Colonial Penn Life Insurance Review

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Compare Colonial Penn With Other Companies

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

Colonial Penn Life Insurance Review By Agents

Colonial Penn Life Insurance is a well-known name in the life insurance market, offering a range of products designed to meet different needs. Here’s a detailed breakdown of what they offer:

Insurance Options

Term Life Insurance: Suitable for individuals aged 18 to 75, Colonial Penn’s term life policies are renewable up to age 90. These policies do not require a medical exam but include a health questionnaire. The maximum coverage is $50,000, with rates varying by age and gender.

Whole Life Insurance: Available to customers aged 40 to 75, this insurance offers lifelong coverage with a maximum benefit of $50,000. It builds cash value over time and requires health questions for eligibility.

Guaranteed Acceptance Policies: Designed for individuals aged 50 to 85, these policies offer a fixed death benefit without a medical exam, featuring a two-year limited benefit period for guaranteed coverage.

Pros and Cons

Pros:

  • The policies build cash value and offer fixed premiums.
  • Coverage is lifelong
  • The application process is streamlined.

Cons:

  • The policies are generally more expensive than others in the market.
  • The guaranteed acceptance policy has a restricted death benefit
  • No comprehensive underwriting.
  • There are no universal life insurance options for flexibility.

Financial Ratings and Company Background

Colonial Penn, established over 50 years ago, boasts strong financial ratings with an A- from A.M. Best. The company is recognized for its easy claim process and customer satisfaction.

Customer Experience and Pricing

Colonial Penn provides direct-to-consumer services with online quote capabilities. However, customer feedback highlights a higher-than-average complaint ratio, mainly related to advertising and billing issues. Their rates are generally 30-150% higher than the best rates in the market, making it crucial for potential buyers to compare these rates with other providers.

Colonial Penn’s $9.95 Per Month Plan

This plan guarantees acceptance of life insurance products with limited underwriting and smaller death benefits that accumulate cash value. The issue with this plan is that the older you are, the less coverage you get, making it less effective for covering 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, when the average cost of a funeral is around $15,000 making it less than ideal coverage.

Colonial Penn Life Insurance Review

How We Can Help

At The Annuity Expert, we understand the complexities of choosing the right life insurance policy. With 15 years of experience as an independent insurance agency, annuity broker, and retirement planner, we offer personalized advice and solutions to ensure you get the best coverage at the lowest cost. Unlike Colonial Penn, we can compare multiple companies to find the best fit for your needs.

We believe in providing transparent, cost-effective solutions tailored to your unique situation. We stand against high costs and limited options and fight for your financial security and peace of mind. We know the frustration and emotional stress of navigating life insurance options and aim to alleviate these burdens with our expert guidance.

Colonial Penn Life Insurance

What We Recommend

Step 1: Free Consultation

  • What Happens: Contact us for a free consultation. During this session, we will discuss your specific needs and financial goals.
  • Main Benefit: Gain clarity on the best life insurance options available to you.

Step 2: Personalized Comparison

  • What Happens: We compare multiple life insurance policies from different providers based on your needs.
  • Main Benefit: Receive tailored recommendations that offer the best coverage at the most affordable rates.

Step 3: Secure Your Policy

  • What Happens: Once you select the best policy, we assist you with the application process and ensure you understand all the details.
  • Main Benefit: Enjoy peace of mind knowing you have chosen the best life insurance policy for your needs.

Features and Benefits

  • Multiple Company Comparisons: Ensure you get the best rates and coverage.
  • Expert Guidance: Navigate the complexities of life insurance with confidence.
  • Personalized Solutions: Receive recommendations tailored to your unique needs.
  • Easy Application Process: Hassle-free assistance to secure your policy.

Overcoming Objections

  • Objection: “I can get insurance directly from Colonial Penn.”
    • Counter: As independent agents, we offer and compare multiple companies, providing better options than a single provider like Colonial Penn.
  • Objection: “It’s too expensive.”
    • Counter: We find cost-effective solutions tailored to your budget, often more affordable than direct providers.

Without our expert guidance, you may end up paying higher premiums for less coverage, missing out on better options available in the market. Working with us ensures you receive the best advice and the most suitable policy, providing financial security and peace of mind.

You will feel confident and secure in your financial future, knowing you have the best life insurance policy tailored to your needs. Contact us for free advice or a quote today!

Get Help Applying For Life Insurance

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.

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Frequently Asked Questions

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?

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

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.

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.

What are the primary complaints about Colonial Penn’s $9.95 plan?

The main issue with Colonial Penn’s $9.95 plan is that its marketing suggests a universal rate of $9.95 per month, but this rate applies only to the youngest eligible age group at the minimum coverage level. As the face amount increases, so does the premium, which can be misleading based on initial promotions. Additionally, many people are unaware that healthier individuals might qualify for plans offering immediate coverage, contrasting with Colonial Penn policies, where full coverage only kicks in after two years for claims related to medical events. This gap in understanding often leads to dissatisfaction among customers who expect different terms.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

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

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