Colonial Life Insurance: Is It Worth The Hype?

Colonial Life Insurance is a well-known and highly-rated insurance company that has been in business for several decades. The company offers a range of insurance products, including life insurance, accident insurance, cancer insurance, and employee benefits insurance. With an A rating from A.M. Best and an A+ rating from the Better Business Bureau (BBB), Colonial Life is recognised for its financial stability and strong performance. However, it is not BBB-accredited and has received a significant number of complaints through the BBB. Customer reviews are mixed, with some praising prompt settlements and others criticising delays in claim approvals and policy cancellations. Overall, Colonial Life has built a solid reputation in the insurance industry, but potential customers should carefully consider their specific needs and priorities before choosing an insurance provider.

Colonial Life's reputation and financial stability

Colonial Life Insurance Company, founded in 1937 as Mutual Accident Company, is a well-established insurance carrier specialising in life insurance and employee benefits insurance. With multiple decades of experience, the company has earned a reputation as one of the most respected insurance providers in the US market.

Reputation

Colonial Life has received high ratings from reputable sources, including an "A" (excellent) rating by A.M. Best and an "A+" rating from the Better Business Bureau (BBB). The company has also been recognised as an industry leader in new insurance sales, ranking second overall for whole and universal life insurance, short-term disability insurance, and cancer insurance.

Colonial Life's long-standing history, wide network, and substantial in-force insurance have contributed to its reputation as a financially stable company with a positive outlook. The company has consistently demonstrated strong financial performance and a commitment to its customers, resulting in steady growth and a positive reputation.

Financial Stability

Colonial Life, as a subsidiary of the Unum Group, consistently earns strong financial strength ratings from the four major rating agencies. A.M. Best, a leading global credit rating agency, indicates that Colonial Life is an excellent choice for insurance customers, assuring guaranteed and secure coverage. The company has over $1.5 billion of insurance in force, serving more than three million policyholders.

Colonial Life's financial stability is further evidenced by its consistent and profitable financial performance. This has been achieved by staying true to its mission and maintaining a customer-centric approach. The company has a long tradition of offering affordable insurance products that meet the diverse needs of its customers.

In summary, Colonial Life Insurance Company has established itself as a trusted and financially stable insurance provider in the US. With high ratings, a strong financial performance, and a positive reputation, the company has earned the confidence of millions of insurance customers who rely on its coverage.

Pros and cons of Colonial Life

Pros of Colonial Life Insurance

Colonial Life Insurance has been in the insurance industry for several decades and has a strong financial stability outlook. The company has an "A" (excellent) rating from A.M. Best, a leading global credit rating agency, indicating that it is an excellent choice for insurance customers. Colonial Life also has an "A+" rating from the Better Business Bureau (BBB). The company offers multiple types of coverage, including life insurance, accident insurance, cancer insurance, and more. With over 10,000 independent insurance agencies and brokerages and more than 1,000 home insurance office professionals, Colonial Life has a wide network of agents and brokers who can assist customers with claims and other concerns. The company also allows policyholders to transfer their policies if they switch jobs.

Cons of Colonial Life Insurance

Colonial Life Insurance is not a BBB-accredited company and has a concerning number of complaints filed against it through the BBB. The company's official website could use an upgrade, as it lacks certain pieces of pertinent information and has a restrictive layout. There is no official claims response time frame promise, and customers have reported frustration with the claims process, including long wait times and difficulty cancelling policies. The company also does not provide a claims reporting hotline, which is a service offered by most modern carriers.

Types of insurance offered by Colonial Life

Colonial Life offers a range of insurance products to individuals and employers. Here is a detailed overview of the types of insurance offered by Colonial Life:

Life Insurance

Colonial Life offers life insurance products to provide financial protection for individuals and their families. This includes individual term life insurance and individual whole life insurance. Life insurance can help loved ones pay for funeral costs, cover bills and living expenses, pay off debts, and protect retirement plans.

Disability Insurance

Disability insurance replaces a portion of the insured person's income if they are unable to work due to sickness or injury. It also provides financial support to loved ones in the event of the insured person's death. Benefits are paid directly to the policyholder to help cover expenses.

Hospital Indemnity Insurance

This insurance pays benefits directly to the policyholder for hospital stays or outpatient surgery, in addition to any existing medical insurance coverage.

Critical Illness Insurance

Critical illness insurance provides a lump-sum benefit if the insured person is diagnosed with a covered illness. These payments can be used for medical expenses, such as initial diagnosis, recovery, and cancer screening tests.

Dental and Vision Insurance

Colonial Life offers dental insurance that covers routine and unexpected dental work. Optional vision coverage is also available to provide benefits for vision-related expenses.

Colonial Life is a well-known insurance company that has been in business for over 75 years. They offer a range of insurance products to meet the diverse needs of their customers. It is important to review the specific plan details, terms, and conditions before choosing any insurance product.

Customer reviews of Colonial Life

Some positive reviews include comments such as:

> "I have had Colonial Life for several years (over 15). I have filed cancer, sickness, and accident claims and have always got prompt settlements. I received notifications when my claim was received and also when they mailed the payments. The mail claims that I sent were usually about a 10-14 day turnaround and the faxed claims were about half that. I am very pleased with Colonial Life and would recommend it to anyone."

> "My Colonial accident plan paid me $300 more than my Aflac Accident plan and the best part is it is half the price! Both checks arrived within 2 days of each other. The nice part was I got 2 emails from Colonial updating me on my status."

On the other hand, negative reviews highlight issues with the claims process, cancellation policy, and customer service:

> "I've been paying Colonial for almost ten years and trying to file a claim with them is almost impossible. They give you the runaround with paperwork that they say you need. I would NOT buy Colonial's policies! And they will not help you when you call."

> "Be very cautious when choosing this company. They do not let you cancel your policy easily. I'm told I must wait 8 months until my companies open enrollment. This is an extremely long time to continue paying for a service no longer needed."

> "I was sold a life insurance policy when I was in my 20s. The agent did not explain that it was a term policy nor did they explain how expensive that policy would become after the 20-year mark."

> "I had an accident, I fell down some stairs. [...] Tried to file a claim, it was too difficult to do. Wanted me to send all the records by PDF. I don't have the ability to turn my paper records into a computer file and got no help from customer service."

Overall, while some customers have had positive experiences with Colonial Life, there are also a significant number of negative reviews that highlight issues with the company's claims process, cancellation policy, and customer service.

Discounts offered by Colonial Life

Colonial Life Insurance offers a range of discounts to its customers, although specific information about these discounts is not readily available. However, based on the information provided by TrustedChoice.com, there are several common discounts offered by most life insurance companies on comparable coverages that are likely to be available through Colonial Life.

One common discount is the young applicant discount, where applicants in their 20s or 30s receive lower rates when signing up for life insurance. Insurance companies also frequently offer an annual premium discount, rewarding customers who pay their premiums annually instead of monthly.

Another standard discount is the healthy family history discount, where applicants with a good family health history and healthy genetics receive lower rates. Safe hobbies are also often taken into account, with non-life-threatening hobbies resulting in cheaper premiums for customers.

Additionally, Colonial Life provides value-added services to employers at discounted rates or no direct cost. These services include complimentary programs such as employee financial wellness programs, health and services discount cards, premium-only plan administration, and HR resource websites. These offerings provide financial protection and support to employers and employees, helping to control the rising cost of medical insurance.

Frequently asked questions