Colonial Penn Life Insurance Review 2022
Colonial Penn Life Insurance Review
For over 50 years, Colonial Penn has specialized in offering life insurance directly to consumers at affordable prices. Through mail, TV, our call center and the web, we focus on providing life insurance protection for folks like you and your loved ones.
We strive to live our four core values – Integrity, Customer-Focus, Excellence and Teamwork – in each and every interaction with our customers. Our policyholders can rely on us for reliable, personal service, security, and peace of mind.
Colonial Penn’s plans can be worth considering if you have health issues that would make a regular life insurance policy exorbitant or impossible. If so, you may certainly locate life insurance elsewhere with a significantly bigger death benefit and lower premiums.
Due to its nationwide TV advertisements, Colonial Penn Life Insurance may be known to you. People over the age of 50 make up Colonial Penn’s target demographic. With $3.5 billion in active life insurance, it sells entire life insurance contracts.
Pros :
entire life insurance is available without a medical assessment.
offers guaranteed issue life insurance, which ensures that no medical issues will prevent you from being approved.
Cons
+minimal $50,000 maximum coverage amounts.
+Offers insurance only to people between the ages of 40 and 75 for whole life and (in most states) between the ages of 50 and 85 for guaranteed issue.
+If you die within two years of purchasing its guaranteed issue life insurance, your beneficiaries won’t get the entire death benefits (except for accidental death).
+The cost of life insurance policies that don’t call for a medical examination is typically higher.
+has no term life insurance available.
Colonial Penn Life Insurance Types
Colonial Penn whole life insurance
A type of permanent life insurance known as “cash value” whole life insurance combines life insurance with an investment product. A minimum rate of return is guaranteed for the cash value component.
Ages 40 to 75 can purchase permanent whole life insurance from Colonial Penn. Premiums are determined by the applicant’s age and gender; in Montana, only age is taken into account.
Once a person obtains Colonial Penn whole life insurance, their monthly payment won’t fluctuate for the duration of the policy. As long as the premiums are paid, the coverage cannot be terminated, and the death benefit will never decrease.
Coverage amounts for Colonial Penn’s permanent whole life insurance are $10,000, $20,000, $30,000, $40,000 and $50,000. The policy starts to build cash value after the first year of coverage. At that point, you can borrow against the cash value at a guaranteed interest rate. While the amount of your death benefit won’t decrease, outstanding loans and withdrawals will reduce the amount of death benefit paid out if you pass away.
Colonial Penn’s permanent whole life insurance does not require someone to undergo a medical exam but does require them to answer health questions on the application.
Colonial Penn life insurance with guaranteed acceptance :
You purchase a certain number of “units” of Colonial Penn’s guaranteed acceptance or guaranteed issue life insurance (one to 15). The amount of your possible life insurance benefit is one unit of coverage. Pricing starts at $9.95 per item and is fixed at that level. A larger death benefit can be created by purchasing multiple units.
In most states, Colonial Penn provides coverage up to $50,000 for persons 50 to 85 years old.
Ages 50 to 85 can purchase Colonial Penn’s guaranteed acceptance life insurance in all states, excluding Minnesota, New Jersey, and Pennsylvania. In Minnesota, the age range is 50 to 75 and in Pennsylvania, 56 to 85. In New Jersey, women can be any age between 50 and 82 and men between 50 and 77.
After the first year of coverage, the insurance starts to accrue cash value. The policyholder can then borrow money at a guaranteed rate against the cash value.
Life insurance from Colonial Penn that is assured acceptance requires neither a physical exam nor a health questionnaire. No matter if a person has any pre-existing medical conditions, they can get this policy.
Because the policy has a two-year limited benefit period for death from non-accidental reasons, Colonial Penn claims to be able to offer guaranteed issue life insurance.
The beneficiary will get the premiums paid plus 7% compounded annual interest if the insured person passes away before the two-year window closes. The entire face value will be paid for death from any reason after the first two years.
The entire face amount of the insurance will be paid in the event of a death from an accident within the first two years. The death must take place within 90 days of the accident and the accident must happen while coverage is active (or 180 days in Oregon and Utah).
Riders for Colonial Penn’s Life Insurance :
You can purchase additional coverage or benefits for your life insurance policy by purchasing a rider. Colonial Penn provides the following riders for its permanent whole life insurance policies. Depending on the type of policy, several riders may be available.
Unintentional Death Rider Anyone between the ages of 40 and 65 may add an accidental death benefit of between $10,000 and $50,000 with the help of this Colonial Penn rider.
Rider for Heart Attacks and Strokes If you have a heart attack or stroke, you can use this rider to get up to 50% of your full life insurance amount. Additionally, it addresses fatal diseases.
Cancer Rider: If you are diagnosed with cancer, Colonial Penn’s cancer rider allows you can obtain up to 25% of your full life insurance amount (except skin cancer).
Rider for Chronic Illness: In the event that you are given a diagnosis of a chronic or terminal illness, this rider permits you to access up to 50% of your full life insurance amount.
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