All About Colonial Penn Life Insurance: Complete Guide
Colonial Penn Life Insurance is considered prestigious for its popular television commercials, coupled with Alex Trebek promoting them with his convincing gibberish.
In this Colonial Penn review, you’ll learn about its history, financial ratings, the types of life insurance it offers, and its life insurance pricing chart. By the time you finish reading this review, you will have a better idea of whether Colonial Penn is a good choice for your life insurance needs.
These are the key takeaways…
Colonial Penn’s life insurance has an “A-” (excellent) rating from AM Best. The company offers guaranteed acceptance, term, and permanent life insurance, and is generally geared toward seniors. The application process is easy and the name inspires confidence, but Colonial Penn policies are generally more expensive than other providers.
About Colonial Penn Life Insurance
Colonial Penn has been offering life insurance policies for more than 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 senior life insurance and was one of the first to offer its guaranteed acceptance plan to people age 50 and beyond in 1968.
Colonial Penn Financial Ratings
First of all, let’s analyze the reputation of the company, and how safe your money is in their hands.
Types of Policies Colonial Penn Offers
Colonial Penn offers 3 different types of life insurance. Below we’ll explain what they are, 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 work like their “funeral insurance” policy in that it requires no 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 apply and be approved. This is one of your most important selling points.
This is hands down Colonial Penn’s best-selling product. He appears on television all the time.
Now, the Colonial Penn guaranteed policy is the most expensive type of life insurance policy because it carries the highest risk for insurers. That said, the payment of benefits involves a waiting period of 2 years.
We’ve found that most people don’t need a guaranteed issue life insurance policy. We have repeatedly replaced Colonial Penn’s life insurance policies with other options that offer better coverage prices and 1-day benefit payments (without Colonial Penn’s 2-year waiting period). Even in cases of health problems such as COPD or multiple sclerosis
Even if you are in poor health and need a guaranteed issue policy, there is probably a better funeral insurance option for you than Colonial Penn. You will almost always be able to find a better policy.
Colonial Penn Term Life Insurance
Term life insurance is life insurance that provides coverage for a specified period. Typically this term is between 10 and 40 years and is available in 5-year increments, ie 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 after the term has expired, or converted to a permanent life policy. The policies can be supplemented with additional clauses that allow coverage to be extended and its flexibility.
The term life insurance policy increases in price every 5 years and expires when the insured turns 90 years old.
You will certainly be able to find similar coverage that stays stable for the rest of your life at a price similar to Colonial Penn life insurance.
I don’t understand why they even offer this product since any other insurer in the market can offer better prices and guarantees than Colonial Penn.
Colonial Penn Permanent Life Insurance
Permanent life insurance insures you for the rest of your life. This type of insurance is more expensive than a term policy, but some policies offer some nice benefits like cash value appreciation and investment options.
These types of life insurance policies also offer additional 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 buy in 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 new to the subject. There is no reason for a person to purchase a life insurance policy from Colonial Penn. 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 Price Chart
Colonial Penn’s prices are generally higher than other providers.
Comparing them is difficult because they have a misleading way of quoting 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 Charts
Colonial Penn guaranteed issue life insurance works on a unit basis.
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 purchase up to 8 units, with maximum coverage of approximately $16,000.
Below is the Colonial Penn pricing chart for both men and women. Find your age and see how much this guaranteed acceptance life insurance policy would cost you.
Technically, this is a permanent life policy and it builds cash value over the life of the policy, plus you can access that money.
You can access 8% of its face value per year.
Guaranteed issue life insurance policies also have a tiered benefit, only paying benefits after the policy has been in force for 2 years unless the policyholder’s cause of death is an accident.
Colonial Penn’s 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 families 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.
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 different age ranges.
Colonial Penn permanent life insurance policies are available to anyone between the ages of 40 and 75.
What you need to know before applying for life insurance from Colonial Penn
There are a few things you should know before applying for Colonial Penn life insurance.
Colonial Penn offers a money-back guarantee
Colonial Penn offers a 30-day money-back guarantee. If you are not satisfied with your funeral insurance policy, you may return it within 30 days for a full refund.
This guarantee is nothing special. 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 clever 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 conditions, you may only be able to receive the funeral insurance policy, which is more financially limited but adequate to cover burial expenses and other funeral services in many states.
Some of these diseases are:
- Disability due to illness
- Receive home health care
- insulin-dependent diabetes
- Being a permanent wheelchair user
- Diabetic complications such as severe obesity, neuropathy, peripheral vascular disease, or retinopathy
- Use blood thinners like Plavix, Coumadin, or Warfarin
- Rely on an oxygen tank
- congestive heart failure
- Renal insufficiency
- Muscular dystrophy
- Cystic fibrosis
- coronary artery disease
- Multiple sclerosis