Your Rights And Responsibilities
Buying life insurance is a big decision and you deserve to feel confident that you are getting the right product for you and your loved ones. In Ontario, life insurance is sold by insurance companies and agents that are licensed by the Financial Services Commission of Ontario . Visit Licensed Insurance Companies in Ontario or Agents licensed in Ontario to find an insurance agent or company to work with.
If an insurance agent or company is licensed by FSCO that means safeguards are in place to protect your rights, but you need to be aware of your responsibilities too.
Who Is Colonial Penn Best For
Colonial Penn was among the first insurance companies to offer guaranteed-acceptance life insurance policies to customers aged 50 and older. However, because this kind of coverage has low coverage limits and is more expensive than policies that require an exam, it is best suited to people with preexisting health conditions who may not be eligible for traditionally underwritten policies. It may also be useful for those seeking to supplement existing coverage.
Colonial Penn Burial Insurance Plans
Colonial Penn currently has two main burial insurance plans. The most popular offering is their guaranteed acceptance whole life burial insurance. The second is an easy issue whole life burial insurance plan which requires applicants to provide answers to some health related questions. Of the two, the former is the most widely marketed to the public.
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About Colonial Penn Life Insurance Company
Researched & Written by Jess Vyvial-Larson on the FlexJobs Team
Headquartered in Philadelphia, Pennsylvania, the Colonial Penn Life Insurance Company was founded in 1968. For decades, the company has specialized in providing affordable, direct-access life insurance policies to consumers. Through online, mail, TV, and call center operations, Colonial Penn focuses on furnishing life insurance protection for individuals and their loved ones. One of the nation’s first insurers to provide Guaranteed Acceptance Life Insurance products to consumers over the age of 50, now its most popular plan, the company is considered a pioneer in life insurance for the “mature market.”
Colonial Penn is a subsidiary of CNO Financial Group, a Carmel, Indiana-based financial services organization that serves over 4 million working and retired Americans nationwide. Other CNO companies include Bankers Life, Washington National Insurance Company, and 40|86 Advisors. The Colonial Penn Life Insurance Company offers life insurance products to consumers between the ages of 18-85, all of which are designed to help them ease their financial burdens.
How Much Is Colonial Penn Whole Life Insurance
The price of Colonial Penns whole life insurance depends on a number of 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.
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What Other Providers Offer Final
Besides Colonial Penn, we recommend checking out final-expense insurance from providers such as AAA, AIG and Gerber. These companies offer competitive rates for coverage options that are fairly similar to what Colonial Penn offers. For a more in-depth look at these providers, read our guide to final-expense insurance.
Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
Colonial Penn Customer Complaints
Over the years, they have racked up quite a few Colonial Penn life insurance complaints. When you analyze their complaint ratio with the National Association of Insurance Commissioners, their numbers are well above the average.
Their 2021 NAIC complaint ratio for individual life insurance products was 23.29, nearly 23 times higher than the average life insurance company.
Them getting many complaints isnt surprising given their misleading advertising.
When an insurance company makes it appear as if everyone can get $10,000 in life insurance coverage for $9.95 per month, its no surprise that many angry customers file grievances.
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Who Owns Colonial Penn
Colonial Penn is owned by Colonial Penn Group, Inc., which is a subsidiary of CNO Financial Group, Inc. CNO Financial Group is 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.
Colonial Penn Company History
Established in 1963 by AARP co-founder Leonard Davis, Colonial Penn is now a subsidiary of Carmel, Indiana-based CNO Financial Group Inc. Two other CNO companies also sell life insurance: Bankers Life and Washington National.
In 1968, Colonial Penn became one of the first insurers to offer guaranteed acceptance life insurance solely for people ages 50 and over.
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Is Colonial Penns 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 Penns limited underwriting criteria will be particularly beneficial.
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Colonial Penn Guaranteed Acceptance Life Insurance
WithColonial Pennâs guaranteed acceptance life insurance or guaranteed issue life insurance, you buy a number of âunitsâ . A unit of coverage corresponds to the life insurance benefit amount available to you. The per-unit price is a fixed amount, and pricing starts at $9.95 per unit. Several units can be purchased to build a bigger death benefit.
Colonial Penn offers up to $50,000 in coverage for people ages 50 to 85 in most states.
In every state except Minnesota, New Jersey and Pennsylvania, Colonial Pennâs guaranteed acceptance life insurance is available to people ages 50 to 85. The age range is 50 to 75 in Minnesota and 56 to 85 in Pennsylvania. In New Jersey, the age range is 50 to 82 for women and 50 to 77 for men.
The policy builds cash value after the first year of coverage. Then, the policyholder can borrow against the cash value at a guaranteed rate.
Colonial Pennâs guaranteed acceptance life insurance requires no medical exams and no health questionnaires. Someone can buy this coverage regardless of any pre-existing health conditions.
Colonial Penn says it can offer guaranteed issue life insurance because the policy comes with a two-year limited benefit period for death from non-accidental causes.
If the insured person dies before the two-year period ends, the beneficiary will receive the premiums paid plus 7% compounded annual interest. After the first two years, the full face amount will be paid for death from any cause.
Does Colonial Penn Create A User
Colonial Penns official website is not extremely modern or user-friendly. Many pertinent pieces of information that prospective customers may be seeking are not readily available, such as information about discounts and claims processes. Customers do not have the option to file claims online or over the phone, which is strange and inconvenient for an insurance carrier in the modern world. The website does have options for prospective customers to request quotes, and for current customers to pay their bills online, however. The carrier does have a presence on Facebook, which makes them more available to customers, and their page states that they typically respond to direct messages within a day.
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Colonial Penn Life Insurance Pros
First, lets look at some of the positives of buying a life insurance plan from Colonial Penn.
Colonial Penn’s guaranteed acceptance life insurance policies are available to adults 50-85. The price you pay, however, does not depend on age or medical history.
Both of the Company’s whole life insurance products have no medical exam required. In addition to this, Colonial Penn’s flagship $9.95 per month plan does not even have health questions!
Colonial Penn’s applications are 1-2 pages and can be completed entirely online.
Every Colonial Penn life insurance plan builds cash value .
Colonial Penn has an A- rating from A.M. Best, which means it is in great financial health and will have an easy time paying claims on its current life insurance policies in-force.
What Companies Offer Final
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 Penns. For a more detailed analysis of these companies, request a quote.
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Colonial Penns Life Insurance Riders
A life insurance rider lets you buy extra coverage or features to add to your policy. Here are riders offered by Colonial Penn for its permanent whole life insurance policies. Rider availability can vary based on the policy type.
- Accidental Death Rider. This rider from Colonial Penn allows someone 40 to 65 years old to add an accidental death benefit ranging from $10,000 to $50,000.
- Heart Attack and Stroke Rider. With this rider, you can access as much as 50% of your whole life insurance benefit if youâre diagnosed with a heart attack or stroke. It also covers terminal illnesses.
- Cancer Rider: Colonial Pennâs cancer rider gives you access to as much as 25% of your whole life insurance benefit if youâre diagnosed with cancer .
- Chronic Illness Rider: This rider enables you to tap into as much as 50% of your whole life insurance benefit if youâre diagnosed with a chronic or terminal illness.
Colonial Penn Life Insurance Customer And Claims Satisfaction
With a financial strength rating of A from AM Best, Colonial Penn Life Insurance has proven its historic ability to pay out claims. However, consumers have filed more complaints than normal against Colonial Penn, according to the NAIC, which shows that a significant proportion of policyholders have had issues with the company. Colonial Penn is currently unrated by J.D. Power.
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Colonial Penn Life Insurance Company Background
AARPs co-founder Leonard Davis founded Colonial Penn Life Insurance company in 1968. Colonial Penn is owned by the parent company CNO Financial Group.
They were one of the first insurers to offer guaranteed acceptance policies. They have even sold Medicare supplemental plans in the past.
For many years, Alex Trebek was the face of Penn Life Insurance Company. He was their paid endorser until his death on November 8, 2020.
Most of their licensed insurance agents work from the home office in downtown Philadephia Pennsylvania. However, some of their agents work from home.
- Address: 399 Market St, Philadelphia, PA 19181
- Phone number : 1-877-877-8052
- Phone number for New York residents: 1-800-323-4542
How Do I Apply For Life Insurance Coverage
Its easy to apply online. Click Get a Quote to choose the coverage you wish to apply for. You will then be directed to a secure webpage where youll provide your personal information, select your beneficiary/beneficiaries, answer health questions, and select a billing method. After you submit your information, you will be able to print a copy of your signed application for your records.
If you prefer to apply through the mail, you can an application and mail it to us:
Colonial Penn Life Insurance Company 399 Market Street
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Guaranteed Acceptance Burial Insurance
This is a true permanent burial insurance plan. Its terms are simple, monthly price will remain constant, and benefits will never decrease. However, drawbacks include a waiting period and high price point which is largely more expensive than many competitors . The waiting period for this plan is a result of the policys guaranteed acceptance without a required health screening or medical check. The waiting period is designated as two years. Enrollees who pass away during this waiting period are not paid out the benefit amount. Rather, paid premiums are refunded plus 7% interest compounded annually. After the two year waiting period,
After the two year waiting period has elapsed, the full policy value becomes effective and will remain so for ones remaining life. The policy will also pay out if death is the result of an accident. For example, policy-holders would be covered in the event of automotive or plane crash. This policy is offered to customers between the ages of 50-85. Online payments can be made using ones banking information or credit card and there are additionally three manual pay options. Bills can be scheduled to be recurring quarterly , semi-annually , or annually . Payments cannot be made via direct bill. Monthly billing must be done either by bank draft or credit card.
Living Insurance From Colonial Penn
When you apply for their whole life product with health questions, they allow you to add two different living benefit riders.
These riders cost extra, and you can only choose one. You cannot have both added to your policy.
- Critical Illness: This allows you to access up to 50% of your death benefit if you suffer a heart attack, stroke, or are diagnosed with a terminal illness.
- Cancer: Allows you to receive up to 50% of your death benefit if you are diagnosed with cancer or a terminal illness.
Essentially, they provide an additional layer of protection if youre ever diagnosed with a chronic illness or major health event.
If you opt to purchase their whole life policy with health questions, adding one of these riders would be a good idea.
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Colonial Penn Life Insurance $995 Per Month Reviews
Colonial Penns 995 plan is guaranteed acceptance of life insurance products with limited underwriting and smaller 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.
Colonial Penn Insurance Overview
Colonial Penn offers a variety of life insurance options that combine simplified underwriting with a limited death benefit. Theyre ideal for people who dont 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 two types of 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 products, but if youre 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.
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Does This Plan Pay Benefits Even If I Have Other Insurance
Yes. Your Guaranteed Acceptance Life Insurance plan will pay benefits directly to your beneficiary or beneficiaries in addition to any other insurance you might have.
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Colonial Penn Life Insurance
Permanent, whole life insurance is available from Colonial Penn to provide customers with a policy that lasts their entire lifetime. Folks aged 40-75, in most areas, have the option to apply for coverage. Permanent life insurance customers can enjoy guaranteed premiums that remain the same throughout their lives.
Guaranteed acceptance life insurance is also offered by Colonial Penn. This coverage is a kind of whole life insurance that doesn’t require a medical exam or any health survey questions, so approval is guaranteed. Limited benefit periods, such as two years, are offered on this coverage. A widely chosen option provided by Colonial Penn is for customers aged 50-85.
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Can I Take A Loan Against The Cash Value Of My Guaranteed Acceptance Life Insurance
Yes. If your coverage is in force and has a cash value yes, you may obtain a loan on it. The interest rate is 8% compounded annually. Any loan amount and interest that has not been repaid at the time of death is deducted from the death benefit. Please refer to your policy/certificate for more information or call our toll-free service number