Colonial Penn Life Insurance Review

Colonial Penn Life Insurance is a well-marketed and popular option for senior life insurance coverage.     

colonial-penn-life-insurance-company

They have over 4 million active policyholders and the charismatic Alex Trebek as their spokesperson.  However, we believe that many other insurance providers offer better policies and lower rates.  Below we explore the policy details and explain why.

A Brief Overview Of The Company 

Colonial Penn operates in all states except New York and primarily serve the senior market. They have been offering personal protection and peace of mind for over 60 years. And they were one of the pioneering companies to offer guaranteed acceptance live insurance way back in 1968. 

NO Financial group owns Colonial Penn Life Insurance Company. And the founder, Leonard Davis, is also the co-founder of AARP.

 Quick Look At Colonial Penn’s Life Insurance Policies

Term Life Insurance Guaranteed Acceptance Whole Life Insurance
Ages 18 – 75 50 – 85 40 – 75
Length of coverage Renewable to age 90 Lifetime Lifetime
Premium Rates Increases as you age Fixed Fixed
Maximum Death Benefit $50,000 $30,000 $50,000
Underwriting Application with health questions, no medical exam No medical exam, no health questions Application with health questions, no medical exam
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Life Insurance Options From Colonial Penn

Colonial Penn offers three policy types and five different policy options.

Guaranteed Acceptance Life Insurance 

  • Ages: 50 – 85 (in most states)
  • No medical exam or any health questions
  • Permanent whole life coverage that never goes away
  • Builds cash value that you can access in an emergency
  • Premium rates are locked in and guaranteed never to increase
  • Coverage amounts up to $30,000

Colonial Penn’s Guaranteed Acceptance life insurance programs are by far their most popular product. This policy is ideal for individuals in poor health that do not qualify for other types of coverage. It provides guaranteed funds to help pay for end-of-life expenses. While this is a great product, several other insurance carriers offer lower rates and higher coverage amounts for the same policy type.

It’s important to know that Colonial Penn’s guaranteed acceptance life insurance policy enforces a two-year waiting period before the full death benefit is available. This means that if you die within the first two years of your policy, your beneficiary will only receive the premiums you paid plus a small additional percentage.

Our independent agents can help you shop many other policies that you may be able to avoid this two-year waiting period. Guaranteed Acceptance life insurance should always be a last resort.

Whole Life Insurance   

  • Ages: 45 – 75 (in most states)
  • Medical questionnaire but no medical exam
  • Permanent whole life coverage that never goes away
  • Builds cash value
  • Early payout option
  • Premium rates are locked in and guaranteed never to increase
  • Coverage amounts up to $50,000

The two whole life insurance options from Colonial Penn.

Traditional Whole Life provides high coverage amounts that allow you to pay for end-of-life expenses and maybe leave a small legacy behind for loved ones. This policy is easy to qualify for and has a simple application process.  The only thing we don’t like about Colonial Penn’s Whole Life Insurance option is the rates.   Our independent agency works can connect you to several other providers that offer lower premiums.

Living Insurance Whole Life allows you to get the same peace of mind as traditional whole life coverage, plus added security of an early payout option.  This policy attaches an accelerated death benefit rider to your policy, allowing access to the death benefit while living if you become chronically ill.

The ride is available from age 40 to 64.  And there are three qualifying criteria in which you may access to the death benefit early.

  • Heart Attack – up to 50%
  • Cancer – up to 25%
  • Chronic Illness – up to 50% 

If you activate the accelerated rider, you are subject to an administrative fee and a repayment of a percentage of any policy loan interest.

Policies with an accelerated death benefit rider are also known as living benefits. Many other insurance providers offer living benefit options. Some are much more attractive.   

These two whole life options are both great offers; however, we strongly suggest you shop around before you buy.  Our independent agents frequently find out clients lower premium rates with other providers.   

Renewable Term Life Insurance  

  • Ages: 18 – 75 (in most states)
  • Guaranteed renewable to age 90
  • No medical exam but there is an extensive health questionnaire
  • Temporary coverage that will expire
  • Ability to borrow against your policy – depends on length of ownership
  • Early payout option
  • Rates increase as you age
  • Coverage amount up to $50,000

Colonial Penn offers two Term Life Policies.

Renewable Term Life may be attractive for younger, working-aged individuals; however, this policy is not ideal for those looking to cover end-of-life costs.  Term insurance policies are not permanent and will expire.  These policies are cheaper than whole life coverage because almost everyone outlives their policy.

Few individuals over age 50 are looking for term coverage; however, if you are, keep in mind that the rates increase with you as you age.  Your policy may be affordable today but might cause financial stress down the road.

Living Insurance Renewable Term provides the same coverage as traditional Term insurance with the added flexibility of an early payout option through an attached accelerated death benefit rider.  This feature allows you to access the death benefit while living if you become seriously ill.

As with the whole life option, this ride is available for ages 40 – 64. And three qualifying criteria activate the rider and give you access to your funds.

  • Heart Attack – up to 50%
  • Cancer – up to 25%
  • Chronic Illness – up to 50%

Many insurance companies offer living benefits on whole life policies; however, few offer this feature for term coverage.  Although we strongly recommend individuals over age 50 do not buy term coverage, if that is what you’re seeking, Colonial Penn’s Living Insurance Term Life Policy is a great choice.

Colonial Penn’s Life Insurance Rates Are Not The Best

Colonial Penn offers excellent life insurance rates on their term life policies; however, their whole life and guaranteed acceptance options are middle of the road. These middle of the road premium rates are why we frequently help our customers enroll with other insurance providers.

Life insurance rates are calculated based on your health, age, gender, zip code, and the size of the policy you’re seeking. 

Reviews & Financial Ratings

Colonial Penn has strong financial ratings across the board and is a strong and stable company to invest with.  If you buy life insurance from Colonial Penn, you can rest easy that they will be there to follow through on their end of the contract. 

  • A.M. Best (A-)
  • Fitch (BBB+)
  • Moody’s (Baa1

Besides premium rates, we think Colonial Penn is a fantastic company. Not only do the rating institutions agree, but so do many of their 4 million customers.  The company currently holds an A+ rating with the BBB.

Finding Your Best Policy

Our independent agency is here to help you find your best policy and lowest rates. We help you shop and compare all the top-rated carriers in one location and quickly help you navigate your best option.

We strongly suggest comparing Colonial Penn life insurance quotes with top competitors before purchasing.  And we’re here to help you do just that.

Our services are free. And there’s never any obligation when working with an agent.

Explore your options today.  Get started by filling out the form on your screen. 

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801-455-0462

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