer's knowledge of and familiarity with the
particular subject.

     "SUCCESSOR PREFERRED GUARANTEE TRUSTEE" means a successor Preferred
Guarantee Trustee possessing the qualifications to act as Preferred Guarantee
Trustee under Section 4.1.

                                   ARTICLE II

                              TRUST INDENTURE ACT

     Section 2.1    Trust Indenture Act; Application.
                    --------------------------------

          (a) This Preferred Securities Guarantee is subject to the provisions
of the Trust Indenture Act that are required to be part of this Preferred
Securities Guarantee and shall, to the extent applicable, be governed by such
provisions; and

          (b) If and to the extent that any provision of this Preferred
Securities Guarantee limits, qualifies or conflicts with the duties imposed by
Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties
shall control.

     Section 2.2    Lists of Holders.
                    ----------------

          (a) The Guarantor shall provide the Preferred Guarantee Trustee with a
list, in such form as the Preferred Guarantee Trustee may reasonably require, of
the names and addresses of the Holders ("List of Holders") (i) within 14 days
after each record date for payment of Distributions, as of such record date, and
(ii) at any other time, within 30 days of receipt by the Guarantor of a written
request for a List of Holders as of a date no more than 14 days before such List
of Holders is given to the Preferred Guarantee Trustee. The Preferred Guarantee
Trustee may destroy any List of Holders previously given to it on receipt of a
new List of Holders.

          (b)  The Preferred Guarantee Trustee shall comply with its obligations
under Sections 311(a), 311(b) and Section 312(b) of the Trust Indenture Act.

                                       4
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     Section 2.3    Reports by The Preferred Guarantee Trustee.  Within 60 days
                    ------------------------------------------
after May 15 of each year, the Preferred Guarantee Trustee shall provide to the
Holders such reports as are required by Section 313 of the Trust Indenture Act,
if any, in the form and in the manner provided by Section 313 of the Trust
Indenture Act.  The Preferred Guarantee Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act.

     Section 2.4    Periodic Reports to Preferred Guarantee Trustee.  The
                    -----------------------------------------------
Guarantor shall provide to the Preferred Guarantee Trustee such documents,
reports and information (if any) as are required by Section 314 and the
compliance certificate required by Section 314 of the Trust Indenture Act in the
form, the manner and at the times required by Section 314 of the Trust Indenture
Act.

     Delivery of such reports, information and documents to the Preferred
Guarantee Trustee is for informational purposes only and the Preferred Guarantee
Trustee's receipt of such shall not constitute constructive notice of any
information contained therein, including the Guarantor's compliance with any of
its covenants hereunder (as to which the Preferred Guarantee Trustee is entitled
to rely exclusively on Officers' Certificates).

     Section 2.5    Evidence of Compliance with Conditions Precedent.  The
                    ------------------------------------------------
Guarantor shall provide to the Preferred Guarantee Trustee such evidence of
compliance with any conditions precedent, if any, provided for in this Preferred
Securities Guarantee that relate to any of the matters set forth in Section
314(c) of the Trust Indenture Act.  Any certificate or opinion required to be
given by an officer pursuant to Section 314(c)(1) may be given in the form of an
Officers' Certificate.

     Section 2.6    Events of Default; Waiver.  The Holders of a Majority in
                    -------------------------
liquidation amount of Preferred Securities may, by vote, on behalf of the
Holders of all of the Preferred Securities, waive any past Event of Default and
its consequences except an Event of Default in respect of a covenant or
provision hereof which cannot be modified or amended without the consent of each
Holder of Preferred Securities.  Upon such waiver, any such Event of Default
shall cease to exist, and any Event of Default arising therefrom shall be deemed
to have been cured, for every purpose of this Preferred Securities Guarantee,
but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon.

     Section 2.7    Event of Default; Notice.
                    ------------------------
          (a) The Preferred Guarantee Trustee shall, within 90 days after the
occurrence of an Event of Default actually known to a Responsible Officer of the
Preferred Guarantee Trustee, transmit by mail, first class postage prepaid, to
the Holders of the Preferred Securities, notices of all such Events of Default
unless such defaults have been cured before the giving of such notice, provided
that the Preferred Guarantee Trustee shall be protected in withholding such
notice if and so long as a Responsible Officer of the Preferred Guarantee
Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders of the Preferred Securities.

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<PAGE>

          (b) The Preferred Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default unless a Responsible Officer of the Preferred
Guarantee Trustee shall have obtained actual knowledge thereof or shall have
received written notice of such Event of Default.

     Section 2.8    Conflicting Interests.  The Declaration shall be deemed to
                    ---------------------
be specifically described in this Preferred Securities Guarantee for the
purposes of clause (i) of the first proviso contained in Section 310(b) of the
Trust Indenture Act.

                                  ARTICLE III

            POWERS, DUTIES AND RIGHTS OF PREFERRED GUARANTEE TRUSTEE

     Section 3.1    Powers and Duties of the Preferred Guarantee Trustee.
                    ----------------------------------------------------

          (a) This Preferred Securities Guarantee shall be held by the Preferred
Guarantee Trustee for the benefit of the Holders and the Preferred Guarantee
Trustee shall not transfer this Preferred Securities Guarantee to any Person
except a Holder exercising his or her rights pursuant to Section 5.4(b) or to a
Successor Preferred Guarantee Trustee on acceptance by such Successor Preferred
Guarantee Trustee of its appointment to act as Successor Preferred Guarantee
Trustee.  The right, title and interest of the Preferred Guarantee Trustee shall
automatically vest in any Successor Preferred Guarantee Trustee, and such
vesting and succession of title shall be effective whether or not conveyancing
documents have been executed and delivered pursuant to the appointment of such
Successor Preferred Guarantee Trustee.

          (b) If an Event of Default actually known to a Responsible Officer of
the Preferred Guarantee Trustee has occurred and is continuing, the Preferred
Guarantee Trustee shall enforce this Preferred Securities Guarantee for the
benefit of the Holders.

          (c) The Preferred Guarantee Trustee, before the occurrence of any
Event of Default and after the curing or waiver of all Events of Default that
may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Preferred Securities Guarantee, and no implied
covenants or obligations shall be read into this Preferred Securities Guarantee
against the Preferred Guarantee Trustee.  In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 2.6) and is
actually known to a Responsible Officer of the Preferred Guarantee Trustee, the
Preferred Guarantee Trustee shall exercise such of the rights and powers vested
in it by this Preferred Securities Guarantee, and shall use the same degree of
care and skill in its exercise thereof  as a prudent person would exercise or
use under the circumstances in the conduct of his or her own affairs.

          (d) No provision of this Preferred Securities Guarantee shall be
construed to relieve the Preferred Guarantee Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

                                       6
<PAGE>

               (i) prior to the occurrence of any Event of Default and after the
     curing or waiving of all such Events of Default that may have occurred:

               (A) the duties and obligations of the Preferred Guarantee Trustee
     shall be determined solely by the express provisions of this Preferred
     Securities Guarantee, and the Preferred Guarantee Trustee shall not be
     liable except for the performance of such duties and obligations as are
     specifically set forth in this Preferred Securities Guarantee, and no
     implied covenants or obligations shall be read into this Preferred
     Securities Guarantee against the Preferred Guarantee Trustee; and

               (B) in the absence of bad faith on the part of the Preferred
     Guarantee Trustee, the Preferred Guarantee Trustee may conclusively rely,
     as to the truth of the statements and the correctness of the opinions
     expressed therein, upon any certificates or opinions furnished to the
     Preferred Guarantee Trustee and conforming to the requirements of this
     Preferred Securities Guarantee; but in the case of any such certificates or
     opinions that by any provision hereof are specifically required to be
     furnished to the Preferred Guarantee Trustee, the Preferred Guarantee
     Trustee shall be under a duty to examine the same to determine whether or
     not they conform to the requirements of this Preferred Securities Guarantee
     (but need not confirm or investigate the accuracy of mathematical
     calculations or other facts stated therein);

               (ii) the Preferred Guarantee Trustee shall not be liable for any
     error of judgment made in good faith by a Responsible Officer of the
     Preferred Guarantee Trustee, unless it shall be proved that the Preferred
     Guarantee Trustee was negligent in ascertaining the pertinent facts upon
     which such judgment was made;

               (iii) the Preferred Guarantee Trustee shall not be liable
     with respect to any action taken or omitted to be taken by it in good faith
     in accordance with the direction of the Holders of not less than a Majority
     in liquidation amount of the Preferred Securities relating to the time,
     method and place of conducting any proceeding for any remedy available to
     the Preferred Guarantee Trustee, or exercising any trust or power conferred
     upon the Preferred Guarantee Trustee under this Preferred Securities
     Guarantee; and

               (iv) no provision of this Preferred Securities Guarantee shall
     require the Preferred Guarantee Trustee to expend or risk its own funds or

                                       7
<PAGE>

     otherwise incur personal financial liability in the performance of any of
     its duties or in the exercise of any of its rights or powers, if the
     Preferred Guarantee Trustee shall have reasonable grounds for believing
     that the repayment of such funds or liability is not reasonably assured to
     it under the terms of this Preferred Securities Guarantee or indemnity,
     reasonably satisfactory to the Preferred Guarantee Trustee, against such
     risk or liability is not reasonably assured to it.

     Section 3.2    Certain Rights of Preferred Guarantee Trustee.
                    ---------------------------------------------

          (a) Subject to the provisions of Section 3.1:

               (i) The Preferred Guarantee Trustee may conclusively rely, and
     shall be fully protected in acting or refraining from acting upon, any
     resolution, certificate, statement, instrument, opinion, report, notice,
     request, direction, consent, order, bond, debenture, note, other evidence
     of indebtedness or other paper or document believed by it to be genuine and
     to have been signed, sent or presented by the proper party or parties.

               (ii) Any direction or act of the Guarantor contemplated by this
     Preferred Securities Guarantee shall be sufficiently evidenced by an
     Officers' Certificate.

               (iii) Whenever, in the administration of this Preferred
     Securities Guarantee, the Preferred Guarantee Trustee shall deem it
     desirable that a matter be proved or established before taking, suffering
     or omitting any action hereunder, the Preferred Guarantee Trustee (unless
     other evidence is herein specifically prescribed) may, in the absence of
     bad faith on its part, request and conclusively rely upon an Officers'
     Certificate which, upon receipt of such request, shall be promptly
     delivered by the Guarantor.

               (iv) The Preferred Guarantee Trustee shall have no duty to see to
     any recording, filing or registration of any instrument (or any
     rerecording, refiling or re-registration thereof).

               (v) The Preferred Guarantee Trustee may at the expense of the
     Guarantor consult with counsel of its selection, and the advice or opinion
     of such counsel with respect to legal matters shall be full and complete
     authorization and protection in respect of any action taken, suffered or
     omitted by it hereunder in good faith and in accordance with such advice or
     opinion.  Such counsel may be counsel to the Guarantor or

                                       8
<PAGE>

     any of its Affiliates and may include any of its employees. The Preferred
     Guarantee Trustee shall have the right at any time to seek instructions
     concerning the administration of this Preferred Securities Guarantee from
     any court of competent jurisdiction.

               (vi) The Preferred Guarantee Trustee shall be under no obligation
     to exercise any of the rights or powers vested in it by this Preferred
     Securities Guarantee at the request or direction of any Holder, unless such
     Holder shall have provided to the Preferred Guarantee Trustee such security
     and indemnity, reasonably satisfactory to the Preferred Guarantee Trustee,
     against the costs, expenses (including attorneys' fees and expenses and the
     expenses of the Preferred Guarantee Trustee's agents, nominees or
     custodians) and liabilities that might be incurred by it in complying with
     such request or direction, including such reasonable advances as may be
     requested by the Preferred Guarantee Trustee; PROVIDED that nothing
     contained in this Section 3.2(a)(vi) shall be taken to relieve the
     Preferred Guarantee Trustee, upon the occurrence of an Event of Default, of
     its obligation to exercise the rights and powers vested in it by this
     Preferred Securities Guarantee.

               (vii) The Preferred Guarantee Trustee shall not be bound to
     make any investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document, but the Preferred Guarantee
     Trustee, in its discretion, may make such further inquiry or investigation
     into such facts or matters as it may see fit but shall incur no liability
     of any kind by reason of such inquiry or investigation.

               (viii) The Preferred Guarantee Trustee may execute any of the
     trusts or powers hereunder or perform any duties hereunder either directly
     or by or through agents, nominees, custodians or attorneys, and the
     Preferred Guarantee Trustee shall not be responsible for any misconduct or
     negligence on the part of any agent or attorney appointed with due care by
     it hereunder.

               (ix) Any action taken by the Preferred Guarantee Trustee or its
     agents hereunder shall bind the Holders of the Preferred Securities and the
     signature of the Preferred Guarantee Trustee or its agents alone shall be
     sufficient and effective to perform any such action.  No third party shall
     be required to inquire as to the authority of the Preferred Guarantee
     Trustee to so act or as to its compliance with any of the terms and
     provisions of this Preferred Securities Guarantee, both of

                                       9
<PAGE>

     which shall be conclusively evidenced by the Preferred Guarantee Trustee's
     or its agent's taking such action.

               (x) Whenever in the administration of this Preferred Securities
     Guarantee the Preferred Guarantee Trustee shall deem it desirable to
     receive instructions with respect to enforcing any remedy or right or
     taking any other action hereunder, the Preferred Guarantee Trustee (i) may
     request instructions from the Holders of a Majority in liquidation amount
     of the Preferred Securities, (ii) may refrain from enforcing such remedy or
     right or taking such other action until such written instructions are
     received and (iii) shall be protected in conclusively relying on or acting
     in accordance with such instructions.

               (xi) The Preferred Securities Trustee shall not be liable for any
     action taken, suffered, or omitted to be taken by it in good faith and
     reasonably believed by it to be authorized or within the discretion or
     rights or powers conferred upon it by this Preferred Securities Guarantee.

               (xii) The rights, privileges, protections, immunities and
     benefits given to the Preferred Guarantee Trustee, including, without
     limitation, its right to be indemnified, are extended to, and shall be
     enforceable by, the Preferred Guarantee Trustee in each of its capacities
     hereunder, and to each agent, custodian and other Person employed to act
     hereunder.

          (b)  No provision of this Preferred Securities Guarantee shall be
deemed to impose any duty or obligation on the Preferred Guarantee Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or
in which the Preferred Guarantee Trustee shall be unqualified or incompetent in
accordance with applicable law, to perform any such act or acts or to exercise
any such right, power, duty or obligation.  No permissive power or authority
available to the Preferred Guarantee Trustee shall be construed to be a duty.

     Section 3.3    Not Responsible for Recitals or Issuance of Preferred
                    -----------------------------------------------------
Securities Guarantee.  The recitals contained in this Preferred Securities
--------------------
Guarantee shall be taken as the statements of the Guarantor, and the Preferred
Guarantee Trustee does not assume any responsibility for their correctness.  The
Preferred Guarantee Trustee makes no representations as to the validity or
sufficiency of this Preferred Securities Guarantee.

                                       10
<PAGE>

                                   ARTICLE IV

                          PREFERRED GUARANTEE TRUSTEE

     Section 4.1    Preferred Guarantee Trustee: Eligibility.
                    ----------------------------------------

          (a) There shall at all times be a Preferred Guarantee Trustee which
     shall:

               (i) not be an Affiliate of the Guarantor; and

               (ii) be a corporation organized and doing business under the
     laws of the United States of America or any State or Territory thereof or
     of the District of Columbia, or a corporation or Person permitted by the
     Securities and Exchange Commission to act as an institutional trustee under
     the Trust Indenture Act, authorized under such laws to exercise corporate
     trust powers, having a combined capital and surplus of at least 50 million
     U.S. dollars ($50,000,000), and subject to supervision or examination by
     federal, state, territorial or District of Columbia authority.  If such
     corporation publishes reports of condition at least annually, pursuant to
     law or to the requirements of the supervising or examining authority
     referred to above, then, for the purposes of this Section 4.1(a)(ii), the
     combined capital and surplus of such corporation shall be deemed to be its
     combined capital and surplus as set forth in its most recent report of
     condition so published.

          (b) If at any time the Preferred Guarantee Trustee shall cease to be
eligible to so act under Section 4.1(a), the Preferred Guarantee Trustee shall
immediately resign in the manner and with the effect set out in Section 4.2(c).

          (c) If the Preferred Guarantee Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Preferred Guarantee Trustee and Guarantor shall in all
respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

     Section 4.2    Appointment, Removal and Resignation of Preferred Guarantee
                    -----------------------------------------------------------
Trustee.
--------

          (a) Subject to Section 4.2(b), the Preferred Guarantee Trustee may be
appointed or removed without cause at any time by the Guarantor.

          (b) The Preferred Guarantee Trustee shall not be removed in accordance
with Section 4.2(a) until a Successor Preferred Guarantee Trustee has been
appointed and has accepted such appointment by written instrument executed by
such Successor Preferred Guarantee Trustee and delivered to the Guarantor.

          (c) The Preferred Guarantee Trustee appointed to office shall hold
office until a Successor Preferred Guarantee Trustee shall have been appointed
or until its removal or resignation. The Preferred Guarantee Trustee may resign
from office (without need for prior or subsequent accounting) by an instrument
in writing executed by the Preferred Guarantee Trustee and delivered

                                       11
<PAGE>

to the Guarantor, which resignation shall not take effect until a Successor
Preferred Guarantee Trustee has been appointed and has accepted such appointment
by instrument in writing executed by such Successor Preferred Guarantee Trustee
and delivered to the Guarantor and the resigning Preferred Guarantee Trustee.

          (d) If no Successor Preferred Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within 60
days after delivery of an instrument of resignation or removal, the Preferred
Guarantee Trustee resigning or being removed may petition, at the expense of the
Guarantor, any court of competent jurisdiction for appointment of a Successor
Preferred Guarantee Trustee.  Such court may thereupon, after prescribing such
notice, if any, as it may deem proper, appoint a Successor Preferred Guarantee
Trustee.

          (e) No Preferred Guarantee Trustee shall be liable for the acts or
omissions to act of any Successor Preferred Guarantee Trustee.

          (f) Upon termination of this Preferred Securities Guarantee or removal
or resignation of the Preferred Guarantee Trustee pursuant to this Section 4.2,
the Guarantor shall pay to the Preferred Guarantee Trustee all amounts to which
it is entitled to the date of such termination, removal or resignation.

                                   ARTICLE V

                                   GUARANTEE

     Section 5.1    Guarantee.  The Guarantor irrevocably and unconditionally
                    ---------
agrees to pay in full to the Holders the Guarantee Payments (without duplication
of amounts theretofore paid by the Issuer), as and when due, regardless of any
defense, right of set-off or counterclaim that the Issuer may have or assert.
The Guarantor's obligation to make a Guarantee Payment may be satisfied by
direct payment of the required amounts by the Guarantor to the Holders or by
causing the Issuer to pay such amounts to the Holders.

     Section 5.2    Waiver of Notice and Demand.  The Guarantor hereby waives
                    ---------------------------
notice of acceptance of this Preferred Securities Guarantee and of any liability
to which it applies or may apply, presentment, demand for payment, any right or
remedy to require a proceeding first against the Issuer or any other Person
before proceeding directly against the Guarantor, protest, notice of nonpayment,
notice of dishonor, notice of redemption and all other notices and demands.

     Section 5.3    Obligations Not Affected.   The obligations, covenants,
                    ------------------------
agreements and duties of the Guarantor under this Preferred Securities Guarantee
shall in no way be affected or impaired by reason of the happening from time to
time of any of the following:

          (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Preferred Securities to be performed
or observed by the Issuer;

                                       12
<PAGE>

          (b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Preferred Securities or the extension
of time for the performance of any other obligation under, arising out of, or in
connection with, the Preferred Securities (other than an extension of time for
payment of Distributions, Redemption Price, Liquidation Distribution or other
sum payable that results from the extension of any interest payment period on
the Debt Securities permitted by the Indenture);

          (c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Preferred Securities, or
any action on the part of the Issuer granting indulgence or extension of any
kind;

          (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;

          (e) any invalidity of, or defect or deficiency in, the Preferred
Securities;

          (f) the settlement or compromise of any obligation guaranteed hereby
or hereby incurred; or

          (g) any other circumstance whatsoever that might otherwise constitute
a legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.3 that the obligations of the Guarantor hereunder shall be
absolute and unconditional under any and all circumstances.

There shall be no obligation of the Holders to give notice to, or obtain consent
of, the Guarantor with respect to the happening of any of the foregoing.


     Section 5.4    Rights of Holders.
                    -----------------

          (a) The Holders of a Majority in liquidation amount of the Preferred
Securities then outstanding have the right to direct the time, method and place
of conducting any proceeding for any remedy available to the Preferred Guarantee
Trustee in respect of this Preferred Securities Guarantee or to direct the
exercise of any trust or power conferred upon the Preferred Guarantee Trustee
under this Preferred Securities Guarantee.

          (b) If  the Preferred Guarantee Trustee fails to enforce this
Preferred Securities Guarantee, any Holder of Preferred Securities may institute
a legal proceeding directly against the Guarantor to enforce the Preferred
Guarantee Trustee's rights under this Preferred Securities Guarantee, without
first instituting a legal proceeding against the Issuer, the Preferred Guarantee

                                       13
<PAGE>

Trustee or any other Person. The Guarantor waives any right or remedy to require
that any action be brought first against the Issuer or any other person or
entity before proceeding directly against the Guarantor. Notwithstanding the
foregoing, if the Guarantor has failed to make a Guarantee Payment, a Holder of
Preferred Securities may directly institute a proceeding against the Guarantor
for enforcement of this Preferred Securities Guarantee for such payment.

     Section 5.5    Guarantee of Payment.  This Preferred Securities Guarantee
                    --------------------
creates a guarantee of payment and not of collection.

     Section 5.6    Subrogation.  The Guarantor shall be subrogated to all (if
                    -----------
any) rights of the Holders of Preferred Securities against the Issuer in respect
of any amounts paid to such Holders by the Guarantor under this Preferred
Securities Guarantee; provided, however, that the Guarantor shall not (except to
                      --------  -------
the extent required by mandatory provisions of law) be entitled to enforce or
exercise any right that it may acquire by way of subrogation or any indemnity,
reimbursement or other agreement, in all cases as a result of payment under this
Preferred Securities Guarantee, if, at the time of any such payment, any amounts
are due and unpaid under this Preferred Securities Guarantee. If any amount
shall be paid to the Guarantor in violation of the preceding sentence, the
Guarantor agrees to hold such amount in trust for the Holders and to pay over
such amount to the Holders.

     Section 5.7    Independent Obligations.  The Guarantor acknowledges that
                    -----------------------
its obligations hereunder are independent of the obligations of the Issuer with
respect to the Preferred Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Preferred Securities Guarantee notwithstanding the occurrence of
any event referred to in subsections (a) through (g), inclusive, of Section 5.3
hereof.

     Section 5.8    Taxes.  All payments in respect of the Guarantee Payments
                    -----
(including interest accrued thereon, if any) by the Guarantor shall be made
without withholding or deduction for or on account of any Relevant Tax, unless
the withholding or deduction of such Relevant Tax is required by law.  In that
event, the Guarantor shall pay, as further Guarantee Payments, such additional
amounts as may be necessary in order that the net amounts received by a Holder
(or a third party on its behalf) after such withholding or deduction will equal
the amount which would have been received in respect of the Guarantee Payments
(including interest accrued thereon, if any) in the absence of such withholding
or deduction ("Guarantee Additional Amounts"), except that no such Guarantee
Additional Amounts shall be payable to a Holder (or a third party on its behalf)
with respect to any Guarantee Payments (including interest accrued thereon, if
any) (i) to the extent that such Relevant Tax is imposed or levied by virtue of
such Holder (or the beneficial owner of Preferred Securities to which such
Guarantee Payments relate) having some connection with the Relevant
Jurisdiction, other than being a Holder (or beneficial owner of Preferred
Securities) or (ii) to the extent that such the Relevant Tax is imposed or
levied by virtue of such Holder (or beneficial owner) not having made a
declaration of non-residence in, or other lack of connection with, the Relevant
Jurisdiction of any similar claim for exemption, if the Guarantor or its agent
has provided the beneficial owner of such Preferred Securities or its nominee
with at least 60 days' prior written notice of any opportunity to make such a
declaration or claim.

                                       14
<PAGE>

                                   ARTICLE VI

                   LIMITATION OF TRANSACTIONS; SUBORDINATION

     Section 6.1    Limitation of Transactions.  So long as any Preferred
                    --------------------------
Securities remain outstanding, if (i) the Guarantor has exercised its option to
defer interest payments on the Debt Securities by extending the interest payment
period and such extension period, or any extension thereof, shall be continuing,
(ii) the Guarantor shall be in default with respect to its payment or other
obligations under this Preferred Securities Guarantee or (iii) there shall have
occurred and be continuing an Event of Default under the Declaration or any
event that, with the giving of notice or lapse of time or both, would constitute
an Event of Default under the Declaration, then the Guarantor shall not (a)
declare or pay any dividend on, make any distributions with respect to, or
redeem, purchase, acquire, or make any liquidation payment with respect to, any
of its capital stock or (b) make any payment of interest, principal or premium,
if any, on or repay, repurchase or redeem any debt securities of the Guarantor
that rank PARI PASSU with or junior in interest to the Debt Securities or make
any guarantee payment with respect to any guarantee by the Guarantor of the debt
securities of any subsidiary of the Guarantor if such guarantee ranks PARI PASSU
with or junior in interest to the Debt Securities (other than (i) as a result of
the exchange, redemption or conversion of one class or series of the capital
stock of the Guarantor (or any capital stock of a subsidiary thereof) for
another class or series of the capital stock of the Guarantor or any class or
series of the indebtedness of the Guarantor for any class or series of the
capital stock of the Guarantor, (ii) the purchase of fractional interests in
shares of the capital stock of the Guarantor pursuant to the conversion or
exchange provisions of such capital stock or the security being converted into
or exchanged for such capital stock, (iii) dividends or distributions in common
stock of the Guarantor, (iv) any declaration of a dividend in connection with
the implementation of a stockholders' rights plan, or the issuance of rights,
stock or other property under any such plan in the future, or the redemption or
repurchase of any such rights pursuant thereto, (v) payments under this
Preferred Securities Guarantee or under any similar guarantee by the Guarantor
with respect to any trust common or trust preferred securities of its
subsidiaries and (vi) repurchases, redemptions or other acquisitions of shares
of the capital stock of the Guarantor in connection with (1) any employment
contract, benefit plan or other similar arrangement with or for the benefit of
one or more employees, officers, directors or consultants, (2) a dividend
reinvestment or shareholder stock purchase plan or (3) the issuance of capital
stock of the Guarantor (or securities convertible or exercisable for such
capital stock) as consideration in an acquisition transaction entered into prior
to such extension period).

     Section 6.2    Subordination.  This Preferred Securities Guarantee will
                    -------------
constitute an unsecured obligation of the Guarantor and will rank (i)
subordinate and junior in right of payment to all other liabilities of the
Guarantor (except any liabilities that may be PARI PASSU or junior expressly by
their terms), (ii) PARI PASSU with the most senior preferred or preference stock
now or hereafter issued by the Guarantor and with any guaranty now or hereafter
entered into by the Guarantor in respect of any preferred or preference stock of
any Affiliate of the Guarantor and (iii) senior to the Guarantor's common stock.

                                       15
<PAGE>

                                  ARTICLE VII

                                  TERMINATION

     Section 7.1    Termination.  This Preferred Securities Guarantee shall
                    -----------
terminate as to each Holder upon, and be of no force and effect from the earlier
of (i) full payment of the Redemption Price and accumulated and unpaid
Distributions with respect to all Preferred Securities, (ii) the distribution of
the Debt Securities to the Holders of the Preferred Securities or (iii) full
payment of the amounts payable in accordance with the Declaration upon
liquidation of the Issuer.  This Preferred Securities Guarantee shall terminate
completely upon full payment of the amounts payable in accordance with the
Declaration.  Notwithstanding the foregoing, this Preferred Securities Guarantee
will continue to be effective or will be reinstated, as the case may be, if at
any time any Holder must restore payment of any sums paid under the Preferred
Securities or under this Preferred Securities Guarantee.

                                  ARTICLE VIII

                                INDEMNIFICATION

     Section 8.1    Exculpation.
                    -----------

          (a) No Indemnified Person shall be liable, responsible or accountable
in damages or otherwise to the Guarantor or any Covered Person for any loss,
damage, liability, expense or claim incurred by reason of any act or omission
performed or omitted by such Indemnified Person in good faith in accordance with
this Preferred Securities Guarantee and in a manner that such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such
Indemnified Person by this Preferred Securities Guarantee or by law, except that
an Indemnified Person shall be liable for any such loss, damage, liability,
expense or claim incurred by reason of such Indemnified Person's negligence or
willful misconduct with respect to such acts or omissions.

          (b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of the Guarantor, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders of Preferred Securities might properly be paid.

     Section 8.2    Indemnification.  The Guarantor agrees to indemnify each
                    ---------------
Indemnified Person for, and to hold each Indemnified Person harmless against,
any and all loss, liability or expense, including taxes (other than taxes based
upon the income of the Preferred Guarantee Trustee), incurred without negligence
or bad faith on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses

                                       16
<PAGE>

(including reasonable legal fees and expenses) of defending itself against, or
investigating, any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The provisions of this
Section 8.2 shall survive the termination of this Preferred Securities Guarantee
or the resignation or removal of the Preferred Guarantee Trustee.

     When the Preferred Guarantee Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 5.1(e) or Section
5.1(f) of the Indenture, the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for services are intended to
constitute expenses of administration under any applicable federal or state
bankruptcy, insolvency or other similar law.

                                   ARTICLE IX

                                 MISCELLANEOUS

     Section 9.1    Successors and Assigns.  All guarantees and agreements
                    ----------------------
contained in this Preferred Securities Guarantee shall bind the successors,
assigns, receivers, trustees and representatives of the Guarantor and shall
inure to the benefit of the Holders of the Preferred Securities then
outstanding.  Except in connection with any merger or consolidation of the
Guarantor with or into another entity permitted by Section 9.1 of the Indenture
or any sale, transfer or lease of the Guarantor's assets to another entity
permitted by Section 9.1 of the Indenture, the Guarantor may not assign its
rights or delegate its obligations under this Preferred Securities Guarantee
without the prior approval of the holders of at least a Majority in liquidation
amount of the Preferred Securities then outstanding.

     Section 9.2    Amendments.  Except with respect to any changes that do not
                    ----------
adversely affect the rights of Holders (in which case no consent of Holders will
be required), this Preferred Securities Guarantee may only be amended with the
prior approval of the Holders of at least a Majority in liquidation amount
(including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accumulated and unpaid Distributions to the date upon which the
voting percentages are determined) of the Preferred Securities then outstanding.
The provisions of the Declaration with respect to meetings of Holders apply to
the giving of such approval.

     Section 9.3    Notices.  All notices provided for in this Preferred
                    -------
Securities Guarantee shall be in writing, duly signed by the party giving such
notice, and shall be delivered, telecopied or mailed by first class mail, as
follows:

          (a) If given to the Preferred Guarantee Trustee, at the Preferred
Guarantee Trustee's mailing address set forth below (or such other address as
the Preferred Guarantee Trustee may give notice of to the Holders of the
Preferred Securities):

               The Bank of New York
               101 Barclay Street, Floor 21 West
               New York, NY   10286
               Attention: Corporate Trust Administration

                                       17
<PAGE>

          (b) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Holders of the Preferred Securities):

               Torchmark Corporation
               2001 Third Avenue South
               Birmingham, Alabama 35233
               Attention:  General Counsel

          (c) If given to any Holder of Preferred Securities, at the address set
forth on the books and records of the Issuer.

With respect to the Preferred Guarantee Trustee and the Guarantor, all notices
shall be deemed to have been given when received.  With respect to any Holder of
Preferred Securities, all notices shall be deemed to have been given when mailed
by first class mail, postage prepaid.

     Section 9.4    Benefit.  This Preferred Securities Guarantee is solely for
                    -------
the benefit of the Holders of the Preferred Securities and, subject to Section
3.1(a), is not separately transferable from the Preferred Securities.

     Section 9.5    Governing Law.   THIS PREFERRED SECURITIES GUARANTEE SHALL
                    -------------
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK
INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW.


                            (signature page follows)

                                       18
<PAGE>

     THIS PREFERRED SECURITIES GUARANTEE is executed as of the day and year
first above written.


                              TORCHMARK CORPORATION
                              as Guarantor


                              By: /s/ Michael J. Klyce
                                 --------------------------------------
                                    Name: Michael J. Klyce
                                         ------------------------------
                                    Title: Vice President and Treasurer
                                          -----------------------------


                              THE BANK OF NEW YORK
                              as Preferred Guarantee Trustee


                              By: /s/ Robert A Massimillo
                                 --------------------------------------
                                    Name: Robert A. Massimillo
                                         ------------------------------
                                    Title: Vice President
                                          -----------------------------





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