Colonial Penn provides guaranteed life insurance coverage and gives insurance options to customers who have been denied coverage by other companies.
People with a history of heart attack, cancer, stroke, or seizure disorders often struggle to find life insurance coverage. Senior citizens also find it difficult to get a life insurance policy. In both cases, Colonial Penn can provide baseline coverage options.
If you find yourself having a tough time being approved for life insurance, check out this Colonial Penn insurance review for the pros and cons of Colonial Penn’s life policies.
Review Contents:
Is Colonial Penn a Good Life Insurance Company?
The Colonial Penn Life Insurance Company is an American company headquartered in Philadelphia, PA.
Colonial Penn Life Insurance does offer some useful life insurance policies.
The company offers guaranteed acceptance life insurance products in addition to permanent and renewable term policies.
However, these products pay a relatively low amount for maximum coverage. With a maximum death benefit of $50,000, Colonial Penn life insurance will cover little else beyond final expenses.
Colonial Penn insurance plans provide you with an option if your health or age disqualifies you from products from other life insurance companies.
Though its maximum death benefit payout is small, Colonial Penn has a guaranteed acceptance policy that will cover burial costs and give you the peace of mind you seek.
Colonial Penn Reviews & Company Ratings
The company frequently gets rave reviews from consumers because of its fast and easy claims process.
A.M Best gives Colonial Penn a Financial Strength Rating of A-, which means Colonial Penn has plenty of resources to pay benefits on claims.
The National Association of Insurance Commissioners (NIAC) releases a complaint ratio index every year for health insurance and life insurance providers.
A complaint ratio above 1.0 means a company receives more complaints than average.
Colonial Penn’s ratio jumped to 1.74 in 2020, meaning the company received many questions and complaints in customer feedback.
Customer service for Colonial Penn is available by calling 877-877-8052 on Monday through Friday from 8:30 am to 10 pm EST and on Saturdays from 9 am until 5 pm EST.
Some consumers do not like the reputation Colonial Penn has for aggressive sales tactics targeting the elderly.
Also, some Colonial Penn customers complained they purchased the wrong product or did not fully understand the policy they bought.
Life Insurance Products
Colonial Penn offers three types of life insurance policies. Read on to learn more about each policy.
Colonial Penn Guaranteed Acceptance Life Insurance
Colonial Penn limits eligibility on this type of policy to people ages 50 to 85. Medical exams are not required for this coverage.
Also, there are no health questions asked during the acceptance process. This type of policy works best for you if you frequently fail a medical exam or get disqualified by health questions when trying to get coverage.
The company guarantees the policy with a two-year limited benefit period. After the first two years, you become eligible to receive the maximum death benefit.
The premium remains at a fixed rate, and Colonial Penn guarantees that it will never increase during the life of the policy.
Colonial Penn Whole Life Insurance
Permanent whole life insurance covers people ages 40 to 75. The amount of coverage Colonial Penn provides maxes out at a $50,000 benefit, and coverage lasts your entire life.
This type of policy builds a cash value that you can borrow against if needed. Also, you do not have to pass a medical exam to gain acceptance.
However, underwriters will review your answers to health questions, age, and gender to determine eligibility for whole life policies.
Colonial Penn Renewable Term Life Insurance
Colonial Penn’s term life insurance can cover people under the age of 40. People age 18 and 75 can receive up to $50,000 of coverage.
This coverage works best for consumers looking to gain acceptance without a medical exam. Also, this coverage comes with level terms and is guaranteed renewable up to age 90.
However, underwriters do determine eligibility based on answers to health questions on your application.
Life Insurance Riders
Riders contain addendums that enhance or modify the coverage you receive. But Colonial Penn does not offer many rider options to customize your coverage.
Living Insurance Rider
You can add living insurance to the permanent whole life or renewable term coverage. This works best for people who become seriously ill and need money to pay for healthcare costs.
If you suffer from chronic illness or a serious medical condition, you can use this rider to collect up to 50 percent of your coverage to pay for care.
Eligibility and Application Process
The Colonial Penn eligibility and application process works well for consumers who do not want to take a medical exam or get ruled out by past medical conditions.
The guaranteed coverage requires no medical exams and does not ask for medical history. To meet eligibility requirements, you must be 50 to 85 years old.
The coverage for your entire life limits eligibility to ages 40 and 75 and requires no exam but does ask about medical history.
Meanwhile, the term coverage covers ages 18 to 75 and does require a medical history but does not require an exam.
If you need a larger maximum death benefit or do not meet eligibility restrictions, you may want to look at other insurance companies.
For example, Gerber Life Insurance offers term life and guaranteed acceptance policies with larger maximum coverage amounts up to $300,000.
The Pros and Cons of Colonial Penn Insurance
Colonial Penn works well for some people, but it’s not the best option for everyone. Here is a summary of the advantages and disadvantages.
Pros
- You cannot be denied a form of coverage due to aging or serious medical conditions if you are 50 to 85 years old. The eligibility and application process stays simple with no exams required to provide coverage quickly.
- You can get insurance quotes online. Most providers require you to contact an agent for insurance quotes. Colonial Penn does not. You can receive insurance quotes and purchase some policies online.
- Colonial Penn offers a full refund within 30 days of activating your plan. You can call 1-800-523-9100 to receive a refund. Outside of that window, you can change or cancel your policy but do not receive refunds on premiums paid.
- Payment options include credit cards, electronic funds transfer, and direct billing.
Cons
- Plans with a $50,000 maximum benefit do not pay much more than burial costs.
- Guaranteed and lifetime plans are not available to all ages.
- Residents of New York or the Virgin Islands cannot purchase whole life plans. These residents are eligible for only guaranteed and term products.
Is Colonial Penn Life Insurance Best For You?
Please contact Life Insurance United directly at 334-380-4188 for more information on any insurance products.
We will make sure you receive the security and peace of mind you want for your family.
