The Colonial Penn Life Insurance Company is an American life insurance company based in Philadelphia, Pennsylvania. They specialize in limited payouts to provide an affordable premium to clients. They are suitable for people who do not need large payouts.
Colonial Penn offers only three types of policy; term policy, whole life policy, and guaranteed acceptance whole life, this is very limited but Colonial Penn serves a very specific purpose and in the Colonial Penn Life insurance review, I am going to show you their specific functions. Follow me…
Pros and Cons
|1.||Whole life, term insurance, and guaranteed acceptance whole life policies||Minimal options available|
|2.||No medical examination is needed||No universal life insurance|
|3.||They have A financial rating with A.M. Best||18years is the minimum while 75 is the maximum for the term policy.|
|4.||You can get a quote online||40years is the minimum while 75 years is the maximum for the whole life policy|
|5.||You can cancel the plan if, before 30 days of subscription, you feel the insurance does not fit you.||The maximum payout for both policies is $50,000|
|The minimum payout is $10,000|
Colonial Penn Life insurance coverage options
The company specializes in insurance with smaller death benefits and limited underwriting. Their options are:
1. Term life:
No medical exam is required to purchase this policy and it covers from 18 years to 75 years old.
Price at the beginning is determined by age and gender, then the price increases when the insured moves into a new five years band, that is; price increases when the person turns 21 years, 26 years, 31 years, 36 years, and so on. $50,000 maximum payout.
2. Whole life:
The age range here is 40 – 75 years and the payout is $50, 000 maximum. There is a health questionnaire but no medical exam. The price is gender-based and is fixed throughout.
The death benefit will not decrease in value.
3. Guaranteed acceptance whole life:
Available for people of age 50 to 80 years. Neither health questions nor medical exams. Small premiums are paid and there are two years waiting period.
They are structured in units with each one costing $9.95 and a maximum of 12 units. Characteristics include:
- fixed rates
- non-expiration of policy
- coverage will not decrease
- it builds cash value over time.
|Whole life insurance||Term life insurance||Guaranteed acceptance|
|Premiums (fixed?)||Yes||no, it increases with age||Yes|
|Death Benefits||$10,000 – $50,000||$10,000 – $50,000||$400 – $17,000|
|Average MonthlyRate||$10 – $80||$12 – $56||$30 – $133|
Unit of Colonial Penn Insurance coverage
A unit is the smallest package or policy you can buy at Colonial Penn Life Insurance. you can buy multiple units though and the maximum you can buy is 12.
Below is a table showing the gender-age-unit relationship:
|AGE||1 FEMALE UNIT ($9.95)||1 MALE UNIT ($9.95)|
|50||$2,083 in coverage||$1,786 in coverage|
|55||$ 1,506 in coverage||$1,884 in coverage|
|60||$1,621 in coverage||$1,214 in coverage|
|70||$1,043 in coverage||$717 in coverage|
|75||$792 in coverage||$503 in coverage|
|80||$620 in coverage||$426 in coverage|
|85||$477 in coverage||$418 in coverage|
These are add-ons policies that modify or enhance the coverage you buy. There are limited riders options in Colonial Penn Life insurance, the most notable are:
- Living insurance:
It can be added to either a term life insurance policy or a whole life policy. You can collect up to 50% of your payout if you become chronically ill or develop a heart attack to treat yourself. However, if you become terminally ill; for example, cancer, you can only get about 25% of the payout.
2. Customer Service
Colonial Penn Life insurance company is a direct-to-consumer insurance company that has no use for agents or financial professionals that you can meet to discuss your options.
Everything is online, you either get a quote on their website or reach their customers’ service line @ 1- 877-877-8052.
How to submit a claim?
Eventually, a claim will have to be filed. The reason why you bought this insurance is to enable you to be able to hold a funeral and tidy some expenses; it is like preparing for a sad day. However, what has to be done has to be done.
This is how you file your claim:
- Statement of purpose letter
- Name of the person that can legally claim the payout
- A certified death certificate for the insured
- The original insurance contract(s)
These documents are sent to the following addresses:
Colonial Penn Life Insurance Company
Life claims dept.
PO BOX 1918
Carmel IN 46082-1918
Cancellation of Colonial Penn Life Insurance
You can cancel your plan before 30 days when you just buy a policy either because you feel like it is not a good fit for you or just because… if you cancel within the first thirty days, you will get your premium back in full.
You can also change your plan free of charge within 30 days.
Colonial Penn is your go-to great option
Colonial Penn keeps offers only quality life and supplemental health insurance products. They have minimal death benefit limits. Both their term and whole life policies provide a maximum death benefit of $50,000, way lower than policies offered by other life insurers.
However, Colonial Penn is a good option for people looking for a whole life policy. If you have a preexisting condition that might prevent you from purchasing life insurance from another carrier, Colonial Penn’s Guaranteed Acceptance Plan might provide just the coverage you need.
Colonial Penn’s term life policies offer a few 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 may build a cash value.
And, while many insurers only offer term life policies that cover you to age 85, Colonial Penn extends coverage to age 90.
Frequently Asked Questions Colonial Penn Life Insurance Review
For a 50-year-old man, rates for term life insurance from Colonial Penn can range from $13 to $57 per month.
Guaranteed acceptance policies ran between $10 and $80 per month, while whole life insurance was the most expensive at $30 to $133.
Ultimately, your quotes will depend on your age, gender, and the amount of coverage you select.
Besides Colonial Penn, you can check out final-expense insurance from providers such as AAA, AIG, and Gerber. These companies offer competitive rates for coverage options that are fairly similar to what Colonial Penn offers.
Colonial Penn advertises life insurance coverage starting at $9.95 per month for its Guaranteed Acceptance Plan. While the policy doesn’t require a medical exam, it only offers limited benefits for the first two years. But the price you will pay for the policy may depend on your age, amount of coverage, and location.
According to J.D. Power’s 2020 U.S. Life Insurance Study, Northwestern Mutual, State Farm, and Mutual of Omaha rank among the top life insurance companies in the U.S. In the 2020 survey, Colonial Penn didn’t earn a ranking.
However, choosing the best life insurance company will depend on your personal needs.
Some insurers offer a wide variety of insurance products, like auto, business, and home coverages, while others, including Colonial Penn, don’t offer such a broad portfolio.
If you are only looking for life insurance, Colonial Penn might provide the right fit, but if you need a wide range of coverages, you will need to find another insurer.
Colonial Penn only accepts claims through the mail. To file a claim, the named beneficiary must submit a claim form, the original insurance contract, and a certified copy of the deceased’s death certificate.
Colonial Penn’s life insurance review is the complete guide to what you need to know before getting a life insurance plan. Their options are limited, but they are functions specific and you will not get better options elsewhere.