Colonial Penn Life Insurance Company Review
Welcome to EasyQuotes4You and thank you for visiting our site. Today we are going to review Colonial Penn Life Insurance Company and the products they offer.
Colonial Penn Life is best known for there commercials featuring the late Alex Trebek. Mr. Trebek was the spokesman for Colonial Penn for many years before his passing in 2020.
Colonial Penn Life Insurance History
Colonial Penn Life Insurance was established in 1968 by a co-founder of AARP with the idea to offer coverage to seniors age 50 and above.
In 1997, Colonial Penn Life was purchased by CNO Financial. CNO Financial also owns:
- Bankers Life and Casualty Company
- Washington National Insurance Company
- Bankers Conseco Life Insurance Company
Colonial Penn offers their products though the mail, tv commercials, call centers, and websites. They mainly focus on seniors and as a result, Colonial Penn became one of the first insurers to offer Guaranteed Acceptance Life for consumers 50 and above.
Today, Colonial Penn Life Insurance Company offers “easy issue” term life and whole life insurance along with their Guaranteed Acceptance Life.
Colonial Penn Contact Info
If you are already own a life insurance policy with Colonial Penn and need to get in touch with them. Look below.
Colonial Penn Life Insurance Company Ratings
When shopping around for life insurance, the financial ratings of the company is a vital part of the process. Good financial ratings means the insurance company should be able to pay any claims.
Colonial Penn Life Insurance Company boasts strong ratings with the top companies:
Colonial Penn Life Insurance Products
As we mentioned earlier, Colonial Penn’s Guaranteed Acceptance Life is their most popular product, but they do offer other types of life insurance.
Colonial Penn also offers:
- Permanent Whole Life Insurance
- Renewable Term Life Insurance
- Living Insurance with Whole and Renewable Term Life Insurance
- Active Care Supplemental Insurance
All of Colonial Penn products do not require an exam. Now lets dive in and see the details.
Guaranteed Acceptance Life Insurance
The Guaranteed Acceptance Life policy is the product that is advertised most on television by Alex Trebek. It’s by far the most popular product sold by Colonial Penn Life.
The Guaranteed Acceptance Life Insurance is a whole life policy with a guaranteed premium and death benefit for life. The Guaranteed Acceptance Life also asks no health questions and everyone is accepted.
Guaranteed Acceptance Life has a 2 year limited benefit period. This means the full benefit is paid the first 2 years if death is due to accident. If death is natural, then premium is returned plus 7% interest.
Issue ages for Guarantee Acceptance Life is 50-85. The maximum benefit allowed is based of age and gender. The Guaranteed Acceptance Life also has a 30 day free look period to decide if this policy is the right fit.
Figuring out the cost of Colonial Penn’s Guaranteed Acceptance Life is the confusing part. We will try to explain:
Instead of choosing the death protection you want, you choose how many units you would like to buy. Each unit costs $9.95 and you can only purchase 12 units. The value of each unit is based on your age and gender.
Confusing isn’t it? We sell life insurance and it confuses us, so we can only imagine how this makes you, the consumer, feel. Let’s take a look at the examples below to get a better idea of how the pricing works.
Guaranteed Acceptance Life Rates
As you will see the price per unit is the same, but your age and gender determines how much death protection each unit buys.
Colonial Penn Male Rates:
Colonial Penn Female Rates:
Guaranteed Acceptance Life vs. The Competition
Before you go out and buy a Guaranteed Acceptance Life from Colonial Penn, compare with AIG guaranteed issue rates:
AIG Guaranteed Issue Life Rates:
Permanent Whole Life Insurance
Colonial Penn Life Insurance Company offers a whole life policy that provides day 1 coverage along with guaranteed premiums, guaranteed death benefit, and guaranteed cash value accumulation.
Issue ages are 40-75 with a maximum death benefit of $50,000. No medical exam is required but there are medical questions on the application to help determine your eligibility. Check out the sample rates below:
Colonial Penn Whole Rates:
Renewable Term Life Insurance
Colonial Penn Life Insurance Company offers a term life insurance that is renewable to age 90. Most term life offered now provides a level premium for the term period chosen. Colonial Penn’s renewable term life premiums increase every 5 years.
Issue ages are 18-75 with a maximum death benefit of $50,000. No exam is required but health questions are asked in order to qualify. Check out Colonial Penn’s rate charts below:
Male Renewable Term Life Rates:
Female Renewable Term Life Rates:
Living Insurance for Whole Life and Renewable Term Life
Living Insurance, also known as living benefits, offered by Colonial Penn Life provides protection that you don’t find with many traditional policies. Living Insurance can be added to the renewable term life and whole life policies for an extra cost.
Living Insurance benefit will allow you to collect 50% of your death protection early if you become seriously ill. In other words, if you have a major heart attack, stroke, or cancer you could access part of your benefit amount early to help with costs associated with the illness.
Active Care Supplement Insurance
Active Care is supplemental health plan that pays directly to you and your family. A serious health event could end up costing thousand of dollars of out of pocket expenses, but Active Care helps pay these bills along with other associated costs.
Active Care covers:
- Cancer
- Stroke
- Heart Attack
- Heart Bypass and Stent
- Alzheimer’s Disease
- Diabetic complications
- Hospital and ICU stays
- Surgery and Follow-up care
- Accidental injuries
- Doctor office Wellness visits
- Recurrence
Active Care pays out up to $60,000 in one lump sum for covered expenses.
Final Thoughts
Colonial Penn Life Insurance Company does a great job of marketing itself to seniors through commercials and direct mailings. But honestly, their products are not the greatest out there.
Sure they are strong financially and will be able to pay claims, but their rates are over priced. They have term that increases every 5 years which can get expensive as you get older.
With a little effort you should be able to find better life insurance products for a much better price. If you have any questions or need quotes, just let us know. Once again, thanks for reading.
What is Colonial Penn's customer service number?
Colonial Penn Life Customer Service number is 1-800-523-9100.
Is Colonial Penn a financially strong insurance company?
Colonial Penn boasts strong ratings from all the top rating agencies. They have an “A-” with A.M. Best.
Does Colonial Penn require a medical exam?
None of Colonial Penn’s life insurance products require an exam. Although you do have to answer a few medical questions to qualify for there term and whole life insurance.
