Colonial Penn Life Insurance Review [2024]
Colonial Penn is a specialist in whole life insurance policies. The Colonial Penn life insurance policy options are guaranteed issue policies or permanent whole life insurance policies. The company's life insurance ratings for financial strength are consistently strong, but they field a lot of complaints. Colonial Penn life insurance claims are still submitted via mail.
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Jimmy McMillan
Licensed Insurance Agent
Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent life insurance brokerage. His company specializes in life insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast...
Licensed Insurance Agent
UPDATED: Jun 8, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 8, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Colonial Penn life insurance products include whole life insurance and guaranteed issue life insurance
- A.M. Best and other rating agencies suggest that Colonial Penn has good financial strength
- Colonial Penn’s NAIC Complaint Index is roughly double the industry average
If you want a whole life insurance policy to help build your estate, you’ll want to consider a Colonial Penn life insurance policy. Sometimes, lesser-known companies like Colonial Penn can be the best option.
To help you make an informed decision, we’ll break down the Colonial Penn life insurance reviews, ratings, and rates. You’ll learn about the pros and cons of a Colonial Penn life insurance policy, too.
Continue scrolling to learn more about Colonial Penn life insurance or enter your ZIP code to get free quotes from the best life insurance companies in your area.
Is Colonial Penn life insurance good?
Colonial Penn’s name might not carry the same weight as a company like State Farm or Allstate. However, this doesn’t mean that it doesn’t offer a strong product.
That said, Colonial Penn doesn’t have nearly the same variety of insurance products. Instead, it appears to specialize in whole life insurance policies.
It offers three different policies:
- Guaranteed Acceptance Life Insurance
- Permanent Whole Life Insurance (livinginsurance®)
- Permanent Whole Life Insurance
Most life insurance companies offer term life insurance policies, which tend to be more affordable than other permanent life insurance policies. Colonial Penn’s policies do offer different features for different buyers.
For example, Colonial Penn’s livinginsurance® policy offers policyholders an early payout option. This makes it possible for a policyholder to access the cash value they have accrued if needed.
Also, virtually anyone over 50 should be able to get a policy with Colonial Penn, considering they offer a guaranteed-issue policy.
How much does Colonial Penn life insurance cost?
Since Colonial Penn doesn’t offer term life insurance, it’s unclear how much it will cost on a monthly basis. While we aren’t able to provide a direct Colonial Penn life insurance rate chart, we can at least provide some resources.
| Non-Smoker Age & Gender | Foresters Financial – $250,000 Policy | State Farm – $250,000 Policy | Foresters Financial – $500,000 Policy | State Farm – $500,000 Policy |
|---|---|---|---|---|
| 25-Year-Old Female | $156.80 | $203.14 | $304.24 | $400.19 |
| 25-Year-Old Male | $178.68 | $225.12 | $347.99 | $444.14 |
| 30-Year-Old Female | $188.96 | $234.24 | $368.11 | $462.39 |
| 30-Year-Old Male | $216.52 | $260.14 | $422.80 | $514.19 |
| 35-Year-Old Female | $230.52 | $273.19 | $450.36 | $540.29 |
| 35-Year-Old Male | $267.05 | $311.47 | $522.55 | $616.84 |
| 40-Year-Old Female | $277.99 | $321.24 | $543.99 | $636.39 |
| 40-Year-Old Male | $326.33 | $375.62 | $639.80 | $745.14 |
| 45-Year-Old Female | $349.30 | $381.29 | $685.30 | $756.49 |
| 45-Year-Old Male | $401.58 | $467.84 | $788.99 | $929.59 |
| 50-Year-Old Female | $429.14 | $470.02 | $843.68 | $933.94 |
| 50-Year-Old Male | $499.36 | $578.12 | $982.80 | $1,150.14 |
| 55-Year-Old Female | $549.89 | $598.79 | $1,082.55 | $1,191.49 |
| 55-Year-Old Male | $629.30 | $727.97 | $1,239.61 | $1,449.84 |
| 60-Year-Old Female | $700.83 | $769.94 | $1,381.36 | $1,533.79 |
| 60-Year-Old Male | $802.33 | $988.97 | $1,582.18 | $1,971.84 |
| 65-Year-Old Female | $912.58 | $1,045.09 | $1,800.93 | $2,084.09 |
| 65-Year-Old Male | $1,043.61 | $1,310.87 | $2,060.36 | $2,615.64 |
Above, you’ll see sample rates for other industry leaders that can serve as a comparison tool if you decide to pursue a quote with Colonial Penn. Your rates will vary depending on your age and the coverage amount, but this should be a good starting point.
Keep in mind that the rates for whole life insurance are notably higher than those for term life insurance. Below, you’ll see how different the two can be for a similar coverage amount.
| Sex | Age | Whole Life Insurance Rates Per Month | 10-Year Term Life Insurance Rates Per Month |
|---|---|---|---|
| Male | 65 | $359 | $54 |
| Female | 65 | $305 | $37 |
| Male | 75 | $643 | $151 |
| Female | 75 | $572 | $119 |
| Male | 85 | $1,478 | N/A |
| Female | 85 | $1,259 | N/A |
Whether you choose Colonial Penn or another life insurance company, whole life insurance always costs more. In short, whole life insurance policies require additional premiums to supply the cash value portion.
Since we aren’t able to provide direct quotes, we’ll break down Colonial Penn’s life insurance ratings to help determine if a quote will be worthwhile for you.
Is Colonial Penn life insurance reliable?
It’s no surprise that price is the leading factor that can make or break a prospective policyholder’s decision to buy a life insurance policy. That said, it shouldn’t be the only contributing factor.
A company’s life insurance ratings can tell you about the customer service experience. More importantly, these ratings can identify whether or not the company is safe to invest in.
Colonial Penn boasts the following ratings:
- A.M. Best: A-
- S&P: BBB-
- Fitch: A-
- Moody’s: A3
- BBB: A+
- NAIC Complaint Index: 2.12
As a whole, Colonial Penn’s life insurance ratings are positive. There are some concerns, however. The NAIC Complaint Index is over double that of the industry average.
This indicates that there are many complaints against Colonial Penn.
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Colonial Penn’s insurance ratings aren’t all bad. Most of the top rating agencies, such as A.M. Best, have rated the company as excellent or superior for financial strength.
In essence, this suggests that there shouldn’t be any major concerns about the company’s ability to pay out a death benefit. Considering you would be trusting the company with your cash value, this is a huge plus.
More About Colonial Penn Life Insurance
Colonial Penn life insurance has been operating for over 60 years and is one of the first companies to offer a guaranteed issue policy option. This type of policy can be much more convenient for anyone with underlying health conditions.
The Colonial Penn website briefly mentions that they sell term life insurance, but they don’t advertise it as one of their products anywhere else.
Unfortunately, the Colonial Penn life insurance login won’t be of much use to your beneficiaries. As of now, claims are still submitted via mail rather than using an online form or mobile app.
It does appear that the necessary forms are available online if needed. The company offers an assortment of other answers to frequently asked questions on its website.
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Colonial Penn Life Insurance: The Bottom Line
Colonial Penn appears to be a strong life insurance company that specializes in permanent life insurance. However, Colonial Penn does have a concerning amount of complaints.
Unless your Colonial Penn life insurance quote beats the competitors, you might want to second guess buying a policy. While you’re here, enter your ZIP code to get free quotes from the top life insurance companies near you.
Frequently Asked Questions
What is Colonial Penn Life Insurance?
Colonial Penn Life Insurance is an insurance company that specializes in offering life insurance policies to individuals. They have been in the insurance industry for over 60 years and are known for providing coverage options primarily to seniors and those aged 50 and above.
What types of life insurance does Colonial Penn offer?
Colonial Penn offers two main types of life insurance policies:
- Guaranteed Issue Life Insurance: This type of policy is available to individuals aged 50 to 85, and it guarantees acceptance regardless of health status. No medical exams or health questions are required, making it an option for those with pre-existing health conditions.
- Term Life Insurance: Colonial Penn also offers term life insurance policies. Term life insurance provides coverage for a specified term, such as 10, 15, or 20 years. It offers a death benefit to the beneficiaries if the insured passes away during the term of the policy.
What are the key features of Colonial Penn Life Insurance policies?
Some key features of Colonial Penn Life Insurance policies include:
- Simple application process: Colonial Penn’s life insurance application process is typically straightforward and can often be completed over the phone.
- No medical exams for guaranteed issue policies: Their guaranteed issue life insurance policies do not require a medical exam or health questions. Acceptance is guaranteed for eligible applicants.
- Affordable premiums: Colonial Penn aims to provide affordable life insurance coverage, particularly for seniors. However, the actual premium cost will depend on factors such as age, coverage amount, and policy type.
- Limited coverage amounts: The coverage amounts for Colonial Penn’s life insurance policies may be limited compared to other providers. This limitation is particularly notable with guaranteed issue policies.
How can I apply for Colonial Penn Life Insurance?
To apply for Colonial Penn Life Insurance, you can typically contact their customer service or visit their website. They will guide you through the application process, help you choose the most suitable policy, and provide assistance with completing the necessary paperwork. The application may involve answering health-related questions or providing personal information for underwriting purposes.
How is Colonial Penn’s customer service reputation?
Colonial Penn’s customer service reputation is mixed. While some customers report positive experiences with their customer service representatives, others have expressed dissatisfaction regarding communication, policy cancellations, or claim processing. It’s advisable to research and consider customer reviews and ratings to assess their customer service track record.
Is Colonial Penn Life Insurance the right choice for everyone?
Whether Colonial Penn Life Insurance is the right choice for you depends on your individual needs, circumstances, and preferences. It’s important to carefully review their policy features, coverage options, and premiums, and compare them with other life insurance providers in the market. Additionally, consider factors such as your age, health status, desired coverage amount, and budget when evaluating if Colonial Penn aligns with your specific requirements.
Can I cancel my Colonial Penn Life Insurance policy?
Yes, you can typically cancel your Colonial Penn Life Insurance policy at any time. The cancellation process may involve contacting their customer service or submitting a written request. It’s important to review the terms and conditions of your policy regarding cancellations, any potential fees or penalties, and the process for terminating your coverage.
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Jimmy McMillan
Licensed Insurance Agent
Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent life insurance brokerage. His company specializes in life insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.