Colonial Penn is a top-rated life insurance company that has operated for over six decades. It provides life insurance policy in forty-nine states, Puerto Rico, District of Columbia, and the Virgin.
The company provides several life insurance products and price ranges, starting from the Colonial Penn 9.95 monthly plan. But does the company offer the right life insurance for you? Here is what you need to know about Colonial Penn Life Insurance.
Types of Life Insurance Plans Offered by Colonial Penn
Colonial Penn provides term life and conventional whole life insurance plans. Each policy comes with a flexible payment option, allowing customers to pay each month, quarter, six months, or twelve months. The following are the different plans the company offers:
Customers between fifty and eighty-five years old can apply for this life insurance policy. It does not require a medical examination, and customers do not have to answer any health questions.
This policy is guaranteed since there is a limited two-year benefit. The customers will be eligible for the full coverage plan after the first two-year period. The premium is set and guaranteed to never increase for as long as the customer’s coverage is in effect.
Permanent Whole Life
This coverage applies to clients between forty and seventy-five years old (except clients in the Virgin Islands and New York). While customers are not required to provide a medical exam, they do not have to answer a questionnaire to determine their eligibility.
This plan covers customers throughout their life, and they can get a maximum death benefit of up to $ 50,000. The plan features a fixed rate, but the premium price will depend on the customer’s age and gender, except in Montana, where the company’s rates premiums according to age only.
Renewable Term Life
This life insurance is the only plan the company offers to customers below forty. Its policies are available for anyone between the age of eighteen and seventy-five, renewable to age ninety, and offer a maximum of $ 50,000 in coverage.
Customers do not have to provide a medical exam, but their qualifications will be based on a medical questionnaire. The plan’s rates are based on the customers’ age and gender, and the premium increases as they grow older. Depending on how long the customers keep the coverage, they may earn a cash value.
Colonial Penn also offers add-ons called riders to these policies, which enhance coverage, albeit limited. Therefore, customers do not have many ways to customize their plans. One rider the company offers is Living Insurance, which customers can add either on the permanent whole life insurance or the renewable term life insurance policies.
Living Insurance allows customers diagnosed with cancer or other chronic diseases like heart disease to receive up to fifty percent of their whole life or term life death benefit.
Colonial Penn’s Pricing Plan
Colonial Penn’s pricing options start as low as the Colonial Penn 9.95 monthly plan for its Guaranteed Acceptance life insurance policy. The rates, however, depend on the customers’ age and gender.
Pros and Cons of Colonial Penn Life Insurance
The advantages of Colonial Penn life insurance include the following:
- Offers Guaranteed acceptance policies: Customers between the ages of fifty and eighty-five are eligible for a guarantee acceptance plan without having to provide a medical exam or answering health questions. They cannot be turned down due to their health condition.
- Customers can get a quote easily online: Unlike many insurance companies that require customers to contact an agent for a quote, Colonial Penn allows its customers to get a quote and buy the policies online.
- Offers a 30-day trial period: Once a customer signs up for a plan with the company, he or she has thirty days to try it out. Customers can cancel the plan anytime within thirty days of the plan’s activation for a full refund if they decide the plan is not right for them.
While Colonial Penn life insurance offers several benefits, it is not without disadvantages. Below are some of its cons:
- Some plans are restricted to certain age groups: Guaranteed acceptance policies only apply to customers between fifty and eighty-five years old. The permanent whole life policy is only available for customers between forty and seventy-five years old.
- Coverage is capped at $ 50,000: Customers can only get maximum coverage of up to $50,000. If they want more coverage for their family, they have to opt for life insurance from another company, which offers a higher amount of death benefits.
- Customers in the Virgin Islands and New York cannot access all plans: Customers living in the Virgin Islands and New York have limited plan options and are not eligible for term life policies.
Colonial Penn’s Customer Satisfaction, Reviews, Ratings, and Complaints
Although the company did not make the cut in the 2019 US Life Insurance Study by JD Power, it got an A+ rating from the Better Business Bureau. On the other hand, AM Best gives the company an A financial rating for the last five years. Over the last three years, more than eighty customers have filed BBB complaints against the company, mainly focused on advertising, sales, and billing issues.
Colonial Penn is a great option for customers who are looking for a whole life policy. However, for customers looking for one-stop insurance shopping, the company might not be the right insurer. Still, since Colonial Penn comes with a 30-day trial period, customers can always give it a try and decide whether to change or cancel the policy within the period.