2024 Colonial Penn Life Insurance for Seniors Review
Written by Daniel Ray, Life Insurance Expert |
✅
Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
Life insurance can be expensive, especially with Colonial Penn Life Insurance For Seniors.
When looking for life insurance, it’s important for seniors to find a company they can trust. Colonial Penn Life Insurance for Seniors often shows up in TV ads with offers that seem affordable and easy to get. But some people worry about how honest these ads are and whether the insurance really works for them.
In this review, we, a team of experienced insurance professionals, will take a close look at what Colonial Penn offers. We’ll compare it to what other companies offer and share information about how many customers have complained.
Our aim is to help you understand exactly what you’d be getting with Colonial Penn, so you can make the best choice for your life insurance.
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 to health questions or medical exams asked!
However, those who are under 75 have slightly different options, including simplified issues or increasing term life insurance that both cost more than their younger counterparts but may help them save money in the end, depending on how frequently they use their 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:
| AGE | 1 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 Features | Guaranteed Acceptance Whole Life | Simplified Issue Whole Life |
|---|---|---|
| Age Range: | 50-85 | 40-75 |
| Coverage Options: | 1-15 Units | $10,000 – $50,000 |
| Locked-in rates: | Yes | Yes |
| Policy Expires: | No | No |
| Has Health Questions: | No | Yes |
| 2-Year Waiting Period: | Yes | No |
| Medical Exam Required: | No | No |
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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
When reviewing life insurance options, it’s always wise to use tools like a life insurance rate chart for a clearer comparison. While Colonial boasts commendable financial strength ratings, its offerings for seniors may not stand out, especially when compared with other industry leaders.
For instance, the Colonial Penn life insurance rates can be a benchmark to some extent. But overall they are confusing to say the least! Though Colonial’s intention seems to be providing competitive options, their rates often don’t measure up to the top-tier products available in the market.
Below are the comparison rates for $10,000 in whole life coverage. Because of Colonial Penns confusing “Unit” chart, we gave you the closest to $10,000 based on the individual unit price by age. As you can see if you are over age 74 you will not be ablt to get $10,000.
| AGE | Male $10,000 | Female $10,000 |
|---|---|---|
| 50 | $59.70 | 6 Units = $10,014 coverage | $49.75 | 5 Units = $10,000 coverage |
| 55 | $69.65 | 7 Units = $9,940 coverage | $59.70 | 6 Units = $10,566 coverage |
| 60 | $89.55 | 9 Units = $10,503 coverage | $69.65 | 7 Units = $10,605 coverage |
| 65 | $109.45 | 11 Units = $9,856 coverage | $79.60 | 8 Units = $10,064 coverage |
| 70 | $149.25 | 15 Units = $10,335 coverage | $99.50 | 10 Units = $10,000 coverage |
| 75 | $149.25 | 15 Units = $8,235 coverage | $129.35 | 13 Units = $9,906 coverage |
**As always, seniors are encouraged to thoroughly evaluate various rates to ensure they’re getting the best value for their money.
Versus Best Rates By Competitors
Below are the best rates from age 50 to age 75 for both males and females.
| AGE | Male $10,000 | Female $10,000 |
|---|---|---|
| 50 | $30.68 | $24.31 |
| 55 | $35.95 | $27.71 |
| 60 | $43.76 | $32.87 |
| 65 | $55.83 | $41.01 |
| 70 | $70.00 | $53.24 |
| 75 | $97.50 | $72.41 |
Clearly you can see the enormous savings when you compare Colonial Penn versus the best rates. In addition, you can find $10,000 even at age 90!!
Colonial Penn Renewable Term Life Insurance
Colonial Penn stopped selling term life insurance in 2021!
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 providers 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.
The Colonial Penn 9.95 Plan Ratings and Other Options
When choosing an insurance company, one big thing to think about is how strong the company’s finances are. This is called their “financial strength rating.”
If a company has a good rating, it means they’re likely to keep their promises and help out when the time comes. However, when we checked, Colonial Penn wasn’t at the very top in terms of these ratings.
Another super helpful tool is a life insurance rate chart. It’s like a menu but for insurance prices. It shows you how much you might pay depending on your age and how much insurance you want.
While Colonial Penn has one, it’s always good to compare with others.
Colonial Penn’s 9.95 plan seems good initially. However, it’s crucial to consider all the facts.
There are other options out there that might be better for you.
So, do your homework, and pick what’s best for you and your family! Remember, sometimes you get what you pay for.
Different rating groups rank them below average compared to nearby life insurance companies.
Founded: 1968
The only exception right now is that Better Business Bureau has given it an A+ Accredited even though clearly consumers do not agree. They are boasting a 1.17/5.0 review rating.
Many complaints have been lodged against this company. The National Association of Insurance Commissioners shows their complaint ratio is 2000% above average.
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Frequently Asked Questions
Colonial Penn Life Insurance for Seniors offers life insurance policies specifically designed for older adults. These policies are often marketed as affordable and accessible, featuring straightforward enrollment without a medical exam.
Colonial Penn markets its insurance products to seniors primarily through television commercials and online advertising. These ads highlight the ease of getting insurance without a medical exam and emphasize low starting costs.
Yes, some of the common complaints include the perception of misleading advertising regarding the cost and coverage details. Customers have also expressed dissatisfaction with the value of the coverage, as it may not be as comprehensive as advertised.
When considering Colonial Penn or any other life insurance for seniors, look for clear information on premium costs, coverage limits, and terms. It’s also important to understand how your age and health may affect your premiums and benefits over time. Checking reviews and the company’s Customer Complaint Index can provide insight into other customers’ experiences.
Colonial Penn’s rates are generally competitive, especially for those seeking life insurance without a medical exam. However, it’s crucial to compare these rates with other life insurance offerings in the market to ensure you are getting the best value for your premium dollars.
A “unit” in Colonial Penn Life Insurance refers to a fixed amount of life insurance coverage whose cost varies by age, sex, and state of residence. Each unit’s coverage amount also changes based on these factors, so it’s important to get specific details for your particular situation.
Colonial Penn has been in the insurance business for many years and is a legitimate insurance provider. However, like any company, it has both positive and negative reviews. Prospective buyers should carefully review all policy details and customer feedback to determine if it’s the right choice for their insurance needs.
Conclusion
As a company, Colonial Penn has been around for more than 100 years and has insured over 10 million people. That is noteworthy, but better insurance options exist. Others offer lower premiums and higher benefits.
We can help you find affordable whole life insurance. We offer quotes from multiple companies to compare rates and coverages. If you haven’t had a chance to shop around yet, we recommend getting started today!
Call us!!! 855-380-3300, or Get a Quote to see rates immediately.
4 Comments
Candy Cantu
Where can my husband and I get the best rates for a small final expense policy for both of us. I’m 71 and he is 76, both have no real health issues except he smokes. I quit in 2015 when my dad passed away.
Danny Ray
This is what we specialize in. Give us a call and we can go over which ones they are, 855-380-3300
Cathi Slayden
Please mail info 72 yo female needs guaranteed issues in Arkansas
Danny Ray
May qualify for a day one coverage policy. Call us at 855-380-3300