Colonial Penn Life Insurance Review 2019

What is Colonial Penn

Colonial Penn is an insurance company of whose advertisements you have almost certainly seen. This is a company that has been around for a number of years. They have made their name known by advertising heavily on local TV and elsewhere. They have also built a good reputation among seniors who are looking for worthwhile insurance coverage to help them in their later years. While there are some very appealing elements to this carrier, there are other aspects that should certainly be kept in mind. In particular, Colonial can be a good choice for anyone who is serious about getting reliable final expense coverage.

Age and medical history are two of the biggest challenges facing anyone shopping for health insurance. It is easy to understand why an insurance company would be reluctant to offer coverage to such individuals but knowing that doesn’t make things any easier. Colonial Penn has built a strong reputation among those who are experiencing such difficulties. They promise straightforward coverage for things like final expenses. To that specific end, it would seem that they deliver nicely.

At the same time, there are a number of other things that should be kept in mind with this company. For example, depending on what you need, you may decide that the payout is far too limited for what you require.

Pros And Cons Of Colonial Penn

If you already know ahead of time that you don’t need a big payout, then CP might be your best bet. This is perhaps why the company markets themselves so heavily to senior citizens. This would be the group looking for straightforward coverage, with the understanding that the payout is not going to be huge by any means. In other words, if you are looking for coverage that will take care of most (or even all) of the expenses associated with your passing, Colonial Penn can be a solid fit. The company has strong reviews with their senior citizen customers in particular.

Age and medical history are not big disqualifiers with CP. In fact, you could go so far as to say that virtually anyone can get life insurance through this company. At the same time, they may not be a good fit for anyone who isn’t a senior citizen. For younger adults, it is highly advised to compare quotes from other insurers. As far as younger adults are concerned, more often than not, there are better possibilities for you with other providers.

Further Pros And Cons Of Colonial Penn

The maximum death benefit is $50, 000, which is certainly not bad for anyone eager to ensure their final expenses will be taken care of. You also are not required to take a medical exam to qualify for coverage. These are nice features, but one could argue they might be offset by the high premiums you will no doubt have to pay. Furthermore, if your financial demands have to change for one reason or another, you probably will not be allowed to purchase greater amounts of coverage.

Colonial Penn is backed by considerable financial strength, which is another pro worth keeping in mind. While this doesn’t always mean getting your payouts in a timely fashion, this is not something that seems to be an issue with CP. They are well-regarded for paying out in the event of a loved one’s passing. In this specific arena, the reviews for CP are almost overwhelmingly positive. The process as reported by many can be described as straightforward and free of hassles.

One of the biggest complaints leveled against this company concerns their advertisements. This is another example of an insurance company that advertises very heavily and very aggressively to very specific groups of people. While there is nothing morally wrong with that, some have complained that something in the way of understanding the coverage can get lost in the translation from glowing TV ad to actual real-life experience. It has been argued by some that CP does not explain their policies to their customers very well. If your needs are extremely straightforward, this may not be an issue. However, it can certainly be a problem for others who need more.

You will also want to keep in mind that Colonial does not offer whole life coverage in three states. These would be New York, Maine, or Vermont. Furthermore, note that Colonial only sells policies to individuals who are between the ages of forty and seventy-five. This is a fairly specific type of insurance company. Those who are not seniors, or who are not actively planning for their autumn years, may want to look at other insurance companies.

Another nice thing about Colonial is how you can contact them through various means. For example, you can purchase your policy online.

Now, let’s look more closely at some of the specifics you can expect from Colonial Penn.

A Look At Colonial Penn Policies

Expect small death benefits with limited underwriting, if you decide to go with CP. Just about everything associated with this company comes down to the concept of final expenses coverage. If you are someone who needs to get some coverage in place as quickly as possible, this could be the company for you. While their advertising practices might be shady, you really can’t say the same about the actual coverage. This is provided largely that you fully understand everything you are signing on for.

Dependent upon your financial needs, CP has three basic types of policies that you can consider. You have term life insurance, the guaranteed acceptance program, and then whole life insurance. With guaranteed acceptance and whole life coverage, your premiums are never going to go up. However, with term life insurance, your premiums will increase as you get older. No benefits associated with this company exceed the amount of $50, 000. 

Whether or not you have to answer medical questions can also vary from one type of coverage to the next. However, regardless of what you choose, you will not be asked to take a medical exam. This is something you hear about in Colonial Penn advertisements, and it seems to be a legitimate claim all around. Health questions are included with your application for both the term life insurance and whole life insurance plans. This is something to keep in mind, in addition to the fact that these questions may not necessarily disqualify you from gaining coverage. 

Depending on your age, gender, and background, the monthly premiums can be as low as $9.95. Some have paid premiums as high as $100+ per month, but this is obviously something that will depend on your specific application.

One of the most interesting aspects of this company is that you can purchase 1-year term life policies. This means that with the start of each calendar year, you will have the opportunity to begin a new term, as well. The limited death benefit is available, and you can have this benefit administered to as many as two beneficiaries. You should also keep in mind that new policies can only be pursued until you are seventy-five years of age. At the same time, if you are already enrolled with the provider, you can continue to renew the policy until you are ninety years of age. This is one of the more unique aspects of this company.

The Guaranteed Acceptance program is worth examining in greater detail. Based on such factors as gender, your age, and where you live, Colonial will give you a block of coverage. You can then purchase that block for a certain amount of money, as well as more. You can purchase as many as eight blocks of coverage. Each block will have a certain payout attached. Obviously, the more blocks of coverage you purchase, the larger the payout is going to be. Just remember that this is not a company or policy designed for someone who is looking for a large payout. Colonial Penn is ultimately designed for anyone who wants to ease the financial burdens associated with their passing.

Conclusion

Beyond the aggressive, sometimes confusing tone of their advertisements, there really aren’t any significant criticisms that one can lay against this company. Provided you understand everything they will entail, as well as everything your beneficiaries stand to gain when you die, there shouldn’t be any issues. Colonial has a solid reputation for making their payouts in a pretty timely fashion. They also seem to do well on the customer service side of things, despite the criticisms they have received for their famous ads, starring the likes of Alex Trebek.

At the end of the day, a senior who is eager to find straightforward insurance that can kick in immediately, while simultaneously relieving their loved ones of the costs associated with their passing, Colonial can be ideal. Anyone else will naturally want to look elsewhere. It is just important to remember that there is a story with this company that goes beyond what you see on TV. With some basic research, you can easily decide if Colonial Penn is going to give you what you need. 

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