A burial insurance policy can provide peace of mind for you and your loved ones. It may also cover the expenses involved with burial, funeral arrangements, and other final expenditures to reduce the financial strain on beneficiaries.
One of many firms providing burial insurance is Colonial Penn, which offers inexpensive coverage alternatives starting at 995 a month. For a great look at how much coverage you will get, check out the linked article from GetSure.
Is Colonial Penn’s life insurance a good choice? You should always explore the full details of a policy before purchasing it. You can also compare coverage options from other insurance companies.
In this Colonial Penn life insurance review, we thoroughly review the company’s whole life insurance and guaranteed acceptance offers.
Colonial Penn Life Insurance Ratings & Reviews
While Colonial Penn is a well-known company, you should also learn about its financial stability and customer satisfaction. The financial stability of an insurance company is essential, as you want to ensure the company will be able to pay claims if necessary. Here are how the leading independent rating agencies rated Colonial Penn:
- AM Best: A- (Excellent)
- Fitch’s Ratings: A- (Stable)
- Moody’s: A3 (Stable)
Independent rating agencies have given Colonial Penn a positive financial outlook, but the company seems to receive more customer complaints than many other life insurance companies.
Colonial Penn Life Insurance
Colonial Penn offers two types of whole life insurance options that can provide coverage for your entire life:
- Colonial Penn Individual Whole Life Insurance Plan
- Colonial Penn Guaranteed Acceptance Life Insurance (aka $9.95 plan)
There are two types of whole life insurance policies from Colonial Penn. They offer different coverage amounts, age restrictions, death benefit payouts, and rates.
Colonial Penn Individual Whole Life Insurance is considered day one coverage. That means your beneficiaries are entitled to the total death benefit payout when you die, as soon as your policy is active.
Suppose you die within the first two years of having a policy with Colonial Penn Guaranteed Acceptance Life. In that case, your beneficiaries will get all the money you paid in premiums plus 7% interest. After two years, they will get the full death benefit.
Colonial Penn will pay out the full death benefit if death occurs due to an accident within the first two policy years. If death occurs after the second policy year, the beneficiary will receive the full death benefit, whether from a health-related cause or an accidental death.
Graded death benefits are life insurance with a waiting period before the person gets the money. This is often bought by people who can’t get regular life insurance because they risk getting sick.
Colonial Penn Guaranteed Acceptance Life offers insurance to people between 50 and 85. In New York, you can get guaranteed acceptance of life insurance if you are between 50 and 75.
Colonial Penn 995 Plan
Colonial Penn Guaranteed Acceptance Life offers death benefits based on how many units you buy. For each unit, it costs $9.95 per month. However, each unit’s amount of death benefit will vary depending on your age and gender.
Each coverage unit costs $9.95 and will give you a death benefit of $689 if you are 70 years old. If you are 50 years old, one coverage unit will give you a death benefit of $1,669. The more units of coverage you choose, the larger your death benefit will be.
Unit models are a way to choose how much life insurance you want to buy. Colonial Penn will tell you how much life insurance coverage you can get for the amount of money you are willing to spend.
How much does each unit of coverage cost?
1 Unit = $9.95
2 Units = $19.10
3 Units = $29.85
4 Units = $39.80
5 Units = $49.75
6 Units = $59.70
7 Units = $69.65
8 Units = $79.60
9 Units = $89.55
10 Units = $99.50
11 Units = $109.45
12 Units = $119.40
13 Units = $129.35
14 Units = $139.30
15 Units = $149.25
Everyone pays the same price for each coverage unit, regardless of gender or age.
With Colonial Penn’s Guaranteed Acceptance plans, the death benefit amount is predetermined, and everyone pays the same price for that coverage, regardless of gender or age. This is different from other providers, who traditionally ask you to choose a death benefit amount and then give you a price based on that.
Colonial Penn does it differently. You decide how much life insurance you want and how much you will pay each month.
They tell you how much death benefit you will get. To determine how much coverage you can get per unit, you need to obtain a quote through the company’s website. But we have created a Colonial Penn life insurance rate chart where we have pulled current rates directly from the company’s website, showing how much coverage you are getting based on the unit pricing model.
Colonial Penn Life Insurance Frequently Asked Questions
You now know the details of Colonial Penn’s life insurance policies. But you may still have questions about the application process, eligibility, and other features. Use the following FAQ to address any remaining concerns.
Is Colonial Penn Life Insurance a Scam?
Colonial Penn is not a scam company. Many negative customer reviews exist, but that doesn’t mean they’re not a legitimate company. Financial solid ratings back them.
The company does a lot of business. This could lead to more complaints than average. But the company seems to have fixed most, if not all, of the complaints listed with the Better Business Bureau.
Whole life insurance plans provide financial protection if something happens to you. The plan will give your named beneficiaries a lump-sum payment when you die.
Is Colonial Penn a Ripoff?
Colonial Penn is not the cheapest company for burial insurance, but their Individual Whole Life Insurance plan is worth the price. It is as good as, or even better than, many of the top providers’ plans.
The main downside to Colonial Penn is the Guaranteed Acceptance plan. For only $9.95, you can only get one unit of coverage. This might not be enough to cover the costs of cremation. Even if you select the maximum coverage of 15 units, the death benefit in most cases is less than $20,000.
Some companies, such as AIG or Gerber, offer whole life insurance policies with maximum coverage of $25,000. This can be cheaper than Colonial Penn’s monthly rates.
How Much Life Insurance Coverage Do You Get for $9.95 Per Month?
The $9.95 life insurance plan is for Colonial Penn’s Guaranteed Acceptance. You can purchase up to 15 units, costing $9.95. If you purchase all 15 units of coverage, the total monthly cost is $149.25.
The life insurance coverage you receive for $9.95 will vary based on your age and gender, but in most cases, the death benefit coverage will be $1,500 or less.
Does Colonial Penn Have a Waiting Period Before The Death Benefits Will Payout?
The most popular life insurance plan from Colonial Penn is the Guaranteed Acceptance plan. This plan has a two-year graded death benefit period. That means that if the policyholder dies during the first two years, Colonial Penn will only pay out a death benefit equal to a refund of all premiums paid plus interest of 7% on all paid premiums.
How Quickly is Approval for Coverage?
It can take a few days or weeks for your application to be approved. The traditional underwriting process usually takes about four to six weeks. Colonial Penn does not require a medical exam and has a streamlined underwriting process so you can get a decision faster.
How Much Does Colonial Penn Life Insurance Cost?
The cost of Colonial Penn life insurance depends on how much coverage you want, your age, and your gender. Men usually have to pay more for life insurance than women of the same age and health. Older people also have to pay more for life insurance, so it is often recommended to get life insurance when younger.
How Do You Get a Colonial Penn Life Insurance Quote?
To receive a life insurance plan quote from Colonial Penn, you need to call them or go to their website. On the website, there is a quote form that you can fill out to get an instant quote. Colonial Penn will give you rates immediately after you provide basic information, such as your age, gender, and the coverage amount. You can then decide if you want to continue with the application.
What is the Cancellation Policy with Colonial Penn?
If you decide during the first 30 days that you don’t want the insurance policy, Colonial Penn will refund your premiums. If you cancel after 30 days, you will not get a refund, but you may be able to receive the cash value of the policy minus any surrender fees and taxes.