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Is Colonial Penn Life Insurance Good

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Colonial Penn Life Insurance Review

Are there better alternatives? YES!

The 995 life insurance plan from Colonial Penn may not fit all of your needs, so we encourage you to shop around for options at other companies.

If the coverage doesnt meet what you need or include specific features that are important to you, then check out some other affordable plans!

Should You Buy Colonial Penn Life Insurance

Like I said above, Colonial Penn may be the best deal for some people who happen to be in poor health and couldnt qualify for a better policy anyway.

The life insurance industry has tons of better options for people of average, good, or excellent health who dont smoke. Even shoppers who do have health problems can often find better coverage from other life insurance companies.

Famous and trustworthy spokespeople such as Alex Trebek, Ed McMahon, and Joe Theismann help assure TV audiences Colonial Penn offers them the coverage they need.

These ads dont lie. Just about anybody can, indeed, qualify for this kind of life insurance. But these ads do fail to mention Colonial Penns high costs and low coverage amounts.

They also dont inform viewers that an independent life insurance agent could find them more coverage for less money and with no waiting periods or medical exams.

Theres a reason insurance agents call guaranteed issue the last resort for coverage.

Colonial Penn Pros Explained

  • No medical exam required:While many life insurance plans ask health questions or require medical exams, the Guaranteed Acceptance whole life insurance option doesntand Colonial Penn guarantees youll be approved.
  • Potential ability to borrow against cash value:Some Colonial Penn insurance plans may allow you to borrow money from your life insurance policy. This includes both term and whole life insurance policies.
  • Guaranteed rate:For the Guaranteed Acceptance plan, your monthly premium stays the same over the policy life.

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How Much Life Insurance Can You Get For $995 A Month

This is an offer advertised by Colonial Penn Life that is much different than most life insurance quotes because of how affordable the life insurance payments are. What they dont say here is actually how much a $9.95 monthly life insurance payment can buy.

Below is a table for a 50-year-old and 70-year-old purchasing life insurance, though coverage is offered to those older than 70. The coverage amount is greatest when purchased at 50, with a benefit amount of $1,786, decreasing with age.

Colonial Penn Life Insurance Benefits and Rates

Units

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Colonial Penn Life Insurance Products By Type

Colonial Penn Life Insurance Review 2021 [Rates &  Fine Print]

Colonial Penn specializes in life insurance products with smaller death benefits and limited underwriting. Often referred to as final-expense insurance, these products make the most sense for people who want to have coverage in place quickly.

For instance, someone in poor health may only need a small payout to cover funeral expenses, a loan or another limited financial obligation.

Depending on your financial needs, Colonial Penn offers three types of life insurance policies:

Term life
No, rates increase with ageYes
YesNo

Sample premiums are for a 50-year-old man. The range represents the difference between the minimum and maximum coverage offered.

You can apply for all of Colonial Penn’s life insurance products online, and none require a medical exam. This is convenient for consumers who want to quickly purchase coverage. While Colonial Penn also advertises a 30-day money-back guarantee, this feature isn’t unique and shouldn’t be a reason you decide to purchase from them.

Most states have “free look” laws requiring insurers to provide a full refund, if requested, for 10 to 30 days after purchase.

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Business Profileforcolonial Penn Life Insurance Company

Colonial Penn Life Insurance Company

399 Market St

161 complaints closed in last 3 years

98 complaints closed in last 12 months

399 Market St, Philadelphia, PA 19106-2117Email this Business

3/18/2020
Licensing Information:This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.BBB records show a license number of 915504 for this business, issued by Insurance Department, Bureau of Consumer & Producers Services-PA

These agencies may include:

Insurance Department, Bureau of Consumer & Producers Services-PA1326 Strawberry Square, 13th FloorHarrisburg PA 17120BBB records show a license number of NAIC: 62065 for this business, issued by Insurance Department, Bureau of Consumer & Producers Services-PA

These agencies may include:

Insurance Department, Bureau of Consumer & Producers Services-PA1326 Strawberry Square, 13th FloorHarrisburg PA 17120

  • Mr. John C. Deen Jr., Director
  • Mr. B. Iacovetti, Treasurer
  • Ms. Celeste Fiordimondo, Senior Director
  • Ms. Sherie Sealy, Team Leader
  • Mr. Joel Schwartz, President
  • Ms. Sherie Sealy, Team Leader
Additional Contact Information

Why Guaranteed Acceptance Insurance Is Not Ideal

Why? Because the insurance company takes a lot more risk with guaranteed acceptance.

Higher Risk = Higher Rates

Since it requires no medical exam and asks so few, if any, questions about your health, Colonial Penn doesnt know whether youre at risk of dying next week or in 20 years. To stay in business, it has to assume everyones high risk and charge accordingly.

If youre familiar with life insurance already, you know that your premiums are impacted by coverage amount and your health.

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Colonial Penn Life Insurance Review For 2021 + Sample Rates

Colonial Penn even offers coverage without medical examinations.Excellent advertising aside, is Colonial Penn a good choice for life insurance?

Lets find out! In this Colonial Penn Life Insurance review, well provide everything you need to know to determine if theyre the right option right for you.

  • Term policies cover up to age 90

Cons

  • Relatively high premiums

Is Colonial Penn Legit

Colonial Penn Life Insurance Review

It is a legitimate company. If youre asking, is Colonial Penn good insurance? you will have to read the Colonial Penn complaints and reviews online. Colonial Penn prices do make it seem a little too good to be true but getting information from an objective third-party resource can help you make all of your life insurance decisions.

But how bad can it be if you get Alex Trebek to endorse your life insurance? If youre shopping around for affordable Colonial Penn life insurance , you may also want to read through our Globe Life insurance company review.

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How Much Does Colonial Penn Burial Insurance Cost

Colonial Penn approaches life insurance pricing different from its competitors. Most life insurers ask customers how much coverage they want and then quote them a price.

Colonial Penn looks at it the other way. They assume that customers want to leave their families with as much money as they can afford to.

$9.95 always buys you one unit of this Colonial Penn guaranteed acceptance policy and customers can buy up to 8 units.

Colonial Penn Pricing: An Example

An example may make it easier to understand. The customer is a 55-year-old male living in California. If this customer says that he wants to buy one unit of insurance , Colonial Penn will let him know that this monthly rate will buy him $1,560 of coverage.

If this is enough burial coverage for you, then your monthly premium payments will be $9.95 .

Additional coverage can be purchased at the same rate . So if you choose to buy 5 units, you will pay $49.75 and receive $7,800 of coverage.

How many units should you buy? That depends a lot on your state, as average funeral expenses vary by geography. Check out our full article on funeral costs to hear more on this topic.

Is Colonial Penn Burial Insurance Worth It For You

If you want to be cremated and need money for that, Colonial Penn is a good option. Most other life insurance companies sell coverage that starts at $5,000. With Colonial Penn, you have access to smaller policies, so you wont pay for coverage you dont need.

However, if you want a traditional burial and funeral service, youll need a large payout. While you can scale down the extravagance of the funeral service, you cannot buy half a casket or half a headstone in other words, there is a minimum amount you need to spend. For larger policies , Colonial Penn is definitely not the most affordable option.

No matter what you decide, keep in mind that you can cancel your policy at any time without a penalty. And if you cancel within the first 30 days , they will even refund your first premium payment.

So if youre currently without coverage, it cant hurt to buy a small policy now and cancel it when you find a better deal in the future.

Warm Regards,

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What Is Whole Life Coverage

The basic whole life plan from the life insurance company can be taken out a little younger, starting at age 40. While this plan also has no medical exam, some medical and health questions will be taken into account during underwriting.

Like all whole life plans, Colonial Penn Life Insurance Company offers a cash accumulation benefit along with the chosen death benefit. The maximum coverage amount for this policy is $50,000.

Guaranteed Acceptance Life Insurance

Is Colonial Penn Life Insurance Good

In most states, people aged 50 to 85 years of age can apply for Colonial Penns Guaranteed Plan. This whole life policy does not require a medical examination but has a two-year limited benefit period meaning that your policy will not pay out a death benefit in the first two years. The policy builds a cash value, beginning after the first year of coverage, and allows you to choose the death benefit limit.

A Colonial Penn Guaranteed Acceptance Plan covers you for your entire life if you continue to pay the premium. It features a fixed rate, so you will pay the same premium throughout the life of the policy.

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Do They Offer Term Life Insurance

The insurance company offers renewable term life insurance, which is up to $50,000 in coverage. Its for individuals ages 1875, so that includes both young folks and seniors.

It also offers:

  • Answers to questions on their application help them determine your eligibility
  • Renewable coverage up to age 90
  • Locked-in premium rate schedules

Do note if you are looking for an option for seniors that term life insurance rates increase with age. For more info about no medical exam life insurance coverage, check out these other no medical exam term life rates.

Colonial Penn Whole Life Insurance

If you’re willing to answer health questions about yourself or haven’t yet reached 50, Colonial Penn offers traditional whole life insurance as an alternative to the guaranteed acceptance program. Since the company can better assess your risk through health questions, this policy’s death benefit can be as high as $50,000 in value. However, it’s still significantly lower than what is available through other insurers.

Cost

Colonial Penn’s whole life policy lets you choose the particular death benefit you want, meaning premiums vary based on your risk profile. To give you a sense of the range of monthly premiums, we’ve pulled sample rates for the maximum and minimum coverage amounts offered:

Age
$94.07$455.36

These quotes are meant to be illustrative and are not binding. You may be quoted a different amount based on your personal details.

Restrictions

Colonial Penn does not offer whole life insurance in Maine, New York or Vermont, and policies can only be purchased between the ages of 40 and 75.

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A Fixed Price For Variable Amounts Of Coverage

Colonial Penn isnt afraid to buck the trend when it comes to selling burial insurance coverage.

Most life insurance carriers let you choose how much insurance coverage you want. They then tell you the monthly premium price they can offer you.

Colonial Penn does it in reverse. They allow you to choose your monthly payments and then let you how much coverage they can offer you.

$9.95 always buys you one unit of coverage.

And how much coverage does that unit give you? Thats where the Companys minimal underwriting comes in depends on your age.

Burial Insurance = Whole Life Insurance

Colonial Penn Whole Life Insurance – My Review

Regarding the policies themselves, burial insurance is nothing more than whole life insurance.

As with all life insurance policies, the product you are purchasing is a payout when you die. If you have a $100,000 policy, this means that your life insurance company will pay your beneficiary $100,000 when you die.

Whole life insurance policies provide you lifetime coverage . This differs from term life insurance, which covers you for a pre-determined period of time , usually between 10 and 30 years.

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Colonial Penn Guaranteed Acceptance Program

Colonial Penn’s guaranteed acceptance program is a whole life insurance policy with a limited death benefit, and is often marketed to seniors who want to reduce their family’s financial impact upon their death.

Unlike some final-expense insurance products that let you choose a particular payout, Colonial Penn collects your age, gender and location, then assigns you a “unit” of coverage . Since the price is fixed, the amount of coverage available per unit varies according to your risk profile. The minimum value of a unit of coverage is approximately $400 and the maximum is approximately $2,100, meaning the maximum death benefit you can select is around $16,800.

For example, say one unit of coverage provides a $1,621 death benefit for a 60-year-old woman. If she wants the policy to cover all of her funeral costs which generally average $10,000 she should purchase seven units of coverage. The policy would offer a total benefit of $11,347 to her beneficiary when she dies.

Since the guaranteed acceptance coverage is a form of whole life insurance, it accumulates a cash value that can be borrowed against at an 8% annual interest rate.

Cost

Monthly premiums are directly tied to the number of units purchased, and each unit costs $9.95 per month. You can purchase up to eight units, so the maximum monthly premium is $79.60. If you pay annually, you receive a discount equal to one month’s premium, or an 8.3% discount for the year.

Restrictions

What Discounts Does Colonial Penn Offer

While Colonial Penn does not make information about their discounts readily available to prospective customers through their website or direct inquiries, there are several standard discounts offered by many life insurance companies. These discounts include:

  • Discounts offered to women: Life insurance companies often charge noticeably cheaper premiums on their policies to women over men in the same age bracket.
  • Non-tobacco user discount: Life insurance companies tend to reward customers who do not use tobacco products with cheaper premiums.
  • Safe hobbies discount: Life insurance companies often award customers who practice safe, non-life threatening hobbies with cheaper premiums.
  • Healthy BMI discount: Life insurance companies often grant cheaper premiums to customers with healthy body weight respective to their age group and height.
  • Annual premium discount: One verified discount offered by Colonial Penn is awarded to customers who pay their premiums annually instead of monthly.

An independent insurance agent can help you find specific discounts and quotes for more exact premium rates available through Colonial Penn, helping you get the most bang for your buck out of your coverage.

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How To Find Better Life Insurance Options Than Colonial Penn

If you are looking for life insurance for final expenses or anything else, you can 100% get a much lower price. In addition, you can very likely get coverage that has no waiting period.

The biggest issue with Colonial Penn is that they are a captive insurance company. That means they can only offer you one insurance company. When you speak to a Colonial Penn agent, they cannot shop around and show you another insurance company that would give you a better deal.

The trick to finding the best and most affordable final expense life insurance is to work with an independent insurance agency. Only an independent agency can compare offers from multiple providers.

In essence, they shop the market for you to determine which carrier has the best price and coverage for your unique situation.

Believe it or not, it does not cost you a fee to work with an independent agency, and the insurance doesnt cost more.

Working with an independent agency can save you as much as 70% on your life insurance .

You can call us at 1-800-644-2926, and we can assist you. Were independent and have over 15 different A rating companies that we will shop for you.

Below are reviews from real customers who dealt with us.

Cancellation Policy: A Decent Free

Colonial Penn Whole Life Insurance 995 Per Month

Customers who decide to purchase an insurance policy from Colonial Penn have a 30-day window in which they can cancel their policy at no cost. Customers who wait longer than 30 days to cancel their policies will incur partial or full surrender charges that are deducted from the cash values of their policies when theyre canceled, along with any outstanding loans and interest due.

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Additional Policies Offered By Colonial Penn

Colonial Penns Active Care supplemental health insurance plan can complement your life insurance policy by providing asset protection when you need it most.

Todays high health care costs can cause a serious financial burden, even if you carry medical insurance. Colonial Penns Active Care coverage can help pay expenses related to a variety of health conditions, including:

  • Accidental injuries
  • Heart attacks
  • Strokes

Active Care pays up to $60,000. And unlike your health insurance coverage, this supplemental policy pays the benefit directly to you. You can use the payment to pay copayments and deductibles required by your health care coverage, or to pay medical bills and everyday expenses such as car payments, groceries, mortgage payments or rent.

Colonial Penn offers Active Care coverage to adults and children. If you dont file a claim before the end of the policy term, Colonial Penn will return a portion of your premium. Availability of Active Care and the cash return benefit may vary by state.

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