Colonial Penn Life Insurance company is well known for its commercials and ads, often advertising a life insurance plan with guaranteed acceptance.
You may have seen a Colonial Penn commercial for their $9.95 life insurance plan, one of two core life policies they offer.
Adding life insurance can give you peace of mind that your expenses and debt won’t become a burden for your loved ones.
Deciding on the right policy for you can be confusing and overwhelming. We created an easy-to-read comparison chart for several insurance types from Colonial Penn.
Below are some questions we’ll answer in this article about Colonial Penn’s Guaranteed Acceptance Life Insurance:
- Will my rates go up as I age?
- Will I have to see a doctor or answer health questions?
- Does Colonial Penn life insurance cost $9.95 a month?
We’ll also explain the difference in insurance types offered by the Colonial Penn Life Insurance company. We also answer many common questions regarding Colonial Penn’s life insurance policies.
Table of Contents
- What types of life insurance does Colonial Penn offer?
- What is Colonial Penn’s Permanent Whole Life Insurance?
- Is Colonial Penn Life Insurance right for me?
- Colonial Penn Guaranteed Acceptance Life Insurance
- Other Types of Coverage Offered Through Colonial Penn
- What is Colonial Penn Active Care Insurance?
- How does Colonial Penn’s Living Insurance ® Work?
- Can I add the accidental death benefit to my Colonial Penn policy?
- Is Colonial Penn a trusted insurance company?
- Colonial Penn Life Insurance Reviews and Tips
- Drawbacks of Colonial Penn Life Insurance Policies
What types of life insurance does Colonial Penn offer?
Colonial Penn offers two main life insurance policies:
- A guaranteed acceptance plan
- A traditional whole life plan
Colonial Penn also offers other types of insurance, including an accidental death policy. You can add this policy to your primary life insurance plan.
Colonial Penn Insurance Comparison Rate Chart
|Cost||Medical Exam|| Health |
|Guaranteed Acceptance||$9.95 per unit||No||No||Varies|
| Whole Life ||Varies||No||Yes||$50,000|
What is Colonial Penn’s Permanent Whole Life Insurance?
Colonial Penn’s whole life insurance policy is a traditional type of life insurance, and it pays when the policyholder passes away. In most states, people between 40 and 75 can qualify for this whole life insurance plan.
As with Colonial Penn’s guaranteed acceptance plan, there are no medical exams.
Once you get approved, your permanent whole life insurance rate will not change for the duration of the policy’s life. You can choose how much insurance coverage you want, up to $50,000. Colonial Penn also offers flexibility in paying, which can help if you are on a fixed income.
With Colonial Penn’s whole life policy, you can pay monthly, quarterly, or yearly.
There are health and lifestyle questions you must answer when applying for this policy to determine eligibility for coverage. These questions are common when applying for a whole term life insurance policy.
Is Colonial Penn Life Insurance right for me?
Many people look to Colonial Penn for their guaranteed acceptance plan. This type of plan can mean you can afford insurance even if other companies have turned you down.
Health problems and lifestyle choices often keep people from getting traditional life insurance. If you are currently working towards better health, adding a guaranteed acceptance plan can give you life insurance coverage until your situation improves.
Many people use a lower insurance payout policy to cover their final expenses. This policy can provide great comfort, knowing your loved ones will not have to bear the cost after you are gone.
Another reason for adding a policy like this is new debt. You can purchase just the amount of insurance you need and cancel whenever you want or after you no longer have the debt.
Colonial Penn Guaranteed Acceptance Life Insurance
With a guaranteed acceptance life insurance policy from Colonial Penn, you do not have to see a doctor or answer any health questions, and your rates will not go up as you age. The starting cost of this life insurance plan is $9.95 a month.
However, Colonial Penn sells this insurance type in units, costing $9.95 each. Your unit price will never change, but your coverage amount varies based on age, gender, and state.
The chart below shows rates for a 53-year-old woman and a 72-year-old man. We use Missouri for our example state, but there was no price or payout difference between Missouri and New York City.
|53-Year-Old Women||72-Year-Old Man|
|One Unit $9.95 |
|One Unit $9.95
|Five Units $49.75|
|Five Units $29.85
|Seven Units $69.65 |
|Seven units $69.65
|Ten Units $99.50 |
|Ten Units $99.50
|12 Units $119.40|
|12 Units $109.45
|15 Units $149.25 |
|15 Units $149.25
Units of insurance coverage generally get billed per month, and rates for your payout and monthly fee can vary greatly.
The amount of coverage and cost per month depends on age, gender, and state. Your rate will be locked in, though, no matter when you bought your first policy.
As you can see from the chart, our example 72-year-old man pays much more, with lower payouts, than our example 53-year-old woman. As a rule, the younger you are when you first get your coverage, the less it will cost versus your payout amount.
Other Types of Coverage Offered Through Colonial Penn
|Type of Insurance||Type of Policy|
|Purchase as accidental
and illness insurance
|Living Insurance ®||Add to another policy|
|Accidental Death ||Add to another policy|
What is Colonial Penn Active Care Insurance?
Active Care insurance covers illness or accidental injury and helps you pay bills when you can’t work. In addition to accidental injuries, Active Care also covers several illnesses. This type of insurance is generally used for a short period to help you stay on track while you can’t work.
Colonial Penn offers this policy by their partner company, Washington National Insurance Company.
Active Care Insurance is unavailable in Connecticut, New Jersey, New York, Washington, and Virginia. Arizona residents should carefully read all limitations and exclusions when considering this policy.
How does Colonial Penn’s Living Insurance ® Work?
Living insurance allows you to take a portion of your life insurance policy before your death.
You can add this to your whole life insurance policy, which pays a percentage of your maximum payout if you have an illness or sudden health problem.
These events can include:
- Heart Attack
The percentage you can withdraw depends on the condition or illness. Whatever amount you take from your policy gets deducted from your final payout. This additional policy can help as you recover from a health issue.
Can I add the accidental death benefit to my Colonial Penn policy?
You can add an accidental death policy to your Colonial Penn life insurance policy. With Colonial Penn, this extra insurance is called a “rider.” You can’t buy it alone, but it can “ride” along with your primary insurance policy.
The cost of adding the accidental death benefit is low, but remember that you will only receive benefits if your death is accidental.
Is Colonial Penn a trusted insurance company?
If you have decided that Colonial Penn Life Insurance is right for you, you’ll be happy to know they are a highly rated insurance provider. Colonial Penn has been in business for over 50 years.
They have an A- rating from Fitch Group and an A- — or excellent — rating from A.M. Best. These companies look at many factors when judging an insurance company, including the company’s financial health.
You can rest assured that Colonial Penn can stand behind the life insurance they offer and can pay the policies they issue.
Colonial Penn Life Insurance Reviews and Tips
We looked over all of the registered complaints with the Better Business Bureau, including general Colonial Penn life insurance reviews.
We found many people were surprised at the lower coverage payout amounts. You can get a life insurance policy, but do know that, as our charts show, payouts are lower than other insurance types.
Helpful Tips to Avoid Problems and Confusion
- Carefully read all of your paperwork
- Note when your policy will pay out
- Check your beneficiary information at least once a year
Our last tip is vital to getting your payout to the correct person. People can move or change their last name throughout your policy, meaning your paperwork could have the wrong information.
Inaccurate information can slow down the payout process but is easily fixed with a quick yearly check to ensure up-to-date information.
Another great tip is to check your life insurance rates regularly. You may be eligible for coverage now that you got denied previously or find a lower monthly insurance rate with a higher payout.
Drawbacks of Colonial Penn Life Insurance Policies
There are some drawbacks with both of Colonial Penn’s life insurance plans. One drawback is that the policies have lower final payouts than comparable policies offered by other insurance providers.
Other drawbacks include:
- Higher premiums
- Lower payouts for older, first-time policy takers
- Two-year waiting period for the guaranteed acceptance plan
When considering a life insurance policy, having all of the facts can help you find the perfect plan. While Colonial Penn does have some drawbacks, it is also sometimes the only option for many people.
It also offers lower locked-in rates for younger policyholders.
A Colonial Penn Life Insurance policy may be the best policy for you and your budget. It is always a good idea to compare rates across several providers to ensure you’re getting the best plan.