Colonial Penn is a life insurance company that may be famous for its TV commercials starring Alex Trebek. It was also one of the first life insurance companies to issue. Life Assurance Acceptance Guarantee” plan for people over the age of 50, which it did in 1968. It now offers life insurance products for customers between the ages of 18 and 85. Here’s what you need to know before deciding if Colonial Penn is the right life insurance company for you.
Is Colonial Penn right for you?
Colonial Penn life insurance may be appropriate if you’re looking for $ 50,000 or less life insurance to cover final expenses, such as funeral costs, or if you’re between the ages of 50 and 85 and don’t need to access full death benefits for at least two years (in most states). It may also be appropriate if you are looking for a life insurance policy that does not require a medical examination.
Colonial Penn may not be the best option if you want a life insurance policy to provide benefits over $ 50,000.
Where is Coln Penn offers?
Colonial Penn is available in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands However, the features and restrictions of the plan may vary by state. For example, in New York, Colonial Penn is underwritten Bankers Conseco Life Insurance Company. In addition, its renewable long-term life insurance plans are not offer in Montana, New York, or the U.S. Virgin Islands.
Advantages and Disadvantages of Colonial Penn Insurance
- No medical test is required
- Potential ability to borrow versus cash value
- Rates are guaranteed
- Maximum insurance payment of $ 50,000
- The interest period is limited to two years
The Penn Pros invaders are explained
- No medical test required: While many life insurance plans raise health questions or require a medical test, the Total Acceptance Assurance option does not – and Colonial Penn guarantees you will be approved.
- Potential ability to borrow versus cash value: Some Colonial Penn insurance plans may allow you to borrow money from your life insurance policy. This includes life and whole life insurance policies.
- Guaranteed rate: For the Guaranteed Acceptance plan, your monthly premium remains the same for the life of the policy.
Colonial Penn Cons Explained
- Maximum insurance payment $ 50,000: The maximum insurance death benefit is $ 50,000, and some policies have lower or varying maximums. Typically, these lower payments are only sufficient for limited final expenses.
- Two-year limited benefit period: For a Guaranteed Receipts lifetime warranty plan, you must wait at least two years before you can claim full benefits for accidental death. A percentage of the plan’s face value may be paid for non -accidental death, with the full face amount paid for accidental death. This may vary by state.
If you are in good health, you may pay less for a life insurance policy that requires a medical test because it uses your specific health information to determine premium and underwriting costs. Ask about the difference in cost for insurance with a medical test versus a test without.
Colonial Pen Products and Famous Deals
Colonial Penn specializes in life insurance, but not all types are available in all states. It offers coverage starting at just $ 9.95 a month, which may be more affordable than other insurance plans, though comparing them is always wise.
- Guaranteed Admission life insurance: The age charged varies by state
- Permanent life insurance: Must be between 40 to 75 years old to apply
- Renewable long-term life insurance: Must be between 18 and 75 years old to apply for coverage up to $ 50,000, renewable up to age 90, and premium rates increase with age
- LifeChoice life insurance: Exclusive to New York residents, must be between 50 and 75 years old to apply
- Rider life insurance: For an additional premium, you can add one rider for each type of health problem to life or whole insurance policy, so you have the option to collect up to 50% of your death benefit after a diagnosis of cancer, chronic illness, stroke or heart attack, or terminal illness
If you are not happy with your plan, Colonial Penn offers a 30 -day money-back guarantee.
What Discounts Are Offer?
Colonial Penn revealed a few cuts on its website. Still, it offers prepaid discounts for some of its insurance plans. Just pay every year and save up to a month on your premiums.
If you are younger or healthier, consider researching other insurance options such as critical illness insurance, long-term care insurance, or other combination policy options with a health insurance agent or professional health or financial planner.
Colonial Insurance Evaluation and Review
Colonial Penn Life Insurance give an “A- (Excellent)” Financial Strength Rating by AM Best. It is not accredite the Better Business Bureau (BBB), and more than 80 complaints filed with the BBB.
The Bottom Line in Colonial Penn
Colonial Penn has a strong financial strength rating, has been in existence for more than 60 years, and offers life insurance without medical testing for people up to 75 years of age. If you buy insurance, you may get a lower price if you are younger, in good health, or can pass a medical test. Whenever you want to compare life insurance options, consider the help of a licensed life insurance broker or agent to help you review policies and quotes.