Colonial Penn Life Insurance Review | Pros and Cons (2024) (2024)

Our Colonial Penn Life Insurance Review

Colonial Penn Life Insurance, a prominent player in the life insurance market, specializes in offering a range of life insurance products. This review delves into the specifics of Colonial Penn’s offerings, assessing their suitability for various needs.

Insurance Options:

Term Life Insurance: Colonial Penn provides term life insurance policies suitable for individuals aged 18 to 75, with renewability up to age 90. These policies do not require a medical exam but include a health questionnaire. The maximum coverage is $50,000, with rates varying by age and gender.
Whole life insurance: This insurance is available to customers aged 40 to 75. Colonial Penn’s whole life insurance offers lifelong coverage with a maximum benefit of $50,000. This policy builds cash value over time and requires answering health questions for eligibility.
Guaranteed Acceptance Policies: Designed for individuals between 50 and 85 years old, these policies offer a fixed death benefit without a medical exam. They feature a two-year limited benefit period for guaranteed coverage.

Pros and Cons:

Pros: The policies build cash value and offer fixed premiums. Coverage is lifelong, and the application process is streamlined.
Cons: The policies tend to be more expensive than others in the market. The guaranteed acceptance policy has a restricted death benefit and lacks comprehensive underwriting. Finally, there aren’t any universal life insurance options for flexibility.

Financial Ratings and Company Background:

Colonial Penn, founded over 50 years ago, has a strong financial standing with an A- rating from A.M. Best and A- from Standard & Poor’s and Fitch. The company is known for its easy claim process and customer satisfaction.

Customer Experience

While Colonial Penn provides direct-to-consumer services with online quote capabilities, customer feedback indicates a higher-than-average complaint ratio, mainly related to advertising and billing issues.

Pricing

Colonial Penn’s rates are generally 30-150% higher than the best rates in the market. It’s crucial for potential buyers to compare these rates with other providers to find the most cost-effective option.

Colonial Penn Life Insurance $9.95 Per Month Reviews

Colonial Penn’s $9.95 plan guarantees the acceptance of life insurance products with limited underwriting and more minor death benefits that accumulate cash value, unlike term life coverage. The problem with the $9.95 life insurance plan is the older you are, 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 ripoff when the average cost of a funeral is around $15,000.

Final Assessment

Colonial Penn offers a range of life insurance products suitable for individuals with varying needs, especially those seeking coverage without a medical exam. However, the limited policy options and higher pricing may not cater to all customers.

Actionable Advice

Let’s be upfront – The Annuity Expert doesn’t endorse or recommend Colonial Penn’s products. But we know some of you might be considering them, so we want to share an honest perspective to help you make the right call.

Before committing to Colonial Penn, it’s wise to shop around and compare their coverage and rates with other life insurance providers. Every situation is different, and you’ll want to ensure their offerings genuinely align with your unique needs and circ*mstances. If you have any preexisting conditions, it may be extra helpful to consult an insurance expert who can guide you through the process and ensure you get the best fit.

The goal is to give you a candid, insightful analysis of Colonial Penn’s life insurance options. We laid out the facts so you can decide whether their products are the right move for you or if another insurer might be a better match. You’ve got to feel confident in your choice. Feel free to contact us. Our help is always free.

Compare Colonial Penn With Other Companies

Use our calculator to compare Colonial Penn life insurance rates withlife insurance quotesfrom other insurance companies.

Need Help?

If you have a preexisting medical condition and purchasing life insurance, you will need help from an expert. This person can help ensure you get coverage so you don’t get declined.

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

Frequently Asked Questions

Is Colonial Penn’s life insurance good?

For seniors wanting a little bit of coverage for funeral expenses and other end-of-life expenditures rather than complete coverage, Colonial Penn is a viable option. In addition, if you have trouble obtaining insurance elsewhere due to advanced age or complicated medical history, Colonial Penn’s limited underwriting criteria will be particularly beneficial.

Does Colonial Penn’s life Insurance have cash value?

Colonial Penn’s permanent life insurance policy builds a cash value, beginning after the first year of coverage, allowing you to choose the death benefit limit.

Does Colonial Penn have a waiting period?

Colonial Penn’s guaranteed acceptance whole-life policy has a two-year waiting period. There are no health concerns or examinations.

What companies offer final-expense insurance?

We recommend looking into final-expense insurance from organizations such as Transamerica, Americo, AIG, and Gerber, in addition to Colonial Penn. These providers provide reasonable premiums for policies comparable to Colonial Penn’s. For a more detailed analysis of these companies, request a quote.

How much is Colonial Penn’s whole life insurance?

The price of Colonial Penn’s whole life insurance depends on several factors, including the age and health of the policyholder, the amount of coverage desired, and the length of the policy term. Generally speaking, whole life insurance policies are more expensive than other types of life insurance, such as term life insurance.

How much is a unit of life insurance?

A unit of life insurance is typically $1,000. However, the price of a unit will vary depending on the insurer and the type of policy.

How much does the Colonial Penn $9.95 plan cover?

You called Colonial Penn for a quote for life insurance. They told you that you have to buy units. For a 68 year-old-male, 1 unit at $9.95 a month will give you $792 in life insurance coverage. This is a good deal because one unit costs only $9.95 each month.

Who owns Colonial Penn?

Colonial Penn is owned by Colonial Penn Group, Inc., a subsidiary of CNO Financial Group, Inc. CNO Financial Group, a publicly-traded company with headquarters in Carmel, Indiana. As of December 31, 2018, CNO Financial Group had assets of approximately $19 billion and operated through several subsidiaries, including Colonial Penn Life Insurance Company.

Is Colonial Life and Colonial Penn the same company?

No, they are not the same company. Colonial Life & Accident Insurance Company is separate from Colonial Penn Life Insurance Company.

What are the primary complaints about Colonial Penn’s $9.95 plan?

The main issue with Colonial Penn’s $9.95 plan is that its marketing suggests a universal rate of $9.95 per month, but this rate applies only to the youngest eligible age group at the minimum coverage level. As the face amount increases, so does the premium, which can be misleading based on initial promotions. Additionally, many people are unaware that healthier individuals might qualify for plans offering immediate coverage, contrasting with Colonial Penn policies, where full coverage only kicks in after two years for claims related to medical events. This gap in understanding often leads to dissatisfaction among customers who expect different terms.