Colonial Penn's policies may be worth a look if you have health issues that would make a standard life insurance policy prohibitively expensive or impossible to get. You can certainly locate life insurance with a more significant death benefit and lesser rates elsewhere. Since Colonial Penn Life Insurance is advertised on television, you might recognize it. Those over the age of 50 are the primary demographic for Colonial Penn. There is $3.5 billion worth of long-term life insurance contracts in place.

Colonial Penn Insurance Types

Colonial Penn whole life insurance

The term "cash value" refers to the investment component of whole life insurance, including life insurance and savings. The minimum return on the cash value component is guaranteed. People between the ages of 40 and 75 can get permanent whole life insurance from Colonial Penn. In Montana, premiums are determined only on an applicant's age and gender. A Colonial Penn real-life insurance policyholder's premium will be constant throughout the policy.

Colonial Penn Guaranteed Acceptance Of Life Insurance

You purchase several "units" of life insurance with Colonial Penn's assured acceptance or guaranteed issue policy. Your possible life insurance payout amount is represented by one unit of coverage. The price per unit is set and starts at $9.95 a team. It is possible to construct a more considerable death benefit by purchasing many units. In most states, individuals 50 to 85 years old can get up to $50,000 in insurance coverage from Colonial Penn. Colonial Penn's guaranteed acceptance life insurance is offered to those ages 50 to 85 in every state except Minnesota, New Jersey, and Pennsylvania.

Advantages

Since no medical exam or health inquiries are asked when applying for Colonial Penn whole life insurance, this option may appeal to those other companies that have been rejected because of their health. Only a third of the companies we looked at provided this protection level. Most of the time, you can find out if your application has been accepted the day after you submit it. Customers of Colonial Penn can communicate with policy experts in real-time. On the internet, customers may apply for insurance policies and receive prices.

The Cons

A regular whole-life policy and a guaranteed-issue policy are the only whole-life policies offered by Colonial Penn. Complaints from Colonial Penn's customers averaged five times more than predicted during three years. The typical whole-life policy coverage of Colonial Penn is set at $500,000 per insured person. Regarding coverage limits, most rivals go up to $1 million or more, with some going as high as $250,000 or even $600,000.

Index Complaint

Comparatively speaking, Colonial Penn had an exceptionally high volume of client complaints for a business of its size. According to the National Association of Insurance Commissioners, that's the case. To establish its Complaint Index, which compares firms of comparable size based on the number of complaints made by policyholders, it records customer complaints and utilizes those figures.

Customers who have a problem with an insurance company are given a numerical rating depending on the number of complaints they received in the previous year. A complaint index of one is assigned to a business that gets the expected quantity of complaints. Negative numbers indicate fewer complaints than expected, whereas positive numbers indicate more complaints than expected.

Third-Party Rating

Regarding AM Best's evaluations of financial strength, Colonial Penn comes out on top. Insurers' ability to pay claims is evaluated using a grading system by a credit rating agency. Grades ranging from A++ to D Colonial Penn was given an A- grade in 2021, signifying a good financial standing but not extraordinary. AM Best gave Colonial Penn a worse quality than 90% of the other firms we looked at.

Policies Available

Currently, Colonial Penn provides two whole life insurance plans, neither requiring a medical exam to purchase. They're outlined here.

Lifetime

When a policyholder dies, the insurance company pays the policy's beneficiaries out a benefit. If the premiums are paid, it is guaranteed to remain in place for the insured's whole life. The insured can borrow money from the policy's cash value anytime. There are no surprises when it comes to insurance premiums because they are set for the duration of the policy.

Term-to-Date Life Insurance

Traditional whole-life insurance does not need a medical checkup. Candidates must now answer health-related questions as part of the application process under this new policy. There is a limit of $50,000 on the procedure, and it can be granted between the ages of 40 and 75. After the first year, the policy's cash value grows while the premiums remain unchanged.

Final Expense Insurance

Life insurance plans that don't need a physical exam or medical inquiries are guaranteed-issue policies. For as long as you're of legal age, you're covered. For the first two years, the death benefits are limited to a refund of the premiums you paid, plus a tiny proportion, because these policies have graded death benefits.