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.
Term life and whole life insurance are the two types of life insurance products Colonial Penn offers. Neither life insurance policy requires a medical exam, but there are some health questions you need to answer to see if you are eligible for coverage. Renewable term life insurance offers the ability to renew up to age 90, based on your current age at the time of renewal. People over the age of 40 are eligible for whole life insurance with the option of a prepayment called Living Insurance. Colonial Penn also offers a guaranteed acceptance lifetime policy for those over 50, with no medical questions.
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 life insurance policy and die during the term of the policy, your beneficiary will receive the $ 50,000 death benefit. Life insurance policies are divided into two categories:
Colonial Penn offers term life and traditional whole life insurance policies. All policies have flexible payment options, allowing you to pay every month, quarter, six months, or 12 months.
Guaranteed acceptance life insurance
In most states, people 50 to 85 years can apply the policies life insurance guaranteed acceptance of Colonial Penn . This lifetime policy does not require a medical exam, but has a limited benefit period of two years, which means that your policy will not pay a death benefit for the first two years. The policy builds a cash value from the first year of coverage and allows you to choose the limit of the death benefit.
A Colonial Penn guaranteed acceptance policy covers you for your entire life if you continue to pay the premium. It has a fixed rate, so you will pay the same premium for the life of the policy.
Permanent permanent life insurance
The policy insurance permanent life permanently Colonial Penn is available to customers 40 to 75 years of age, except for applicants in New York or the Virgin Islands. The policy does not require a medical exam, but you will need to complete a questionnaire to determine your eligibility.
This lifetime policy covers you for your entire life and has a maximum death benefit of $ 50,000. It generates a cash value from the first year of the policy. Coverage has a flat rate, but the cost of the premium will depend on your age and gender, except in Montana, where Colonial Penn rates premiums based solely on age.
Renewable term life insurance
The policy life insurance renewable term of Colonial Penn is available in all locations except in California, Montana, New York and the Virgin Islands. It is available to people ages 18 to 75, renewable through age 90, and has a maximum death benefit of $ 50,000. Colonial Penn bases rates on your age and gender, and premiums increase as you age.
Your term life policy can earn 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 life insurance and renewable term life insurance policies. This accelerated death benefit clause allows you to receive up to 50% of your total life or term life benefit if you are diagnosed with cancer or other chronic illness, or if you suffer a heart attack or stroke.
Colonial Penn Ratings, Reviews, Customer Satisfaction, and Complaints
Colonial Penn didn’t make the cut in JD Power’s 2020 US Life Insurance Study, but the Better Business Bureau gives Colonial Penn an A + rating. In the past three years, 81 consumers have filed BBB complaints against Colonial Penn, most focused on advertising, billing and sales issues.
AM Best gives Colonial Penn a financial rating of A- (Excellent). AM Best has analyzed Colonial Penn since 1969 and the supplier has maintained an A- rating for the past five years.
Reasons Colonial Penn is a great option
If you are looking for a comprehensive insurance purchase, Colonial Penn is not the right insurer for you. While some life insurance providers may also cover your business, car, and home, Colonial Penn keeps it simple by offering only supplemental health and quality life 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 lifetime policy. If you have a pre-existing condition that could prevent you from purchasing life insurance from another company, Colonial Penn’s Guaranteed Acceptance Life insurance could provide the coverage you need.
Colonial Penn term life policies offer some advantages over many of their 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 coverage 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, Active Care supplemental health insurance from the insurance company can supplement your life insurance policy by providing asset protection when you need it most.
Today’s high health care costs can cause a serious financial burden, even if you have health insurance. Colonial Penn Active Care coverage can help pay for expenses related to a variety of health conditions, including:
- Accidental injuries
- Alzheimer 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 copayments and deductibles required by your health care coverage, or to pay for medical bills and everyday expenses like car payments, food, mortgage or rent payments.
Colonial Penn offers Active Care to adults and children. If you do not file a claim before the end of the policy term, Colonial Penn will refund a portion of your premium. Active Care availability and cash back benefit may vary by state.
Frequent questions
How much insurance do you get from Colonial Penn for $ 9.95 per month?
In its television commercials, Colonial Penn advertises life insurance coverage starting at $ 9.95 per month for its guaranteed acceptance life insurance. While the policy does not require a medical exam, it only offers limited benefits for the first two years. But the price you pay for the policy may depend on your age, amount of coverage, and location.
What is the best insurance company?
According to JD Power’s 2019 US Life Insurance Study, Northwestern Mutual, State Farm, and Mutual of Omaha are among the top life insurance companies. In the 2019 survey, Colonial Penn did not score. However, choosing the best life insurance company will depend on your personal needs. Some insurers offer a wide variety of insurance products, such as auto, business and home coverage, while others, including Colonial Penn, do not offer such a broad portfolio. If you’re just looking for life insurance, Colonial Penn might be able to provide the right fit, but if you need a wide range of coverages, 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 . To file a claim, the designated beneficiary must submit a claim form, the original insurance contract, and a certified copy of the deceased’s death certificate.