Jeffrey Wade
Colonial Penn Life Insurance is an affordable option for those seeking life insurance, with policies starting at $9.95 per month. The company offers guaranteed acceptance whole life insurance for individuals aged 50-85, with no medical exam or health questions required. However, the coverage limit is low, ranging from $1,000 to $25,000, and there have been complaints about the company's customer service and value for money. Despite this, Colonial Penn's unique pricing structure and accessibility make it an appealing choice for those seeking simple and affordable life insurance.
| Characteristics | Values |
|---|---|
| Price per unit | $9.95 |
| Maximum number of units | 25 |
| Total cost for maximum units | $248.75 |
| Coverage per unit | Varies by age and gender |
| Coverage for a 50-year-old male | $1,669 |
| Coverage for a 50-year-old female | $2,000 |
| Coverage for a 66-year-old male | $846 |
| Coverage for a 65-year-old male | $10,000 |
| Waiting period for non-accidental death coverage | 2 years |
| Maximum coverage | $25,000 |
| Medical exam required | No |
| Health questions required | No |
| Age range | 50-85 |
| States where offered | All except New York |
| NAIC complaint index | Above average |
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What You'll Learn
- Colonial Penn's $9.95 plan is cheap but offers little coverage
- The plan has a two-year waiting period for non-accidental death
- The company has received more complaints than average
- The plan is a guaranteed acceptance policy with no medical exam
- The amount of coverage depends on age, gender and state of residence
Colonial Penn's $9.95 plan is cheap but offers little coverage
The $9.95 plan has a two-year waiting period before coverage for non-accidental death begins. This means that if the insured dies from non-accidental causes within the first two years, beneficiaries will only receive a portion of the benefit. This benefit also varies depending on the state. The maximum coverage amount depends on the applicant's age and state.
The $9.95 plan has received negative reviews due to the small amount of coverage it offers. Compared to other companies, Colonial Penn's insurance options are considered overpriced. For instance, a 65-year-old male would spend $119.40 monthly for about $10,000 in coverage. The same man could get a $20,000-$25,000 policy for roughly $120 monthly from other insurance companies.
Colonial Penn has also drawn more complaints than expected for a company of its size, according to an analysis of data from the National Association of Insurance Commissioners. The company's rider options are sparse, and it does not offer a mobile app.
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The plan has a two-year waiting period for non-accidental death
Colonial Penn offers guaranteed acceptance whole life insurance for those aged 50-85 (in most states) with options starting at $9.95 a month. The company has a unique pricing structure, selling its guaranteed acceptance coverage in "units". Each unit costs $9.95 and you can buy up to 25 units. The sum of these units is the total amount of money that will be paid out to your beneficiaries when you die. The amount of coverage per unit varies by gender and age. For example, a 50-year-old male would get $1,669 in coverage, whereas a 50-year-old female would get $2,000. The older you are, the less coverage you get per unit.
Colonial Penn's guaranteed acceptance whole life insurance does not require any medical questions or exams. The policy remains in place for life, as long as premiums are paid, and features fixed rates. The benefit amount ranges from $1,000 to $25,000, which is considerably low compared to other providers. Whether or not Colonial Penn is the right company for you depends on how much coverage you need.
Colonial Penn's plan has received an enormous amount of negative reviews, with many customers complaining about the high cost of the plan compared to the small amount of coverage it provides. For example, a 65-year-old male would spend $119.40 monthly with Colonial Penn for about $10,000 in coverage (with a waiting period). That same man could get a $20,000-$25,000 policy for roughly $120 monthly from many other life insurance companies. This glaring disparity in value is why Colonial Penn is often considered unattractive for seniors.
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The company has received more complaints than average
The high number of complaints may be due to several factors, including confusion over the company's pricing structure and the limited coverage offered by its $9.95 plan. This plan has been criticised for its low coverage amount, with customers needing to wait two years to be covered for non-accidental deaths. The plan's cost has been described as "enormous" compared to other companies, with customers able to obtain higher coverage amounts for similar prices from competitors.
Colonial Penn's unique pricing structure, which is based on a unit system, may also contribute to the high number of complaints. Each unit costs $9.95 per month, with the total price depending on the number of units purchased. The amount of coverage per unit varies based on the applicant's age, gender, and state of residence, except in Montana, where age is the only factor. This variability in coverage per unit, depending on personal factors, may lead to confusion and dissatisfaction among customers.
Additionally, Colonial Penn's lack of riders and sparse life insurance rider options may be a factor in the high number of complaints. The company does not offer any riders in some states and has discontinued its living insurance riders, which previously provided a cash payout for heart attacks or chronic illness diagnoses. The limited rider options may not meet the needs of customers seeking more comprehensive coverage.
It is important to note that while the company has received more complaints than average, it is still financially sound and legitimate. The high volume of complaints may be a result of customers not fully understanding the company's unique pricing structure and coverage offerings.
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The plan is a guaranteed acceptance policy with no medical exam
Colonial Penn's guaranteed acceptance whole life insurance is a type of permanent life insurance policy that does not require any medical questions or exams. This means that applicants are issued a policy regardless of health, and acceptance is guaranteed. This is especially beneficial for those with pre-existing conditions who may have been denied coverage by other insurance providers.
The guaranteed acceptance policy includes a limited benefit period of two years starting from policy activation. If the insured dies from non-accidental causes within the first two years, beneficiaries will only receive a portion of the benefit, depending on the state they live in, rather than the full death benefit amount. After the initial two-year period, the policy begins to build cash value, which can be borrowed against at a guaranteed rate of 8% compounded annually.
The plan's coverage is offered to those aged 50-85 in most states, with rates starting at $9.95 per month. The amount of coverage one can purchase depends on age, gender (in Montana, age only), and state of residence. Each unit of coverage corresponds to the life insurance benefit amount, and multiple units can be purchased to build a larger death benefit.
While Colonial Penn's life insurance offerings have scored well above the baseline in recent years, it is worth noting that the company has received more complaints than average to the National Association of Insurance Commissioners. Prospective customers may want to do their own research and speak to other policyholders to assess their satisfaction with the company's customer service.
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The amount of coverage depends on age, gender and state of residence
Colonial Penn offers guaranteed acceptance whole life insurance for those aged 50-85 in most states. The cost of coverage depends on the age, gender, and state of residence of the applicant. In Montana, age is the only factor.
The company sells its guaranteed acceptance coverage in units, with each unit costing $9.95. The number of units one can buy is limited to 25. The sum of the units purchased is the total amount of money that will be paid out to the beneficiaries upon the policyholder's death. The older the policyholder, the less coverage is offered per unit. For example, a 50-year-old male would get $1,669 in coverage, while a 50-year-old female would get $2,000.
Colonial Penn's unique pricing structure has been criticised for being misleading. While the company advertises that premiums can be locked in for as little as $9.95 a month, this price does not offer a substantial amount of coverage. For example, a 65-year-old male would spend $119.40 monthly for about $10,000 in coverage. The same man could get a $20,000-$25,000 policy for roughly $120 a month from many other life insurance companies.
In New York, Colonial Penn offers LifeChoice® Whole Life Insurance, which is permanent life insurance that does not require a medical exam. It is available to men aged 50-73 and women aged 50-75. Coverage amounts range from $5,000 to $25,000.
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Frequently asked questions
Colonial Penn offers life insurance at a low starting cost of $9.95 per unit per month, with no medical exam or health questionnaire required. The price per unit is a fixed amount, and the number of units one can purchase varies by age and gender.
The $9.95 plan is a guaranteed acceptance life insurance policy that does not require a medical exam or health questions. The net death benefit per unit is determined by the applicant's age and gender.
Colonial Penn offers guaranteed acceptance whole life insurance to those aged 50-85 in most states. In New York, the age range is 50-73 for men and 50-75 for women.
The benefit amount varies by age, gender, and state of residence. The coverage amount is considerably low, ranging from $1,000 to $25,000.
One pro is that Colonial Penn offers affordable coverage options with guaranteed acceptance. However, a con is that the coverage limit is low, and there is a two-year waiting period before coverage for non-accidental death.
