Colonial Penn Life Insurance Review 2024

Colonial Penn Life Insurance Company sells permanent whole life and living insurance directly to consumers. The company is known for offering guaranteed acceptance on whole life insurance policies to consumers over 50 years of age. 

Colonial Penn Life Insurance Company has been in business for over 60 years. The company was founded in Philadelphia by philanthropist Leonard Davis, who also co-founded the American Association of Retired Persons (AARP). Colonial Penn is now owned by the CNO Financial Group.

Take a Look at What Colonial Penn Life Insurance Has to Offer You

Colonial Penn initially focused on attracting customers over the age of 65. These original members of the AARP were to become the first recipients of life insurance coverage in the United States. 

In 1968, Colonial Penn became one of the first insurance providers to offer guaranteed acceptance for whole life insurance applicants. They also provide renewable permanent whole life and living insurance. Colonial Penn does not offer term life insurance. For more than 60 years Colonial Penn Life Insurance Company has focused on providing life insurance directly to consumers. 

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Life Insurance Options From Colonial Penn

Whether you are interested in an insurance plan that can cover your final expenses, or you want to invest in a plan that will build cash value over time, Colonial Penn can help. They have several plan options available.

Guaranteed Acceptance Whole Life Insurance

Colonial Penn’s most popular insurance plan is known as Guaranteed Acceptance Whole Life Insurance. With a guaranteed issue life insurance policy, you don’t have to worry about being in perfect health. This permanent, whole life insurance policy does not require a physical exam. You don’t have to answer any health questions either. No matter your current health, if you are between the ages of 50 and 85, you will not be denied coverage. 

Colonial Penn can offer 100% eligibility on Guaranteed Acceptance Whole Life Insurance because there is a two-year waiting period before benefits kick in. This means you have to make payments on the policy for at least two years before full benefits can be paid out. The good news is those premium amounts are locked in and cannot be raised as long as you keep the policy active.

Colonial Penn Permanent Whole Life Insurance

In addition to its Guaranteed Acceptance plan, Colonial Penn offers up to $50,000 of permanent whole life insurance coverage to consumers between 40 and 75 years old. To qualify, applicants must answer some health questions, but there is no medical exam required. Permanent whole life insurance from Colonial Penn features fixed premium rates that will stay the same for the duration of the policy.

This policy offers the security of lifetime coverage, but eligibility will be determined by Colonial Penn. This decision will be based on your answers to the health questions on the application. Permanent Whole Life insurance with Colonial Penn builds cash value that you can access if you need to. This cash value is available for you to borrow against before benefits are paid out.

While a whole life policy will provide burial insurance for final expenses, as well as pay benefits to your loved ones, it may not be enough to cover your healthcare needs. To help with this, Colonial Penn offers the option of adding living insurance to your policy. 

Read More: Top Life Insurance Company That Builds Cash Value

Colonial Penn Living Insurance

As an enhancement of your whole life insurance policy, Colonial Penn offers its Living Insurance plan. Living Insurance from Colonial Penn combines your permanent life insurance policy with the option for an early payout. If you meet one of several qualifying conditions, you can collect a portion of your coverage early to pay for emergency care. 

When choosing to add Living Insurance to your Colonial Penn life insurance policy, you have the option to add coverage for a heart attack or stroke, cancer, or chronic illness. If you later develop the condition you selected, you can receive between 25% and 50% of your death benefits to pay for your immediate care.

If you are diagnosed with a terminal illness and have a life expectancy of 12 months or less, you are also eligible to get benefits early. Living Insurance from Colonial Penn is not available with Guaranteed Acceptance Whole Life Insurance.

Read More: Permanent Life Insurance Quotes

Colonial Penn Supplemental Insurance

Colonial Penn offers two types of supplemental insurance. Medicare Supplement health insurance plans are available through Colonial Penn’s partner company, Bankers Life. Thousands of agents working nationwide are available from Bankers Life to answer your Medicare supplemental insurance questions.

Colonial Penn also offers its Active Care supplemental insurance plan to customers. This supplemental health insurance plan can protect you in the event of a serious health crisis. Active Care provides coverage for out-of-pocket expenses, deductibles, co-pays, and other expenses not paid by your health insurance policy. 

Colonial Penn Life Insurance Pros and Cons

Colonial Penn is best known for its Guaranteed Acceptance Whole Life Insurance. This policy might be your best option if you have health issues. Eligibility without health questions or exams makes Colonial Penn Guaranteed Acceptance Life Insurance an attractive option for many consumers. Permanent Whole Life Insurance with Colonial Penn also comes without a medical exam, so acceptance is easier to come by.

Colonial Penn also offers online quotes via its website. As a direct-to-consumer insurance company, Colonial Penn doesn’t use insurance agents, so you can get a quote and even buy your policy without the need to speak to anyone. Of course, without a personal connection to an agent, you may find it more difficult to get questions answered or issues resolved. 

If you enroll in a Colonial Penn life insurance plan, you have 30 days to test the policy and see if it fits your needs. If you decide to cancel within 30 days, you will receive a full refund for any premiums paid.

While being guaranteed coverage in Colonial Penn’s most popular plan is helpful, it comes with higher prices and lower benefits. Traditional life insurance policies based on health and risk factors generally come with lower rates and higher payouts. You may have a more difficult time getting accepted, but if you do, you will usually benefit in the long run.

Now, let’s have a look at how Colonial Penn Life Insurance is rated among industry reviewers and customers. 

Colonial Penn Life Insurance Review

The National Association of Insurance Commissioners (NAIC) keeps records of customer complaints filed against insurance companies. Over the last few years, Colonial Penn has received more complaints than may be expected for a company of its size.

The NAIC has developed a complaint ratio and considers 1.0 to be an average score. Any ratio above that number is considered relatively high. In 2021, Colonial Penn received a score of 4.22 which was more than double its score from the previous two years. Customer service seems to be a problem for Colonial Penn.

A.M. Best reviews companies in the insurance industry to determine financial responsibility and soundness. Based on the strength of its parent company, CNO Financial Group, Colonial Penn has received an excellent rating of A-. This indicates an above-average ability to meet its financial obligations and settle claims.

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A Final Word on Colonial Penn Life Insurance

No medical exam is required to qualify for any of Colonial Penn’s life insurance policies. You are guaranteed to be accepted without even answering any health-related questions. If health issues have prevented you from getting life insurance, Colonial Penn might be your best option. However, those with fewer health problems may be able to find better rates and benefits with another provider.

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