Everything About Colonial Penn Life Insurance

Colonial Penn Life Insurance

What if your spouse would be unable to pay the expenses after you are gone? In this case, life insurance acts as a savior of your family! Purchasing a life insurance policy is not only about you but mainly about your loved ones. Life Insurance is a big help for the people you love after you won’t be around to support them financially. 

While life insurance policies are marketed to young people, Colonial Penn understands that even individuals in their 50s and beyond want to purchase life insurance. When other insurance companies do not cover high age brackets, Colonial Penn steps forward to sell life insurances to them.

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The company targets insurance buyers who are 50 or beyond. Colonial Penn very well knows that there are people out there who are willing to provide protection to their family as many of them were unable to afford one when they were younger.  No Colonial life insurance policies need a medical examination. Neither as an insurance buyer will you be excluded based on pre-existing conditions. This is really rare in the life insurance industry. However, the buyer has to answer some health-related questions. 

In any case, you get disturbing diagnosis results, you can still buy coverage with restricted death benefits in the first 2 years of the plan’s life. 

Also Read: How Much Life Insurance Do You Need

Products of Colonial Penn Life Insurance

Colonial Penn serves 3 main life insurance products which are sold online or over a call:

  • Guaranteed Acceptance Life Insurance (ages 50–85)
  • Permanent Whole Life Insurance (ages 40–75)
  • Renewable Term Life Insurance (ages 18–75)
  • Living Insurance Permanent Whole Life Insurance
  • Living Insurance Renewable Whole Life Insurance

Term Life: Colonial Penn Life Insurance Options

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Once the term ends, Term Life policies would have no value. Policyholders pay premiums for the death benefit that his/her family members would get after they pass away. 

Colonial Penn serves 2 types of Term Life policies: 

  • Guaranteed Acceptance life insurance 
  • Renewable Term Life insurance products.

The first product, i.e., Guaranteed Acceptance life insurance is a distinctive one in the insurance industry. This product guarantees acceptance of any applicant. But mainly this is sold to people aged 50–85 without a medical exam. This is sold very differently than any other standard life insurance. 

Colonial Penn purchases its guaranteed products in units rather than paying the premium monthly or annually. Once you enter your location, age and gender, you will be assigned a unit of coverage. One unit costs $9.95 & you can purchase up to 8 out of them. 

Colonial Penn’s Renewable Term Life product also helps policyholders to revive the policy when it expires and that too up to 90 years of age but the rate does increase as the person grows old. 

Also Read: COBRA Insurance

The policy also provides an advance payout facility known as an accelerated death benefit rider. For instance, if the person has a stroke or heart attack, or are diagnosed with any cancer or other chronic illness, he/she can avail up to 50% of their life insurance benefit. Whether annually, semi-annually, quarterly or monthly, adjustable payment plans allow people to select a payment schedule that is suitable for their budget. 

Whole Life: Colonial Penn Life Insurance Options

Policies under Whole Life serve both works like a savings account and also provide a death benefit. The policy increases cash value as the policyholder pays premiums. Colonial Penn also allows policyholders to lend against this fund value by getting a policy loan.

Permanent Whole Life is sold to individuals aged 40–75 and this has a locked-in rate for a lifetime. The maximum death benefit available is $50,000 & premiums are paid based on their age and gender. In this insurance, premiums function based on underwriting & can also differ.

Living Insurance Permanent Whole Life functions the same way but in this the policyholders can avail up to 50% of their benefit if they cover 3 advance payout options.  

The primary advantage of selecting Whole Life insurance over Term Life is that a few of the premiums are repaid to the policyholders in its cash value. 

Also Read: Short Term Health Insurance 2020 

Pricing

It is a bit difficult to judge if Colonial Penn provides good value as every unit the company sell differs from customer to customer. A unit of $50,000 of coverage for only $9.95 is definitely an excellent value to an individual and $ 20,000 of death benefits is also a great deal.  

Nevertheless, it is a value for money as the buyers acquire the ability to purchase a policy in older age or with pre-existing conditions. 

Also Read: Common Medical Expenses You Must Know

Available Discounts & Tips

Colonial Penn offers only one discount that is 1 month free when the payment of the full year is settled in advance. As they don’t sell any other insurance, you cannot find any multi-policy discounts or bundling.

Most companies sell insurance when the policyholder reduces blood pressure, quits smoking, exercises regularly & maintains a healthy weight but Colonial Penn does not ask for any medical examinations and lifestyle factors are not at all taken into consideration when underwriting policies. 

Also Read: How You Can Save Money On Drugs

Customers Service

Colonial Penn do not render a mobile app to access but customers can get in touch by other ways. 

Now, that you got some important information about Colonial Penn. Let us quickly go through the pros and cons of the company. 

BEST FOR PROS CONS
People seeking a low death benefit Simple online application process Maximum death benefit on all policies of only $50K
People purchasing life insurance later in life Everyone qualifies for coverage No agents or offices for in-person assistance
People with pre-existing conditions Renewable term insurance options

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