Colonial Penn Life Insurance Review: Overview, Facts, Features, Plans, Pros and Cons

Bottom line: With more complaints than expected for a corporation of its size and comparatively low coverage limits, Colonial Penn is unlikely to be the simplest option available to you.

COLONIAL PENN life assurance
Rated 2.5 stars out of 5 by Us.
No checkup is required for a term or whole life.
The coverage amounts are minimal.

Colonial Penn has specialized in offering life insurance to senior citizens for decades, including a guaranteed issue whole life policy for those aged 50 and up. Why you'll trust Us: Our writers and editors follow strict editorial guidelines to make sure the content on our site is accurate and fair. You'll make financial decisions confidently and choose the products that employment best for you.

Colonial Penn life assurance

Overall, Colonial Penn received 2.5 ratings out of 5 stars. Our editorial team determines our ratings. The scoring formula takes into consideration consumer experience, complaint data from the National Association of Insurance Commissioners, and financial strength ratings.

Colonial Penn life insurance positives and negatives

Positives	Negatives
No medical exams are required for coverage.	For a corporation of its scale, there were far more complaints to regulators than expected.
Guaranteed coverage is available to applicants up to age 85.	Coverage amounts are relatively low.

Colonial Penn life assurance policies

Life insurance options from Colonial Penn include

Whole life. Up to $50,000 of whole life assurance is available for applicants ages 40 to 75. the appliance asks health questions, but there isn't a checkup. The worth is predicated on age and gender and can stay an equivalent throughout the lifetime of the policy. Acceptance is guaranteed throughout your life. People between the ages of 50 and 85 (or 50 and 75 in New York) are eligible to apply, and approval is assured. There are not any health questions or checkups. Coverage amounts are generally small and depend upon the applicant. The full benefit isn't paid out if the insured dies during the prior two years. No life assurance checkup is required for any of the company's policies. Healthy people can generally recover prices from companies that consider more medical information when setting rates. Colonial Penn's whole life policies also are available under its "Living Insurance" option that permits you to receive a part of your benefit if you're diagnosed with a selected health condition. This feature isn't available for guaranteed acceptance policies. You can choose Living coverage for attack or stroke, certain cancers, or a debilitating chronic illness. If you develop the condition you chose or are diagnosed as terminally ill (with an anticipation of 12 months or less), you'll get 25% to 50% of the benefit while you're still alive. The chronic illness option isn't available to applicants ages 65 to 75.

Colonial Penn customer complaints

Over three years, Colonial Penn has drawn much more complaints to state regulators than expected for a corporation of its size, consistent with our analysis of knowledge from the National Association of Insurance Commissioners.

Life insurance buying guide

Before you begin comparing companies:

Choose the sort of life assurance you would like, like the term or whole life.
Calculate what proportion of life assurance you would like and the way long you would like the coverage to last.
Decide which life assurance riders, if any, you would like the policy to incorporate. Make sure the insurers you're considering offer the coverage you're trying to find.

When comparing rates, make sure the quotes are for an equivalent amount of coverage over an equivalent period of your time. It's also essential to form sure the policy's medical requirements match your needs. For instance, if you would like to skip the life assurance checkup but don't mind answering health questions, confirm that the appliance process for every policy you're comparing aligns thereupon. The price might not be the most crucial driver behind your shopping decision. Check out the number of consumer complaints each company receives, as high numbers are often a red flag about the standard of service.

Life insurance rating methodology

Our life assurance ratings are supported by consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life assurance, and weighted averages of financial strength ratings, which indicate a company's ability to pay future claims. Within the buyer experience category, we consider simple communication and website transparency, which looks at the depth of policy details available online. We converted the data to a curved 5-point scale to compute each insurer's rating. These ratings are a guide, but we encourage you to buy around and compare several insurance quotes to seek out the simplest rate for you.

Insurer complaints methodology

We examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to at least one another, the NAIC calculates a complaint index annually for every subsidiary, measuring its share of total complaints relative to its size or share of total premiums within the industry. We calculated an identical index for every insurer, weighted by market shares of every subsidiary over three years, to gauge a company's complaint history. Auto, house (including renters and condos), and life insurance ratios are all calculated independently.