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overall rating 3.0
You should be aware that not all life insurance companies are currently accepting insurance applications due to the COVID-19 pandemic. We will update our reviews as we find more information on companies that are currently accepting new apps.
Colonial Penn Life offers an insurance option for those who may have difficulty obtaining life insurance from other companies. The guaranteed issue comes with death benefit limitations. Colonial Penn Life is a good option for people who want to buy cheap life insurance policies without a medical exam.
Based on our review of more than two dozen life insurance companies, Colonial Penn Life Insurance was not one of the best companies we found. To see other options that may be better, visit our list of the best life insurance companies.
- Pros and cons
- Key takeaways
Pros and cons Pros
- Insurance available without medical tests or questions.
- Don’t worry about being rejected, acceptance is guaranteed
- Life insurance that offers benefits while you are still alive
- 30-day risk-free trial period
- Backed by the independently rated holding company, CNO Financial
- Renewable term policies with guaranteed coverage up to 90 years
- Coverage provided without a medical exam can be more expensive
- Coverage limited to $ 50,000
- Secure a life insurance policy to cover final expenses.
- Colonial Penn makes life insurance affordable with low premiums.
- A generous 30-day free trial period allows you to review the policy without obligation.
- Avoid the need for a medical exam by purchasing permanent life insurance.
- There is a limited selection of riders for policyholders to choose from, limiting policy customization.
- Founding year 1968
- Average cost per month $ 24 to $ 29 per month for 35-year-old clients who want $ 50,000 in term life coverage
- Plan Types Guaranteed Acceptance, Whole Life, Renewable Term Life, Life Insurance
- Number of plans three
- Payment plan options Monthly, quarterly, yearly, semi-annually, online, credit cards accepted
- Official website https://colonialpenn.com/
overall rating 3.0
Colonial Penn Life Insurance was founded in 1968 and is owned by the financial giant CNO. They are known for specializing in providing basic types of life insurance without medical exams, which is a very attractive benefit for those looking for a plan. But what else should you know about Colonial Penn Life Insurance? We review the company’s offerings, prices, financial stability, customer satisfaction, and more to see how they really stack up. See our full findings below.
Company Overview – Part of a Powerful Family of Financial Companies
Colonial Penn was founded in 1968 and is based in Philadelphia, Pennsylvania. The company is owned by CNO Financial Group, the same firm that owns several other insurance and financial companies, such as Bankers Life, Washington National Insurance, and Bankers Conseco. Colonial Penn has more than 760,000 life insurance policies and $ 3.5 billion of life insurance in force.
Available plans: a basic lineup
Colonial Penn only offers three different types of life insurance. While they do not offer universal variable or universal indexed options available with many other providers, Colonial Penn offers full, guaranteed term life that does not require medical exams.
Colonial Penn Life offers the following policies:
Guaranteed acceptance life insurance
Colonial Penn’s Guaranteed Acceptance Life Policy is available to customers ages 50-85 in most states. The policy does not require any medical exams or health questions. Guaranteed life policies offer permanent coverage for final expenses and preset premiums ranging from $ 10 to $ 80 per month that will not change over time. The benefits built into the policies vary by age, gender, and location.
Permanent permanent life insurance
Colonial Penn offers lifetime coverage of up to $ 50,000 for customers ages 40 to 75 that remains in effect as long as you pay your premiums. The policies do not require a medical exam, but they do have application questions that will determine eligibility, and premiums will never increase.
Renewable term life insurance
Renewable term insurance is available through Colonial Penn for customers ages 18 to 75. These policies also do not have medical tests, but they do have questions on the application that will determine eligibility. Term life policies through Colonial Penn offer up to $ 50,000 in coverage and last for five years and can be renewed for an additional five years. However, policies cannot be renewed after the insured reaches their 90th birthday.
Some policies have what is known as Living Insurance®. This is a two-part plan that increases the value of your life insurance, so you can charge up to 50% at the beginning of the policy term if you become seriously ill.
Available corridors: not much selection
Riders, sometimes called endorsements, are additions you can choose to on some policies to help customize your insurance. Some life insurance policies available through Colonial Penn offer riders that can help policyholders get more value from their policies. Colonial Penn’s most important rider is an accelerated death benefit rider to make the policies “life insurance.” Not all riders are available for all types of policies.
Our expert dock says
Living Insurance® is a two-part plan that increases the value of your life insurance, so you can charge up to 50% upfront if you become seriously ill.
The two most common passengers Colonial Penn offers include:
Accelerated death benefit rider
An expedited death benefit rider offers policyholders a prepayment option that grants access to a portion of the policy’s death benefits while the policyholder is still alive if disabled or diagnosed with an illness chronicle. This payment option is subject to an administrative fee and the repayment of a percentage of the loans and interest.
However, it turns a policy into so-called “life insurance” and gives policyholders greater access to declared death benefits. Life insurance is available online, by phone, or by mail for term life policyholders ages 18 to 75 and age 40 to 75 for life.
Our expert dock says
An advance payment option is an accelerated death benefit rider that allows you to receive part of your policy benefit if you are diagnosed with a covered illness. This payment is subject to an administrative fee and the repayment of a percentage of the policy loans and the interest on the loan.
Rider of accidental death
Holders of certain Colonial Life policies have the ability to purchase accidental death riders that increase payments if an insured dies as a result of an accident rather than illness. This rider provides additional coverage up to $ 50,000.
Customer Service: Simple Live Chat and Dedicated Reps
Colonial Life customers who need assistance can contact the company by calling 1-800-523-9100 Monday through Friday from 8:30 a.m. to 5:30 p.m. Eastern (New York residents should call 1-800- 323-4542). Colonial Life also offers live chat through its website.
Customer satisfaction: good ratings and mixed reviews
Colonial Penn has an A + rating from BBB, but it also has 83 complaints, which is a high number for its size. Complaints range from coverage denials to excessive premiums, slow paper processing, including cancellations, and unexpected policy cancellations without notice. . The company also does not have good reviews online and has a large number of customer complaints.
Financial strength – part of a strong family of companies
As a subsidiary of another company, Colonial Penn Life does not have its own financial stability ratings. However, its parent company, CNO Financial, and the other affiliated companies owned by CNO have a BB + rating from AM Best.
Cancellation policy: a decent free viewing period
Customers who decide to purchase an insurance policy from Colonial Penn have a 30-day window (a “Trial Period”) in which they can cancel their policy at no cost. Customers who wait more than 30 days to cancel their policies will incur partial or full surrender charges that are deducted from the cash value of their policies when they are canceled, along with any outstanding loans and interest owed.