Looking for a life insurance company is a piece of cake, it’s finding the BEST life insurance company where it starts to get tricky. Colonial Penn has done an amazing job marketing their products and that is probably why you’re here reading this review. Most of the Colonial Penn products are geared towards seniors so in this article we will discuss them based on their Whole Life and Guaranteed Acceptance products. We will also look into how they stack up against the competition. Let find out what’s good, bad and whatever about Colonial Penn.
First, we’d like to point out that because we represent over 60 A-rated life insurance companies we have no bias towards any company on the market. Because of this, you can trust our reviews to be 100% objective. Our only favoritism is to companies that do right by our clients.
In Summary here is what you will learn in this review:
1. Colonial Penn has two product offerings, both for final expenses.
2. Their Guaranteed Acceptance products have no underwriting, no exam, and no questions asked.
3. It also comes with a 2 year waiting period before payout.
4. Their Whole Life Product only goes up to $50,0000 in life insurance coverage.
5. Their competitors have been known to outdo them but always shop around and verify.
6. Existing clients aren’t saying the nicest things about their post approval service.
7. Colonial Penn is NOT a scam and is indeed a legitimate company, but like anything has its pitfalls.
Colonial Penn Life Insurance Company 2017 Review
You probably have heard of Colonial Penn Life because they tend to make headlines a lot of the time. As a consumer you expect everything to be said before the purchase or during the purchase but some things will be in fine writing and a consumer can overlook this piece of information and then post their experience on these websites, read the fine print always! Also, don’t take someone’s word for it, make your own opinion and conclusions, if Colonial Penn is the company for you then go for it just keep in mind that you should exhaust all other quotes before making a final decision just to make sure you are getting the best possible quote!
In case you haven’t heard of A.M Best Rating Company they are a rating agency who analyzes a company’s financials and conclude their results with a rating to help consumers know whether or not a company is financially stable or not. Colonial Penn Life Insurance Company used to have an “A” rating and it slowly dropped to an “A-” for this year. According to Fitch and Standard & Poor’s (two other rating agencies well known) they have both pushed Colonial Penn down to a “BBB+” rating and Moody’s has them at a “Baa1” currently.
Colonial Penn Life Insurance Products
As it stands during the writing of this article Colonial Penn is offering four products on their website. One of them is their Term life and traditional Whole life insurance policies. Another is their Guaranteed Acceptance policy which does exactly what sounds like. Let’s break them down in detail.
Colonial Penn Life’s Term Life Product
Before we dive into the highlights of their term life insurance product we would like to first explain what term life insurance is. Term life is a form of temporary life insurance and it provides you with coverage for a short and specified period of time. “Term” refers to the period of time or length you would like to stay covered for. Since term life is not a form of permanent life insurance you will not be able to accumulate cash value throughout time. Colonial Penn offers a no medical exam term life policy so you don’t have to worry about going through a medical exam. Maximum you can get with this policy is $50,000. The people that are eligible for this policy are those who are in between 18 and 75 years old. The term life product is renewable which means that after the term period is over your policy will annually and it will increase your premiums yearly.
Colonial Penn Life’s Guaranteed Acceptance
Their guaranteed acceptance product is just that, guaranteed acceptance. There is no medical exam and no health questions which means you are automatically approved. They don’t specify the coverage amount but like most guaranteed issue life insurance policies I can bet that its south of $25,000. The good thing is the coverage is locked in for a lifetime so it is a good funeral expense policy the downside is that there is a 2 year waiting period. That means that if something happens to you within the first two years your beneficiaries will not get the death benefit amount. Your premiums are guaranteed to stay level through the entire length of the policy and the application can be done completely online.
Colonial Penn Life’s Whole Life
If you’re between the ages of 40 to 75 then you qualify for their final expense whole life insurance product. This product has no medical exam but a few health question you have to answer to qualify. You can get up to $50,000 worth of coverage to cover you for a lifetime. There is no waiting period for this product but you do have to answer “no” to the medical questions. This permanent whole life product is available for those between 40 and 75. Premiums are based on gender and age when coverage takes effect. Your rates will not change for the entire life of the policy. Just like every other permanent life policy you will be able to accumulate cash value after the first year of coverage which you can borrow against at a guaranteed interest rate.
Vs The Competitors
Overall their final expense and guaranteed issue products are pretty standard among other final expense life insurance companies out there. The only thing that can compare them truly is the cost of these products. You can compare quotes by using the quote engine on this page. Keep in mind that some of its competitors offer graded benefit plans as well vs just a 2-year period.
If we dig a little deeper the bigger competitors for Colonial Penn offer more products. Looking over everything about them we have found a lack of a good term or just traditional life insurance coverage. It seems to be geared towards more of a product line designed to take care of funeral costs for those not healthy enough to qualify for traditional coverage.
The Truth About Colonial Penn Life Insurance
A little research will turn up a lot of review about Colonial Penn. Most of the complaints are regarding customer service and a customer’s having a hard time collecting death claims. Mostly due to the fact that they weren’t aware of the 2 year waiting period. This caused a lot of people to go as far as to call them a scam. They’re definitely a reputable company, you just always have to read the fine print. Otherwise other agents reviewing the company are saying that you can find better products or prices with competitors. We agree!
Personally I like to recommend a company to my clients that I would personally buy coverage from myself and I cannot see myself giving that green light to Colonial Penn. While these are solid product offerings for final expense, the customer review along with superior offers from competitors makes it a 2nd choice for myself. Is it horrible that you have a policy with Colonial Penn? Absolutely not. But can you do better? Absolutely.
Pros and Cons of Colonial Penn Life
The good thing about this company is that it is financially secure and has a really good track record over its short time in existence in regards to financial strength. Also their guaranteed issue plan is competitive with other guaranteed issue plans out here. Another plus of Colonial Penn’s is that none of their policies require a medical exam, at most only their Term policies require a medical questionnaire that can be quickly completed online.
As for as the bad goes I’d have to start with the many disappointed clients online. Now I understand it’s the client’s responsibility to review the policy in full, but it is also the agents responsibility to educate the clients on the potential pitfalls for every product. Life insurance is a product that brings with it a ton of responsibility when sold and when there is such a larger disconnect between the company and the agents that sell their product, there is a bigger problem. Another downfall is their limited product options. All I was able to locate were their final expense plans and that destroys their competitive edge in the overall market.
Work with us!
The good news for you is that you’ve reached the right place. I always recommend everyone to shop around with all the companies on the market and that is exactly what we do. We’re an independent agency that represents over 60 A rated life insurance companies and is able to shop around to get you the best rate, at no extra cost to you! You still have other options if Colonial Penn doesn’t quite fit your needs and lifestyle. Whether you decide you want coverage from Colonial Penn or not you should always shop around for quotes to make sure you are getting the best deal possible. Or you can give us a call and take advantage of our FREE services. We will do all the shopping around for you until we find you the best life insurance company who reflect your specific needs, health, and lifestyle. Not only will we find you the best life insurance company but we will also fill out your application! If you want to see how Colonial Penn stacks up against the competition, then simply give us a call at 888-492-1967 or hit the chat button below. Welcome to InsureChance!
