Colonial Penn Life Insurance Review

Written by Ross Quade

Company Contact Info:

877-523-9100 Toll-Free

Office Hours: 8:30-5:30 ET, Monday-Friday

Mailing Address:

399 Market St

Philadelphia, PA 19181

Colonial Penn has directed their efforts over the past fifty years at directly providing life insurance to consumers at an affordable price. They use television, the United States postal service, and a call center to market their policies and benefits to the widest array of individuals as possible. Their ultimate goal is to provide peace of mind and financial protection for their members and their member’s families.

History

Colonial Penn is a Pennsylvania-based insurance company that was founded in 1968 It initially functioned as the insurance that was provided through the AARP (American Association of Retired Persons) and they only served consumers age 65 and over.

In 1985 FPL Group bought Colonial Penn and then sold it to Leucadia National in 1991. In 1997, Conseco acquired this company where in the next year the name would be changed to such and then in 2001 Conseco changed the name back to the original Colonial Penn.

Positives

When it comes to the mention of positives for Colonial Penn life insurance there just is not much to go by as positive reviews are very few and far between. However, it was mentioned more than a few times by consumers that Colonial Penn does have a decent product offering. Upon further review, there is not anything special to note, but it also is a reasonable selection.

Colonial Penn offers an array of policies for potential members.

Guaranteed Issue Life Insurance Policies

  • The guaranteed life insurance policy from Colonial Penn is available until the age of eighty-five (85) or for women and men from the age of fifty to eighty-five (50-85).
  • The guaranteed life insurance policy through Colonial Penn requires no health check-up (or exam) as well as no health history questionnaire. The guaranteed policy is, how do we say this, guaranteed to anyone who wishes to pay the premium. However, it does come with limitations or stipulations where if you die within the first two years of becoming a policyholder you will only receive your premium plus a minor percentage extra of what you previously paid.
  • This guaranteed policy comes stocked with a fixed premium, guaranteed never to increase.
  • The death benefits will never decrease throughout the life of the policy, but rather will remain constant for as long as you continue to pay your premium.

Colonial Penn Patriot Program (term and whole life insurance)

  • The Patriot Program term and whole life insurance policies also require no health check or wellness exam. However, they do necessitate a small health history questionnaire.
  • The whole life insurance policy is available from age forty to seventy-five (40-75) and the term from eighteen to seventy-five (18-75) years of age.
  • For coverage under the ‘no exam’ policy, the maximum coverage is capped out at fifty thousand dollars ($50,000).

Negatives

Colonial Penn did not receive an affirmed and furthermore highly desirable “superior” or even “excellent” review from A.M. Best; but rather only was awarded a B++. A rating of this nature should be considered a red flag with regards to the company’s financial stability, and consumers should only select businesses that have an A- or better.

Another negative aspect of a Colonial Penn life insurance policy relates to their policy pricing. Where we (as well as many consumers and the marketplace as a whole) have found it to be, for lack of a better way of expressing it, highly non-competitive. With the low rating that they received from A.M. Best coupled with their high prices…well, let’s just say there are better options.

Buyer beware! The term life insurance policies are NOT fixed premiums; this means that they will increase as your age increases. So an already high price, with a low rating will unavoidably get higher over time.

Additionally, there will be no payout to the beneficiary if the consumer dies within two years of the policy implication. Period.

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Ross Quade
Ross Quade has been a licensed insurance agent since 2008. State of Texas license #1702965. He has a Bachelor Degree in Psychology from University of Minnesota and minored in Applied Economics. He has been quoted in several online publications including Huffington Post, Young Startups and various financial blogs. Ross frequently writes about issues related to the insurance and finance industry.
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