Colonial Penn Life Insurance Review | Pros and Cons (2022)

November 7, 2022

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is the colonial penn legit? When it comes to choosing life insurance, there are many factors to consider. For example, what type of policy do you need? which company should you go with? And, perhaps most importantly, what price is right for you? In this review, we’ll take a look at Penn Colonial life insurance and see if it’s the right choice.

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penn colonial insurance summary

colonial penn offers a variety of life insurance options that combine simplified underwriting with a limited death benefit. they are ideal for people who don’t need a large payment, perhaps just enough to cover funeral costs, and who would normally have difficulty purchasing coverage elsewhere due to age or medical history. Colonial Penn sells life insurance to customers between the ages of 18 and 85.

Reading: How much life insurance do you get for 995

colonial penn offers two types of life insurance products: term and whole life. none of their life insurance policies require a medical exam, but there are some health questions you need to answer to see if you’re eligible for coverage. Your renewable term life insurance policy allows you to renew up to age 90, based on your current age at the time of renewal. Seniors age 40 and older can get whole life insurance with the life insurance payout option. If you are over 50, you can get a guaranteed acceptance whole life policy without a medical questionnaire.

This company offers reasonable prices for its final expense insurance (burial insurance) products, but if you’re young or healthy, you should compare prices from other providers.

Their policies do not require a medical exam, which has a maximum death benefit of $50,000. however, the monthly premiums are generally higher than other life insurance companies.

colonial penn life insurance policies

colonial penn offers several types of life insurance coverage options including simplified underwriting and a limited death benefit, which includes renewable term life insurance, guaranteed acceptance life insurance and permanent life insurance. life insurance with an optional life benefit rider.

pros and cons

Ins of Colonial Penn Life. is a large insurance company in the insurance industry.
Your current financial ratings are a– with a.m. best and a- with s&p.
they offer term and comprehensive policies.
its claim to fame is the colonial penn 995 plan.
colonial life insurance offers a no-exam policy for term insurance.
offers guaranteed acceptance coverage.
They only offer their brand name products because they are a captive insurance company. no variety.
options are minimal.
They do not offer universal life insurance.
the minimum age is 18 years. the maximum age is 75 years for the term policy.
the minimum age is 40 years. the maximum age is 75 years for the whole life policy.
colonial living costs can be high compared to rates from other insurance companies.
You can only choose 10, 20 or 30 years for term insurance.
maximum coverage amounts are limited to $50,000 for term and whole life plans.
$10,000 is the minimum amount of coverage.

term life insurance

renewable term life insurance policy is available in all states except california, montana, new york state and the virgin islands. the policy is available for people from 18 to 75 years old, renewable up to 90 years old. the maximum death benefit is $50,000. Rates are based on your age and gender, and your monthly premium amount increases as you age.

Your term life policy may have a cash value depending on how long you maintain coverage. CP does not require a medical exam for its term life insurance policies; instead, it assesses your eligibility based on a medical questionnaire.

A one-year term policy is available. after that, you can start a new plan every year. the death benefit in a term life plan is limited, with a maximum value of $50,000 that can be assigned to one or two beneficiaries.

Term life insurance can be purchased by clients between the ages of 18 and 75. You don’t need a medical exam, but the app does have some health questions. the cost of this policy is based on age and gender. it can be renewed up to 90 years.

whole life insurance

The permanent whole life insurance policy is available to clients ages 40 to 75, except for applicants from New York State or the Virgin Islands. The policy does not require a medical exam, but you will need to complete a health questionnaire to determine if you are eligible for coverage.

This whole life policy will cover you for your entire life. the policy will pay a maximum of $50,000 if something happens to you. the policy begins to accumulate a cash value after the first year. coverage is fixed, but the cost of the premium can change based on age and gender. however, in montana, they qualify premiums based on age only.

if you’re okay with answering questions about your health or haven’t turned 50 yet, cp offers standard whole life policies instead of guaranteed acceptance policies. applicants ages 40 to 75 can purchase up to $50,000 of coverage per lifetime. you need to answer health questions, but there is no medical exam. the price depends on your age and gender.

guaranteed whole life insurance

You can apply for Colonial Penn Guaranteed Acceptance Policies (final expense insurance) if you are between the ages of 50 and 85. This whole life policy does not require a medical exam, but there is a limited benefit period of two years if applicants want guaranteed coverage. this waiting period means that your policy will not pay a full death benefit to beneficiaries within the first two years of owning the plan.

pro: The policy can accumulate cash, beginning in the first year of coverage, and allows you to choose the death benefit limit.
pro: As long as you continue to pay the premium, your guaranteed acceptance plans will cover you for your lifetime. the policy has a fixed rate, so you will always pay the same premium.
with: Colonial Penn Insurance Company’s Guaranteed Acceptance Policy offers a restricted death benefit that is often marketed to seniors who want to lower the financial burden on their families upon their death.
with: There are no questions about your health and there is no medical exam. however, you are paying a hefty premium for not providing personal information. You may be able to get a cheaper premium from other insurance companies if they take into account more information, like your health and age, and if a medical exam is required.

Coverage amounts depend on the individual. but if the insured dies during the first two years, he will not receive all the money he paid.

life insurance

If you are diagnosed with cancer or another chronic illness, or if you have a heart attack or stroke, you can receive up to 50% of your whole life or term life death benefit with the life insurance option . This accelerated death benefit rider is available with permanent whole life and renewable term life policies.

the price

The cost of coverage varies a lot, depending on the type of insurance you choose and how much protection you need. their rates are 30-150% higher than the best rates. the final expense program is a gimmick to justify your higher premiums. Colonial Penn offers a variety of different plans to meet your needs. The following are permanent life insurance rates for people age 40 and older:

about the colonial colony

AARP co-founder Leonard Davis created Colonial Penn Insurance Company more than 50 years ago. cno financial group owns them. were among the first organizations to offer guaranteed acceptance of life insurance. Originally started in Philadelphia, its current corporate headquarters is now in Carmel, Indiana with 5,000 employees. tim arnold is currently the executive director.

Heavily televised on cable networks, peril host alex trebek was the face of the pennsylvania life insurance firm for many years. He was a paid brand ambassador until his death on November 8, 2020. Now, Meredith Viera has replaced them as his paid spokesperson.

financial strength

Currently, a.m. best has given colonial penn a rating of a-. however, standard & poor’s and fitch have lowered their rating to bbb+. Moore’s has a baa1 credit rating.

Based on the financial strength rating of a.m. Best, Colonial Penn meets all the requirements for a top-tier insurance provider, which means you have enough cash to pay claims. Consumers also seem to like Colonial Penn’s quick and easy claim procedure. Policies are backed by the claim-paying ability of the issuing insurance company according to the National Association of Insurance Commissioners. (naico)

customer service

Colonial Penn is a direct-to-consumer insurance provider; therefore, you will not be able to talk to insurance agents or financial experts about your insurance needs.

However, you can get an insurance policy quote online. If you would like to contact Colonial Penn’s sales department, please call 877-877-8052 and speak to someone. Customer service is available Monday through Friday from 8:30 a.m. to 5:00 p.m. m. to 10:00 p.m. m. et and Saturdays from 9:00 a.m. to 5:00 p.m. m. to 5:00 p.m. m. et.

Contact Colonial Penn’s Customer Service Department at 800-523-9100 to cancel your policy. After you enroll at Colonial Penn, you have 30 days to terminate your contract. If you join a plan and decide within 30 days that it’s not right for you, you can opt out or cancel and get a refund of the fees paid.

criticisms and complaints

Complaints amassed by Colonial Penns vary from various sources, and market research is contradictory. However, the Better Business Bureau gave Colonial Penn an A+ rating, even though it missed the cut at J.D. power’s 2020 usa uu. life insurance study The Better Business Bureau (BBB) has received 81 complaints against Colonia Penn in the past three years, most of which involved advertising, billing, and sales issues.

have received many complaints over the years. Compared to the national average, their complaint rate is significantly higher. Given their misleading advertising, it is not surprising that they receive many complaints. It will make some consumers angry and file claims against you if it means everyone gets $10,000 in coverage for only $9.95 a month.

With more complaints than expected for a company of its size and restricted coverage plans, Colonial Penn may not be the best life insurance policy available for you.

colonial penn life insurance reviews $9.95 per month

colonial penn’s 995 plan is guaranteed acceptance of limited subscription life insurance products and smaller death benefits that build cash value. unlike term life coverage. The problem with the $9.95 life insurance plan is that the older you get, the less coverage you have to pay for funeral expenses.

For example, $9.95 at age 50 could be worth $1,786 in life insurance. however, the same $9.95 life insurance plan could be worth $560 in life insurance at age 75, which is a rip off when the average cost of a funeral is around $15,000.

compare colonial penn life insurance quotes

Use our calculator to compare Colonial Penn life insurance rates to life insurance quotes from other insurance companies.

before buying

Before you compare companies, decide what type of policy you want. estimate how much coverage you’ll need and how long your coverage should last. make sure the insurers you’re looking for offer the coverage you need. When comparing competitive rates, be sure to get quotes for the same amount of coverage. also, check that the medical criteria of the policy are appropriate for you.

To shop for life insurance, compare quotes from several companies. Research is like when you’re shopping for car insurance. you want to find the policy with the cheapest rates. That’s because insurance is primarily for death benefit planning. make sure you buy insurance from a company with an a.m. best of “a-” or better.

You can get a significantly cheaper rate on final expense life insurance or anything else if you shop around. Plus, you can almost certainly buy coverage with no waiting period.

The biggest downside to alex trebek life insurance is that it is a captive insurance company. however, by working with an independent agency, you can save up to 70% on your life insurance.

When you contact a representative, they cannot go to other insurance providers to show you one that can offer you a better price. In essence, an independent company like the annuity expert will search the market to determine which insurance company offers the best rate and coverage for your specific needs.

compare colonial penn life insurance quotes

You can compare life insurance rates from 18 rated “a” or higher insurers. you can choose which policy you want to buy without problems.

conclusion

If you’re looking for a life insurance company that offers more options and a variety of policies, colonial penn life insurance may not be the right one for you. Although they have good financial ratings and offer term life insurance without a medical exam, they only provide Colonial Penn products which may limit your options. If you are interested in getting a life insurance quote, please request one below. We work with dozens of the best life insurers and will make sure to find the perfect policy for your needs. feel free to check out our other reviews below too!

do you need help?

If you have a pre-existing medical condition and are shopping for life insurance, you’ll need expert help. this person can help make sure you get coverage so you don’t get turned down.

Warning: Applying for life insurance without a medical exam can be risky. If you are denied coverage, it could be at least two years before you can get life insurance.