Colonial Penn life insurance is considered prestigious for its popular television commercials, in addition to being promoted by Alex Trebek with his convincing lip.
In this Colonial Penn review, you will learn about its history, financial qualifications, the types of life insurance it offers, and its life insurance pricing table. By the time you finish reading this review, you will have a better idea of whether Colonial Penn is a good choice for what you need in life insurance.
These are the key takeaways …
Colonial Penn life insurance is rated “A-” (excellent) by AM Best. The company offers guaranteed acceptance, term, and permanent life insurance, and is generally geared toward older adults. The application process is simple and the name inspires confidence, but Colonial Penn policies are generally more expensive than those of other providers.
About Colonial Penn Life Insurance
Colonial Penn has been offering life insurance policies for over 60 years.
The company uses a combination of call centers, websites, mail and television to reach people and share their life insurance options with them.
The company was one of the first to design life insurance for seniors , and was one of the pioneers in offering its guaranteed acceptance plan to people age 50 and over by 1968.
Colonial Penn Financial Ratings
First of all, let’s take a look at the reputation of the company, and how safe your money is in their hands.
Colonial Penn has received excellent financial ratings from the following agencies:
As you can see, your financial scores are good, which guarantees that your policy will probably pay you.
But how does Colonial Penn compare to other major life insurance companies in terms of policies and pricing?
Types of policies Colonial Penn offers
Colonial Penn offers 3 different types of life insurance. We’ll explain what they are below and help you decide if it’s the right type of insurance for you.
Colonial Penn Guaranteed Acceptance Life Insurance
Colonial Penn offers guaranteed acceptance life insurance policies , which works like your “funeral insurance” policy since it does not require a medical underwriting and, as the name implies, is guaranteed.
Regardless of whether or not you have pre-existing conditions, your medical history, age or any other factor, you can request it and obtain approval. This is one of your most important sales pitches.
This is without a doubt Colonial Penn’s best-selling product. It appears on television all the time.
Now, Colonial Penn’s guaranteed policy is the most expensive type of life insurance policy because it carries the highest risk for insurers . That said, paying benefits involves a 2-year waiting period.
We have found that most people do not need a guaranteed issue life insurance policy. We have repeatedly substituted Colonial Penn life insurance policies for other options that offer better price coverage and pay benefits in 1 day (without Colonial Penn’s 2-year waiting period). Even in cases of health problems such as COPD or multiple sclerosis
Even if you are not in good health and need a guaranteed issue policy, there is probably a better funeral insurance option for you than Colonial Penn. You can almost always find a better policy.
If you’re looking for final expense life insurance, compare Colonial Penn’s to other major life insurance providers like Globe Life Insurance before deciding on a policy.
Colonial Penn Term Life Insurance
The insurance term life is a life insurance provides coverage for a specific time period. Typically this period is between 10 and 40 years, and is available in 5-year increments, that is, terms of 10, 15, 20, 25, 30, and 40 years.
These policies are generally the least expensive type of life insurance. They can often be renewed at the end of the term, or converted to a permanent life policy. The policies can be supplemented with additional clauses that allow to extend the coverage and its flexibility.
The term life insurance policy increases in price every 5 years and expires when the insured reaches 90 years of age.
You can certainly find similar coverage that stays stable for the rest of your life at a price similar to Colonial Penn life insurance.
I don’t really understand why they even offer this product, since any other insurer on the market can offer better prices and guarantees than Colonial Penn.
Colonial Penn Permanent Life Insurance
The permanent life insurance assures for the rest of your life. This type of insurance is more expensive than term policy, but some policies offer some interesting benefits such as cash value appreciation and investment options.
These types of life insurance policies also offer riders, and are generally more customizable than term life insurance policies.
Colonial Penn permanent life insurance involves medical questions, but no medical exam is required. It is less expensive than guaranteed issue life insurance, but much more expensive than other insurance you can purchase on the market.
All Colonial Penn life insurance policies are non-medical policies that offer lower amounts of coverage than most life insurance policies on the market.
This makes them an excellent option for a very specific niche market – older adults who are unfamiliar with the subject. There is no reason for a person to purchase a Colonial Penn life insurance policy. There are much better options on the market.
Affordable life insurance options can be found if you speak with an independent life insurance agent today.
Colonial Penn Life Insurance Pricing Chart
Colonial Penn’s prices are generally higher than those of other providers.
Comparing them is difficult because they have a deceptive way of pricing their products in “units”. We will explain this later.
We’ll start with the most popular policy – Colonial Penn Guaranteed Acceptance Insurance.
Guaranteed Acceptance Life Insurance Price Tables
Colonial Penn’s guaranteed issue life insurance is unit-based.
For $ 9.95 you can purchase one unit of your coverage .
Depending on your age, they can offer any amount of coverage between $ 400 and $ 2,100.
Each person can buy up to 8 units, with a maximum coverage of approximately $ 16,000.
Below is Colonial Penn’s pricing chart for both men and women. Find your age and see how much this guaranteed acceptance life insurance policy would cost you.
Price table for women
|Age||1 unit: $ 9.95||2 units: $ 19.90||4 units = $ 39.80||6 units = $ 59.70||8 units = $ 79.60|
|Age 50||Payment of $ 2,083||$ 4,166 payment||Payment of $ 8,332||Payment of $ 12,498||Payment of $ 16,664|
|Age 51||Payment of $ 2,068|
Price table for men
|AGE||1 Unit: $ 9.95||2 units: $ 19.90||4 units: $ 39.80||6 units: $ 59.70||8 units: $ 79.60|
|Age 50||Payment of $ 1,786||Payment of $ 3,572||$ 7,144 payment||$ 10,716 payment||Payment of $ 14,288|
Technically, this is a permanent life policy and it generates cash value for the life of the policy, plus you can access that money.
8% of its face value can be accessed per year.
Guaranteed issue life insurance policies also have a tiered benefit, and only pay benefits after the policy has been in effect for 2 years, unless the policyholder’s cause of death is an accident.
Colonial Penn guaranteed issue permanent life insurance policies are available to anyone between the ages of 50 and 85.
The price of these policies ranges between $ 9.95 and $ 79.60 per month.
This is considered a funeral insurance policy. This is a good policy for people who are not in good health and who need minimal coverage to protect their family in the event of death.
Term life insurance prices
Colonial Penn term policies are available to adults between the ages of 18 and 75. The minimum coverage for these policies is $ 10,000 and the maximum is $ 50,000, and their prices can be quite expensive compared to other term life and funeral insurance policies available on the market.
Colonial Penn term life insurance prices generally depend on increments that occur every 5 years of age.
Below we can see for example a price table for a 50-year-old woman looking for a $ 50,000 policy:
|41 to 45||$ 35.21 / month.|
Permanent life insurance prices
Your permanent life insurance policy also has a maximum face value of $ 50,000, and a minimum of $ 10,000.
Prices will vary based on the different age ranges.
Colonial Penn permanent life insurance policies are available to anyone between the ages of 40 and 75.
Here are some examples of prices for men and women between 40 and 75 years old who seek the minimum and maximum coverage in permanent life insurance:
|$ 10,000||40||Male||$ 18.71 / month|
|75||Feminine||$ 94.07 / month|
What You Should Know Before Applying For Colonial Penn Life Insurance
There are a few things you should know before applying for Colonial Penn life insurance.
Colonial Penn offers money-back guarantee
Colonial Penn offers a 30-day money-back guarantee. If you are not satisfied with your funeral insurance policy, you can return it within 30 days for a full refund.
There is nothing special about this guarantee. By law, all life insurance companies must offer what is known in the life insurance industry as a “free trial” period. They disguise it as a 30-day money-back guarantee, but it’s just well thought out marketing, and it’s nothing new.
They reject people with some pre-existing diseases
There are some conditions for which Colonial Penn will deny your application for term or permanent life insurance (not guaranteed issue life insurance).
If you have any of the following illnesses, you may only be able to receive the funeral insurance policy, which is financially more limited but adequate to cover burial and other funeral expenses in many states.
Some of these diseases are:
- Disability as a result of illness
- Receive home health care
- Diabetes insulin dependent
- Be a permanent wheelchair user
- Diabetic complications such as severe obesity, neuropathy, peripheral vascular disease, or retinopathy
- Use blood thinners such as Plavix, Coumadin, or Warfarin
- Relying on an oxygen tank
- Congestive heart failure
- Renal insufficiency
- Muscular dystrophy
- Cystic fibrosis
- Coronary artery disease
- Multiple sclerosis
Pros and Cons of Colonial Penn Life Insurance
Choosing a life insurance policy is not something to do in a hurry. You have to do your homework .
It will be beneficial for you to weigh what costs you want your policy to cover, what your current income is, what bills may go unpaid, and who would depend on you if you died in the near future.
Beyond this, you should consider the pros and cons of Colonial Penn life insurance.
Pros of Colonial Penn
- No health questions
- Everyone qualifies for your guaranteed acceptance life insurance.
- Simple application process. It can be requested by phone.
- Reliable and recognized company
Cons of Colonial Penn
- Their policies are expensive. In general you can find better prices in other companies.
Life insurance companies that are better priced than Colonial Penn also have a simple application process with no health questions, and are backed by names like AIG and Gerber .
In other words, you can get a lot better. And if you’ve already purchased a Colonial Penn life insurance policy, you can cancel it at any time.
Compare Colonial Penn Life Insurance Against Other Providers
What you should do then is assess your general health and get quotes from more than one company. Each case is different, Colonial Penn may or may not be the best option in your specific case.
Overall, Colonial Penn is definitely a good choice for those who prefer to avoid medical questions or tests. It has permanent life insurance guaranteed with premiums that remain stable and never go down.
Their prices, on the other hand, are not the lowest on the market and are severely limited in relation to how much coverage you can buy.
When it comes to applying for life insurance, the best thing you can do is get informed.
And the best way to do it is through an independent life insurance agent with whom you can talk about your financial needs and your current situation and that of your family, so that in this way they can help you find the best option in price, policy, provider and coverage among the hundreds of options available.