Colonial Penn Life Insurance Reviews 2023

Is it the right fit for you? | ⭐️⭐️⭐️

Colonial Penn Life Insurance Reviews: Is this the Best Life Insurance Carrier?

Choosing life insurance can be daunting with several companies and factors to consider. With so many life insurance carriers to choose from, it is more challenging for consumers to find the provider that best meets their needs. Colonial Penn Life Insurance is one such company on potential customers’ radar, but does it fit all their needs? In this review, we look in-depth at whether Colonial Penn provides what you need from your policy.  

 

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About Colonial Penn 

Colonial Penn Life Insurance is a life insurance company founded in 1968 by Leonard Davis to provide affordable life insurance to seniors. The company is known for its simplified underwriting process and low-cost policies. Colonial Penn’s insurance products are primarily sold through direct mail and television advertising. They offer whole life insurance policies, which provide coverage for the entire lifetime of the policyholder, as well as term life insurance policies, which provide coverage for a specified period.

Over the years, the company has expanded its product offerings to include annuities and long-term care insurance. Colonial Penn has also been recognized for its commitment to customer service and has received high ratings from industry organizations such as A.M. Best and the Better Business Bureau.

Pros And Cons of Colonial Penn Life Insurance 

Pros Cons
  • Current financial rating A by AM Best
  • Specializes in providing Whole Life and Term Life insurance policies.
  • Insurance business with a well-known history.
  • Offers multiple payment options.

  • Do not offer Universal Term Life Insurance.
  • Colonial life insurance costs can be expensive.
  • More number of dissatisfied customers
Colonial penn life insurance reviews

Type of Colonial Penn Life Insurance Policies

Colonial specializes in providing two types of life insurance policies: Permanent Whole Life and Guaranteed Life Insurance.

Permanent Whole Life Insurance

A Whole Life Insurance policy is a type of permanent life insurance that covers the policyholder’s entire lifetime. This policy also includes a savings component known as cash value, which grows over time and can be used to pay premiums or to borrow against.

One of the key benefits of a whole life insurance policy is that it is guaranteed to remain in force if the premiums are paid, regardless of the policyholder’s age or health. This means that even if the policyholder develops a health condition or becomes disabled, the policy will remain in force, and the death benefit will be paid to the beneficiary.

This policy can provide peace of mind for policyholders, knowing that their coverage will never expire if the premiums are paid and an additional source of retirement income.

Guaranteed Life Insurance

Guaranteed acceptance life insurance, also known as guaranteed issue life insurance, is a type of life insurance policy that does not require a medical exam or health questionnaire. This means anyone can qualify for coverage, regardless of their health status or pre-existing medical conditions.

The premiums for guaranteed acceptance life insurance policies are higher than those for traditional life insurance policies, as the insurance company is taking on more risk by not requiring a medical exam.Guaranteed acceptance life insurance policies by Colonial Penn also tend to have smaller death benefit amounts compared to traditional life insurance policies.

Hemce, this ife insurance policies can be a good option for individuals unable to qualify for traditional life insurance due to their health status or pre-existing medical conditions.

Key Feature to Consider for Colonial Penn Life Insurance

Colonial most popular coverage option is for those aged 50-85, which is available in most of the states. Guaranteed Acceptance means you cannot be turned down for any health reason. Locked-in premium rates start at $9.95 a month.

The key features in any of the policies you get from Colonial are:

  • No medical exams
  • Locked-in premiums and benefits amount
  • Flexible payment options
  • No cancellation of the coverage.

A Sampling of Customers’ Reviews

Reviews  Ratings 
They absolutely do ask questions about your health. I switched here from another agency; they all ask questions. ⭐⭐⭐
I recently got guaranteed acceptance life insurance from Colonial. The process was not so complex but saying that it was hard to get the staff on the phone, which will give heads down for poor customer service. ⭐⭐⭐⭐ 
$9.95 barely gets you any coverage, and there is a two-year waiting period before you’re even covered. Overall, it is a lengthy process and very confusing to understand what you are getting. ⭐⭐
Colonial Penn has been serving my family since the 90s with excellent customer service. Claims processing is expedited at a reasonable time. ⭐⭐⭐⭐

Source:Google, BBB

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Overall Review and Complaints

Currently, A.M. Best has given Colonial Penn a grade of A-. However, Standard & Poor’s and Fitch have reduced their rating to BBB (Better Business Bureau).

Colonial Penn has a strong financial position and meets all criteria for a top-rated insurance provider, according to A.M. Best’s Financial Strength Rating. Furthermore, customers appreciate Colonial Penn’s speedy and simple claim process.

Over the past three years, Colonial Penn has been the subject of 81 complaints to the (BBB), most of which focused on billing, sales, and advertising issues. This has resulted in the company’s BBB rating falling from A+ to C. This is all because of customer dissatisfaction with the customer service representative’s inability to help them with their questions and concerns. 

Is it the Right Choice to Get Your Life Insurance from Colonial Penn Life Insurance?

Our Rating:⭐️⭐️⭐️

With almost two decades of successful business, Colonial Penn life insurance is reliable when you need life insurance coverage. Their policies are designed for customers of all ages, backgrounds, and financial situations. Those in their 50s or older can take advantage of their guaranteed acceptance policy that does not require a medical exam or health questions.

But with each passing year, Colonial Penn life insurance has faced challenges in customer service and claim servicing. Customers have been complaining about Colonial Penn’s customer service representatives being unhelpful. Additionally, most customers have experienced long wait times for their claim decisions and a lack of transparency in the claims process.

Despite these issues, Colonial Penn still offers customers a variety of life insurance options at affordable rates. They offer term life and whole life policies as well as some extra benefits like living benefits, which pay out a portion of the death benefit if you become terminally ill. They also provide flexible premium payments and coverage amounts, making it easier to find a policy that fits your needs.

Colonial Penn may not be the best choice for everyone, but it can still provide life insurance coverage to those who need it. It is important to understand the challenges Colonial Penn has faced in recent years and research other available options. Doing your due diligence before choosing a life insurance provider can help ensure you have the coverage you need at an affordable rate.

Frequently Asked Questions

What are the advantages of getting life insurance from Colonial Penn Life insurance?

One main advantage of getting life insurance from Colonial Penn life is that you will not face any complex questions about your health. There are multiple payment options to pay your premiums, along with affordable Colonial Penn life insurance rates.

How long does it take for Colonial Life to mail a check?

Customers of Colonial Life are always welcome to submit claims via fax or the company’s official website. The carrier does not, however, guarantee a set time window for responding to claims. They mention that clients who choose direct deposit can obtain their benefit payouts in less than 48 hours (about 2 days).

Can my Colonial Penn life insurance policy be cashed out?

You can receive the cash value total as a lump sum payout if you cancel your insurance. Remember, though, that because your insurance will have accrued little to no cash value in the first few years, it is not advisable to cancel it then.

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Contact a local agent online to help you with your insurance needs.

Agency Height is an insurance directory dedicated to bridging the gap between agents and potential insureds. We offer a free platform for insurance seekers to compare different insurance options and find the right coverage. Through Agency Height, we intend on helping people save money on their insurance premiums and get the coverage they need. 

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