Colonial Penn Life Insurance Review 2023

Shawn Plummer

CEO, The Annuity Expert

Is Colonial Penn legit? When it comes to choosing life insurance, there are a lot of factors to consider. For example, what type of policy do you need? What company should you go with? And, perhaps most importantly, what price is right for you? This review will look at Colonial Penn Life Insurance and see if it is the right option.

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Colonial Penn Insurance Overview

Colonial Penn offers a variety of life insurance options that combine simplified underwriting with a limited death benefit. They’re ideal for people who don’t need a large payout — perhaps just enough to cover funeral costs — and would typically have difficulty purchasing coverage elsewhere due to age or medical history. Colonial Penn sells life insurance to customers between 18 to 85 years old.

Colonial Penn offers life insurance products: term and whole life. None of their life insurance policies require a medical exam, but there are a few health questions to answer to see if you are eligible for coverage. Their renewable term life insurance policy allows you to renew up to age 90, based on your current age at renewal. People over 40 can get whole life insurance with the Living Insurance payout option. If you are over 50, you can get a guaranteed acceptance whole-life policy with no medical questionnaire.

This company provides reasonable pricing for its final expense insurance (burial insurance) products, but if you’re young or healthy, you should compare prices from other providers.

Their policies do not require a medical examination, which has a maximum death benefit of $50,000. However, monthly premiums are generally higher than other life insurance companies.

Colonial Penn’s Life Insurance Policies

Colonial Penn offers several life insurance coverage options that include simplified underwriting and a limited death benefit, including renewable term life insurance, guaranteed acceptance life insurance, and permanent life insurance with an optional living benefit rider.

Pros and Cons

  • Colonial Penn Life Ins. is a large insurance company in the insurance industry.
  • Their current financial ratings are A– with A.M. Best and A- with S&P.
  • They offer term and whole policies.
  • Their claim to fame is the Colonial Penn 995 plan.
  • Colonial Life Insurance does offer a no-medical exam policy for the term insurance.
  • Offers guaranteed acceptance coverage.
  • They only offer their branded products because they are a captive insurance company. No variety.
  • Options are minimal.
  • They do not offer Universal Life Insurance.
  • The minimum age is 18. The maximum age is 75 for the term policy.
  • The minimum age is 40. The maximum age is 75 for the whole life policy.
  • Colonial Life costs can be expensive compared to other insurance companies’ rates.
  • You can only choose 10, 20, or 30 years for term insurance.
  • Coverage maximum amounts are limited to $50,000 for the term and whole life plan.
  • $10,000 is the minimum coverage amount.
Colonial Penn Life Insurance Review

Term life insurance

The renewable term life insurance policy is available in all states except California, Montana, New York State, and the Virgin Islands. The policy is available for people aged 18 to 75, renewable to age 90. The maximum death benefit is $50,000. Rates are based on age and gender, and the monthly premium increases as you grow older.

Your term life policy may have a cash value depending on how long you keep the coverage. CP does not require a medical examination for its term life insurance policies; instead, it assesses your eligibility based on a medical questionnaire.

A one-year-level term policy is available. After that, you can start a new plan every year. The death benefit on a term life plan is limited, with a maximum value of $50,000 that may be allocated to one or two beneficiaries.

Term life insurance can be bought by customers who are 18-75 years old. You don’t need a medical exam, but the application has some health questions. This policy cost is based on age and gender. It can be renewed until you are 90 years old.

Whole life insurance

The permanent whole life insurance policy is available to customers aged 40 to 75, except for New York State or Virgin Islands applicants. The policy does not require a medical examination, but you must complete a health questionnaire to determine eligibility for coverage.

This whole life policy will cover you throughout your life. The policy will pay out a $50,000 maximum if something happens to you. The policy starts building a cash value after the first year. The coverage is fixed, but the premium cost may change depending on age and gender. However, in Montana, they rate premiums based only on age.

If you’re OK with responding to health questions about yourself or haven’t yet reached age 50, CP offers standard whole life instead of guaranteed acceptance policies. Applicants ages 40-75 can purchase up to $50,000 of whole-life coverage. You need to answer health questions, but there is no medical exam. The price depends on your age and gender.

Guaranteed Whole Life Insurance

You can apply for Colonial Penn’s Guaranteed Acceptance policies (final expense insurance) if you are between 50 and 85 years old. This whole life policy does not require a medical examination, but there is a two-year limited benefit period if applicants want guaranteed coverage. This waiting period means your policy will not pay out a total death benefit to beneficiaries within the first two years of owning the plan.

  • Pro: The policy can build cash, beginning after the first year of coverage, and allows you to choose the death benefit limit.
  • Pro: As long as you continue to pay the premium, their Guaranteed Acceptance plans will cover you for your entire life. The policy has a fixed rate, so you will always pay the same premium.
  • Con: Colonial Penn Insurance Company’s guaranteed acceptance policy offers a restricted death benefit frequently marketed to senior citizens who wish to decrease the financial burden on their families upon their death.
  • Con: There are no questions about your health and no medical exam. However, you’re paying a hefty premium for not providing personal information. You can get a cheaper premium from other insurance companies if they take more information into account, like your health and age, and a medical exam is required.

Coverage amounts depend on the person. But if the insured dies during the first two years, you won’t get all of the money you paid.

Living Insurance

If you are diagnosed with cancer or another chronic illness, or if you suffer a heart attack or stroke, you may be able to receive up to 50% of your whole life or term life death benefit with the living insurance option. This accelerated death benefit rider is available with whole permanent life and renewable term life policies.

The Price

The cost of coverage varies greatly, depending on the kind of insurance you choose and how much protection you need. Their rates are 30-150% higher than the best rates. The final expense program is to gimmick to justify their higher premiums. Colonial Penn offers a variety of different plans to fit your needs. The following are permanent whole life insurance rates for 40-year-olds:

Coverage Amount40-year-old Female40-year-old Male
Colonial Penn Life Insurance Rate Chart

About Colonial Penn

AARP’s co-founder Leonard Davis created the Colonial Penn insurance company over 50 years ago. CNO Financial Group owns them. They were among the first organizations to offer guaranteed acceptance of life insurance. Initially started in Philadelphia, their current corporate headquarters is based in Carmel, Indiana, with 5,000 employees. Tim Arnold is currently the CEO.

Heavily televised on cable networks, Alex Trebek, host of Jeopardy, was the face of the Pennsylvania life insurance firm for many years. He was a paid brand ambassador until his death on November 8, 2020. Now, Meredith Viera has replaced them as their paid spokesperson.

Financial Strength

Currently, A.M. Best has given Colonial Penn a grade of A-. However, Standard & Poor’s and Fitch have reduced their rating to BBB+. Moore’s has a Baa1 credit rating.

According to A.M. Best’s Financial Strength Rating, Colonial Penn meets all of the requirements for a top-rated insurance provider, which means it has plenty of cash to pay claims. Consumers also seem to like Colonial Penn’s quick and easy claim procedure. Policies are backed by the claims-paying ability of the issuing insurance company per the National Association of Insurance Commissioners. (NAIC)

Customer service

Colonial Penn is a direct-to-consumer insurance provider; thus, you won’t be able to talk with insurance agents or financial experts about your insurance needs.

However, you may obtain a quote for insurance policies online. If you want to contact Colonial Penn’s sales department, call 877-877-8052 and talk with someone. Customer service is available Monday through Friday between 8:30 a.m. and 10:00 p.m. ET and on Saturdays from 9:00 a.m. until 5:00 p.m. ET.

Contact Colonial Penn’s customer care department by calling 800-523-9100 to cancel your policy. After enrolling with Colonial Penn, you have 30 days to terminate your agreement. If you join a plan and decide within 30 days that it isn’t suitable for you, you can opt-out or cancel it and get a refund of any fees paid.

Reviews And Complaints

Complaints Colonial Penn accrues vary from various sources, and the market research is conflicting. However, the Better Business Bureau gave Colonial Penn an A+ rating, even though it didn’t cut J.D. Power’s 2020 U.S. Life Insurance Study. The Better Business Bureau (BBB) has received 81 complaints against Colonial Penn over the last three years, most of which concerned advertising, billing, and sales concerns.

They’ve received a lot of complaints over the years. When compared to the national average, their complaint ratio is significantly higher. Given their deceptive advertising, it’s no surprise they receive many complaints. You will get angry consumers who file claims against you if you imply that everyone receives $10,000 in coverage for only $9.95 per month.

Because there are more complaints than anticipated for a company of its size and restricted coverage plans, Colonial Penn is not likely to be the finest life insurance policy available to you.

Colonial Penn Life Insurance

Colonial Penn Life Insurance $9.95 Per Month Reviews

Colonial Penn’s 995 plan is guaranteed the acceptance of life insurance products with limited underwriting and more minor death benefits that accumulate cash value. Unlike term life coverage. The problem with the $9.95 life insurance plan is the older you are, the less coverage you have to pay for funeral expenses.

For example, $9.95 at age 50 could be worth $1,786 in life insurance. However, The same $9.95 life insurance plan could be worth $560 in life insurance at age 75, which is a ripoff when the average cost of a funeral is around $15,000.

Compare Colonial Penn Life Insurance Quotes

Use our calculator to compare Colonial Penn life insurance rates with life insurance quotes from other insurance companies.

Before You Buy

Before comparing companies, decide the type of policy you want. Calculate how much coverage you’ll require and how long your coverage should last. Ensure that the insurers you’re looking at offer the coverage you need. When comparing competitive rates, ensure you’re getting quotes for the same amount of coverage. Also, double-check that the policy’s medical criteria are appropriate for you.

To buy life insurance, compare quotes from multiple companies. The research is just like when you are shopping for car insurance. You want to find the policy with the cheapest rates. That’s because the insurance is mainly for death benefit planning. Make sure to buy insurance from a company with an A.M. Best rating of “A-” or better.

You can get a significantly cheaper rate for life insurance for final expenses or whatever else if you shop around. In addition, you can almost certainly acquire coverage with no waiting period.

The most significant disadvantage of Alex Trebek’s life insurance is that you’re dealing with a captive insurance company. However, if you work with an independent agency, you can save up to 70% on your life insurance.

When you contact a representative, they cannot go through other insurance providers to show you one that can provide you with a better price. Instead, an independent company such as The Annuity Expert will search the market for you to determine which insurance carrier offers the best rate and coverage for your specific needs.

Compare Colonial Penn Life Insurance Quotes

You can compare life insurance rates from 18 ” A ” insurers rated or higher. You may choose which policy you want to purchase without hassle.

Next Steps

If you are looking for a life insurance company that offers more options and a variety of policies, Colonial Penn’s Life Insurance may not be the best fit for you. Although they have good financial ratings and offer term life insurance with no medical exam, they only provide Colonial Penn products which can limit your options. If you want a life insurance quote, please request one below. We work with dozens of top-rated life insurers and will be sure to find the perfect policy for your needs. Feel free to check out our other reviews below too!

Need Help?

If you have a preexisting medical condition and purchasing life insurance, you will need help from an expert. This person can help ensure you get coverage so you don’t get declined.

Warning: Applying for life insurance without a medical exam can be risky. If you get declined coverage, it could be at least two years before you can get any life insurance.

Impaired Risk Life Insurance
Have You Been Declined Life Insurance Coverage Before?

Frequently Asked Questions

Is Colonial Penn’s life insurance good?

For seniors wanting a little bit of coverage for funeral expenses and other end-of-life expenditures rather than complete coverage, Colonial Penn is a viable option. In addition, if you have trouble obtaining insurance elsewhere due to advanced age or complicated medical history, Colonial Penn’s limited underwriting criteria will be particularly beneficial.

Does Colonial Penn’s Life Insurance have cash value?

Colonial Penn’s permanent life insurance policy builds a cash value, beginning after the first year of coverage, allowing you to choose the death benefit limit.

Does Colonial Penn have a waiting period?

There is a two-year waiting period for Colonial Penn’s guaranteed acceptance whole-life policy. There are no health concerns or examinations.

What companies offer final-expense insurance?

We recommend looking into final-expense insurance from organizations such as Transamerica, Americo, AIG, and Gerber, in addition to Colonial Penn. These providers provide reasonable premiums for policies comparable to Colonial Penn’s. For a more detailed analysis of these companies, request a quote.

How much is Colonial Penn’s whole life insurance?

The price of Colonial Penn’s whole life insurance depends on several factors, including the age and health of the policyholder, the amount of coverage desired, and the length of the policy term. Generally speaking, whole life insurance policies are more expensive than other types of life insurance, such as term life insurance.

How much is a unit of life insurance?

A unit of life insurance is typically $1,000. However, the price of a unit will vary depending on the insurer and the type of policy.

How much does the Colonial Penn $9.95 plan cover?

You called Colonial Penn for a quote for life insurance. They told you that you have to buy units. For a 68 year-old-male, 1 unit at $9.95 a month will give you $792 in life insurance coverage. This is a good deal because it only costs $9.95 each month for one unit.

Who owns Colonial Penn?

Colonial Penn is owned by Colonial Penn Group, Inc., a subsidiary of CNO Financial Group, Inc. CNO Financial Group, a publicly-traded company with headquarters in Carmel, Indiana. As of December 31, 2018, CNO Financial Group had assets of approximately $19 billion and operated through several subsidiaries, including Colonial Penn Life Insurance Company.

Is Colonial Life and Colonial Penn the same company?

No, they are not the same company. Colonial Life & Accident Insurance Company is separate from Colonial Penn Life Insurance Company.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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