Life Insurance

Colonial Penn Life Insurance Review

By Peter Mondrose Peter Mondrose is the Head of Insurance Content at Bankovia. He received his degree in Economics in 1998 and a second degree in Journalism in 2004 from the University of Chicago. Most recently he served as Head of Content at QuoteYeti.com, and editor at BusinessPundit.com 6 minute read

If you’re looking for low-cost, guaranteed coverage for a limited time period, Colonial Penn offers three basic life insurance products. You may learn more about the firm by reading our Colonial Penn Life Insurance Review. You may pay in one of four different ways, which gives you some financial freedom.

The most comprehensive whole or term life insurance coverage offered by this organization is $50,000, which is much less than the $50,000 maximum offered by other firms that need medical tests.

Additionally, the firm is receiving an unusually large amount of complaints. Within 30 days of purchase, if you are dissatisfied with Colonial Penn insurance, you will obtain a full refund of your purchase amount. However, as long as you search about and discover the best deal, you should be able to maximize your investment.

Pros and Cons of Colonial Penn

Pros

Colonial Penn Life Insurance Review - Colonial Penn Insurance Company Logo
  • Medical tests or appraisals of health issues are not required.
  • You can rely on assured acceptance and fixed premiums when it comes to whole-life insurance.
  • Payment choices include monthly, quarterly, semi-annual, and annually.
  • A 30-day money-back guarantee is included.

Cons

  • The coverage maximum is $50,000, far less than the industry typical of $50,000 to $500,000.
  • Term life insurance is not authorized in Maine, New York, Vermont, or Montana, and is outlawed in Vermont due to its low usage.
  • Numerous complaints have been lodged alleging pushy sales methods and clients’ inability to obtain a refund following a purchase.

Colonial Penn life insurance rates

We were able to obtain 2021 rates for a $500,000, 20-year term life insurance policy for a healthy married couple in good health by utilizing Colonial Penn’s online quotation tool. Typically, rates for plans of this size and length are comparable to those of comparable size and duration. With the exception of men under the age of 35, Colonial Penn consumers pay greater rates than the national average.

  • Age 20. Male $13.96, Female $11.87
  • Age 25. Male $18.96, Female $14.12
  • Age 30. Male $23.96, Female $19.12
  • Age 35. Male $28.92, Female $24.12
  • Age 40. Male $35.21, Female $29.12
  • Age 45. Male $45.12, Female $35.21
  • Age 50. Male $56.46, Female $45.21
  • Age 55. Male $76.46, Female $56.46
  • Age 60. Male $99.79, Female $71.46
  • Age 65. Male $140.12, Female $98.83
  • Age 70. Male $191.53, Female $128.29

Factors that affect life insurance rates

When establishing your insurance premiums, you will not find detailed information about these characteristics on Colonial Penn’s website, which is unfortunate because they are critical.

  • Conditional on health. It is probable that death rates among wheelchair users, hospitalized patients, and home health care recipients have increased during the last three years.
  • This condition, if left untreated, has the potential to be lethal. The scholarship is open to anybody over the age of five who has had surgery or diagnostic tests for a chronic condition.
  • For an extended duration. You’ve been diagnosed with a chronic ailment such as diabetes, heart disease, lung disease, or liver disease during the last three years, or you’ve been diagnosed with cancer.
  • It is banned to use depressants and/or intoxicants. Individuals who have used drugs or alcohol in the preceding three years have a greater risk of developing the condition.
  • The blood pressure in the arteries and veins fluctuates continually. Individuals whose blood pressure has lately exceeded 150/95 may be charged at a higher rate.

How to get a quote from Colonial Penn life insurance

To receive an online quote, please contact Colonial Penn at 877-877-8052 or follow the instructions below.

  1. Enter your birthday and state of residence in the drop-down boxes on the Colonial Penn website, then click Get Quotation to obtain a quote.
  2. To begin, you must get a quote, which may be chosen from a pool of accessible quotes.
  3. The application requires the applicant’s full name, postal address, and email address. Please do your best to fill them to the brim. We appreciate your cooperation. To obtain a quotation, just click on the Request a quote icon located at the top of this page.
  4. You may extend the protection offered by your insurance by selecting additional coverage from a drop-down menu. By selecting the Apply Now button and entering the relevant information, you may begin the application process.
  5. Answers to health-related questions are only a click away. Complete the form once more with the recipient’s information.
  6. After you have viewed and electronically signed your paperwork, you will be contacted by a licensed agent to conclude the transaction.
  7. Following acceptance, you will have access to your account and will be able to pay your premium, change your contact information, and see your policy.

Colonial Penn offers term and permanent life insurance

Colonial Penn’s term and whole life insurance policies provide limited benefits and do not need medical checkups..

  • There’s no risk of rejection. Your health will never be considered when determining your eligibility for life insurance as a result of a well-thought-out approach. After you acquire insurance, your premiums will remain constant.
  • It is conceivable to exist for an extended period of time. The term life insurance policies offered by Colonial Penn renew every five years and can be renewed until the age of 90, depending on your age. Your insurance prices will increase as you age.
  • I intend to remain here for the remainder of my years. This insurance provides lifetime coverage with the option of accumulating cash value, and your premiums are fixed at the time of purchase.

Does Colonial Penn offer burial insurance?

Yes. The guaranteed acceptance policy at Colonial Penn acts as a form of funeral insurance for the company’s workers. As is traditional, this insurance is only available to seniors aged 50 to 85, and no medical examination is required. On the other side, coverage is restricted and comes with a hefty deductible.

If you die naturally during the first two years of coverage, you will get a complete refund of all premiums paid, including annual compounded interest. This holds true regardless of the cause of death. When this time period expires, the insurer will pay the recipients the whole death benefit.

Colonial Penn only offers 2 policy add-ons

Colonial Penn is unique in that it only offers two types of riders, although the bulk of insurers offer supplemental coverage like child or disability insurance. Insurance coverage is affected by state, age, and gender.

  • Rider for increased death benefit. If you have a heart attack, a stroke, cancer, or any other chronic illness, you may be entitled for a payout equal to up to half the face value of your life insurance policy.
  • Accidental death insurance is a supplemental policy. If you are killed in an accident, such as a car accident, this coverage provides compensation to your dependents.

Colonial Penn life has mixed reviews

Colonial Penn’s customer service is unmatched, earning an A+ rating from the Better Business Bureau. The Better Business Bureau received 116 complaints against life insurance businesses in the past three years, which is about typical. After years of payments and denials for insurance acceptance, customers have given the insurer a dissatisfactory rating of 1.08 out of 5 stars. Colonial Penn has a 3.2-star rating on TrustPilot despite the fact that only one review has been submitted.

Colonial Penn life stands out for no-exam policies, but at a cost

Colonial Penn’s strengths include traditional term life insurance that renews every five years, as well as whole life insurance with guaranteed approval. These solutions are not always available in all areas.

While Colonial Penn offers the most economical no-exam insurance, there are several other companies that offer more coverage and plan options. The expenses of its programs vary significantly by participant age and health status.

Consider the following illustration: A 30-year-old guy in good health will pay $17 a month for a $250,000 term insurance policy with a 20-year term, which is typical in today’s market. Colonial Penn term life insurance is initially affordable, but the premiums increase to several hundred dollars per year as you age, rendering the coverage insufficient.

Find more life insurance companies

Are you curious in how Colonial Penn stacks up against other schools and universities? You may learn more about alternative insurance providers by reading our provider reviews.

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