Colonial Penn Life Insurance Company Review

About Colonial Penn Life Insurance Company

Colonial Penn Life Insurance Company has been the leader in Guaranteed Acceptance life insurance in the US market for half a century. Leonard Davis co-founded the company in 1968, and it now has its headquarters in Philadelphia as a subsidiary of CNO Financial Group Inc. They offer a multitude of affordable life insurance plans to people of all ages. Hence, you should consider learning more about Colonial Penn insurance products.
colonial penn life insurance

About Colonial Penn 995 plan on TV Commercials

The Colonial Penn burial insurance plan is constantly promoted through extensive Television marketing campaigns. Featuring Alex Trebek, the commercial portrays a persistent message about obtaining burial insurance coverage for “just $9.95 a month”. Additionally, the commercial states that Colonial Penn insurance guarantees your acceptance, and NO health questions are required. Furthermore, Alex Trebek explains that with the “Colonial Penn 995 Plan (guaranteed acceptance)”, You cannot be turned down for any reason, and your rates are guaranteed not go up because of age or health. It is a “rate lock”, he says. However, these policies have limitations and exclusions, and the prices are calculated based on units of coverage. Therefore, as you will see on the table below, depending on your age, this type of insurance can be substantially more expensive than other regular level final expense plans.
Therefore, if you have average health, you may be able to obtain a more affordable life insurance plan with better benefits. Use or burial insurance calculator today, and compare quotes with top-rated competitors. You will be surprised.

Compare Colonial Penn Burial Insurance!

Why Choose Colonial Penn Life Insurance

The main reasons why you would want to obtain a colonial Penn burial insurance policy is because of their well-known name, or because of bad health. If you are undergoing dialysis, chemotherapy, cardiac problems, COPD, organ transplant, or other chronic illness, you can qualify for coverage.
However, if you do not suffer from any of these ailments, you have many options for senior life insurance in the market today. Our agency can help you compare burial insurance rates with many highly rated life insurance companies. Let’s take a more detailed look at the Colonial Penn Life insurance products.

Colonial Penn Life Insurance Plans

The company offers 3 life insurance plans for prospective clients:

  • Guaranteed Acceptance Life Insurance
  • Term Life Insurance
  • Whole Life Insurance

Guaranteed Acceptance Life Insurance

The colonial Penn 995 plan (Guaranteed Acceptance)is the company’s star product designed for US citizens aged 50-85 years and provides lifetime coverage. However, they guarantee acceptance because of the two-year limited benefit period for non-accidental reasons. In other words, if the insured passes away naturally within the first two years of the coverage, the beneficiary will receive the premiums paid, plus interest compounded yearly*. However, after the first two years, they pay the full face amount to the beneficiaries for any cause of death.

*Example: Let’s say you are 65 years old, and you purchased $7,456 of burial insurance coverage (8 units x $9.95= $79.60/month), and you passed away after 14 months of purchasing it. Once the claim is processed, your beneficiary(s) will receive only $1,263.48 ($79.60 x 14 +7% compounded annually). Shocking, right?

See Colonial Penn Guaranteed Life Insurance Rate Chart

Your total monthly cost= [$9.95] x [Number of units you wish to buy]

Important: These rates are updated periodically, but we do not guarantee its accuracy. Contact Colonial Penn insurance by phone to verify.

 

Term Life Insurance

This type of life insurance policy is offered to US citizens aged 18-75 years living in selected states (all locations except MA, ME, NY, and VT). You will not undergo a medical examination when you sign up for this policy. Hence, this policy remains active until the policyholder reaches 90 years, after which it needs to be renewed.
It is significant to mention that this type of Term life insurance does not have a “rate lock” and your monthly rates will increase as you enter a new age band, or every 5 years. (See  Colonial Penn life insurance rate chart) Furthermore, term life insurance is not a product we recommend for final expense coverage purposes, because it terminates. And once you get to a certain age, it will be so expensive, that you will most likely cancel it at the time you need it the most.

Whole Life Insurance

A whole life insurance policy is precisely for US citizens aged 45 – 75. This policy also offers a lifetime coverage period with a maximum insurance benefit of $50,000. Although this policy entails no medical examination, the applicant needs to answer a few medical questions for eligibility. The policy also builds cash value after the first year of coverage, which you can use to cover missed payments or emergency loans. Besides, you can apply online (via website) or contact the customer representative team. Interestingly enough, this product may be the best option from Colonial Penn, and for some particular reason, they do not advertise it.

Utilize our FREE Whole Life Calculator today, and Compare Whole Life Insurance rates with Top-rated Life insurance companies. You may be able to save up to 30% on your monthly premiums.

Compare Colonial Penn Whole Life!

 

* We do not represent Colonial Penn Insurance or its affiliates. This blog post is for information and comparison purposes only.

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