Colonial Penn Life Insurance Review

Colonial Penn Life Insurance Company is a well-known insurance provider will over 4 million active policyholders. Most people recognize this brand due to its popular spokesman Alex Trebek.

They offer multiple life insurance options, including its popular guaranteed acceptance option for individuals in poor health.

In the article below, we dig a little deeper into Colonial Penn life insurance to show that they may not be your best option for coverage.

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Colonial Penn Life Insurance Overview

  • Offers a variety of life insurance policies: Traditional whole life, Guaranteed Acceptance Whole Life, & Universal Life. 
  • Ages 45 to 80 years old
  • Up to $50,000 in coverage with No Medical Exam. 
  • Policies grow cash value.
  • Broad brand recognition due to nationwide advertising and celebrity endorsement.

A little more about the company

Colonial Penn primarily serves elderly Americans and is a major player in the senior life insurance market. The Philadelphia based company operates in all states except for New York. The founder, Leonard Davis, is also the co-founder of AARP. CNO Financial group owns Colonial Penn.  

Financial Ratings

Colonial Penn Life insurance company has respectable ratings across the board. While they are not among the elite carriers, they are still a strong and stable company to do business with.  

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

Review of Colonial Penn Life Insurance Products

Colonial Penn Offer two types of whole life insurance policies. Neither of which require a medical exam. 

Permanent Whole Life – Provides permanent coverage that lasts as long as you live. There are no medical exams. However, there is a medical questionnaire, and not everyone will qualify. Available for individuals ages 40 to 75. These plans provide up to $50,000 in coverage. 

Colonial Penn Whole Life policy is also known as final expense life insurance. It offers simplified underwriting and guaranteed funds to reduce or eliminate end-of-life expenses. 

Guaranteed Acceptance Whole Life – Also provides permanent whole life coverage that lasts as long as you live. The difference between the two policies is that guaranteed acceptance plans forgo all medical underwriting. Meaning there are no medical exams or any health questions whatsoever. This policy is available for individuals ages 50 to 85. And coverage goes up to $30,000.

Guaranteed acceptance life insurance provides a last resort coverage option for the elderly and individuals seeking life insurance with pre-existing medical conditions. Because there are no health questions, there is a two year waiting period before the full death benefit is eligible.   

Why a two-year waiting period?

This rule is standard across the industry for all companies offering guaranteed acceptance life insurance. It prevents individuals who are on the brink of death from purchasing a policy. It ensures that you’ll live at least two years to receive the full death benefit. If you were to die within the first two years, your beneficiary would receive back all premiums paid plus a small additional percentage.  

Colonial Penn also offers a renewable term life insurance option

Renewable Term Life – Provides temporary insurance coverage for individuals ages 18 to 75. This policy renews every year up till age 90. Each time you renew your policy, the premium rates will increase.  

Term life insurance will expire. And the rates increase with you as you age. Therefore, term life insurance products are not ideal for individuals over age 50. 

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How Good Are Their Rates?

Colonial Penn life insurance rates are rarely the lowest cost option. We pull rates every day for our clients and frequently find lower rates with other insurance providers. If you’re shopping on a budget, we highly suggest using our quote form to compare your other options. 

We’ll help you shop and compare life insurance companies side by side to find your best policy and lowest rate.

Colonial Penn Life Insurance Reviews & Complaints

It’s hard to criticize a company with 4 million policyholders. It’s safe to say they treat their customers well to grow to such a size.  

Colonial Penn’s BBB rating is A+. However, their customer reviews from the BBB is a meager 1 out of 5 stars. You can see the list of complaints here.

Something to keep in mind about customer reviews

Any company with millions of customers is going to have a small group of people with poor experiences. These people often have the motive to share their experiences with others. 

We do not want to say that Colonial Penn is a poor company to do business with. Instead, we show you the list of complaints above so you can make an informed decision. 

Finding Your Best Policy

Colonial Penn is a great company. However, we do not recommend you purchase a Colonial Penn life insurance policy without shopping for your other options. As mentioned above, we frequently find our clients MORE coverage and LOWER premiums with other insurance carriers. 

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