Colonial Penn Whole Life Insurance Review

By February 27, 2019 April 19th, 2019 Reviews


Colonial Penn Whole Life Insurance Review

 

About Colonial Penn Life Insurance Company

Domicile: PA

Established: 1957

For over 60 years, Colonial Penn has specialized in offering life insurance directly to consumers at affordable prices. Through mail, TV, our call center and the web, we focus on providing life insurance protection for folks like you and your loved ones. The company was a pioneer in designing insurance products to meet the needs of the mature market, and in 1968 became one of the first insurers to offer a Guaranteed Acceptance Life Insurance plan, exclusively for people ages 50 and over.

Today, Colonial Penn offers life insurance products for ages 18-85, and all our products are designed to help ease financial burdens at a difficult time. Our most popular plan is our Guaranteed Acceptance Life Insurance, available exclusively for ages 50 and over. Plus, we offer “easy-issue” term life insurance and permanent, whole life insurance.

We are committed to providing our customers with affordable, quality insurance coverage. Whether you prefer to call us to discuss a coverage plan that is right for you, or you prefer to get coverage through mail or online, we are here for you, when you need us.

Source: Colonial Penn: About us 

Company Values

Integrity, Excellence, Customer Focus & Teamwork

Colonial Penn States that they strive to live their four core values in each and every interaction with our customers. Policyholders can rely on us for reliable, personal service, security, and peace of mind.

From the surface it sound like Colonial Penn is great but let’s dig in…

In this Colonial Penn Whole Life Insurance Review we will cover the following topics:

    1. The Good
    2. The Bad
    3. Financials
    4. Ratings
    5. Products
    6. Riders
    7. Dividend Rate

The Good

No Medical Exams

There is no Medical/physical exam required for any of the Colonial Penn products. All you will need to do to obtain a policy is complete the application and answer the health questions over a phone call with an underwriter from the company. 

 

Guaranteed Approvals

Do not worry if you are not in perfect health Colonial Penn’s has Guaranteed Acceptance Life Insurance. No health questions asked and no physical tests requires.

 

Fixed Rates

Lock in premium and benefit amounts. If you are to purchase any of Colonial Penn’s Whole Life insurance plans you will never have any surprises when it comes to premiums or your benefits.

 

Quick Turnaround Coverage

If you are looking to lock in a policy quickly Colonial Penn’s application process is fast and will offer quick turn around so you can protect the ones you love.

 

30-day money-back guarantee

Buy with confidence. Colonial Penn offers a 30-day money back guarantee so you can be sure that you got what you paid for.

 

24/7 Online Customer Access

mycolonialpenn.com

Current policy holders can manage their policy online, make payments.

The Bad

Low Death Benefits

Unfortunately if you are looking for sizable life insurance coverage amounts you will not find this at Colonial Penn. The companies max coverage is $50,000 across any of their plans. 

 

Limited Options

Colonial Penn only has only three options for customers to choose from plus there are no additional riders or options to add to their policies. In addition the company does not serve all age ranges equally only some of their products are available depending on your age.   

 

Plans are not available in all states

Plans are not available in all states which is a big inconvenience. The term insurance product is not available to Maine, New York, Vermont, and Montana. Permanent products are not available in Maine, New York and Vermont.

 

Company Reviews

Colonial Penn has racked up a large number of complaints, more than most. Don’t take our word on it check out the Better Business Bureau’s and Google Review’s.

Better Business Bureau

Google Review’s 

Finances

Colonial Penn’s Financial history over the past five years looks promising.

  • Steady investment yields in past 5 years
  • Conservative allocation of investment funds

Ratings

For more than 100 years, the company has been providing customers with a high level of service, all in a stable financial environment. This has led to some of the best ratings in the industry, which include:

A.M. Best Rating 

  • A-
    • Excellent. Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing obligations to
      policyholders.

Standard & Poor’s Rating 

  • BBB+
    • An insurer rated ‘BBB’ has GOOD financial security characteristics, but is more likely to be affected by adverse
      business conditions than are higher rated insurers.

Moody’s Financial Strength Rating 

  • A3
    • Insurance companies rated A offer good financial security. However, elements may be present which suggest a
      susceptibility to impairment sometime in the future.

Fitch Ratings’ Insurer Financial Strength Rating

  • BBB+
    • Good. ‘BBB’ IFS ratings indicate that there is currently a low expectation of ceased or interrupted payments. The
      capacity to meet policyholder and contract obligations on a timely basis is considered adequate, but adverse changes
      in circumstances and economic conditions are more likely to impact this capacity.

Weiss Safety Rating

  • D+
    • Weak. The company currently demonstrates what we consider to be significant weaknesses which could negatively
      impact policyholders. In an unfavorable economic environment, these weaknesses could be magnified.

Comedex Ranking 

  • 60
    • The Comdex gives the average percentile ranking of this company in relation to all other companies that have been
      rated by the rating services. The Comdex Ranking is the percentage of companies that are rated lower than this
      company

Colonial Penn Life Insurance Company is a subsidiary of CNO Financial Group, Inc, a financial services organization headquartered in Carmel, Indiana. Through its subsidiary companies, CNO currently serves more than 4 million middle-income working Americans and retirees.

 

Products

Colonial Penn offers both term and two different permanent whole life plans.

Guaranteed Acceptance Whole Life Life Insurance

(Ages 50-85 in most states)

With Guaranteed Acceptance, you don’t need to be in perfect health to get coverage. This is permanent, whole life insurance with no health questions asked and no physicals required.

Permanent Whole Life Insurance

(Ages 40-75)

With our Permanent Whole Life plan your premium is locked in for life. Your rate will never go up.

Renewable Term Life Insurance

(Ages 18-75)

For adults of all ages, Renewable Term Life is guaranteed renewable up to age 90. Your rate is based on gender and age when coverage takes effect. Rates increase as you enter a new age band.

Colonial Penn Price Examples

Check out prices estimates for all of Colonial Penn’s policy options below. The prices at each age will differ based on gender. 

Female Age 30

Product: Renewable Term

Male Age 30

Product: Renewable Term


Female Age 40

Product: Renewable Term

Male Age 40

Product: Renewable Term


Female Age 50

Product: Renewable Term

Female Age 50

Product: Whole Life

Female Age 50

Product: Guaranteed Acceptance Whole Life


Male Age 50

Product: Renewable Term

Male Age 50

Product: Whole Life

Male Age 50

Product: Guaranteed Acceptance Whole Life


Female Age 60

Product: Renewable Term

Female Age 60

Product: Whole Life

Female Age 60

Product: Guaranteed Acceptance Whole Life


Male Age 60

Product: Renewable Term

Male Age 60

Product: Whole Life

Male Age 60

Product: Guaranteed Acceptance Whole Life


Female Age 70

Product: Renewable Term

Female Age 70

Product: Whole Life

Female Age 70

Product: Guaranteed Acceptance Whole Life


Male Age 70

Product: Renewable Term

Male Age 70

Product: Whole Life

Male Age 70

Product: Guaranteed Acceptance Whole Life


Female Age 80

Product: Guaranteed Acceptance Life Insurance

Male Age 80

Product: Guaranteed Acceptance Life Insurance

Riders

Many company offers riders or additions to a policy to enhance the base benefit of the insurance policy. Colonial Penn does not offer these options. Here is what you may be missing out on:

Disability Coverage

If you are disabled no additional benefit will be paid out.

 

Premium Waver

Some insurance companies offer coverage of premium if you are to become disabled. Colonial Penn does not offer this type of protection.

 

Kids Life Insurance Rider

Colonial Penn does not offer a rider to add additional insurance for your children or minors.

 

Living Benefits

Sometimes companies offer early access to the death benefit if there is a terminal illness that is diagnosed. This type of option is not available for Colonial Penn’s policies.

 

Dividend Rate

Colonial Penn does not reference a dividend rate.

 

Payment Options

Credit Cards

Electronic Funds Transfer (EFT)

Direct Billing

 

Get the best Rate

If you are trying to get the best rate with Colonial Penn do not over think it. Colonial Penn does not offer specific’s which will help you but industry wide below are some items to keep in mind.

  • Family History
  • History of substance abuse
  • Current use of alcohol or tobacco
  • Criminal history
  • Job History
  • Hobbies

Final Word

So, who should be considering Colonial Penn Life Insurance. If you are looking for a company that offers a fast easy way to obtain life insurance without a medical then Colonial Penn could be one to consider. If you are in need of a higher coverage amount or a policy with all the bells and whistles then you would be best to consider another company ans an option. Make sure to compare Colonial Penn vs other companies to make sure you are obtaining the best policy for you and your family.

 

Recommended Reading:

How Much Does Whole Life Insurance Cost? Whole Life FAQ’s 

Whole Life Insurance $10,000 Cost

Life Insurer Directory for 2019

Compare MetLife Whole Life Insurance vs The Best

Free Quote

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