Colonial Penn Whole Life Insurance Review And More
Have you already read multiple Colonial Penn Life Insurance reviews?
Maybe you are searching for validation that Colonial Penn is the best life insurance company to buy a policy from?
If so, sorry to disappoint, you will not hear that in any of our life insurance reviews. However, you will always hear our very direct opinion of why a particular company is a good option or not. There is no best company, particularly when you have a medical history that comes with aging.
The “best” is really a moving target. What you will here is how this companies products compare to the wealth of other life insurance carriers in terms of benefits, cost and value of ownership.
The reality is…
There are a number of factors that go into picking the right life insurance to own as a senior.
While we will provide the Colonial Penn life insurance rates in this article, there is a lot more to know about their burial insurance products before picking up the phone.
We will unpack Colonial Penn life insurance for you today so you are ready to make a decision.
Without further ado…
Reading The Colonial Penn Life Insurance Reviews – The Challenge
Many of us who have been around the block and watched TV for many years have also heard of Colonial Penn Life Insurance. Plenty of commercials, right? Maybe you even had an assortment of mailers as well?
At one time there was Ed McMahon and later came Joe Theismann (Under the name Conseco Life). In recent years, Alex Trebek, of Jeopardy has been the paid spokesman testifying what a great company Colonial Penn is. As of 2020, Mr. Trebek has passed on after battling Pancreatic Cancer. As you read this article, please understand it was written prior to this and updated to reflect this fact. The death of Mr. Trebek has no bearing on this insurance product…the benefits or cost.
With that said…
Too often, we as consumers get caught up in all the glitz that a high paid, celebrity endorser can bring to an advertisement.
Let’s clear the slate so to speak…
Remove the fancy wrapping paper and breakdown the products this insurance company offers consumers.
Colonial Penn life insurance company created and issues the product you see pitched on TV and other media.
You may identify with one the their offerings as “Alex Trebek life insurance.”
Did you know that the Colonial Penn life insurance advertisement only mentions 1 of 3 life insurance products they have available?
For the most part, while available to those under 65 years of age, these insurance offerings focus on the senior final expense market.
Realize that this insurance company has created name recognition with you with all of their ads. Advertisements having nothing to do with quality of coverage, rates/affordability, handling of claims and other very important considerations.
To interpret our review of this insurance company, you must put aside all this to discover whether this insurance will be the best fit for your needs and pocketbook.
Internet Reviews For Colonial Penn – The Special Risk Life Insurance Take
In our Colonial Penn life insurance review, we will provide a cost versus benefits analysis and reveal to you some of the hidden and even shocking surprises about this insurance company and their life insurance products.
We are in no way compensated for our professional review here today. It is the goal of this post to better educate you on what you as a consumer are getting yourself into.
Disclaimer – We have no business relationship with Colonial Penn. Special Risk Life is an independent life insurance agency offering dozens of life insurance carriers. Our review is meant to give you comparison information only. If you would like to contact Colonial Penn, their phone number is 877-877-8052.
Part of the CNO Financial Group of companies, Colonial Penn is a sister company to Bankers Life and Casualty based out of Pennsylvania.
The company offers a number of life insurance products that have simplified underwriting practices with a limited face amount (death benefit).
All 3 of the life insurance products offered are “no-exam” meaning application for coverage requires no visits from a nurse to your home to draw blood, urine testing, blood pressure testing etc.
The highlighted products are designed for life insurance shoppers age 50 to 85 (in most states) who only need a small amount of coverage.
Coverage like this is commonly used to pay for final expenses associated with the death of the insured.
The typical policy owner is intent to to see their loved ones are not burdened financially upon their inevitable death.
No exam life insurance of this sort is sometimes called burial insurance, funeral insurance or final expense insurance.
As such, it covers expenses directly and/or indirectly related to the anticipated, end of life expenses of the insured.
These 3 particular policies may or may not be adequate for covering all expenses associated with one’s passing. Consider the possible effect on your loved one’s before reaching a decision.
If you do not fully understand, be sure to talk to a professional to get a complete understanding before making any life insurance purchase.
So why would a consumer make a purchase of of their insurance in the first place?
Well, these type of policies are often purchased due to ease of application. As a whole, the underwriting is favorable to people who are not in A1 health any longer.
One specific product from CP even allows individuals with a very negative medical history (sometimes a factor of age), to obtain permanent life insurance. Alex Trebek is the latest paid endorser of this specific life insurance product.
“Colonial Penn Guaranteed Acceptance” whole life insurance is the actual product name.
This product also highlights that there are no health questions to obtain coverage either.
While the premiums for Colonial Penn’s guaranteed acceptance insurance are competitive with some of the other carriers that offer guaranteed final expense insurance, they are not the best either.
Guaranteed Acceptance coverage may not be in your best interest.
You are encouraged to get quotes from an independent life insurance agent to see what your best options really are.
They can shop your personal case, free of charge and identify what you qualify for.
There are a lot of life insurance companies out there to consider.
It is important to note that policies that do not medically underwrite (guaranteed acceptance) coverage (no health questions) will accept anyone regardless of their health.
Those of you in decent to excellent health for your age must realize that this type of coverage is not in your best interest nor potentially that of your beneficiary.
With the Colonial Penn Guaranteed Acceptance Whole Life, consumers are paying for all the high risk that this coverage allows.
Many times these are people who have some real bad health and are not expected to live more than 2-3 years.
Has your doctor told you that you have poor health?
Have you spoken to a final expense professional that works with all the top carriers?
Before proceeding, I would recommend that you use our instant life insurance quote tool on the right hand side of your computer screen. It should be on the bottom if you are on a mobile device.
If you’re in pretty decent health for your age, run yourself thru as excellent health and see who the top carriers of life insurance are.
Just don’t make the mistake of calling the companies listed on the quote. You have not been qualified healthwise and may not be eligible for the listed product.
If you wish to apply online, it can be done within the same instant quote tool. That would be up to you. If you proceed, you will be sent a health questionnaire automatically to apply.
It is always a financial advantage to have an independent life insurance professional advise and help you secure life insurance if it is needed.
Once you have the quote comparison numbers for the amount of coverage you need, continue further in the Colonial Penn review where you will be shocked at what you didn’t know…
That Alex Trebek life insurance ad could put your wallet and beneficiary in Jeopardy…
I’m not kidding either!
Obtaining A Colonial Penn Life Insurance Quote
Getting a quote for life insurance from Colonial Penn can be obtained in some individual cases on this page. As you continue down the page, you will see the different offerings they market. Please remember, this is not an offer of insurance, just some solid numbers for your to work with.
The first step to getting an accurate quote would be to select the Colonial Penn policy you wish to consider. The television ad that reflects Alex Trebek as paid spokesman is just 1 option you have with the carrier.
The Colonial Penn Life Insurance Rates – Your 3 Different Options
Just a quick heads up. Benefits of all 3 policies may be limited for your financial planning needs. Here are the basics of the 3 offerings. As an example only, a 50 year old man (cost range varies based on elected coverage amount at application time):
Colonial Penn Life Insurance Rate Chart
|Term Life Insurance||Whole Life Insurance||Guaranteed Acceptance Life Insurance|
|Level Premiums||No. Changes w/Age||Yes||Yes|
|Death Benefit Available||$10,000-$50,000||$10,000-$50,000||About $400-$17,000|
Limited for 2 years due to natural death
|Medical Exam Required||No||No||No|
In addition to the Colonial Penn rates listed in the above chart, you should know that all 3 or their life insurance programs do offer typical ease of application provided by many life insurance company in the senior insurance market. This includes: no medical exam and even online application. This does make obtaining life insurance quick and easy and convenient by most people’s standards.
By most states requirements, Colonial Penn is required to give policy owners a free look period (30 day money back guarantee) to be certain you wish to keep the policy.
With that said, all life insurance companies must offer free look provisions to their policy owners. The free look law requires all life insurers to provide a full refund, if requested by you, the policyholder during that period of ownership.
You should not base your decision to purchase life insurance from any particular company based on a “30 day money back guarantee.”
Colonial Penn Term Insurance – The Unreliable Policy?
Assuming you are searching for the lowest Colonial Penn life insurance rates, their term life insurance product often has the lowest initial premium per thousand dollars of coverage.
However this does not last forever. Did you notice the keyword “initial?”
Term insurance is not all the same. It can get expensive to have temporary life insurance coverage like this term product offered by Colonial Penn. This is not level term insurance.
The design of this Colonial Penn policy leads to premium increases every 5 years for the same amount of coverage.
Since it is not a level term policy, your monthly cost will increase as you age.
New policies can be annually renewed till age 75. Older policies are renewable to age 90.
The maximum benefit of these policies is a low face amount (death benefit) of $50,000. For term insurance, this is a very small policy.
These funds can be specified for up to 2 different beneficiaries if necessary.
Here is a pricing example of what you can expect over the years on their term life insurance product.
Colonial Penn Term Life Insurance Quotes
The following increasing rates are for a $50,000 term life policy with CP. Smaller policies will have respectively lower premiums.
- $56.46/mo during ages 51-55 (Female) $76.46/mo (Male)
- $94.83/mo during ages 61-65 (Female) $140.12/mo (Male)
- $178.28/mo during ages 71-75 (Female) $269.61/mo (Male)
As you can see that if you need long term coverage, you are going to pay a very high cost for up to 25 years when it expires. Compared to the alternatives including level term life insurance, this is very expensive long term in particular.
Don’t expect the insurance company to mention this “little” fact when you call them up by the way.
The Colonial Penn $9.95 “Guaranteed Acceptance” Policy
If you were searching for the $9.95 a month, Colonial Penn guaranteed life insurance policy for seniors, you are in the right place. Guaranteed Acceptance coverage is a permanent, whole life policy with a limited face amount (death benefit). How can it be guaranteed? Simple…there are no medical questions. As long as you are of the right age, mentally competent to make application and can afford the premium, you are eligible to buy the policy.
Outside the fact of the higher cost of ownership for guaranteed issue whole life insurance, a key issue to remember with any guaranteed issue policy is the first 2 years, the policy beneficiary will only have return of all premiums (ROP) paid plus interest for natural death. If you buy a 10k policy, the insured will not fully covered until the 2 year waiting period has expired unless death occurs as the result of an accident..
Yep, there is the great equalizer for not asking any health questions.
How do you feel about that?
This is all the reality of ANY guaranteed acceptance life insurance, not just the Colonial Penn product. Several companies offer this type of whole life insurance. All of which have no medical questions to qualify.
As a reminder, this is also the Alex Trebek insurance ad you specifically have probably heard about on TV.
Who is this type of coverage really for then?
It is designed for senior citizens with very serious, high risk conditions that want to protect there loved one’s upon their inevitable death. For example…someone who has active internal lung cancer or receiving kidney dialysis. Maybe you have had a recent amputation due to complications from diabetes. Have you been prescribed Donepezil or Memantine, diagnosed with early stage Alzheimer’s or Dementia? These are some example cases which suggest you will need no medical question, guaranteed acceptance life insurance.
Ideally, to maximize profits and keep premiums down, the insurer would like to have people in the policy that have pretty decent to good health in it as well.
Colonial Penn will be collecting a lot more premiums to offset the higher risk of people in poor health. The healthier policy owners will statistically live longer which is where the insurance company makes it money.
Now, this $9.95/month offering is the common one being pushed on TV. If a consumer calls the companies home office this is the product they like to sell.
Colonial Penn makes some big money on this policy. This is why they funnel consumers into it like cattle, regardless of overall health.
Guaranteed acceptance policies are more expensive and have reduced benefits regardless of the company because they accept all health conditions that are uninsurable by any other underwriting practice.
Consumers are not clearly told the limitations of the policy and the additional cost of ownership.
Sadly, most consumers don’t understand how this costs them and their loved ones dearly.
As a result of the high risks accepted with a guaranteed issue policy like this, the insurer charges much higher premiums than many other life insurance policies with full, immediate benefits.
For more specifics on the problems with Guaranteed Acceptance Life Insurance, click here.
Roughly 10% of seniors need a product like the Colonial Penn guaranteed acceptance policy.
In other words…
another 90% would be grossly overcharged if they selected the wrong policy!!
Do you want to be overcharged?
What makes Colonial Penn “interesting” is how they establish the insured’s premium.
Their method is quite different than most final expense/burial insurance carriers on the market.
Once they have your personal details such and name, age, address and gender, you are given a cost per unit for coverage.
Each unit is $9.95.
The premium charged is fixed per unit. No, $9.95 is not per thousand dollars either. “Unit” is the key word. If the Colonial Penn Guaranteed Acceptance policy is purchased, each unit is exactly $9.95 per month, permanently. You can purchase up to 8 units at application for that price. Colonial Penn uses the following definition: “A unit of coverage corresponds to the life insurance benefit amount you can purchase. It depends on age, gender and state.“
So, the catch with each “unit”…
The true value of each unit varies based your risk profile which in this case is primarily your age.
The minimum value of one “unit” is $400 while the maximum is $2100. That is why the maximum death benefit for some individuals is $17,000, but it depends on the value of each “unit” at application.
The older you are are, the less value 1 “unit” has. However, that one unit will still cost you $9.95 a month.
A 75 year old cannot purchase the same, maximum amount of coverage as a 65 year old simply due to the value of the unit.
The $9.95 per unit value is determined specifically by your age at application time.
They are level for life with this whole life insurance policy.
A female, age 60 would have a value per “unit” of $1621. Due the math and you will see a significant reduction in available benefits as the value per “unit” decreases.
What this all means in the end is, low face amounts (death benefits) for many policy owners and most importantly, their loved ones.
Like all whole life insurance policies, this Colonial Penn guaranteed acceptance life policy offers a cash value account which grows over time.
This gives also gives you a living benefit option to borrow against this policy.
However, the interest can be pretty steep and not recommended. Unpaid loans reduce the death benefit for your beneficiary(s).
I’m going to insert another disclaimer here. We do not recommend using any burial, funeral or final expense insurance policy in such a manner. This is just a policy feature of any whole life insurance policy out there.
So, premiums are set based on the number of units you purchase (up to 8) with each unit costing $9.95.
You can save some good money by paying annually on the Guaranteed Acceptance policy. This will save you the cost of one month each year if you elect to pay as such. That is a 8.3% discount each year.
The death benefit of the Colonial Penn guaranteed acceptance life insurance does NOT go down as you age nor will the premiums ever change.
Be aware that this product may not adequately fund burial expenses on someone in their mid 70’s on up. The average full funeral cost nationally in 2020 is approaching $10,000.
I’ve have been talking to many folks in New Jersey recently who told me that you can’t have much of a funeral for less than $9000. Seniors in California frequently are looking for larger policies yet.
Keep in mind what your goal is for this insurance. Some coverage is better than no coverage.
Make sure if you need high risk life insurance, you are with a competitive life insurance carrier, not focusing on the star of Jeopardy.
Take a look at the cost versus benefits below.
Guaranteed Acceptance Death Benefit By Age and Number of Units (Women)
|AGE||2 Units/$19.90||4 Units/$39.80||6 Units/$59.70||8 Units/$79.60|
Guaranteed Acceptance Death Benefit By Age and Number of Units (Men)
|AGE||2 Units/$19.90||4 Units/$39.80||6 Units/$59.70||8 Units/$79.60|
From the chart above, as you scroll down to a 65 year old male, you can see a maximum amount of coverage you can apply for is just over $7400.
This chart reflects the maximum purchase allowed by Colonial Penn of 8 Units.
Those 8 units would cost the policy owner $79.60 a month with Colonial Penn and $7400+ in death benefits.
How does this guaranteed product compare to the competition?
Let’s take a quick look at a 65 year old male.
Below is a screenshot image from my computer. I ran a test case for illustration purposes.
I have access to numerous carriers.
These 5 companies offered the best rates for the criteria listed.
For a male age 65… the best rates for guaranteed issue (no health questions).
Please be mindful this illustration that follows directly reflects the age of a fictitious person at the time of writing this article. Use our instant quoting tool on this page to reflect your own specific comparison or simply give us a quick phone call for help.
At the top, there is AIG. For $67.72 you also get $8000 in coverage. AIG also has better benefits during the first 2 years.
As you can see, there are 3 guaranteed issue policies offering $8000 dollars of of guaranteed issue, whole life insurance.
This savings in premium is real bonus for your beneficiary and certainly easier on the pocketbook.
In conclusion, check with a independent professional that has access to dozens of companies and find out what is best for you.
9 out of 10 seniors do not need it after speaking with us. Instead, they end up in a simplified issue whole life insurance for seniors with full, immediate benefits that is more cost effective from the day they are accepted.I Have Questions
Plain Old Colonial Penn Whole Life Insurance: The Best Offering?
The last of the 3 Colonial Penn programs we are going to review is their traditional, Whole Life Insurance.
The key to applying for this policy is, you must be willing to answer the required health questions.
Ladies and Gentleman, I recommend answering health questions even if you are hesitant. I understand some of you may not want to discuss your situation. However, you and your family could really come out that much better by following my guidance.
Since this policy is designed for people between 40 and 75 and does have health questions as part of the application, this coverage is clearly designed for a healthier group of people than the Guaranteed Acceptance coverage is.
With the simplified issue Colonial Penn Whole Life Insurance requiring answers to specific health questions, they as a company are better able to judge your health.
As a result, they can offer lower rates than the guaranteed acceptance policy. The key here is…you must be in better health to apply and younger than the guaranteed acceptance product.
Colonial Penn will not accept all applicants for this coverage. If your health is a little rough around the edges for someone your age, you may not qualify for this plan.
That does not mean other life insurance companies would do the same. All life insurance companies have different, but specific questions to weed out certain risks.
Age 75 is the oldest you may be at the time of application with Col Penn Life.
This offering is an immediate, full benefits policy unlike the guaranteed acceptance program. It also offers an available death benefit up to $50,000 which is also significantly higher than Guaranteed Acceptance (Alex Trebek Ad) offering.
Similar to the “Guaranteed Acceptance” coverage, the Colonial Penn whole life insurance for seniors policy offers a cash value account that will accumulate funds over time that you may borrow from.
Again as a reminder, you will be paying interest on those funds you borrow. As a professional, I do not advise seniors to borrow monies from their end of life final expense policies.
In terms of Colonial Penn final expense offerings, this standard whole life for seniors is going to be a more affordable, offer greater and immediate, full benefits.
Ideally, this is what you want in a final expense plan. Something you know will really help those you care about handle your financial affairs when you are no longer here.
With that said, it is our recommendation to shop all your options thru an independent life insurance agent/broker who can access all the top carriers for you.
The underwriting used in this plan can create challenges for many seniors with relatively good health for their age.
You should never buy a policy that does give you the highest level of value and benefits for your premium dollar. Opting for the Guaranteed Acceptance plan is not the solution either.Instant Whole Life Quote
Comparing Colonial Penn Life Insurance With The Top Carriers
Did you get a look at the Colonial Penn life insurance rates above?
If so, you probably found that their offerings are quite pricey for the benefits the policy contains.
You can find many of the top term life insurers offering much higher levels of coverage, level premiums and at a lower cost for the same period (10, 20 or even 30 years) in the case of term life insurance of course.
Renewing term is very expensive to own, particularly as a senior. Look again at the Colonial Penn term life rates posted above.
They go up roughly 30% every 5 years. That is a tremendous increase in cost over the years.
How much has it cost a policy owner in rate increases at age 75 when it expires?
Age 75 is below the average life expectancy of a man or women in the United States.
Since the medical underwriting is quite limited here, the insurer has higher risk and responds with a higher premiums. They are not able to confirm your health status very well and respond as such by adjusting the premiums to reflect that.
With that said, if you are healthy for your age, you would be best advised to look at other reputable life insurers for better options.
You can save a tremendous about of money over time by looking into getting alternative level term and premium whole life insurance elsewhere.
Medically underwritten policies are the way to go when trying to obtain term insurance if you have well managed health, even with conditions like diabetes.
Speak to a seasoned, independent life insurance specialist for help. They know the market, products and the top insurers for your specific situation.
Be aware… there are a few states in which certain Colonial Penn policies are not available.
Our Reaction To Colonial Penn Life Insurance Rates By Age
First, what was your reaction to the Colonial Penn rate chart above?
Did you run a real comparison quote on our instant quote tool on this page?
If you have read a few Colonial Penn reviews, you may have learned their policies are not complicated to apply for.
All of these products reviewed in this article are known as “easy issue” life insurance products.
This means they are limited in health questions or none at all and have no medical exam. While this may sound great, none of these policies are unique at all.
Be mindful that the easier qualification is, the more expensive the product is generally going to be.
It also means that there may be limitations to the policy such as the 2 year waiting period built into the Colonial Penn Guaranteed Issue policy.
The take home from our perspective to you…
With ease of application comes elevated risk to any life insurer.
Without a completely clear picture of “who” they are insuring, the risk (the insured party) must be offset.
Colonial Penn guaranteed acceptance coverage is at the definite high end of cost as such as it is pure, high risk life insurance.
Do we have clients who purchased simplified issue and guaranteed acceptance policies from us?
Yes, quite few. However, they were not Colonial Penn policies.
If your health is not A1, for heavens sake and your wallets…give us a call and talk about what you want to accomplish with your life insurance.
Get any questions answered so you can make a good, informed decision on what to buy.
Advice is free. Nope, doesn’t cost you a penny more!!Get Advice
Do yourself a favor and don’t limit your options to a television commercial life insurance company.
There are numerous top shelf life insurance companies small and large to consider that forgo all the cost involved with high paid endorsers.
How this helps you…
These carriers will save you lots of hard earned money and have excellent reputations for their products, rates and claims payment. They will also drive more value and affordability.
Are there many no medical exam policies like the Colonial Penn offerings?
Yes, but these products are typically sold thru independent life insurance agents and agencies who will have a battery of different offerings to cater to those people living with higher risk situations.
Let a reputable independent agency like Special Risk Life Insurance who specializes in tough to insure cases shop your needs and help you find the best company and policy for you.
Be aware of why this particular type of term life insurance looks inexpensive compared to the other types of permanent coverage.
The Colonial Penn term rates are also indicative of a product that may also not meet the final needs of many seniors due to fact that…
Term life insurance expires!
There is no guarantee you will not outlive it at all. Trouble is, if you do outlive the “term”, you may not be able to qualify for anything but high risk life insurance (Guaranteed Acceptance Product Above) down the road. Now you may be stuck in expensive, 2 year limited benefit period for guaranteed issue coverage.
On top of that, Colonial Penn Term Life expires also goes up in price. This is annually renewing coverage. The rate charged has nothing to do with your health, it is all about the age bracket your are in.
Policies like this are dropped quite frequently, because the cost of ownership in the later years becomes unaffordable for many elderly people.
Now, let’s reflect on the Guaranteed Acceptance Whole Life Insurance offering…
Take a look at the increase in cost per each $1000 of benefits…not to mention a 2 year waiting period for the full benefits!
Believe it or not, most people have lots of options even with a health condition(s).
I’m referring to full, immediate benefits with no waiting period!!
Many people believe they are high risk life insurance candidates and purchase guaranteed acceptance life insurance, get reduced benefits, higher costs and the limited benefit, waiting period…just because they did not know better.
We are telling you that it is very uncommon to have to purchase what Alex Trebek is marketing.
At Special Risk Life, we find about 90% of our clients can qualify for standard, whole life final expense insurance.
What does that tell you?
We do have guaranteed acceptance life insurance companies for the 10% that can’t qualify for better coverage.
Again, this is why you talk to an experienced professional that has access to a large portfolio of senior life insurance products and companies. Don’t get caught up in high paid spokes people selling you a less than ideal product.
Your not going to get an unbiased consultation from Colonial Penn if you ask for advice.
Think about it.
Do you want to be limited to one insurance company anyway?
That is the whole point of reading Colonial Penn life insurance reviews, right? Your not sure about purchasing from them are you?
The truth is, controlled high blood pressure, high cholesterol, a heart attack a few years ago etc. are pretty common and don’t put you in a high risk life insurance class requiring guaranteed issue life insurance.
There is a long list of medical conditions that we have been able to place in standard, 1st day, full benefit policies from the get go.
I talk with people all the time who are amazed that they do not have to have guaranteed acceptance life insurance because they have less than perfect health.
Everyone is always happy to be able to buy more coverage for less money.
It simply leaves them in a better place to protect their loved ones and goals.
How Is Guaranteed Acceptance Life Insurance Different Than Other Whole Life Insurance?
In a nutshell, it is just a type of life insurance that accepts applicants without medical underwriting (health questions) and no medical examination.
It is the most liberal type of life insurance you can purchase as it accepts anyone regardless of their health.
It is also the most expensive type of life insurance per thousand dollars of coverage.
The design is for high risk insurance applicants who cannot be medically underwritten due to their overall health.
Guaranteed Acceptance coverage is the essence of high risk life insurance and therefore carries a price tag with it.
As shown above, this type of coverage is not exclusive to Colonial Penn and is in fact offered by a number of companies including: AIG, Gerber and AARP/New York Life.
Guaranteed acceptance products all come with a 2 or 3 year limited benefit period, without exception. This is regardless of the insurance company name.
During the limited benefit or “waiting” period, the policy will not pay your beneficiary full benefits for natural death.
Accidental death would be full benefits, but natural death should be your primary concern with advanced age.
The limited benefit period would pay a return of premium plus a percentage of interest. The interest upon death is dependent on the particular insurance company. Once that period expires, full benefits are available for natural and accidental death.
Now… Here comes the Colonial Penn restrictions…
Colonial Penn Guaranteed Acceptance can only be purchased between ages 50-85 years of age.
This policy, like other guaranteed issue policies has a limited death benefit the first 2 years of ownership.
This is sometimes known as a graded death benefit.
If death occurs due to natural causes during those first 2 years, the benefits are limited to the return of all premiums paid plus 7% interest (compounded annually) to your beneficiary.
While that is nothing to sneeze at, it is not the best on the market either. Many guaranteed acceptance whole life policies offer 10% for example.
Now, if death occurs as the result of an accident, the full face amount (death benefit) WILL be paid out to your beneficiary even in the first 2 years.
Once your first 2 years have passed, you have full coverage for natural and accidental death under this policy.
Remember, Colonial Penn is taking a big risk not medically underwriting these policies.
You may be in darn good health compared to most seniors, but they don’t know that.
You see, there are no medical questions on the application.
As such they must limit the benefits to offset some of their risk or it would naturally result in a large financial loss to the company and discontinuation of the product.
Do you really need guaranteed acceptance life insurance or could you qualify for medically underwritten coverage for immediate, full benefits and lower premiums?
Ask a seasoned independent agent or broker for assistance to see what you would qualify for first.
Guaranteed Acceptance Life Insurance is best for individuals that have no other options for final expenses.
That is a good rule of thumb all consumers need to know.
The Colonial Penn Rate Lock
If you have watched the Alex Trebek endorsed ads at night, you have likely heard about features that might sound wonderful and very unique to life insurance. Beyond not being turned down due to your health for coverage, they tout other “highlights” about their offering.
- You have a full 30 days to decide if you want to keep the policy
- Your rate is locked for the life of the policy…this simply means your premium will never change. Standard with final expense policies.
- Whole Life Insurance covers you for your “whole life.” It is permanent coverage.
Now…here is the kicker…
By law insurance companies must give you a free look period.
No, sorry it is far from unique.
All whole life insurance policies have a “rate lock.”
Certain, low quality term life offerings that do not have a “rate lock.”
Our recommendation based on this…do not base your decision to purchase any life insurance product over such features.
Is their such thing as Colonial Penn rate lock life insurance?
Not really. It is just a fancy name for insurance premiums that never increase. This is standard in the life insurance industry with a whole life policy.
There is no special offering here at all. We offer dozens of carriers with so called “rate locks.”
A Careful Look at Colonial Penn And Documented Reviews and Complaints
As of the now, records from A.M. Best show a very favorable financial rating of A-.
Colonial Penn has a good reputation of prompt claims processing upon the passing of the policy owner.
The fact that is easy and quick makes life simple for the grieving family. That is one of the goals of final expense insurance.
Occasionally, there have been complaints of difficulty in filing after death of a loved one so it is not a spotless record.
Unfortunately, the good seems to be overshadowed by a lot complaints or allegations of high pressure, pushy or aggressive sales tactics directed at senior citizens.
Even Alex Trebek, the paid Colonial Penn spokesman has been criticized for representing a carrier that has used such tactics.
Many seniors have felt like they were sold the wrong product as the coverage was not properly explained to them beforehand.
Colonial Penn had 42 complaints filed against them in 2017 according to the National Association of Insurance Commissioners (NAIC).
This is an above average number of complaints for a life insurance company of this size.
I suspect most of the complaints are related to people not understanding the limitations of the Colonial Penn Guaranteed Acceptance life insurance product.
Without personally interviewing those folks making the complaints, I can only draw on a professional guess.
Regardless, make sure you get good representation and read the fine print before accepting any life insurance policy.
Be careful. “Popular” name brand life insurance does not equal a good policy or reasonable premiums.
Many people end up very disgruntled over a policy that did not meet their needs, expired when they really needed the coverage and/or end up costing them way more than they ever expected financially.
This can ultimately force some people to drop the coverage.
Colonial Penn $9.95 Life Insurance – The Real Scoop
While this may be a repeat for those who have read this article to this point, many folks came here to find out how much life insurance you get for $9.95 with Colonial Penn. In our Colonial Penn life insurance review, I have created this additional section to clarify the 9.95 sales pitch Colonial Penn is trying to sell you.
First of all, for $9.95 a month with Colonial Penn, you would own a mere 1 unit of their “Guaranteed Acceptance” policy. This is the price per unit (you may buy up to 8 units) regardless of your age. 1 unit is actually very little life insurance especially if you are in your 70’s and considering a policy.
The older you are as an applicant at purchase/application time, the lower in financial value you will receive for the $9.95 per unit each month.
You can only purchase up to 8 units, maximum. This is regardless of your age. For someone in their later years and buying life insurance…well, you may not be able to buy a large enough policy to cover your final expenses and/or create the legacy for your family you want.
The unit value of what you would be paying will be determined by your age at application. If you are 60 the “unit” value will be much greater than someone who is 75.
So, how much life insurance do you get for 9.95 from Colonial Penn per month?
Not very much.
So is any of their Life Insurance products a Good Deal?
Hopefully this review will give you food for thought. Our Colonial Penn life insurance review has been intended to get you all information you need including that which would not be made clear to you from contacting Colonial Penn or viewing their advertisements.
There are other reviews on other websites but I think have it extensively covered here.
Be sure you understand what you are buying before you purchase any life insurance.
Whole life insurance is indeed permanent life insurance, but it still comes in different flavors.
It is absolutely imperative that you understand the specific product that you are buying whether it is from Colonial Penn or another insurer.
Colonial Penn Life can only sell you what they offer, right?
What advice would you received if you talked with a Colonial Penn salesperson?
Life insurance is one of the more important decisions you’ll make in your lifetime.
Look at all the materials to see what benefits are included. Be sure to see what is not included in the benefits.
The limitations of the policy.
At buying time, here is some advice:
- High Pressure sales tactics are absolutely wrong and unprofessional.
- Make sure all is explained to your complete satisfaction before putting your John Hancock on the line.
- Name recognition is really not something to focus on when buying life insurance. It can lead to negative consequences and even declination.
I’m sure you’ll agree, you don’t want to buy the wrong product.
You can end up overcharged, under insured or even in a policy that does not cover you with immediate, full benefits for natural death for 2 or even 3 years!!
Colonial Penn guaranteed acceptance and term life insurance prices seem to be quite high.
The exception is between ages 50-57 on their guaranteed acceptance policy. If you are in that age range and have poor health and need life insurance, it may be a strong contender. Outside of that, these products are surpassed by many big and small life insurers.
I must admit that I am not a big fan of guaranteed acceptance life insurance unless it is absolutely necessary to insure someone’s life. Those are usually the terminally ill or those who have very, very serious health conditions (plural).
Too often, seniors are misled into purchasing products that are not in their best interest financially nor that of the policy beneficiary.
Is Colonial Penn life insurance a good deal though?
The short answer…maybe. Depends upon which product you are interested in.
Their medically underwritten whole life insurance might be acceptable for some seniors. If your beyond your 75th birthday, you are all done with that option though. You cannot apply for that particular offering with Colonial Penn.
While the Colonial Penn Whole Life insurance product is not as competitive as many others, the fact that it offers full benefits upon acceptance (unlike the Alex Trebek Ad), would make it my only thumbs up of their products.
Avoid the guaranteed acceptance program unless you are very poor health. You will be getting overcharged and your beneficiary will not have full protection for 2 years.
For the sake of comparison…
We commonly get the same folks in coverage with full benefits from the get-go 90% of the time for a lot less money.
Fill out the free instant final expense quoting tool on the right if you want to see who has the best rates. Get your coverage shopped out in 1 minute.
We’re pretty confident that you will find that Colonial Penn life insurance rates are far from the best out there.
This is certain when you compare apples to apples.
If you are looking at a good policy, healthy and not opposed to a nurse coming to your home to do some lab work, you may even consider a guaranteed universal life policy. Both will save you a lot of money particularly if you need $25,000 or more.
Is Colonial Penn Life Insurance A good Deal or Not?
All of these products reviewed in this article are known as no medical exam life insurance products. This means these are more favorable to those in less than ideal health. In some cases of “guaranteed acceptance” no health questions at all.
Do we have clients who purchased simplified issue policies from us? Yes, quite few. They were not Colonial Penn policies however.
Be mindful that the more “liberal” the ease of qualification is, the more expensive the product is going to be. Colonial Penn $9.95 life insurance is very liberal.
At the most extreme, this type of policy is also known as high risk life insurance. Like many other insurance companies, Colonial Penn life insurance refers to it as “guaranteed acceptance coverage.”
Traditional life insurance with an exam is going to be the way to obtain the best rates but it is not often desirable for those who want a quick, painless option with a predictable outcome.
If your health is not A1, for heavens sake and your wallets…give us a call and talk about what you want to accomplish with your life insurance. Get professional assistance and an good estimate as to what is best for you.
Get the facts so you can make a good, informed decision on what company and policy that will be.
Advice is free here.
Nope, doesn’t cost you a penny more!!
Keep in mind that you took the time to look into some of the Colonial Penn life insurance reviews to see if Alex Trebek was really working for a good company or not.
That is actually a good thing.
Many people impulsively react to junk ads and tv commercials like this and then buy the wrong life insurance policy. They are not all the same.
That is the key…buy the right policy that gives you the best value for your money.Get Advice
Do yourself a favor… don’t limit your options to a television commercial life insurance company. There are numerous top shelf life insurance companies small and large to consider.
These carriers will save you lots of hard earned money and have excellent reputations for their products, rates and claims payment.
Most of them just forgo the well paid, recognizable spokesperson and drive more value and affordability with their products.
Are these no medical exam policies like the Colonial Penn options?
Yes, but these products are typically sold thru independent life insurance agents and agencies who will have a battery of different offerings to cater to those people living with very significant health conditions.
Let a reputable independent agent that specializes in tough to insure cases shop your needs and help you find the best company and coverage for you.
Be aware of why term life insurance looks inexpensive compared to the other products offered.
Term life insurance expires!
There is no guarantee you will not outlive a term policy at all.
Trouble is, if you do outlive the “term,” you may not be able to qualify for anything but high risk life insurance (Guaranteed Acceptance Product Above) down the road.
Take a look at the increase in cost per each $1000 of benefits…not to mention a 2 year waiting period for the full benefits!
Believe it or not, most people have lots of options even with even multiple health conditions.
I’m referring to full, immediate benefits!!
Many folks believe they are high risk life insurance candidates and purchased guaranteed acceptance life insurance, got reduced benefits and much higher costs…just because they did not know better.
The Special Risk Life Grade For Colonial Penn Life Insurance:
Term Life Insurance = “F”
Standard Whole Life Insurance = “B-“
Guaranteed Acceptance Whole Life (Alex Trebek Insurance) = “D”
At Special Risk Life, we find about 90% of our clients can qualify for standard whole life final expense insurance. Again, that is why you talk to an experienced professional that has access to a large portfolio of senior life insurance products.
Your not going to get an unbiased consultation from Colonial Penn if you ask for advice. Think about it.
Do you really want to be limited to one insurance company anyway?
That is the whole point of reading Colonial Penn life insurance reviews, right?
Your not sure about purchasing from them or not.
The truth is, controlled high blood pressure, high cholesterol are pretty common and don’t generally put you in a high risk life insurance class.
Maybe you had a heart attack in recent years.
There is a long list of medical conditions that we have been able to place in standard, full benefit whole life insurance policies from the get go.
I talk with people all the time who are amazed that they do not have to have guaranteed acceptance life insurance because they have less than perfect health.
Many were very happy to be able to buy more coverage for less money while better protecting their loved ones.
Folks, that is why you take the time to talk to a knowledgeable consultant. While there are resources on this website that will educate you, it is sometimes hard to apply to oneself. Every insurance company will look at you different.
Wrapping Up Our Colonial Penn Review
Colonial Penn Whole life is their best senior product, but the medical underwriting causes issues for many people. Further, you cannot apply after age 75.
I have ranted over and over about low quality term policies sold by the likes of AARP and Colonial Penn for years. There will be no exception again today.
Colonial Penn $9.95 life insurance is per unit cost. The unit is variable in its value depending how old the insured is at application. This type of marketing seems a bit shady in my mind. This is unconventional pricing and it confuses more consumers into calling Colonial Penn thinking it is a great deal. At this point, Colonial Penn has you right where they want you.
Well, maybe you thinking that their term life insurance is a good option.
The biggest complaint I hear weekly from seniors…
Their life insurance policy is expiring and or their rates are going thru the roof!! That is what happens with low grade term offerings.
Most people reading this article are investigating the Colonial Penn Guaranteed Acceptance whole life policy.
Alex Trebek has done a good job here of delivering a product advertisement that is not necessary for most people.
Taking the time to do your due diligence and read Colonial Penn reviews should paint you a clear picture… if it is written by a seasoned professional anyway.
The Colonial Penn insurance ad featuring Alex Trebek is really promoting a product needed by a very limited number of seniors. The limited and expensive coverage is the last option to certainly consider considering any life insurance protection for your loved ones.
The CP Guaranteed Acceptance policy just has fancy wrapping paper on it that makes it feel like it is better than the rest.
Inside this package is a product for people strictly in poor health.
That is what guaranteed acceptance is all about and why it is not recommended for the typical applicant. That is also why it is more expensive coverage for less benefits.
This is called high risk life insurance.
The Colonial Penn rate rock is nothing folks. Just a standard feature of all whole life insurance with a fancy marketing name.
The full 30 days to decide if you want to keep the policy…state law provides free look periods with all life insurance products. 30 days is nothing special.
Don’t overthink it. Just a cleverly designed marketing campaign.
Sounds good though doesn’t it?? Rate Lock!! Full 30 days!!
Remember, the next time you see the Alex Trebek life insurance ad, this isn’t Jeopardy and he is not an expert, just a paid spokesman.
Don’t be misled into believing a celebrity knows a lot about the life insurance industry.
Mass marketing expenses are a huge expense to pay year in and year out to those insurance companies. Be aware, policy owners are paying for it one way or another.
Do your due diligence and shop your coverage with real professionals that have access to dozens of the top life insurance companies across the country.
The vast majority of problems or complaints consumers have with life insurance, is not understanding what specific product they want, need or bought, its limitations and how it fairs against the competition out there.
Apples are not apples with life insurance.
That is just another good reason to get a real advocate working for you. A professional who has access to the top life insurance companies.
Check out this article on funeral and burial insurance to get a better understanding of what type of policy you are really looking for.
If you need guaranteed issue life insurance because you can’t qualify for “no exam” coverage otherwise, you should read this review article regarding Gerber guaranteed acceptance coverage.
Gerber Life is very, very competitive if you cannot qualify based on health questions and will save you good money when compared with other guaranteed issue policies.
With that said, you should always try to qualify for medically underwritten coverage first. Again, beware of the high Colonial Penn life insurance rates of the Guaranteed Acceptance coverage
the significant limitations built in as well.
Yes, medically underwritten, no medical exam coverage is available with full, immediate benefits upon acceptance and at a considerably lower cost.
For most people, the rates at Colonial Penn rates are not the best at all.
You are not getting anything more for your hard earned money.
Is Colonial Penn a top life insurance company? Honestly, I’m not seeing it. In terms of marketing “savvy” they fair very well, but at the end of the day when your beneficiary will need payment, your family will not be better off.
Marketing “savvy” does not pay the claim or make it easy on your pocketbook does it?
What really matters is your loved one’s are promptly taken care of and the affordability, right?
Hope this Colonial Penn review has been helpful and a insightful for you.
Please let us know if we can help you in your quest for quality and affordable life insurance.
Comments or questions are always welcome below.
We’re here to help. Feel free to call us at 269-244-3420
Special Risk Life is a veteran independent life insurance agency that specializes in guiding people with even the toughest health conditions thru the life insurance process. We are very passionate about helping people get the financial protection they want while delivering affordable coverage people can absolutely count on.