Colonial Penn has been in life insurance for over six decades. The carrier offers life insurance policies throughout 49 states, Puerto Rico, Puerto Rico, and the Virgin Islands. Colonial Penn sells life insurance to customers 18 to 85 years old.
Term and whole life are the two types of life insurance products offered by Colonial Penn. Although no life insurance policy requires a medical exam to be eligible, there are some health questions you need to answer in order to determine if you are. Their renewable term life insurance policy offers the chance to renew up to age 90, based on your current age at renewal. People over 40 are eligible for whole life insurance with the option for an early payout they call Living Insurance. Colonial Penn offers a whole-life policy that is guaranteed to accept for people over 50 with no medical questionnaire.
Colonial Penn life insurance
A death benefit is a feature of life insurance policies that pays a predetermined amount to a beneficiary in the event that the insured dies. If you die during the term of a $50,000 policy, your beneficiary will receive $50,000. Life insurance policies fall into two categories:
Colonial Penn policies offer flexible payment options that allow you to pay each month, quarter or six months.
Life insurance with guaranteed acceptance
In most states, people aged 50 to 85 years of age can apply for Colonial Penn’s Guaranteed Plan. The whole-life policy doesn’t require a medical exam, but it has a limited benefit period of two years. This means that you will not receive a death benefit for the first two years. After the first year, the policy will build a cash value and allow you to select the death benefit limit.
Colonial Penn Guaranteed Acceptance Plan provides coverage for your whole life, provided you continue to pay the premium. You will continue to pay the same premium for the entire term of the policy.
Permanent whole-life insurance
Colonial Penn’s permanent whole life insurance policy is available to customers aged 40 to 75 years old, except for applicants in New York State or the Virgin Islands. To determine your eligibility, you will need to fill out a questionnaire.
The whole-life policy provides coverage for your entire life with a maximum death benefit up to $50,000. After the first year, the policy builds cash value. The coverage features a fixed rate, but the premium cost will depend upon your age and gender, except in Montana, where Colonial Penn rates premiums are based only on age.
Life insurance with renewable term
Colonial Penn’s renewable term life insurance policy is available in all locations except California, Montana, New York State and the Virgin Islands. The policy is available to anyone between 18 and 75, renewable until age 90, and has a maximum death benefit up to $50,000. Colonial Penn rates are based on your gender and age, and your premiums will increase as you get older.
The cash value of your term life policy will depend on how long it is kept. Colonial Penn doesn’t require you to have a medical exam in order to offer term life insurance. Instead, it uses a questionnaire to determine your eligibility.
Insurance for the living
Colonial Penn offers a living insurance option with its permanent whole life insurance and renewable term life insurance policies. If you have been diagnosed with cancer, a chronic illness or are suffering from a stroke or heart attack, you can receive 50% of your whole or term life death benefits.
Ratings, customer satisfaction, and complaints about Colonial Penn
J.D. Penn did not make it to the top. The 2020 U.S. Life Insurance Study by Power did not include Colonial Penn, but the Better Business Bureau gave Colonial Penn an A+ rating. In the last three years, Colonial Penn has been subject to 81 complaints from consumers. Most of these were about advertising, billing, and sales.
AM Best gives Colonial Penn an A- (Excellent) financial strength rating. AM Best has been analyzing Colonial Penn since 1969. The carrier has kept an A- rating over the past five years.
Why Colonial Penn is such a great choice
Colonial Penn might not be the best choice if you’re looking for all-in-one insurance. Colonial Penn is a life insurance company that can provide coverage for your home, auto, and business. However, some insurers may also offer coverage for your car, home, and business.
Colonial Penn policies have no death benefit limits. Their whole-life and term policies offer a maximum death benefit up to $50,000. This is significantly lower than many life insurance policies.
Colonial Penn is an excellent choice for those looking for whole-life insurance. Colonial Penn’s Guaranteed Acceptance Plan may be the right choice for you if you have a preexisting medical condition that could prevent you from buying life insurance from another carrier.
Colonial Penn’s term policies have a few benefits over its competitors. These policies don’t require you to undergo a medical exam. Additionally, if your policy is renewed regularly, it may increase in cash value. Colonial Penn offers coverage up to the age of 90, unlike many other insurers who only cover you until age 85.
All Colonial Penn policies also come with a 30-day trial period. The insurer will refund your premium if you cancel or modify your policy within the first 30 days.
Colonial Penn also offers additional policies
Colonial Penn’s Active Care Supplemental Health Insurance Plan can be used to complement your life insurance policy and provide asset protection when you most need it.
Even if you have medical insurance, today’s high healthcare costs can be a major financial burden. Colonial Penn’s active care coverage can pay for expenses related to a range of health conditions such as:
- Accidental injuries
- Alzheimer’s disease
- Diabetic complications
- Heart attacks
Active Care covers up to $60,000. This supplemental policy, unlike your insurance coverage, pays the benefit directly. The payment can be used to pay your copayments or deductibles, as well as to pay for medical bills, grocery payments, rent, and other everyday expenses, such car payments, mortgage payments, and rent.
Colonial Penn provides Active Care coverage for children and adults. Colonial Penn will refund a portion of your premium if you do not file a claim within the policy term. The availability of active care and the cash back benefit can vary from one state to another.
Questions frequently asked
Colonial Penn insurance: How much do you get for $9.95 per monthly?
Colonial Penn’s TV advertisements advertise life insurance coverage starting at $9.95 per monthly for its Guaranteed Acceptance Plan. The policy does not require a medical exam. However, the policy only provides limited benefits for the first 2 years. The price of the policy will depend on your location, age and amount of coverage.
Which is the best life-insurance company?
J.D. According to J.D. Power’s 2020 U.S. Life Insurance Study (PDF), Mutual of Omaha, State Farm, and Northwestern Mutual rank among the best life insurance companies in America. Colonial Penn did not rank in the 2020 survey. However, choosing the best life insurance company will depend on your personal needs. Colonial Penn is not one of these insurers. They offer many insurance products such as auto, home, and business coverages. Colonial Penn may be the right choice if you only need life insurance. However, if you require a broad range of coverages, another insurer will be required.
How can I file a claim for life insurance with Colonial Penn?
Colonial Penn only accepts claims through the mail. The named beneficiary must complete a claim form and submit the original insurance contract along with a certified copy the death certificate.