Colonial Penn Life Insurance Review

Colonial Penn Life Insurance Review

Colonial Penn is not one of our prominent life insurance companies. You can check out our list of the best life insurance companies for what we think are the best options.

The advantages explained

  • Guaranteed acceptance policies available: If you are between 50 and 85, you may qualify for a guaranteed acceptance policy without a medical exam. No health questions are asked, and you cannot be denied because of your health.
  • Get an online quote, too: While many insurance companies require you to contact an agent, Colonial Penn allows you to get a quote and purchase some policies online.
  • 30-day trial period: Once you sign up for a Colonial Penn plan, you have 30 days to try it out. If you decide it’s not right for you, you can cancel within 30 days of activation for a full refund.

Counter explained

  • Guaranteed and lifetime policies available only for specific age groups: Some guidelines have age restrictions. Guaranteed acceptance policies are only available to people between the ages of 50 and 85, while permanent life insurance is only available to people between 40 and 75.
  • Coverage limited to $50,000: The maximum amount of coverage you can get for Colonial Penn’s term and life policies is $50,000. If you want more coverage for your family, you’ll need to get life insurance through another company, like State Farm, with higher death benefit amounts.
  • Not all plans are available in New York or the Virgin Islands: Your plan options are more limited if you live in New York or the Virgin Islands. Not eligible for long-term life policies; it is only suitable for guaranteed acceptance or whole life insurance.

Colonial Penn’s parent company, CNO Financial Group, owns three other life insurance companies: Bankers Life, Resource Life, and Washington National.

Available plans

Whether you’re looking for an affordable plan that covers your final expenses or coverage that generates cash, Colonial Penn has several options.

Guaranteed acceptance

If you are between 50 and 85, you are eligible for guaranteed acceptance coverage. No medical exam is required, and you do not have to answer any questions about your health. The policy is guaranteed because there is a limited benefit period of two years. After the initial two-year period, you are eligible for full coverage. The premium is locked in and is guaranteed never to increase while your coverage is in force.

Permanent life

Lifetime coverage is available to people between the ages of 40 and 75. You can get coverage for up to $50,000, and your lifetime coverage lasts a lifetime. The policy creates a cash value that you can borrow if needed. There is no lifetime medical exam, but insurers will review the answers to your application to determine your eligibility for insurance.

Renewable life

Renewable term life insurance is the only plan Colonial Life offers to people under 40. Term life policies may available to anyone between 18 and 75, and you can get coverage up to $50,000.

Colonial Penn term life policies have equal terms and may guarantee renewable until age 90. No medical exam may require, but your answers to the insurance claim determine your eligibility.

Available riders

Additional clauses are supplements to policies that change or improve your coverage. Unfortunately, Colonial Penn has minimal options for passengers. So, there may not many ways to customize your plans.

Life insurance

Life insurance can add to a permanent life insurance policy or a non-renewable life insurance policy. If you become seriously ill with a heart attack or chronic illness, you can collect up to 50% of your coverage ahead of time to pay for your care. So, If you have cancer, you can collect 25%.

Customer service

Colonial Penn is a direct-to-consumer insurance company. So, no insurance agents or financial professionals meet with you to discuss your insurance needs.

However, you can get a quote for Colonial Penn policies online. Thus, If you will like to speak with Colonial Penn’s sales department, you can talk to a representative over the phone by calling 877-877-8052. Customer service may become available Monday through Friday from 8:30 am to 10:00 pm ET and Saturday from 9:00 am to 5:00 pm ET.

Complaint rate

The National Association of Insurance Commissioners (NAIC) maintains a database of complaints about insurance companies. The NAIC publishes business complaint rates, or the number of complaints a business receives relative to its market share.

NAIC considers a complaint rate of 1.0 to be average. If a company has a complaint index greater than 1.0, it has a higher number of complaints than usual. A number below 1.0 indicates fewer complaints than average.

In 2020, Colonial Penn’s complaint rate was 2.12, more than double the national average. That’s an increase from 2019 when it had a complaint ratio of 1.16.

Third-Party Reviews

AM Best is a credit rating agency that focuses primarily on the insurance industry. AM Best may know for its Financial Strength Ratings (FSRs). It measures an insurance company’s ability to meet its contractual and policy obligations.

CNO Financial Group, the parent company of Colonial Penn, may rate A- (Excellent) by AM Best.

Cancellation policy

To cancel your policy, contact Colonial Penn Customer Service at 800-523-9100.

With Colonial Penn, you have 30 days to cancel your policy after you sign up. If you enroll in a plan and decide within 30 days that it may not right for you, you can change or cancel it and get a full refund of the premiums paid.