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What is Colonial Penn Term Life Insurance?

Colonial Penn offers a range of life insurance products that combine simplified underwriting with a limited death benefit. They are best suited for buyers who don’t necessarily want a large payment, perhaps enough to cover expenses associated with their death, and would typically have trouble obtaining coverage elsewhere due to age or medical history.

While Colonial Penn’s guaranteed acceptance insurance costs are on par with those available for similar final expense products, if you’re in good health or young, you should probably compare quotes from other insurers. Colonial Penn’s term and whole life insurance products don’t require a medical exam and have a maximum death benefit of $50,000, which means you’ll generally pay higher premiums and won’t be able to purchase a larger amount of coverage if your need financial change,

Colonial Penn life insurance products by type

Colonial Penn specializes in life insurance products with smaller death benefits and unreasonable underwriting. Often referred to as Final Expense Insurance, these products make the most sense for people who want to get coverage in place quickly. For example, someone in poor health may want only a small payment to cover funeral expenses, a loan, or other limited financial obligation.

Depending on your financial needs, Colonial Penn offers three types of life insurance policies:

Sample premiums are for men age 50, with the range representing the difference between the minimum and maximum coverage offered

all of Colonial Penn’s life insurance products can be applied for online and none require a medical exam, both of which are convenient features for those who want to shop for coverage quickly. While Colonial Penn also advertises a 30-day money-back guarantee, this feature isn’t unique and shouldn’t be a reason you decide to buy from them. Most states have “appearance free” laws that require Insurers provide a full refund, if requested, within 10 to 30 days of purchase.

Colonial Penn Term Life Insurance

Colonial Penn offers a 1-year level term life insurance policy, which means you essentially start a new term each year. Your term life policy also has a limited death benefit, with a maximum value of 550,000, which can be designated for 1 or 2 beneficiaries.

cost

Since the policy has a 1-year term, the premiums you pay increase as you age, typically in 5-year increments. For example, a woman who purchased coverage 50,000 of coverage would pay:

  • 3 35.21 per month between the ages of 41 to 45
  • $45.21 per month between the ages of 46 to 50
  • $56.46 per month between the ages of 51 to 55

This means that if you know you want coverage for a longer period of time, you will pay a higher average premium with Colonial Penn than if you purchased a longer-term policy elsewhere (such as a 10- or 20-year period) since your risk profile increases with age.

Plus, you can find lower prices with other insurers for significantly higher levels of coverage because Colonial Penn has a limited underwriting process with no medical exam. This increases premiums, since they cannot verify your health status. Given these factors, if you’re fairly healthy and not worried about your ability to pass a medical exam (they’re simple and only take about 30 minutes), you can save a lot of money over time by getting a fully underwritten policy elsewhere.

restrictions

Colonial Penn does not offer term life insurance in Maine, Massachusetts, Montana, New York, or Vermont. New policies are only available through age 75, but if you already have coverage in place with Colonial Penn, you can continue to renew annually and keep coverage through age 90.

Colonial Penn Guaranteed Acceptance Program

Colonial Penn’s Guaranteed Acceptance Program is a whole life insurance policy with a limited death benefit, and is often marketed to seniors who want to reduce the financial impact on their family after their death.,

Unlike some final expense insurance products that let you choose a particular payment, Colonial Penn collects your age, gender, and location, then assigns you a “unit” of coverage that can be purchased for $9.95 (you can purchase up to 8 units coverage). Since the price is fixed, the amount of coverage available per unit varies according to your risk profile. The minimum value of a unit of coverage is approximately 4,400 and the maximum is approximately 2,2,100, which means that the maximum death benefit you could select, assuming you qualify, is less than $17,000.

for example, for a 60-year-old woman, 1 unit of coverage would provide a death benefit of 1 1,621. If she wanted the coverage to take care of all the costs associated with her funeral (average cost is about 110,000), she could purchase 7 units of coverage for $69.95 per month. This would offer a total death benefit to her beneficiary of 111,437 when she died (7 multiplied by $1,621).

Since guaranteed acceptance coverage is a form of whole life insurance, it builds cash value that can be borrowed at an annual interest rate of 8%.

cost

Monthly premiums are directly tied to the number of units of coverage purchased, with 1 unit equaling 99.95 per month. Since you can buy up to 8 units, the maximum monthly premium is 7 79.60 (8 multiplied by 9 9.95/month). Note that if you pay annually, you receive a discount equal to one month’s premium, or an 8.3% discount for the year.

restrictions

A guaranteed acceptance policy can only be purchased between the ages of 50-85, and the policy’s death benefit is limited to the first 2 years of coverage. This only means that in the event you were to die during the For the first 2 years of coverage, unless your death was deemed an accidental death by the insurer, your beneficiaries would only receive a Minor payment (The sum of your premium payments with 7% interest compounded annually). This type of clause is regularly included by every insurer that offers guaranteed acceptance policies, as it would not be economical for them to offer a product otherwise.

Colonial Penn Whole Life Insurance

If you’re willing to answer questions about your health or haven’t reached age 50 yet, Colonial Penn offers traditional whole life insurance as an alternative to its guaranteed acceptance program. Since they are better able to assess your risk through health questions, the death benefit on this policy can be as high as $50,000 in value, although this is still significantly less than what is available through alternative insurers. .,

cost

Colonial Penn’s whole life policy allows you to choose the particular death benefit you want, which means premiums vary based on your risk profile. To give you an idea of ​​the range of monthly premiums, we’ve pulled out sample rates for the maximum and minimum coverage amounts offered:

These quotes are intended to be illustrative and are not binding. You may be quoted a different amount based on your personal details.,

restrictions

Colonial Penn does not offer whole life insurance in Maine, New York, or Vermont, and policies can only be purchased between the ages of 40 and 75.

Colonial Penn Customer Reviews & Complaints

Colonial Penn has an A-, or excellent, rating from AM Best, indicating its financial strength as a life insurance company. This is also reflected in the positive feedback they receive from consumers. Many beneficiaries have experienced a quick and simple claims process once their loved ones passed away.

However, Colonial Penn receives a significant number of complaints suggesting that they have aggressive sales tactics targeting the elderly (some even criticize Alex Trebek, their spokesperson). In addition, many buyers felt that they bought the wrong product or a product whose features were not properly explained beforehand.

While this is true of any insurance product, if you are considering purchasing life insurance from Colonial Penn, it is incredibly important to review all documents and materials yourself before submitting an application or purchasing coverage.

How do I get a Colonial Penn quote?

Although you can’t get an auto insurance quote from Colonial Penn because Colonial Penn doesn’t offer auto insurance coverage, Colonial Penn’s website allows you to get a quote for any of its products online.

The downside is that you’ll have to provide them with your email address before you can even start the listing process, which can feel intrusive.

However, for those of you who want to get a life insurance quote but don’t want the hassle of talking to an agent and getting a sales pitch, having this quoting option makes the process easier.

Colonial Penn does not require a physical to purchase its insurance, so the quote you receive will be accurate and not based on a subsequent doctor’s appointment or an examiner’s visit.

Getting a quote from this and multiple companies will help you get the lowest price for your life insurance needs. If you want to find the lowest auto insurance rates, you need to get multiple quotes.

Colonial Penn Insurance Products

Colonial Penn life insurance products for people ages 18 and older. They are known for their Guaranteed Acceptance Plan for ages 50-85, but they also offer several other plans designed to meet the needs of various consumers.

You may be able to get cheaper Colonial Penn car insurance rates if your credit is excellent or good. According to the Federal Trade Commission, consumers with above-average credit often receive discounts.

Not all plans are available in all states where Colonial Penn is licensed. Below is an overview of the life insurance plans Colonial Penn offers.

Guaranteed acceptance of life insurance

  • For people from 50 to 85 years old
  • Available in most states except Massachusetts and Washington
  • No health questions are asked and no physical exam is necessary.
  • It cannot be turned down for any reason but is limited to a two-year benefit.
  • Rate will not increase and benefits will not decrease with age.
  • Coverage cannot be canceled as long as you pay your premium on time.
  • You can pay a premium each year in full and save money
  • Receive a money-back guarantee offered within 30 days of enrollment if you change your mind or are not satisfied.

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