There are a variety of factors that need to be considered when a person applies for life insurance. These include ensuring that the type and the amount of coverage being purchased will be enough for the need that’s being insured.
It also, however, should include making sure that the company underwriting the insurance is strong and stable financially, and will be there if and when the time comes for filing a claim.
This is because you don’t want to leave your loved ones unprotected, and with a company that may not make good on its promises. One insurance carrier that has a good reputation for paying out its policyholder claims for many years is Colonial Penn Life Insurance Company.
While they did not make our list of the 10 most elite life insurance companies, this Colonial Penn review will show that you they are a solid company who you can trust for your business.
History of Colonial Penn Life Insurance Company
Colonial Penn Life Insurance Company has been in the business of offering life insurance coverage to its policyholders for over 50 years. This carrier is well known for providing coverage directly to consumers at affordable premium prices.
This carrier offers its coverage via ads on television, radio, the Internet, and through direct call centers. It has made a name for itself as being reliable, personal, and providing peace of mind to those it deals with.
The primary policy holder who purchases coverage through Colonial Penn is considered a “senior” – or someone who is age 50 or over. The company focuses primarily on permanent, whole life insurance policies that are “easy issue” plans.
Currently, Colonial Penn Life Insurance has approximately 750,000 life insurance policies in force, which equates to more than $3.2 billion of coverage, with policyholders throughout the United States. The company is headquartered in Philadelphia, Pennsylvania, and it is a subsidiary of CNO Financial Group.
One of the key achievements of Colonial Penn is that it was one of the first insurance carriers to offer a Guaranteed Acceptance Life Insurance plan that was focused exclusively for policyholders that are age 50 and over.
A Review of Colonial Penn
Colonial Penn, known for its guaranteed acceptance life insurance coverage, provides a whole life insurance policy with coverage that starts as low as $9.95 per month. With this plan, an individual cannot be turned down because of their health, and there is no medical exam required to qualify for the coverage. In addition, once qualified for coverage, there will never be a rate increase – for any reason.
The company also offers a 30-day money back guarantee on its coverage. This means that if a policyholder decides that the coverage is not what they want, they have 30 days to return their policy, and they will receive a premium refund.
Colonial Penn offers a great deal of information for prospects and customers directly on its website. This includes details on life insurance, as well as articles on the importance of having a wills, the importance of nursing homes, and how to choose a life insurance beneficiary.
The company also provides a “Life Insurance Terminology” section, which offers definitions of key terms related to life insurance, such as whole life insurance, beneficiary, final expenses, premium, simplified issue, and other important terms.
CNO Financial Group, the holding company of Colonial Penn, is strong and stable from a financial standpoint. Because of this, it has been rated as an A- (Excellent) by A.M. Best Company.
Colonial Penn Life Insurance Company is also rated as an A (on a scale of between A and F) by the Better Business Bureau (BBB). Over the past three years, only two complaints have been closed through the BBB. These have had to do with problems with the company’s products / service.
Products Offered by Colonial Penn Life Insurance Company
Colonial Penn focuses on offering Whole Life and Guaranteed Acceptance Life Insurance products to consumers. Whole life insurance is a form of permanent life insurance protection. With whole life insurance, a policyholder gets both death benefit protection, along with a cash value component.
The cash that is in the cash value component is allowed to grow and compound on a tax-deferred basis. This means that there is no tax due each year, but rather, the cash is only taxed at the time of withdrawal.
These funds may be either borrowed or withdrawn by the policyholder and used for any reason – including a supplement for retirement income, the payoff of debt, the payment of medical expenses, or even for taking a nice vacation.
It is important to note, though, that any amount of cash value that is not repaid at the time of the insured’s death will be charged against the amount of the death benefit that is paid out to the policy’s beneficiary.
With the whole life insurance that is offered by Colonial Penn, coverage is provided up to $50,000. There is no medical examination required as a part of the underwriting process, and there are only just a few simple health questions that are asked on the policy application in order to determine the insured’s eligibility.
These policies are offered to individuals who are between the ages of 40 and 75 – and, once a person has qualified for the coverage, the premium rate cannot be increased for any reason, including the person’s advancing age, or the contracting of an adverse health condition.
Unlike Prime America insurance and some other companies Colonial Penn Life Insurance Company also offers a Guaranteed Acceptance life insurance policy.
These policies are offered to individuals who are between the ages of 50 and 85, and they also have coverage that cannot be cancelled once the person has qualified. They are ideal life insurance policies for smokers, those who have other more-risky habits, or would other qualify under a higher risk life insurance classification.
Similar to the whole life plan, there is no medical exam to take as a part of the qualification process. There are also no health questions that are asked on the application for coverage.
With this particular policy, the benefit amount will be locked in after the second year, as will the premium rate. Likewise, the policy will also begin to build up cash value after the first policy year.
There are flexible premium payment options, which allow the policyholder to pay premiums on either a monthly, quarterly, semi-annual, or even an annual basis – whichever is easiest for your budget.
Both the whole life and the guaranteed acceptance policy offer a 30-day money back guarantee. This means that if an insured is not completely happy with his or her coverage, they may return the policy and they will receive a refund of their paid premium.
Otherwise, the only way that this coverage can be cancelled is if it is cancelled by the policyholder, or for non-payment of premium. The insurance company cannot cancel the coverage due to an adverse health issue, or advancing age. Nor can the amount of the premium be increased once it has been locked in.
The guaranteed acceptance life insurance policy is available in all of the U.S. states except for Massachusetts and Washington. (There may also be certain other limitations and / or exclusions in other states, so it is important to check prior to purchasing).