At one point in life, you may have a clue about the most influential life insurance company, Colonial Penn. Ever since its inception in 1968; Colonial Penn has had some rips and losses when it comes to the Insurance business. The life insurance products have been divided into several sections, and these may come in handy, especially for seniors with health issues.
Reviews on Colonial Penn life insurance have brought several controversies on how they handle their clients when it comes to the payment after a person has suffered a loss. Also, the 30-day money back guarantee has raised some issues which Colonial Penn has been trying to resolve in recent times. So, is Colonial Penn Life insurance suitable for you? Read ahead to get the appropriate answer in line with the reviews on Colonial Penn Life Insurance.
Factors to consider about Penn Life Insurance Company
Before enrolling to any insurance service reviews, many people tend to forget to read the policies, and this case also applies to Life insurance holders under Colonial Penn. That aside, for the newbies who want to get an insurance cover, they can find a lot of affordable premiums when they join Colonial Penn. The fan base of the company appreciates that no medical exams are required for one to get the insurance policy.
As of 2019, many insurance platforms are very strict when it comes to exam policies. Due to this, seniors, especially at the age of 55-80 years, are transitioning to Colonial Penn due to the feature. Despite this, the insured is expected to answer a few health-related questions when it comes to the two of its products, which I will address as you read the article.
For Colonial Penn, their death benefits are quite low, making it a major drawback which the company is trying to avoid. Currently, they are capping out at $50,000 for both whole life and Term insurance. That aside, some of the benefits of joining the insurance company are locked-in premiums for whole Life insurance and Guaranteed issue for whole Life insurance. The cons are not that bad considering you are paying a lower premium compared to other life insurance companies. Some of them include low death benefits as mentioned earlier, the company does not offer services in some States and also it is not that convenient for young customers.
What is the Colonial Penn Financial Strength?
With approximately 60 years in the Insurance business, Colonial Penn will ensure to give its customers full benefits when it comes to filling in their claims. Also, it was among the first insurance companies to be granted the option to offer life insurance. Also, it is a subsidiary of CNO Financial Group Inc., one of the largest financial services Holding company. Due to this financial background and history, it has received several high ratings and remarks from some rating platforms like A.M. Best and Fitch Rate who have rated the Insurance Company as excellent and of High credit quality.
With that info in mind, this may be one of the best companies to opt for when it comes to life insurance. Below are full details of the plans they have to offer.
Colonial Penn life insurance customer service rating
Colonial Penn has had struggles when it comes to customer service. Many clients gave a lot of complaints due to delayed billings slow response when it comes to refunding on premiums. According to the National Association of Insurance Commissioners (NAIC), the records indicate that the complaints were higher than the average amount of expected complaints. Despite this, in 2019, Colonial Penn has upgraded to a new integrated way of offering customers the best experience. As an insured, you will get a fast response, and this has led to an increase in the number of people taking policies.
Colonial Penn Life Insurance Company Products
As of 2019, Colonial pen offers 3 life insurance products that are the standard term life insurance, permanent whole life insurance and the guaranteed acceptance life insurance, which is regarded as the lead insurance plan.
1) Colonial Penn Term Life Insurance
Colonial Penn offers a 1-year level term insurance policy meaning after the end of the period; you are expected to start another term. Also, their death benefit is very limited such that the beneficiaries are likely to receive $50,000 in case of death.
As for the cost, it increases as you grow older. However, it does not increase every year, but after five years if you are committed to paying your premiums. A typical example is if a person buys $50,000 coverage, he is likely to pay $35 between the age 41-45, $45 between the age 46-50 and between the ages 51-55, he is eligible to pay $56 per month.
All these mean that if you wish to get long term coverage, you may pay a higher premium because the risk profile increases with your age. Another reason why you pay higher premiums is that you are not taking any medical exams as compared to other insurance company’s. These companies will take you through a strictly medical procedure, which will also go through a panel of actuaries to determine whether the person is eligible for getting a policy.
The amount of monthly premiums paid varies with the number of Units of coverage purchased. Currently, the units come at $9.95 per month. At the maximum, you can pay a monthly premium of $79.60 if you purchase 8 units. If you pay annually, there is a discount of about 8.3% of the annual pay; hence you can save a lot.
In the current regime, Colonial Penn Life insurance is not offered in several States like Massachusetts, Montana, Vermont, and New York. To get a new Policy, you need to be at the age 75, and if you already have a policy, it is only eligible up to age 90.
2) Colonial Penn Whole Life insurance
If you are new when it comes to getting an insurance policy, whole term insurance is whereby
you enroll for insurance until a maturity date or until your demise. As for Colonial Penn, they offer traditional whole life insurance, which is more of an alternative to their guaranteed life Acceptance program. The biggest drawback about a whole life insurance policy is that the maximum death benefit is only $50, 000. Otherwise, one benefit is that after one year when the cash value begins to accumulate, you can borrow
The price is always fixed, and the amount payable varies according to your risk profile. Colonial Penn will not take a medical test to determine your risk profile, but they can use factors like age, your current location and other relevant factors. Guaranteed for the whole life insurance, payments vary with the insured age. Also, they allow you to choose the death benefit that you like; hence, the premiums are based on the risk profile in your data. For the premiums paid, below is a brief description of the maximum and minimum payments expected to make:
- For 40 year males and females, you can be expected to pay $18 and $14 respectively.
- At the age of 75 and above, both males and females are expected to pay $118 and $94 respectively.
All these plans payments vary with the death benefit your beneficiaries are likely to get. Also, to purchase the policy, you must be between the age of 40 and 75. Whole Life insurance is not offered in the following States; Maine, New York and Vermont.
3) Guaranteed Acceptance Life insurance
This is one of the unique products under Colonial Penn life insurance in the market. If you are new to the life insurance business, Guaranteed Acceptance allows you to apply for a policy from 50 years to 85 years. Also, you don’t even need to go through a medical test or answer a single health question. As for premiums, they always depend on age gender and your location (State). As you pay your premiums, you can choose to increase your death benefits, but the drawback is that your premiums will also rise. This plan is somehow similar to whole life insurance in that the rates are locked once you are accepted; hence, your monthly premiums can never go up for the rest for your life.
Due to this, many seniors on a fixed income are going for this plan, but at some point, there is a drawback. The payouts are not very high, and the premiums tend to be cumbersome than the whole life insurance policy. Due to this factor, ensure to carry out extensive research and ensure to read the final print carefully before committing to the plan.
Colonial Penn offers a very open platform to get an insurance policy. If you want to avoid the hustle of taking a medical exam and also health question, then you can go for Colonial Penn. As of 2019, they have planned to increase their plans to other States hence helping a lot of people getting insurance. Lastly, before signing up ensure to choose what you need specifically when it comes to the three life insurance policies offered to avoid surprises with regards to premiums paid.