colonial penn offers a variety of life insurance products that combine simplified underwriting with a limited death benefit. are best suited for consumers who don’t need a large payment (perhaps just enough to cover funeral expenses) and who would typically have trouble purchasing coverage elsewhere due to age or medical history.
This company offers competitive prices for its final expense products, but if you’re young or in good health, you should probably compare quotes from other insurers. Colonial Penn’s whole and term life insurance products don’t require a medical exam and have a maximum death benefit of $50,000, which means you’ll typically pay higher premiums and won’t be able to buy more coverage later if your needs financials change.
penn colonial life insurance products by type
colonial penn specializes in life insurance products with smaller death benefits and limited underwriting. Often referred to as final expense insurance, these products make the most sense for people who want coverage quickly.
Depending on your financial needs, Colonial Penn offers three types of life insurance policies:
You can apply for all of Colonia Penn’s life insurance products online and none require a medical exam. this is convenient for consumers who want to buy coverage quickly. While Colonial Penn also advertises a 30 day money back guarantee, this feature is not unique and should not be a reason you decide to buy from them.
Most states have “free view” laws that require insurers to provide a full refund, if requested, within 10 to 30 days of purchase.
penn colonial term life insurance
Colonial Penn offers a one-year term life insurance policy, which means you essentially start a new term each year. the term life policy also has a limited death benefit, with a maximum value of $50,000, which can be designated to one or two beneficiaries.
Because the policy has a one-year term, the premiums you pay increase as you age, usually in five-year increments. For example, a woman buying $50,000 of coverage would pay:
If you know you want coverage for a longer period of time, you’ll pay a higher average premium with Colonia Penn than if you bought a longer-term policy elsewhere (like a 10- or 20-year term) because your risk profile increases with age. Plus you can find lower prices elsewhere with significantly more coverage because Colonial Penn has a limited underwriting process with no medical exam. this increases premiums, since they cannot verify your health status.
colonial penn does not offer term life insurance in maine, massachusetts, montana, new york or vermont. New policies are only available through age 75, but if you already have coverage with Colonia Penn, you can continue to renew annually and keep coverage through age 90.
Colonial Penn Guaranteed Acceptance Program
Colonial Penn’s Guaranteed Acceptance Program is a whole life insurance policy with a limited death benefit and is often marketed to seniors who want to reduce the financial impact of their death. family in case of death.
unlike some final expense insurance products that let you choose a particular payment, colony penn collects your age, gender, and location, then assigns you a “unit” of coverage (insureds can purchase up to eight units) . Since the price is fixed, the amount of coverage available per unit varies based on your risk profile. The minimum value of a unit of coverage is approximately $400 and the maximum is approximately $2,100, which means the maximum death benefit you can select is around $16,800.
Because guaranteed acceptance coverage is a form of permanent life insurance, it builds cash value that can be borrowed at an annual interest rate of 8%.
Monthly premiums are directly related to the number of units purchased and each unit costs $9.95 per month. you can buy up to eight units, so the maximum monthly premium is $79.60. if you pay annually, you receive a discount equal to one month’s premium or an 8.3% discount for the year.
A guaranteed acceptance policy can only be purchased between the ages of 50 and 85, and the policy’s death benefit is limited for the first two years of coverage. if you die during the first two years, unless due to an accident, your beneficiaries would receive a lower payment (the sum of your premium payments compounded annually at 7%). This type of clause is regularly included by all insurers that offer guaranteed acceptance policies, since otherwise it would not be economical for them to offer said product.
penn colonial whole life insurance
If you’re willing to answer questions about your health or haven’t turned 50 yet, Colonial Penn offers traditional whole life insurance as an alternative to the Guaranteed Acceptance Program. Since the company can better assess your risk through health questions, the death benefit from this policy can be as high as $50,000 in value. however, it is still significantly lower than what is available through other insurers.
colonial penn’s whole life policy allows you to choose the particular death benefit you want, which means premiums vary based on your risk profile. To give you an idea of the range of monthly premiums, we have selected sample rates for the minimum and maximum coverage amounts offered:
colonial penn does not offer whole life insurance in maine, new york or vermont, and policies can only be purchased between the ages of 40 and 75.
comments and complaints from colonial penn customers
colonial penn has a financial strength rating of a- (excellent) from a.m. best, which means you have plenty of resources available to pay claims. Consumers also tend to give positive feedback about Colonial Penn’s quick and simple claims process.
However, Colonial Penn receives a significant number of complaints about its aggressive sales tactics targeting the elderly. In addition, many people felt that they bought the wrong product or that they did not understand the product before buying it.
While this is true of any insurance product, if you are considering purchasing life insurance from Colonial Penn, it is incredibly important that you review all documents and materials yourself before submitting an application or purchasing coverage.
life insurance payments
colonial penn offers multiple payment options for all of its life insurance products: