Colonial Penn is a life insurance company based in Philadelphia, Pennsylvania. Founded in 1968, they offer a variety of life insurance options. They are known for serving customers aged 50 and over. However, they also offer life insurance for younger adults.
Colonial Penn Life Insurance has been a subsidiary of CNO Financial Group since 1997. They currently offer coverage in all 50 states, although coverage in New York is offered through a separate subsidiary.
Because there are so many different life insurance companies on the market, it can be difficult to choose the one that best suits your needs. In this article, we’ll take a look at Colonial Penn Life Insurance and the policies they offer to see if they’re right for your needs.
Types of life insurance offered
Colonial Penn offers several types of life insurance to choose from. Here are the options they offer.
Guaranteed acceptance for a lifetime
This is the most popular Colonial Penn insurance policy on the market. It’s gotten a lot of attention because it’s affordable — policies start at $9.95 per month.
Guaranteed issue life insurance provides coverage from the date of issue until the end of your life. It differs from traditional life insurance in that you don’t have to undergo a medical exam or answer health questions to qualify.
However, the benefits are not as extensive as with conventional life insurance. The exact amount of the benefit depends on your individual situation. These policies are typically designed to cover funeral costs only and not to pay off debts or support family members.
Colonial Penn’s Guaranteed Acceptance Life Insurance is available to people between the ages of 50 and 85. This policy has a two-year limited benefit period. This means that the beneficiaries will not receive the full sum insured if the insured person dies within the first two years of taking out the policy.
These policies also include a cash value component. You can decide how often you want to make your premium payments – they offer monthly, quarterly, semi-annual and annual payment plans.
Permanent life insurance
Colonial Penn also offers permanent life insurance for customers ages 40 to 75. This is a great option for anyone who wants more comprehensive coverage for the rest of their life.
While you don’t need to complete a medical exam to qualify for this coverage, you will need to answer some health questions as part of your application. This coverage is not a guaranteed problem, meaning Colonial Penn could theoretically deny you coverage if your health is bad enough.
This plan offers a maximum benefit of $50,000. Your rates are set when the plan is first approved and remain the same throughout the life of the policy. After the first year, this policy includes a cash value component that you can borrow as needed.
Duration
Although Colonial Penn does not currently offer term life insurance, it has historically offered it to customers ages 18 to 75. If you are interested, you should speak to the sales team to see what their options are. Their temporary life plans were the only ones that catered to younger customers. Term plans are typically cheaper than life insurance plans and are valid for a specific number of years rather than for a lifetime.
As with Colonial Penn’s life insurance policies, term life insurance options offered benefits of up to $50,000 each. They did not require medical exams, but did require health questions to be answered as part of the application process. The price of this policy may increase over time depending on the age of the customer.
Driver available
Colonial Penn has some riders available for their life insurance policies. Drivers can help you customize your policy to provide coverage that better suits your needs. If you’re looking for a specific driver that isn’t listed here, it might be worth speaking to Colonial Penn’s sales team to see if they can accommodate you.
Life insurance, accelerated death benefit
Colonial Penn offers its Living Insurance rider on its entire life insurance policies. Living Insurance offers members an early payout of 50 percent if you are diagnosed with a certain disease before your death.
When you sign up for the policy, you select the disease for which you want coverage. They currently offer Living Insurance for most cancers, heart attacks, strokes and many debilitating chronic illnesses. Living Insurance also applies if you are diagnosed with a terminal illness and your life expectancy is less than a year.
This rider is not available for guaranteed acceptance policies. The driver also offers limited benefits for applicants over 65 years of age – for example, you can no longer claim the chronic illness part of the driver after this age.
Accidental death benefit
This rider is available to customers between the ages of 40 and 65 and is available on their entire life insurance policy. This benefit is available in amounts ranging from $10,000 to $50,000. This passenger will pay an additional payout if you die as a result of an accident-related bodily injury. However, there are certain exclusions from this coverage – you will not receive a payout if your death was caused by activities such as rock climbing, racing cars, bungee jumping or skydiving.
Unique Features of Colonial Penn Life Insurance
Colonial Penn is a very unique life insurance company because it has such a strong focus on guaranteed acceptance life insurance. Their guaranteed adoption policies start at less than $10 per month, and while they don’t offer comprehensive coverage, they can still be a good option if your primary concern is covering funeral expenses.
Colonial Penn is also an excellent option for clients struggling with health issues. Many other life insurance companies require their customers to undergo a health examination before receiving an insurance approval. Customers with poor health are often charged very high rates or even denied insurance coverage. Colonial Penn’s Guaranteed Acceptance Program makes it easier for these people to get the life insurance coverage they need. Additionally, their traditional life insurance policies only require you to fill out a questionnaire and do not require an in-person health exam.
The disadvantage of Colonial Penn Life Insurance compared to its competitors is that its coverage amounts are relatively low. The highest amount of insurance they currently offer is $50,000. While this is usually enough to cover funeral costs, it will not be enough to replace your income and support your living family members after your death.
Financial ratings
When looking at a life insurance company, you should make sure that it is financially stable enough to pay claims even during difficult economic times. One way to check this is to look at the company’s financial ratings. Organizations like AM Best evaluate and rate insurance companies based on their current financial position and stability.
Colonial Penn currently has a financial strength rating of A- from AM Best. While this is not the highest rating available, it does indicate that Colonial Penn has sufficient financial resources and can pay its insurance claims.
Colonial Penn Life Insurance Reviews
Looking at reviews is another good way to determine if an insurance company is right for you. While everyone’s experience is different, reviews can give you a good idea of what to expect from the insurance company in the future.
According to the National Association of Insurance Commissioners, Colonial Penn receives more complaints above average for a company of this size. However, they have an A+ rating from the Better Business Bureau and also recently received a BBB accreditation.
Colonial Penn Life Insurance reviews are generally mixed. Many customers have found that it is easy to purchase a policy and make a claim. However, others have found that their sales tactics can be confusing and overwhelming, and that their team doesn’t always help their customers understand up front the life insurance products they’re purchasing.
Colonial Penn Application Process
Applying for life insurance from Colonial Penn is a fairly straightforward process. Their website is relatively easy to navigate and provides helpful information about the different types of policies they offer. If you are interested, you can easily get a quote via their website. You’ll need to answer some basic demographic questions as well as questions about the type of coverage you need.
If you are satisfied with the offer, there are two ways to continue the application process. You can either fill out the application online or print it out and send it in by mail. You will be required to provide personal and billing information and will also be asked to provide the names of your beneficiaries. Some policies also require you to complete a medical questionnaire.
Once your policy is in effect, you can manage it through the Colonial Penn website. It’s fairly easy to make payments or claim claims online, but they also have a customer service phone number and a web chat feature.
Is Colonial Penn Life Insurance Legit?
Colonial Penn Life Insurance is a reputable life insurance company. They are financially very stable and have been able to settle their claims for a long time. It’s also fairly easy to take out a policy and make a claim, and they usually pay out their claims quickly.
This life insurance company is best for people who want affordable premiums and basic coverage. If your primary concern is obtaining life insurance without having to undergo a medical exam, Colonial Penn could be a good option for you. Your insurance policies provide enough money to easily cover your funeral expenses. They also offer a small cash value component for those who prefer this.
However, if you’re looking for more comprehensive coverage to help you pay off a mortgage or support your family, Colonial Penn’s products probably won’t be enough. Their low policy amounts could be limiting for some customers. Ultimately, getting quotes from multiple insurers to find out which one is best for you is usually the best option.
