Colonial Life Insurance Review 2021

Last modified: December 5, 2020
  • Claims 8
  • Buying 8
  • Transparency 8
  • Coverage Variety 9
  • Value For Money 9
  • OVERALL RATING 8.4
  • Financial Strength A
  • BBB Rating A-
  • Coverages 9/10
  • Flexibility No policy customization available
  • Discounts For annual payments
  • Support Email, Phone, Online
  • User Ratings 5/10
  • Availability Available in 48 states
  • Pricing Affordable

Colonial Life insurance company has been in business since its establishment in 1937, in Columbia, South Carolina. It was initially named as Mutual Accident Company and only sold accidental death insurance policy with the help of female sales representatives. Two years later, the name changed to Colonial Life & Accident Insurance Company

The company moved to the market of employee benefits and offered payroll deduction services. It is now one of the largest employee benefits insurers on the market. Colonial Life is a fully owned subsidiary of Unum Group and serves $3.7 million and more policyholders at 90,000 plus organizations and companies. Colonial Life sells policies through consultants and brokers. 

If you are wondering if this insurance company is right for you, go through Colonial Life reviews to help you make the right decision. 

Let’s get started. 

How We Reviewed 

This Colonial Life insurance review was based on numerous factors to assess different aspects of the company. We examined the company’s website for available policies and features, as well as the amount of useful information provided for the clients. 

We determined the financial strength of the company, quality of their services, and customer satisfaction level by analyzing data found on major rating platforms. We also assessed whether the company offers any discounts that impact the cost of the insurance. These major factors helped in determining the overall Colonial Life ratings

Where Is It Available?

This insurance company covers 48 states, plus Washington, D.C. The policy options and discounts might vary from state to state. The Colonial Life office is in Columbia, South Carolina. The Colonial Life phone number is 800-325-4368.    

Life Insurance Coverage Options  

Colonial Life insurance offers many life and supplemental insurance plans. The policies are an excellent option for seniors, and you can get them through your employer. The policy can be transferred if you change your job. 

The company offers disability, health, critical illness, cancer, hospital confinement, life, and accident insurance plans at affordable rates, as compared to its competitors. Here are the life insurance policy options available: 

Term Life Insurance Policy 

This insurance policy offers:

  • Tax-free benefits for the beneficiaries
  • Coverage for a certain time period in high-need years
  • Lower cost options 
  • Level death benefits 
  • Plan options available for 10, 15, 20, or 30-year period

The features and benefits included in the Term Life policy are:

  • Portability to transfer the policy if you switch jobs
  • Can be converted to cash value policy 
  • Guaranteed renewable to 95 years of age if premiums are paid on time
  • Guaranteed premiums, which don’t increase unless you get accelerated death benefit

Whole Life Insurance

This is permanent coverage that stays the same until the age of 100. Here is what this policy offers:

  • The rates are higher than the Term Life insurance policy
  • The death benefits stay the same if the premium is paid on time
  • The premium payments remain the same and end at the paid-up age
  • The plan options are paid-up at age 70 or paid-up at age 100
  • The cash value is set when the policy is purchased

Universal Life Insurance 

This life insurance by Colonial Life includes:

  • Death benefit up to the age of 100, which is given to the beneficiaries tax-free
  • Access to the cash value of the policy if needed
  • Creates cash value at existing credited interest rates
  • Provides flexible death benefit and premiums amounts 

The features and benefits include:

  • Borrowing cash against the cash value of the policy or withdrawing cash from the cash value
  • Accelerated death benefit
  • Provides 2 options – increase death benefit or level death benefit 

Supplemental Insurance Plans 

Aside from life insurance, Colonial Life offers customers other supplemental plans. These include:

Dental Insurance Plans 

There are 4 levels of dental insurance offered by Colonial Life for both family and individual plans. The dental policy provides immediate benefits for dental x-rays and health visits, coordinated or co-insurance coverage, and no deductibles. You can also get discounted rates if you opt for an in-network dentist. The colonial dental policy offers optional riders for vision and orthodontic care for an additional cost. If you are looking for more dental insurance coverages make sure to check our article about the best dental insurance providers.

Accident Insurance Coverage 

This coverage helps offset any unexpected expenses after a dislocation, fracture, or another covered accidental injury. It can be utilized for follow-up care, lodging, transportation, surgery, or primary care. 

Cancer Insurance

This coverage is provided as a complement to medical insurance and covers unexpected expenses, like lodging, copays, deductibles, loss of income, and child care. It also includes some cancer screening tests. 

Disability Insurance

This coverage replaces a share of the income of an employee if they are disabled after a covered sickness or accident. The company allows the employer to choose the benefit period and provide an off/on job plan, along with an off-job only plan. 

Critical Illness Insurance

This policy is provided as a complement to traditional medical insurance. It pays a lump sum amount to affected employees in order to cover indirect or direct expenses linked with critical illnesses, including major organ failure, end-stage renal failure, heart attack, coronary, or stroke. 

Hospital Confinement Indemnity Insurance

This policy complements traditional medical coverage and offers a lump sum for outpatient surgery or hospital confinements. Hospital indemnity policy covers doctors’ appointments, diagnostic tests, emergency room tests, and other expenses. 

Colonial Life Insurance Pricing 

You can get a Colonial Life insurance quote by calling their helpline and speaking to a representative. The overall cost of the insurance depends on several factors, like age, gender, health, and location. The average life insurance cost for Colonial Life for individuals between the ages of 50 and 58 are as follows:

Age   Average Coverage Amount
50 $1,786
55 $1,506
60 $1,214
65 $932
70 $717
75 $560
80 $426
85 $418

The monthly rate of Colonial Life insurance stays the same, but you get more coverage the younger you are. This insurance is cheaper than many other insurance companies but includes a maximum age limit.  

The Colonial Life insurance payment can be made in multiple ways, including credit cards, direct billing, and electronic funds transfer. 

Colonial Life Insurance Discounts

This insurance provider doesn’t really offer discounts on life insurance. You only get the policies offered to businesses, without any additional Colonial Life benefits. If you are paying annually, you might receive an 8.3% discount of the year or a discount that is equal to the premium of a month. 

Customer Satisfaction and Financial Strength Review

There have been fewer than average complaints to the state regulators for this insurance company. The Colonial Life ratings from AM Best and S&P is an A, which indicates that the clients are generally satisfied with the company.

By contrast, it received rather average ratings on Trustpilot and ConsumerAffairs, scoring 2.2 stars and 1.5 stars respectively.  

Colonial Life insurance BBB is A-, which means that the company has the financial capacity to handle claims and meet the clients’ needs. 

Platform Rating
BBB  A-
ConsumerAffairs   1.5
Trustpilot 2.2

Customer Support 

Colonial Life customer service can be reached in various ways. You can visit the website to get more information regarding the policy and other resources. You can get in touch with a representative by calling the Colonial Life customer service number 1-800-325-4368, from 8 a.m. to 7 p.m., Monday-Friday. 

There are also Spanish-speaking representatives available. The website doesn’t offer live chat. 

Ease of Buying and Claims Handling 

The policyholders can download Colonial Life insurance forms, beneficiary, policy change, cancellation or withdrawal/loan forms, and other forms right from the website. 

You can file a claim and view your benefits from your online account. There is an option to request support for a claim or policy by filling out a form on the policyholder service page. 

There is an Employer Resource Center that includes infographics, eBooks, and articles to assist the business owners in growing their business. The “Work-Life” section contains articles and news on healthy living, benefits, and workplace trends. 

Colonial Life claims can be filed online or through the mail by downloading the form from the website, filling it, and sending it to the company. 

You can check the Colonial Life claim status by calling the helpline or checking your online account. The HR department of your company can also help you with the claims process. If you have the vision or dental policies, the claims are directly handled by the providers. 

Comparison With Competitors 

To give you a better idea of this insurance provider, we compared Colonial Life with another major life insurance company. Let’s have a look:

Colonial Life vs Aflac 

Aflac Inc. has a good financial strength rating. If you qualify for a guaranteed issue policy, then you may even be able to skip the medical questionnaire. It depends on the coverage you select and the state you live in. The policy has limited coverage of $500,000.  Aflac is available in all 50 states, whereas Colonial life is available in only 48 states. 

Both companies don’t offer online quote tools and have to call in to get an estimate. Colonial Life doesn’t provide any riders, but Aflac offers Waiver-of-premium, Spouse, Accidental Death Benefit, and Accelerated Death Benefit riders.

Pros & Cons

The Pros

  • Guaranteed coverage with some plans
  • You can keep your plan if you switch jobs
  • Online claim filing option available

The Cons

  • Have to call to get a quote
  • May have to get a medical exam with some coverage plans
  • Some complaints about difficulty in canceling a policy

Final Verdict

Colonial Life insurance has been an old player in the insurance business and has a strong financial standing. It is known for its commitment and offers a range of life and accident insurance policies. You can get Colonial Life insurance through your employer, but the insurer also gives you an option to keep the policy when you change jobs. 

There are fewer than average complaints about this company, which indicates that Colonial Life has a high quality of service.  

FAQs

Does Colonial Life offer healthcare?

Yes. The company offers voluntary benefits to complement health insurance to cover the costs that the health care plan doesn’t cover.

Is Colonial Life and Colonial Penn the same insurance company?

No. Colonial Life provides a range of life, and supplemental coverage plans to benefit the employees. It is based in South Carolina. Colonial Penn Life Insurance Company offers life insurance plans and is based in Philadelphia.

What is Colonial Life?

Colonial Life & Accident Insurance Company offers critical illness, cancer, hospital confinement, life, accident, and disability insurance plans in 48 states, and Washington D.C.

Does Colonial Life pay out dividends to its policyholders?

No. Colonial Life doesn’t pay dividends to the policyholders.

Does Colonial Life require a medical exam?

In most of the insurance policies offered by Colonial Life, there is no requirement for a medical exam. Still, it is best to check with your local agent or the company’s representative.

Can you cancel Colonial Life insurance?

Yes, you can cancel Colonial Life insurance by filling the form that is available on the website. Read Colonial Life reviews for a more detailed description of the steps.