Colonial Penn Life Insurance  Reviewed

Company Highlights

Colonial Penn Review
  • Well Known Company With Celebrity Spokesman Alex Trebek
  • Offers Guaranteed Issue Policies With 2 Year Waiting Period 
  • More Expensive Than Marketplace Alternatives

NODLB.COM  RATING

Colonial Penn Life Insurance Review

If you are considering buying burial insurance and want to see a review of the Colonial Penn life insurance company you have come to the right place. We will look at pricing, waiting periods and payouts.  Be forewarned , we pull no punches when it comes to our reviews.

Most seniors are often led to think that guaranteed issue  life insurance - is the only convenient avenue for obtaining life insurance. This is how firms like Colonial Penn & Globe Life, who spend millions on marketing annually, have dominant positions within this market sector. 

Colonial Penn Burial Insurance Details

Headquartered in Philadelphia,PA, the  Colonial Penn Life Insurance Company is a subsidiary of CNO Financial Group, Inc, a financial services organization formerly known as Conseco. Liberty has been issuing policies for more than 60 years and is rated A- by A.M. Best

When Colonial Penn’s plans are examined, it is obvious its policies  are meant for aging customers who won’t go shop the details. Although the protections offered by these policies are decent, there are better alternative companies out there, with better benefits compared to Colonial Penn plans. 

Transparency Questions

Colonial Penn offers guaranteed issue  life insurance plans, which do not require medicals exams, have low face amounts and relatively high premiums. It is targeted at previously uninsured elderly people concerned about being a burden to their loved ones. Using famous celebrities like Jeopardy! star Alex Trebek, it  markets its' plans  to a vulnerable segment of the population.  

Colonial penn Review

As a result of lack of transparency, the company has faced several lawsuits regarding its premium structure. Additionally there have been complaints about the benefit payout process for policies less than 2 years old.

Those considering Colonial Penn’s services should carefully examine all contract details before making a decision. 

Guaranteed Issue Policy Alternatives

You may try the following companies if you feel hesitant about engaging Colonial Penn’s services.

  • Royal Neighbors - A prominent Canadian carrier catering to the U.S. market with lenient underwriting.
  • AIG - A notably better priced guaranteed issue product. 

Pricing at Colonial Penn

Insurance premiums are on a per-unit basis, with each costing $9.95 .  A unit’s value is between $500-$2500, depending on various factors. The factors that determine the unit value are age, gender, location and tobacco use.

  • Men
  • Women

AGE

2 UNITS 

$ 19.90/mo.

4 UNITS 

$ 39.80/mo.

6 UNITS 

$ 59.70/mo.

50

$3572 in coverage

$7,144 in coverage

$10716 in coverage

55

$3012 in coverage

$6024 in coverage

$9036 in coverage

60

$2428 in coverage

$4856 in coverage

$7284 in coverage

65

$1864 in coverage

$3728 in coverage

$5592 in coverage

70

$1434 in coverage

$2868 in coverage

$4302 in coverage

75

$1120 in coverage

$2240 in coverage

$3360 in coverage

80

$852 in coverage

$1704 in coverage

$2556 in coverage

This pricing structure is significantly higher than the market leaders  (by price). After all somebody has to pay for the celebrity endorsements. 

Benefits are Limited for First 2 Years

Colonial Penn does not pay out full benefits if the policyholder passes away before 24 months have elapsed since the policy was signed. This so called "waiting period" is common with guaranteed issue policies. However, it is  vital that you know and understand this  of this clause.  The payout for death prior to  the elapsing of the 2 year period is simply the premiums paid plus interest.  For this reason, "first day" coverage with no waiting period is a much better deal. 

Guaranteed Issue Policies Should Be Your Last Choice

These contracts should only be entered into if  you have no other choice.  However,  Colonial Penn pushes these contracts as ideal for burial costs . These policies are not ideal for funeral cost nor any other insurable interest you may have.

 More affordable policies allow for more protection. This allows your life insurance policy to be a financial instrument rather than simply an overpriced funeral policy.

There are many  better options for people belonging to all ages and classes.  Try the , no obligation quote tool and see what the best option is for you. 

Positives of Colonial Penn Life

For all the criticism of Colonial Penn here, it  does have certain positives. The use of whole life insurance means that like other whole life policies, the rates will never change , the benefit will never decrease and the policy won't expire or "term out". 

 However, you can discover several companies offering the same whole life benefits at much better pricing.

How Much Coverage Do You Require?

Many people buy more insurance than they need and compound this issue by overpaying for that insurance coverage. 

If you are purchasing a policy for funeral and burial expenses , purchase only what’s required. Budget your funeral costs and save  on premiums. Take a good, hard look at  your estimated costs and plan accordingly.

Alternatively, if you are looking to leave a "legacy", you may want more coverage. This makes avoiding expensive carriers like Colonial Penn all the more important.

Burial Policy Alternatives to Colonial Penn Life Insurance

We don’t recommend Colonial Penn policies, which is why we encourage you to use the quote tool and check out other companies.

We recommend the following:

  1. Mutual of Omaha - The market leader in burial policies
  2. Royal Neighbors - A prominent Canadian carrier catering to the U.S. market with lenient underwriting.
  3. AIG - A notably better priced guaranteed issue product

Thank you for visiting NODLB.COM.  We hope this review of the Colonial Penn Company has been helpful. Please contact us with any questions!

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