Colonial Penn Life Insurance Review 2021
- Financial Strength A-
- BBB Rating A+
- Coverages 3/5
- Flexibility Yes
- Discounts 3/5
- Support phone, mail, FAQ
- Availability 49 states
- Pricing Starts at $9.95 per month
Live for Today! Plan for tomorrow!
Colonial Penn Life Insurance makes planning for tomorrow a little easier with its wide range of life insurance policies. The company claims to offer a hassle-free insurance purchase process with its easy-issue insurance buying procedure. In this article, we provide a detailed review of the company and its services sourced from various Colonial Penn Life Insurance reviews on review sites and financial strength rating organizations.
About the Company
Colonial Penn Life Insurance is an insurance company headquartered in Philadelphia. The company entered the insurance market in 1968 and became one of the first to provide life insurance to people above the age of 50 via the Guaranteed Acceptance Life Insurance Plan.
The company offers multiple life insurance policies, including term, permanent whole, guaranteed acceptance life insurance policies available in most states across the United States. Colonial Penn is a subsidiary of the holding company CNO Financial Group serving over 4 million customers in the United States.
In New York, all insurance policies by the Colonial Penn Life Insurance Company are underwritten by the Bankers Conseco Life Insurance Company.
The company is known for its no medical exam requirement as well as for its advertising campaigns on TV. It is also quite famous for some user-friendly policies such as early payout and easy-issue.
How We Reviewed
In our review below, we talk about salient features of the policies by Colonial Penn, availability, requirements, pricing, discounts, and more. We followed an extensive procedure to gather all necessary information and compile it in a review.
- We first analyzed the company website to determine whether it is easy to use and well explained or not. We also highlighted all coverage types, payment plans, and options available.
- We then read user reviews and Colonial Penn ratings on different sites to get an idea of customer opinion and user satisfaction rate.
- We put in different conditions to get the highest and lowest possible quote to get an idea of the price range.
- We collected data on the company’s financial strength. The stronger a company is, the securer your insurance investment will be.
Where Is It Available?
Colonial Penn Life insurance provides insurance services in 49 states, Washington DC, Puerto Rico, and the Virgin Islands. In New York, the company sells insurance through the Bankers Conseco Life Insurance Company. However, not every plan by the company is available everywhere.
You can purchase term insurance in all states except Montana, New York, and the Virgin Islands. Guaranteed Acceptance Life Insurance is available in New York, and Whole life insurance is available in all states except the Virgin Islands and New York.
Life Insurance Review
Colonial Penn Life Insurance Company offers three main types of life insurance policies. There are different coverage options in each type, offering the buyer a substantial amount of flexibility. The company offers:
- Guaranteed Acceptance Life Insurance
- Permanent Whole Life Insurance
- Renewable Term Life Insurance
We’ll start with the most affordable and sought-after option of all, the term life insurance. The company offers a term life insurance policy that is renewable until the policyholder reaches 90 years of age.
You can purchase the Colonial Penn term life insurance as early as 18 years of age. The earlier you purchase it, the lower the monthly premium. An average 18-year-old male can pay as low as $2.75 per month for a policy offering $5,000 coverage.
People between the ages of 40 to 75 can purchase Permanent whole life insurance, which offers coverage for a lifetime. One year into your policy, you can also benefit from the cash value building feature that allows you to borrow money in emergencies at a set rate. The maximum benefit amount you can receive in this policy is $50,000, and the premium depends upon your age, area of residence, and health conditions.
The Guaranteed Acceptance is the preferred Colonial Penn life insurance for seniors. Individuals up to 85 years old can obtain a life insurance policy via this program. The maximum amount of benefit and the pricing varies by state, but you do have the option of obtaining cash value after one year of coverage.
All insurance policies by Colonial Penn come with a flexible payment plan where you decide to make payments monthly, quarterly, half-yearly, or annually. None of the policies require a medical examination and the purchase process is very straightforward, making it ideal for seniors and busy modern users.
The company also offers chronic illness, terminal illness, critical illness, suicide, and accidental death benefit rider. With the Guaranteed Acceptance Life Insurance Coverage, you also get death and final expense coverage.
The exact terms and conditions will vary upon coverage type, area of residence, and more. You can also avail of the 30 day trial period and see if the insurance policy fits within your budget and is easy to manage or you need to make some changes or want to opt for a different coverage option.
Life Insurance Pricing
Insurance coverage from Colonial Penn Life Insurance starts at $9.95 per month. In fact, if you buy term life insurance at the age of 18, you can get coverage worth $50,000, which is the maximum coverage amount the company offers, at around $13.96. Included below are the coverage tables depicting the monthly premiums for the renewable term policy for males and females.
Other insurance coverage options like guaranteed acceptance and permanent whole life insurance options have varying rates. For the Guaranteed Acceptance, the insurance policy terms and conditions also vary by state.
The Colonial Penn rates for Permanent whole Life insurance vary by age mostly, and per month premium is calculated based on the policy holder’s age and gender. Whatever your premium amount may be, with Colonial Penn you enjoy the benefit of a fixed premium for as long as you have coverage.
For more information on pricing and the policy of your choice, you can register at Mycolonialpenn.com and view your coverage options or reach out to the online customer service representative. You can even pay your premium online.
Life Insurance Discounts
The company does not offer any bundle and save discounts or reduced prices for military veterans. Colonial Penn prices vary by age, state, and health conditions. However, if you are someone who wants to get a good offer, then we suggest you purchase the life insurance policy very young. The sooner you purchase the policy, the lower your premium rate will be.
At Colonial Penn all those aged 18 and above are eligible for the term renewal policy which is renewable for up to 90 years of age. You are eligible for a discount worth almost one month’s premium should you choose to pay your premium annually. The discount is worth 8.3%, making the policy even more affordable for all.
Customer Satisfaction and Financial Strength Review
As far as customer satisfaction goes, there seems to be a large divide among users as per Colonial Penn Life Insurance complaints. There are some that praise the company as being one of the best, especially for final services and guaranteed acceptance coverage. However, there is a larger and more significant number of users claiming the company isn’t good for much else.
The company is BBB accredited as of March 2020. Currently, there are only 5 customer reviews on the platform so far the average of which is 1 out 5 stars. The total number of official complaints on the site is 88, a majority of which the company has resolved or answered. Colonial Penn BBB rating is A+ which depicts excellent financial strength. However, there is a prevalent level of dissatisfaction among users.
Colonial Penn does not have an AM Best rating, but the company is a subsidiary of CNO Financial Group, and the company has excellent investment-grade ratings from various institutions. CNO Financial Group has a rating of BBB+ by Fitch, Baa1 by Moody, and BBB+ by Standard and Poor as well as an A- Colonial Penn AM Best Rating.
All the ratings are positive and depict that the company has excellent financial strength, ensuring our insurance investment is in safe hands.
Colonial Penn has an extensive customer support service network. The company has two separate landlines; one for customer support and the other to add coverage. There is also a separate contact number for New York’s residents.
Customers can also pay their bills via phone. For information, you can contact the company from Monday to Friday from 8:30 am to 5:30 pm. If you don’t want to contact the company via the Colonial Penn customer service number, you can reach out to them via email.
You can also register on mycolonialpenn.com to get access to a plethora of resources and answers to frequently asked questions, download forms information on the claims handling process, and more. The detailed FAQ section is definitely praiseworthy. The website has a separate FAQ section for claims and another for service questions
We’d like to point out though that the majority of customers expressing dissatisfaction due to miscommunication and misinformation in the Colonial Penn customer service reviews.
Ease of Buying and Claims Handling
The purchasing process is very simple and straightforward. All the forms are available on mycolonialpenn.com. Once you decide on the policy of your choice, you can download the form, fill it, and submit it. You will then receive a call from a designated agent who will ask you some health-related questions, and your purchase process will be completed.
If you still need more guidance, you can always call the company and have an agent walk you through the process step by step.
The Colonial Penn claim form is available on the website. The beneficiary can download the form to file the claim. They will have to provide the original insurance contract along with the form and death certificate. The said documents have to be mailed to the company.
The mailing address for all policyholders is the same except for those in New York who will have to send the documents to a separate address. The processing time will also vary depending upon the complexity of the case and the accuracy of the documents submitted.
Comparison with Competitors
- Colonial Penn vs Mutual of Omaha – Mutual of Omaha has been in the business for 110 years. The company also has the best ratings from three major financial rating institutions. However, in terms of price point, Colonial Penn takes the crown as it is a more affordable option for the average American.
- Colonial Penn vs Globe Life – Both Colonial Penn and Globe Life offer quick and easy solutions for life insurance. However, both companies have poor customer satisfaction rates even though they both offer some really low premium insurance coverage.
- Colonial Penn vs New York Life– Colonial Penn does not compare to New York Life, which is the third-largest insurance service provider in the US and has been operating within the industry for 175 years. It has a wider range of services and a better market reputation and customer satisfaction rate.
- Colonial Penn vs AIG – AIG is a multinational company with operations spanning across the globe. In terms of market reach, AIG is better, and it offers the same life insurance options as Colonial Penn. You can also get more coverage with AIG. However, Colonial Penn has some cheaper coverage options and offers renewability until 90 years of age.
Pros & Cons
- Colonial Penn Life Insurance offers whole life insurance options for seniors with pre-existing medical conditions.
- You can get coverage for a lifetime.
- All insurance policies feature fixed premium rates.
- You do not require a medical exam to get insurance.
- You get payment flexibility. You can pay your premium monthly, quarterly, half-yearly or annually.
- You get an 8.3% discount if you choose to pay annually.
- The maximum coverage you can get is $50,000.
- It is not ideal for those looking for low-cost term life insurance as you end up paying a substantial amount for decent coverage.
Colonial Penn life insurance is a great option for seniors with preexisting conditions. It can fit any budget also. Only downsides apply to pushy sales tactics and for these looking for low cost term insurance.
How Much Are Colonial Penn’s Life Insurance Rates?
Colonial Penn’s life insurance rates vary by age, gender, policy type, and area of residence. You can get rates as low as $9.95 per month if you are a middle-aged human. If you purchase the policy at a young age, you can get coverage for even lower rates.
How Much Is a Unit of Colonial Penn Life Insurance?
The unit of coverage is the number of benefits you can get in your policy. It varies by age, gender, area of residence, coverage type, and more.
Who is Colonial Penn’s Life Insurance Good For?
It is good for those looking for a quick and simple life insurance policy solution.
How Much Life Insurance Do You Get From Colonial Penn for $9.95 a month?
The rates vary by age, gender, insurance plan, area of residence, etc.
Does Colonial Penn Have a Waiting Period?
Yes, the guaranteed acceptance life insurance policy comes with a two year waiting period before it pays out.
Does Colonial Penn Pay Out?
Colonial Penn does and does not pay out the full death benefit. You will have to check with a customer representative to get an idea of the terms and conditions related to payout for your policy.
What Other Providers Offer Final Expense Insurance?
Final expense insurance is covered in most life insurance policies or at least in most permanent and guaranteed acceptance insurance policies for seniors.