Colonial Penn Life Insurance: Available In Massachusetts?

Colonial Penn Life Insurance offers guaranteed acceptance whole life insurance coverage to individuals aged 50-85 in most states. The company has been in business since 1957 and has over 810,000 life insurance policies in force, providing peace of mind to many Americans. The monthly cost of their insurance policies starts at $9.95, and they are rated A (Excellent) by AM Best, indicating their ability to meet ongoing insurance obligations. However, Colonial Penn has received a high volume of complaints from customers regarding issues such as unexpected charges, difficulty cancelling policies, and misleading sales practices. This raises concerns about their customer service and business ethics. In this paragraph, we will explore whether Colonial Penn Life Insurance is sold in Massachusetts and examine the implications for consumers in the state.

Is Colonial Penn Life Insurance available in Massachusetts?

Colonial Penn Life Insurance offers guaranteed acceptance whole life insurance coverage in most states. This coverage is available to those aged 50–85, with rates starting at $9.95 per month.

The company has been in business since 1957 and specializes in making life insurance simple and accessible by offering it directly to consumers at affordable prices.

Colonial Penn's life insurance coverage is available in 49 states and Washington, D.C. In the state of New York, Colonial Penn offers LifeChoice, a standard whole life policy. This means that Colonial Penn's guaranteed acceptance whole life insurance coverage is available in Massachusetts.

The maximum coverage for these policies is $50,000, making them a good option for final expense insurance, which can cover funeral and burial costs, medical and legal bills, and other end-of-life expenses.

Colonial Penn's website also includes a tool that allows prospective customers to select their state and view which plans are available to them. This tool can be used to confirm the availability of Colonial Penn's life insurance plans in Massachusetts.

What are the pros and cons of Colonial Penn Life Insurance?

Colonial Penn Life Insurance, in business since 1957, specializes in affordable coverage for seniors with guaranteed acceptance policies for people aged 50 to 85 in most states. The company has over 810,000 life insurance policies in force, providing peace of mind to many Americans. Here are some pros and cons of Colonial Penn Life Insurance:

Pros:

• Guaranteed acceptance: You are guaranteed acceptance regardless of your health condition, and you won't be turned down due to medical issues. This feature is especially beneficial for those with pre-existing health conditions.
• No medical exam or health questions: You can obtain a policy quickly without undergoing a medical exam or answering detailed health questions.
• Locked-in premium rate: The company offers a locked-in premium rate that won't increase over time, providing budgeting flexibility.
• Coverage can't be cancelled: As long as you pay your premiums, your coverage is secure and cannot be cancelled by the insurer.
• Simple and accessible: Colonial Penn has built a reputation for making life insurance simple and accessible by offering it directly to consumers at affordable prices.
• Rated A (Excellent) by AM Best: The company has received a strong financial strength rating from AM Best, indicating its ability to meet ongoing insurance obligations.

Cons:

• High volume of complaints: Colonial Penn has received a high number of complaints, particularly regarding delays in paying claims and poor policyholder service. This is a significant concern and may impact your decision.
• Limited product offerings: The company only offers guaranteed acceptance whole life insurance, with no term or universal life policies available.
• Low coverage limits: The maximum coverage amount is relatively low compared to competitors, with a limit of $50,000 for guaranteed acceptance policies.
• Reduced death benefit for non-accidental deaths within the first two years: If the insured person passes away from a non-accidental cause within the first two years of the policy, the beneficiaries will receive a reduced death benefit.
• Confusing pricing structure: The pricing structure, based on units of coverage, can be confusing, and the advertised $9.95 premium may not provide sufficient coverage for your needs.

How does Colonial Penn compare to other life insurance providers?

Colonial Penn's life insurance policies are available to people aged 50 to 85 in most states, with a focus on providing guaranteed acceptance whole life insurance to seniors. The company offers guaranteed acceptance policies with no medical exam or health questions required, making insurance accessible to those with health conditions. However, the coverage amount is relatively low, with a maximum of $50,000, and the company has received a high volume of complaints about its life insurance offerings.

When compared to other life insurance providers, Colonial Penn's coverage limits are lower than those offered by competitors such as AARP and State Farm. AARP offers a guaranteed acceptance option with a coverage limit of $30,000, while State Farm's maximum coverage is $15,000 ($10,000 in New York). Additionally, Colonial Penn has received significantly more complaints than similarly-sized providers, with a complaint index seven times higher than the industry average.

In terms of customer service, Colonial Penn falls short of competitors like State Farm, which is ranked as the top company in J.D. Power's 2024 U.S. Individual Life Insurance Study. Colonial Penn's customer service is limited to weekdays, with no support available during nights, weekends, or via online chat. The company's advertising has also been criticised for being misleading, as the starting price of $9.95 per month only buys a single "unit" of coverage, which is very little.

Colonial Penn's unique selling point is its guaranteed acceptance policy, which is ideal for those who are older or have health conditions that would make a standard life insurance policy unattainable or unaffordable. However, for those seeking more robust coverage and better customer service, other insurance companies may be a better option.

How do I buy life insurance from Colonial Penn?

Colonial Penn offers guaranteed acceptance whole life insurance to those aged 50-85 in most states, with options starting at $9.95 per month. The company has over 810,000 life insurance policies in force, providing peace of mind to many Americans.

Colonial Penn's life insurance is available to purchase online or by calling 877-877-8052, Monday to Thursday from 8:30 a.m. to 10 p.m. ET, Friday from 8:30 a.m. to 7 p.m., and Saturday from 9 a.m. to 5 p.m.

To buy a policy, you will need to provide personal information, select the number of coverage units you want, choose a billing method, and select your beneficiaries. The number of units available to purchase varies from one to 15, or up to 25, depending on the source. Each unit costs $9.95, and the number of units you select will determine the size of the death benefit.

The coverage amount is based on age, gender (in Montana, age only), and state of residence. You can purchase multiple units to build a larger death benefit.

Colonial Penn's life insurance does not require a medical exam or health questions, and your coverage cannot be cancelled as long as you pay your premiums. The premium rate is locked in and will not increase.

The company offers a 30-day trial period, during which you can cancel your plan for a full refund.

How do I cancel a Colonial Penn life insurance policy?

Colonial Penn Life Insurance specializes in affordable coverage for seniors, with guaranteed acceptance policies for those aged 50 to 85. The company has been in business since 1957 and has over 810,000 life insurance policies in force, providing peace of mind to many Americans.

Colonial Penn offers a 30-day "try-it-on" period, during which you can cancel your plan for a full refund. To cancel your Colonial Penn life insurance policy within this period, you need to fill out a surrender form on the website and mail it to the following address:

Colonial Penn Life Insurance Company

Policyholder Services

P.O. Box 1918

Carmel, Indiana 46082-9903

If you are a New York policyholder, you should address your surrender form to Bankers Conseco Life Insurance Company Policyholder Services.

After the 30-day free-look period, you can still cancel your policy, but you may be subject to penalties or fees, and you may not receive a full refund. To cancel your policy after this period, you will need to contact Colonial Penn directly. You can reach them by phone at 1-800-523-9100 or through your online account.

It is important to note that, as long as you pay your premiums, your coverage cannot be canceled. However, if you stop paying your premiums or fail to make payments on time, your policy may be terminated.

Frequently asked questions