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Colonial Penn Life Insurance Review
Colonial Penn offers guaranteed issue life insurance with a two-year waiting period. Their prices compared to other guaranteed issue companies are very high.
|✅ Guaranteed an issued policy||❌ Two year waiting period|
|❌ Much higher prices than other companies|
Colonial Penn offers a range of life insurance products, specifically for seniors.
They are one of the most well known companies with one of the highest amounts of new business written every year, but are they a good company?
In this complete review of Colonial Penn, we will go over prices and how they compare, the different types of products they offer, and if they are a good fit for you to protect your family.
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Table Of Contents
- Products By Type
- Term Life Insurance
- UnderWritten Whole Life
- Guaranteed Acceptance
- How Much Does the $9.95 Plan Pay
- Jonathan Lawson Spokesperson
- Customer Reviews And Complaints
- Other Options
Products By Type
Colonial Penn offers three life insurance products that all have small death benefits compares to other types of life insurance.
These products are all made to tailor to seniors and those looking for coverage just enough for final expenses like the funeral, burial, or cremation.
|Term Life Insurance||Underwritten Whole Life||Guaranteed Acceptance|
|Premium increases every year||Fixed Premiums||Fixed Premiums|
|$10-$50,000 Death Benefit||$400-$17,000 Death Benefit||$10-$50,000 Death Benefit|
|Health questions, but no medical exam||Health questions, but no medical exam||No health questions or medical exam|
|Ages 18-75||Ages 40-75||Ages 50-85|
All of their life insurance products may be applied for online with no medical exam and you can get coverage in less than 30 minutes.
Term Life Insurance
Colonial Penn’s term life insurance increases in monthly premiums every 5 years. This policy can be renewed every 5 years until you are age 90, upon which the policy will expire, and you will have no coverage at all.
For seniors looking for final expense burial insurance, this can be very costly.
If you are looking for term insurance because it is cheap, there are better options than Colonial Penn.
Underwritten Whole Life
Colonial Penn’s underwritten whole life product offers up to $50,000 in death benefit and does require some basic health and prescription questions.
Most people do not qualify for this plan because they only accept the very healthy and most seniors have a few health problems or prescriptions.
This plan if you qualify is day one coverage with no waiting period, but if you qualify for this plan there are many other companies that will offer you no waiting period plans at a better price.
Colonial Penn’s guaranteed acceptance life insurance policy is their most aggressively marketed ($9.95). Everyone is guaranteed a policy but it will come with a two-year waiting period.
They do not require you to answer any health questions or require a medical exam.
The way they price their premiums is very unique to Colonial Penn. They sell insurance in “units” and each unit is $9.95, up to a max of 12 units. How much coverage this will pay out will depend on your age and gender.
Below are some sample death benefits for each unit of coverage at $9.95.
As you can see, the amount of coverage you get at each unit goes down considerably over time.
To keep it simple, if you add up the amount of units you need to get the desired coverage, the monthly premium would still be considerably more than similar companies that offer guaranteed acceptance policies, like Gerber and AIG.
You get very little coverage for $9.95/month, even at age 50.
How Much Does The $9.95 Plan Pay With Colonial Penn?
Colonial Penn’s $9.95 plan pays for 1 unit of coverage which varies depending on the issue age. One unit buys you between $1,786 of insurance for a 50-year-old male to $418 of insurance for an 85-year-old male.
Jonathan Lawson Colonial Penn Spokeperson
Jonathan Lawson is a paid spokesperson on many Colonial Penn commercials. They used to have Alex Trebek until he died in 2020.
You should know that Jonathan Lawson is an employee of Colonial Penn and is paid to say the things he says on T.V. and in the mail.
Colonial Penn Customer Reviews And Complaints
Colonial Penn has an A- rating with A.M. best which is good. This basically means they have enough financial backing to pay out claims with no worries.
However, they have a significant number of complaints from current and potential customers for their aggressive marketing saying you can get thousands of life insurance coverage for only $9.95/month.
They only have 1/5 stars. Yikes.
In addition, many customers say they thought they were getting more coverage for their unit and their family only got a fraction of what was offered.
Colonial Penn Alternatives & Competitors
Colonial Penn has many alternatives & competitors that offer much lower prices such as Mutual Of Omaha, Aetna, Prosperity, Foresters, and AIG just to name a few.
Below is a helpful chart comparing the pricing of Colonial Penn with some example companies for a female at $10k in coverage.
|Age||Colonial Penn||Mutual Of Omaha||Aetna||AIG|
|50||$49.75 ($10,415 coverage)||$24||$27||$38|
|60||$59.70 ($10,056 coverage)||$32||$40||$54|
|70||$89.55 ($9,387 coverage)||$53||$58||$80|
|80||$119.40 ($7,440 coverage)||$98||$101||$189|
As you can see, there are plenty of companies that offer the same amount of coverage for far less than Colonial Penn.
To get approved for coverage with one of these other companies fill out a quote form or give us a call.
The truth is, we don’t recommend going with Colonial Penn for any type of life insurance product for a few reasons.
The prices for all of their products are above average, and you can get the same coverage for hundreds less a year. There is no reason to pay more for your coverage than you need.
Colonial Penn is a captive agency. This means when you speak to someone at Colonial Penn all they can do is offer you Colonial Penn products. They cannot look around the market to see what works best for you.
If you want to find the best prices and products available on the market, you must work with an independent agency such as Seniors Mutual or another agency. It costs nothing extra to talk with an independent agent who will shop the market for you and find you the best deal.
Even if you are looking for a guaranteed acceptance policy with no health questions, there are cheaper options out there that give you the same or more death benefit to go to your family.
If you want to find the best deals and prices, give us a call, fill out our quote form, or chat with a live agent and we will assist you and find the best policy for you!