What we like:
|Type of Insurance||Term, whole|
|A.M. Best Rating||A-|
|Issue Age||18 – 85|
Philadelphia-based insurance company Colonial Penn has been offering life insurance solutions to consumers throughout America for over 60 years. The company is best known for its television commercials featuring Alex Trebek, encouraging older individuals to get guaranteed acceptance life insurance.
The company focuses solely on life insurance coverage, not any other financial services or products, and the majority of its policyholders secure their coverage via a quick phone call.
Colonial Penn currently operates in 49 states, Washington, D.C., and the Virgin Islands, serving more than four million individuals. It is not licensed in New York, so it does not offer financial products or services there.
The Cost of a Colonial Penn Life Insurance Policy
The cost for a Colonial Penn life insurance policy depends on the age of the individual applying for coverage, gender, state of residence, and type of policy selected. For example, a 60-year-old female applying for a guaranteed acceptance whole life policy of $9,726, the monthly premium would be $59.70.
A man of the same age with the same coverage amount might pay $79.60 per month. Permanent whole life insurance for a man age 60 for $20,000 could cost $98.25 per month; the same policy might cost $67.93 per month for a woman. Colonial Penn also offers renewable term insurance. A woman age 60 with a $40,000 renewable term policy might pay $57.46 per month, and a man might pay $80.13.
The term insurance premium increases each year so long as the individual wants coverage to remain in place. The premiums for the guaranteed acceptance whole life insurance and term insurance are generally higher than comparable insurance providers, but the permanent whole life insurance premiums may be slightly lower than similar policies.
Coverage/Most Popular Policy
Colonial Penn’s most popular life insurance option is guaranteed acceptance whole life insurance. With this policy option, individuals can get coverage so long as they are between the ages of 50 and 85. For the traditional whole life insurance coverage, individuals can apply for up to $50,000 of coverage if they are aged 40 to 75.
Whole life insurance coverage accumulates cash value, unlike the guaranteed acceptance option. Annual renewable term insurance is also available for up to $50,000 for those between the ages of 18 and 75. This type of coverage increases in cost as individuals enter new age bands.
Requirements to Get Insured
Colonial Penn makes it relatively easy to get insured under a guaranteed acceptance, whole life, or renewable term policy. Individuals must contact Colonial Penn online, over the phone, or through a print application to apply for coverage.
There are no medical exams and no health questions asked for guaranteed acceptance and whole life options. No exam is needed for renewable term insurance, but an underwriter may contact an applicant to follow up on health history.
While the requirements for getting insured are simple, individuals living in New York state do not qualify for coverage. Additionally, all applicants must meet the age requirements for their selected policy to be eligible for an insurance policy with Colonial Penn.
Colonial Penn offers coverage in 49 states (excluding New York), Washington, D.C., and the Virgin Islands. All adults who meet the age requirements can apply for coverage regardless of health history.
The insurance company has a rating of C- on the Better Business Bureau, and it is not accredited with the organization. There are few reviews of the company on the BBB website, but the overall rating is not as strong as other insurance providers. The company has an Excellent rating (A-) with A.M. Best.
Customers can get in touch with Colonial Penn easily via phone Monday through Friday from 8:30 am to 5:30 pm (ET). However, those interested in getting new coverage through the insurer have more access to sales representatives on Monday through Friday from 8:30 am to 10 pm and Saturdays from 9 am to 5 pm. Customers also have access to policy information, billing, and downloadable request forms 24/7 online.
Colonial Penn is a nationwide company well-known for its guaranteed acceptance whole life insurance coverage available to older adults. However, the company also offers traditional whole life insurance coverage as well as renewable term insurance to those who meet eligibility requirements.
The cost for Colonial Penn life insurance coverage is higher than comparable insurers, partly because there is no requirement for medical underwriting to get a policy. Although the company is widely known and recognized, it has poor customer service reviews and limited hours.