The Truth About Colonial Penn Life Insurance For Seniors 2022 [Review]


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Life insurance can be expensive. However, the company Colonial Penn Life Insurance Company has high rates and a lengthy two-year waiting period that other life insurance options don’t have as well.

For example, their prices are higher than most which is something to consider when looking at getting life insurance for seniors. There’s also some fine print in their policy you should know about before making your confident life insurance decisions on who will get your business!

How Good Is Colonial Penn Life Insurance For Seniors

Life insurance for seniors can be tricky, especially when it comes to Colonial Penn’s coverage plans. For seniors over 75, they offer a Guaranteed Acceptance whole life plan which costs only $9.95 per unit.

In addition, it is a guaranteed acceptance with no answer health questions or medical exams asked!

However, those who are under 75 have slightly different options including simplified issues or increasing term life insurances that both cost more than their younger counterparts but may help them save money, in the end, depending on how frequently you use your policy throughout its duration (2 years).

The saddest part about these policies being offered by Colonial Penn though is that anyone above 75 always has a 2 year waiting period after purchasing their new policy before becoming eligible again – this could make all the difference.

A Colonial Penn life insurance company does not provide any non-insurance-related services, such as financial advisory or estate planning. In addition to your existing health insurance, the company offers supplemental health insurance that can be applied to large medical bills. Although Colonial Penn does not offer a mobile app for managing policy, the following perks may be of interest to you. 

Colonial Penn offers a Unit, What is a Unit?

Permanent life insurance can help you secure your family’s future with lifetime coverage and cash value that grows over time.  You can add an accelerated death benefit rider to your Colonial Penn Life Insurance policy that will pay you 50% of your death benefit if you are diagnosed with a covered illness, like cancer or a heart attack. Each unit of Colonial Penn’s life insurance coverage is worth $9.95 per month and provides different amounts depending on age, gender, etc.

For example, a 75-year old male would get about $560 in coverage with one single unit at their current age. So clearly not the best plan for the grandparents.

Most people purchasing life insurance for any given policy period is twelve units but it’s recommended that people only purchase the minimum life insurance benefit amount needed to meet financial needs (i.e., six).

Here are some numbers summarizing how much each individual unit will cover based on certain factors:
AGE1 Male Unit ($9.95)1 Female Unit ($9.95)
50$1,786 in coverage$2,083 in coverage
51$1,732 in coverage$2,068 in coverage
52$1,676 in coverage$2,022 in coverage
53$1,621 in coverage$1,973 in coverage
54$1,562 in coverage$1,929 in coverage
55$1,506 in coverage$1,884 in coverage
56$1,452 in coverage$1,838 in coverage
57$1,392 in coverage$1,786 in coverage
58$1,333 in coverage$1,732 in coverage
59$1,273 in coverage$1,676 in coverage
60$1,214 in coverage$1,621 in coverage
61$1,157 in coverage$1,562 in coverage
62$1,099 in coverage$1,506 in coverage
63$1,043 in coverage$1,452 in coverage
64$987 in coverage$1,392 in coverage
65$932 in coverage$1,333 in coverage
66$880 in coverage$1,273 in coverage
67$834 in coverage$1,214 in coverage
68$792 in coverage$1,157 in coverage
69$753 in coverage$1,099 in coverage
70$717 in coverage$1,043 in coverage
71$683 in coverage$987 in coverage
72$652 in coverage$932 in coverage
73$620 in coverage$880 in coverage
74$589 in coverage$834 in coverage
75$560 in coverage$792 in coverage
76$531 in coverage$753 in coverage
77$503 in coverage$717 in coverage
78$477 in coverage$683 in coverage
79$450 in coverage$652 in coverage
80$426 in coverage$620 in coverage
81$424 in coverage$589 in coverage
82$423 in coverage$560 in coverage
83$421 in coverage$531 in coverage
84$420 in coverage$503 in coverage
85$418 in coverage$477 in coverage

Colonial Penn Final Expense Whole Life Insurance

Colonial Penn whole life policy offers a “Living Insurance” option, which enables you to receive part of the death benefit if you are afflicted by a specific health condition. Guaranteed acceptance policies do not include this option. If you suffer from a heart attack or stroke, a certain type of cancer or a debilitating chronic illness, you can choose Living Insurance.  

There are two types of whole life insurance available at Colonial Penn.

The first, and most common is their guaranteed acceptance plan that costs $9.95 per unit with a 2-year waiting period.

The second has additional health questions about age or medical history required to qualify for it which doesn’t have any waiting periods but comes with other limitations as well such as higher prices due to risk considerations although no longer subject to the medical exam after the initial issue date (which can include some exclusions).

Policy FeaturesGuaranteed Acceptance Whole LifeSimplified Issue Whole Life  
Age Range:50-8540-75
Coverage Options:1-12 Units$10,000 – $50,000
Locked-in rates:YesYes
Policy Expires:NoNo
Has Health Questions:NoYes
2-Year Waiting Period:YesNo
Medical Exam Required:NoNo

How Does Colonial Penn Stack Up Against Their Competitors

Many other final expense whole life insurance companies offer better pricing and underwriting.

For example, many carriers have superior prices or more lenient requirements for applicants than Colonial Penn does.

If you’re interested in getting a quote from another company, give us a call at (855) 380-3300, or fill out the quote box to the right and you will see rates in seconds!

And stay away from companies like GLOBE Life, Colonial Penn, and AARP.

Colonial life insurance Rates for seniors

Let’s check out some Colonial Penn rates for their simplified issue plan.

AGE (5yr Increments)Male $10,000 Female $10,000
40$18.22$14.36
45$22.74$17.11
50$29.65$21.28
55$39.07$27.42
60$51.00$35.84
65$66.45$47.43
70$87.46$65.68
75$118.29$94.07

Colonial Penn Renewable Term Life Insurance

When you apply for Colonial Penn Term Life Insurance, they will ask if there is any history of heart disease or cancer in your family.

They do this because research shows that these diseases can increase the risk of death and lower premiums available to policyholders.

If you have a prescription drug plan through work, it’s likely that this data has been shared with them so when applying, make sure your answers are truthful!

How Does Colonial Penn Stack Up Against other No Medical Exam Term Providers

The best way to make sure that you are getting offer term life insurance by doing your research.

Many other companies offer better rates, and it’s worth noting that it’s never a good idea to buy term life insurance to cover final expenses because there could be high chances of outliving the policy (over 90% don’t pay life insurance claims off).

You’d have no guaranteed acceptance coverage for funeral costs then!

The tables show how much the prices of Colonial Penn’s term life insurance increase over time.

I hope this information was helpful in helping yourself or someone else finds reliable affordable health care options!!

Female

(**The rates below are for renewal only. They will not issue a new term policy to someone above 75.)

Age Range $10,000$20,000$30,000$40,000$50,000
51-55$12.49$23.48$34.47$45.46$56.46
56-60$15.49$29.48$43.47$57.46$71.46
61-65$20.17$38.83$57.50$76.16$94.83
66-70$26.86$52.21$77.57$102.93$128.29
71-75$36.86$72.21$107.57$142.93$178.28
76-80$52.86$104.21$155.57$206.93$258.28
81-85$75.86$150.21$224.57$298.92$373.28
86-90$106.94$212.37$317.81$423.25$528.69

Male

(**The rates below are for renewal only. They will not issue a new term policy to someone above 75.)

Age Range$10,000$20,000$30,000$40,000$50,000
51-55$16.49$31.48$46.47$61.46$76.46
56-60$21.16$40.82$60.47$80.13$99.79
61-65$29.22$56.95$84.67$112.40$140.12
66-70$39.51$77.51$115.52$153.53$191.53
71-75$55.12$108.75$162.37$215.99$269.61
76-80$79.12$156.74$234.37$311.99$389.61
81-85$111.68$221.86$332.04$442.22$552.39
86-90$161.36$321.22$481.08$640.94$800.80

Does Colonial Penn offer Burial Insurance

To stop the mass confusion, burial insurance, final expense insurance, funeral insurance, and cremation insurance are ALL the same. These all are simplified whole life insurance policies. They are just labeled differently for marketing purposes.

A Colonial Penn burial insurance policy is a guaranteed acceptance whole life plan that has a 2-year waiting period.

The price of $9.95 for one unit varies based on your age and gender, but you get very little coverage in return for the cost.

Most Colonial Penn policies also have their own set requirements: no matter what they look like at first glance, it’s not cheap when you dig deep into them!

Colonial Penns History….

AARP co-founder Leonard Davis founded Colonial Penn over 50 years ago. CNO Financial Group owns them now, and they were one of the first life insurance provider to offer guaranteed acceptance life insurance.

For many years Alex Trebek was a face for their ads as he endorsed this service until his death in 2020 at age 80 after hosting Jeopardy for 36 seasons on TV. Other past hosts included Ed Mcmahon.

This is a summary of the current situation with Colonial Penn Life Insurance Company.

Different rating organizations have different ratings for them, but they all are below what would be considered good or average compared to other life insurance companies in their area:

  • A- from AM Best;
  • BBB+ and Baa1 from Standard & Poor’s and Fitch respectively;
  • CCC (due to outstanding claims) by Moody’s.

The only exception right now is that Better Business Bureau has given it an A+. Over time, there have been many complaints about this company according to data collected at the National Association of Insurance Commissioners which puts its complaint ratio well above average – something like 200% higher than normal!

Conclusion

As a company, Colonial Penn has been around for more than 100 years and has insured over 10 million people. Granted that is quite impressive but there are much better options out there in the insurance industry with lower premiums and higher benefits.

We can help you find an affordable whole life insurance policy that meets your needs by providing life insurance quotes from multiple companies to compare rates and coverage levels. If you haven’t had a chance to shop around yet, we recommend getting started today!

Call us!!! 855-380-3300, or fill out the quote box on the right to see rates immediately.