Colonial Penn Life Insurance Review

Colonial Penn has been in the life insurance business for more than six decades. The provider offers life insurance policies in 49 states, the District of Columbia, Puerto Rico, and the Virgin Islands. Colonial Penn sells life insurance to people ages 18 to 85.

Colonial Penn offers term life and whole life insurance are the two types of products. None of the 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. Renewable term life insurance offers the ability to renew up to age 90, based on your current period at the time of renewal. People over the age of 40 are eligible for whole life insurance with an early payment option called Living Insurance. Colonial Penn also offers a Guaranteed Acceptance Lifetime policy for those over 50, with no medical questions involved.

Colonial Penn Life Insurance

Life insurance policies have a death benefit, which pays a predetermined amount of money to a beneficiary when the insured dies. For example, if you purchase a $50,000 policy and die during the policy term, your beneficiary will receive the $50,000 death benefit. Life insurance policies fall into two categories:

Colonial Penn offers whole traditional life and term life insurance policies. All policies have flexible payment options, allowing you to pay every month, quarter, six months, or 12 months.

Guaranteed acceptance of life insurance

In most states, people ages 50 to 85 can apply for Colonial Penn guaranteed acceptance life insurance policies. This life policy doesn’t require a medical exam, but it has a two-year limited benefit period, which means your policy won’t pay a death benefit for the first two years. The approach builds cash value beginning in the first year of coverage and allows you to choose the death benefit limit.

A guaranteed acceptance policy from Colonial Penn covers you for life if you continue to pay the premium. He has a fixed rate to pay the same premium for the life of the policy.

permanent life insurance

Colonial permanent, permanent life insurance policy is available to clients ages 40 to 75, except for applicants in New York or the Virgin Islands. The policy does not require a medical exam, but you must complete a questionnaire to determine your eligibility.

This whole-life policy covers you for your entire life and has a maximum death benefit of $50,000. Builds cash value beginning in the first year of the policy. Coverage has a flat rate, but the premium cost will depend on your age and gender, except in Montana, where Colonial Penn rates premiums based solely on age.

renewable term life insurance

Colonial Penn’s life insurance policy is available in all renewable locations except California, Montana, New York, and the Virgin Islands. It is open to people ages 18 to 75, renewable until age 90, and has a maximum death benefit of $50,000. Colonial Penn bases your age and gender rates, and premiums increase as you age.

Your term life policy may earn a cash value, depending on how long you maintain coverage. Colonial Penn does not require a medical exam for its term life policies but determines your eligibility based on a medical questionnaire.

life insurance

Colonial Penn offers a life insurance option with its permanent and renewable term policies. This accelerated death rider benefit allows you to receive up to 50% of your entire life or term life benefit if you are diagnosed with cancer or another chronic illness or have a heart attack or stroke.

Colonial Penn Ratings, Reviews, Customer Satisfaction & Complaints

Colonial Penn didn’t cut JD Power’s 2020 US Study, but the Better Business Bureau gives Colonial Penn an A+ rating. Eighty-one consumers have filed BBB complaints against Colonial Penn in three years. Most focused on advertising, billing, and sales issues.

AM Best gives Colonial Penn an A- (Excellent) financial rating. AM Best has reviewed Colonial Penn since 1969, and the vendor has maintained an A rating for the past five years.

Reasons why Colonial Penn is a great choice

If you are looking for a complete insurance purchase, Colonial Penn is not the right insurer for you. While some life insurance providers may also cover your business, auto insurance, and home, Colonial Penn keeps it simple by offering only quality life and supplemental health insurance policies.

Colonial Penn also falls short of its death benefit limits. Both term and whole-life policies provide a maximum death benefit of $50,000, much lower than policies offered by many other insurers.

Colonial Penn is a good option for people looking for a life policy. If you have a pre-existing condition that might prevent you from purchasing life insurance from another company, Colonial Penn Guaranteed Acceptance Life Insurance may provide the coverage you need.

Colonial Penn’s term life policies offer some advantages over many of its competitors. They don’t require a medical exam, and if you continue to renew your term life coverage, your policy can build cash value. And while many providers only offer term life policies that cover you up to age 85, Colonial Penn extends the range to age 90.

All Colonial Penn policies also come with a 30-day trial period. If you decide to cancel or change your policy during the first 30 days of coverage, the provider will issue a full refund.

Additional policies offered by Colonial Penn

Unlike many major insurers, Colonial Penn does not offer a broad portfolio of insurance products, such as business, auto, and home insurance. However, the insurance company’s Active Care supplemental medical insurance can complement your life insurance policy by providing asset protection when you need it most.

Today’s high health care costs can cause a severe financial burden, even if you have health insurance. Active Care coverage from Colonial Penn can help pay for expenses related to a variety of health conditions, including:

  • accidental injuries
  • Alzheimer’s disease
  • Cancer
  • diabetic complications
  • heart attacks
  • strokes

Active Care pays up to $60,000. And unlike your health insurance coverage, this supplemental policy pays the benefit directly to you. You can use the payment to pay copays and deductibles required by your health care coverage or for medical bills. Everyday expenses like car payments, groceries, mortgage, or rent payments.

Colonial Penn offers Active Care to adults and children. If you don’t file a claim before the policy term ends, Colonial Penn will refund a portion of your premium. Availability of Active Care and cashback benefits may vary by state.

Frequently asked questions

How much insurance do you get from Colonial Penn for $9.95 per month?

Colonial Penn advertises life insurance coverage starting at $9.95 per month for its guaranteed acceptance of life insurance in its television ads. While the policy doesn’t require a medical exam, it only offers limited benefits for the first two years. But the price you’ll pay for the procedure may depend on your age, amount of coverage, and location.

What is the best insurance company?

According to JD Power’s 2019 US Study, Northwestern Mutual, State Farm, and Mutual of Omaha are among the top insurance companies. In the 2019 survey, Colonial Penn did not earn a ranking. However, choosing the best insurance company will depend on your personal needs. Some insurers offer a wide variety of insurance products, such as auto, business, and home coverage. Others, including Colonial Penn, don’t provide as broad a portfolio. If you’re looking for life insurance, Colonial Penn might be able to provide the right fit. If you need a wide range of coverage, you’ll need to find another insurer.

How do I file a life insurance claim with Colonial Penn?

Colonial Penn only accepts claims by mail. The designated beneficiary must submit a claim form. The original insurance contract, and a certified copy of the decedent’s death certificate to file a claim.

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