Colonial Penn Life Insurance Review [Rates, Complaints + Tips]

COLONIAL PENN LIFE INSURANCE REVIEW

Disclaimer: We are not Colonial Penn Life Insurance Company.  This is purely an honest and unbiased Colonial Penn Life Insurance Review.

This review is roughly a 4-minute read and will entail important details such as Colonial Penn rates, complaints, products and more.

First, feel free to use any of our links directly below to skip to a particular section of this post that you need information on.

Here is what this Colonial Penn Insurance Review Will Cover:

We are however aware that not everyone has 4 minutes to spare so we wanted to provide you a 30-second overview of Colonial Penn Life Insurance Company.

Colonial Penn is widely known due to their loyal and long-running spokesperson Alex Trebek. Colonial Penn is most known for its advertisement of giving you the ability yo purchase “1 Unit” of life insurance for 9.95.

While this may sound like a steal and makes you chomp at the bit to purchase, that’s not exactly how Colonial Penn Life insurance works and likely your coverage will cost much more than 9.95 due to one unit only providing a very small amount of life insurance coverage.

From an experts opinion and with us being an Independent broker that reviews all of the top-rated life insurance companies, we will typically always recommend against purchasing Colonial Penn.

While Colonial Penn may have affordable coverage in some situations, we are here to inform you that other great companies offer the same coverage for less money which will be covered deeper into our Colonial Penn Life Insurance Review.

That was the quick snapshot of Colonial Penn Life Insurance Company.

If you do however have those 4 minutes to spare, we highly recommend reading our full review of Colonial Penn Life Insurance to ensure you have a strong understanding of exactly what you may be purchasing before actually doing so.

Don’t forget to feel free to use our instant quote directly below.

If you don’t feel like reading this full review it will at least prove our point that tons of great options can top Colonial Penn’s rates and pricing.


Otherwise, here are the details you need to know.

Colonial Penn Life Insurance Review

Colonial Penn has gone through a series of changes since its inception in 1968.

At Good Life Protection we would like to point out that they came nowhere near the top of the list for best life insurance companies and this includes life insurance company reviews on nearly all companies available.  

They are known for primarily targeting the senior market and offering “cheap” no-medical exam life insurance which we will touch on more further in the review.

During a brief period between 1998-2001 Colonial Penn Life Insurance Company was referred to as Conseco Direct Life Insurance.

In 2001, Colonial Penn reverted back to its original name in a majority of the states except for New York.

In New York, Colonial Penn is still referred to as Bankers Conseco Life Insurance Company.

Colonial Penn Life Insurance Company History and Background

History and time holding down a valued stake in the market is an important factor to consider.

Colonial Penn Life Insurance Company does not have longevity as many other Life Insurance Companies have accomplished.

However, this isn’t necessarily a factor that should turn you away from a life insurance company immediately either.

Established in only 1968  makes 2018 only a 50th anniversary for the company.

Driven by popular celebrities running eye-catching advertising clips to grab the viewer’s attention has been the name of the game for Colonial Penn.

Colonial Penn Life Insurance Company Financial Strength

Financial Strength for a Life Insurance Company should always be a strong consideration point.

Currently, Colonial Penn Life Insurance Company is being provided the following financial strength ratings from the major rating agencies.

A.M. Best- A-

Comdex- 62

These aren’t necessarily bad financial strength ratings but we wouldn’t mind to see them higher by any means.

While Financial strength is definitely an important consideration before purchasing life insurance, it doesn’t necessarily tell the entire story or paints the full picture.

Other factors such as BBB ratings, competitive pricing, and overall customer satisfaction are also very important to consider when purchasing life insurance.

Colonial Penn Life Insurance Company BBB Rating and Complaints

Currently, Colonial Penn Life Insurance Company is not accredited with the BBB.

This isn’t overly surprising and many life insurance companies are in this same situation.

However, Colonial Penn does have a much lower total BBB grade than we like to see.

Currently, Colonial Penn Life Insurance Company is being rated by the BBB as a C+ which isn’t great by any means.

However, no need to get too hasty.

Other considerations need to be taken into effect before making a decision if a life insurance company is the best for you or not.

Life Insurance Products Offered By Colonial Penn

The life insurance product line up consists of the big three options you see with nearly every life insurance carrier.

With Colonial Penn Life Insurance Company, you only get two big-time products that they offer and sell in heavy volumes.

This would be the no-medical questions asked term life insurance as well as their no-questions-asked whole life insurance.

Outside of that, Colonial Penn is not the company to turn to for other common life insurance products.

Term Life Insurance With Colonial Penn Life Insurance Company

50,000.00

Yep, that’s it.

50,000.00 is the current maximum coverage offered by Colonial Penn.

How many of you only need 50,000.00 in coverage to cover all protection needs?

So you’re probably thinking this doesn’t require a medical background?

Wrong….. 

The term product offered by Colonial Penn still requires all medical questions and yes you can still be turned down for coverage.

Due to the limited amount of questions asked for the medical background.

The Average Cost per 1,000.00 face amount of coverage is often more expensive than an alternative option for coverage.

Seek a company that allows full underwriting.

Shop the market with an Independent Insurance Agent to make sure you’re not wasting your hard-earned money.

Whole Life Insurance With Colonial Penn

This is the product line Colonial Penn is supposed to hold a specialty in.

Alex Trebek seems to believe so as well.

We have all seen the commercials.

So how does it stack up against the competitor?

Maximum Allowed Coverage- Just over 16,000.00 (well under other competitors) – The average maximum amount of coverage allowed for Guaranteed Issue Whole Life is 25,000.00.

Ages Afforded the Coverage-  50-85-  Nothing wrong here, this is the same basically with all companies offering Guaranteed Issue Whole Life coverage.

  • Medical Questions or Background? Nope- just like all other carriers in this aspect as well.
  • Payout Stipulations- Same waiting period- 2 Years for full payout.
  • During the period, you will earn 7% interest compounded annually

Additional Considerations About Colonial Penn Life Insurance Products

Colonial Penn Life Insurance Review of Whole Life Insurance

This option again is a downfall for Colonial Penn.

50,000.00 is the max amount of coverage allowed.

Ages allowed for coverage for a whole life policy is 40-75. Medical Background is again required.

Only exclusions for payouts is suicide in which Colonial Penn will refund premiums plus interest earned and compounded annually.

Price of Colonial Penn Life Insurance

Colonial Penn when it comes to pricing also does not fair well.

They are going to be higher than many other companies for the same product.

You should always shop the insurance market and research several different options.

Increasing Term Life Insurance With Colonial Penn Life Insurance Company

Always be watchful for term policies that premiums increase after an increment of years such as “5”.

These policies may lure you in at first glance, but you will be going through this process again in 4 years and 11 months if you don’t.

At that time, the new company you wish to purchase life insurance with will underwrite you at your current age.

Don’t fall into the typical trap where you save a few dollars today but pay the price tomorrow.

2 Year Graded Period With Colonial Penn

Colonial Penn does nothing out of the ordinary with the Guaranteed Issue policy and nothing should be held against them.

However, as a consumer, you need to understand how this works.

During the 2 years waiting period if death occurs…..you get.

Premiums returned plus interest (compounded annually with Colonial Penn).

You do not receive the full 100% death benefit completion of this waiting period.

Other Downfalls of Colonial Penn Life Insurance

Colonial Penn’s financial strength rating is the first warning sign that a better option may be available.

To be fair, however, they have been around 50 years and have proven solvent.

The products offered are very limited without many additional “riders” or “living benefits” that are other life insurance carriers offer.

Pros of Working With Colonial Penn Life Insurance Company

Colonial Penn does have some positives going for them.

They do have no medical exam required insurance policies which not all carriers offer.

The guaranteed issue whole life product all though capping at less potential coverage does stand pretty comparable to all other carriers offering the same policies.

The permanent products are fixed prices.

So if you do go with Colonial Penn for a whole life policy, the rate will not increase on you.  The price will be fixed over the life of the policy.

30 Day Return- All companies are required by law to offer a “free look provision” within a life insurance policy.

Sometimes 10 days, sometimes 20 days.

However, Colonial Penn enjoys advertising the 30-day money-back guarantee.  It’s a positive so worth mentioning.

If you’re not happy with your current policy, exercise this benefit.

Do your research.

Companies such as AIG, Gerber and Great Western also offer great Guaranteed Issue Policies and for a cheaper rate.

They also provide higher returns during the 2 year waiting period if death occurs.

Another thing they boast?

Higher Financial Strength ratings.

It can’t be stressed enough to look around and do your due diligence when searching for a good fit for your life insurance.

The budget has always been a driving force behind the purchase of life insurance so search for something that can save you a few dollars per month.

After all, it adds up over a long period of time.

Life insurance is usually a product that requires a payment for a long duration of time so it could be substantial savings in the long run.

Cons of Working With Colonial Penn Life Insurance

Colonial Penn doesn’t exactly flood the internet with positive reviews.

However, in Colonial Penn’s defense, it’s not all Colonial Penn’s Fault by any means.

Most of the bad reviews you come across relate to customer service or no death claims being paid.

The problem with some of the complaints has more to do with not understanding a 2-year waiting period on guaranteed issue policies issued by Colonial Penn.

You may even run into bad reviews related to prior employees not enjoying their previous careers too much.

This isn’t something to necessarily take into consideration when picking the best life insurance policy for you and your family.

 Sorry, Alex, you’re going to have to bring more to the table!

 Colonial Penn life insurance review- alex trebec

How Much Is A Unit of Colonial Penn Life Insurance Cost?

To give a clear picture of how we determined the rates for Colonial Penn Life Insurance, take a glance at the image below.

We ran the rates for a Male with the date of birth of 5/15/1950. 

The rates don’t change based on male or female or age.  It’s strictly set at price per “unit” with a maximum of 8 units open for purchase.

Yes, unfortunately as discussed previously, it also has the 2-year waiting period attached to the coverage.

Below is an example of what it looks like to move through the online application process with Colonial Penn.

You can see that for the guaranteed issue whole life insurance with Colonial Penn that “a unit” of coverage runs $79.60 per month.

The big downfall is the limited coverage amount in this situation.

$79.60 isn’t necessarily a bad price.

However, $6336.00 doesn’t do a large amount of final expense planning in most circumstances.

You should always run the rates with other carriers to determine your best options for life insurance.

Colonial Penn Rate Charts

Below is going to give you a good look at how Colonial Penn Rates and pricing stack up.

Colonial Penn Rate Chart Guaranteed Issue Whole Life

colonial penn life insurance
As you can see, this may not be the best life insurance for seniors needing life insurance coverage.

$6,336.00 just is not enough coverage in most circumstance.

Colonial Penn advertises it’s the pricing by “units” which makes it a bit confusing and misleading.

Basically, they do this by advertising low prices per units which is how the final price is determined.

It makes it easy to fall victim to 1 unit of coverage for $9.95 of coverage.

What?

You’re kidding!

That’s a dream come true price!

Especially when it’s coming from Alex Trebek.

Makes it a little more believable and trustworthy, right?

Don’t think so.

Don’t get me wrong here.

The product technically isn’t doing anything manipulating or scam-like.

It’s just the advertising is obviously built to make Colonial Penn rates look more appealing than they really are.

Colonial Penn Rate Charts for No Exam Life Insurance

colonial penn life insurance 2

This is another shortcoming for Colonial Penn.

The coverage amount is very limited and overpriced for the term insurance product.

You also must be very aware of the increasing numbers at the 5-year intervals for this coverage.

Often when life insurance rates increase, it gets too difficult to keep the coverage and begins placing a strain on the finances.

Buyers beware!

Too many other good options exist for term insurance than to lean on 5-year renewable term policies.

You don’t want to fall victim to grabbing the low rate now just to be in a tough situation down the road.

The future belongs to those who plan for it today!

Colonial Penn Rate Chart for Whole Life Insurance

colonial penn life insurance 3

This rate chart shows the rates for whole life insurance coverage through Colonial Penn.

Our expert opinion is that the coverage is not too robust with additional perks and is high priced.

It’s also very limited on options and additional riders that can be added.

The product itself doesn’t come to short from other life insurance carriers but better options are on the market and available to you.

Again, Good Life Protection is not against Colonial Penn Life Insurance.

We are just hoping to provide an in-depth look into the policies and providing honest reviews to the consumers.

We are in no way affiliated with Colonial Penn Life Insurance Company.

If you are considering Colonial Penn Life Insurance, we recommend giving them a call.

After you get your information, reach out to Good Life Protection to compare rates and coverages available.

Other Life Insurance Companies You Should Consider

Again, we want to emphasize that Colonial Penn Life Insurance is not necessarily the worst pick or a bad decision.

Good Life Protection just wants you to understand to shop around and get the best life insurance possible.

You do however have some options that are much better for you and your hard-earned dollars.

Some life insurance companies that come to mind instantly that would be better than the rates with Colonial Penn Life Insurance Company include the following.

Mutual of Omaha

AIG

Gerber Life

Great Western Life Insurance Company

If you work with an independent agency, you will be able to get rates and options tailored to your needs.

Explore your options and may the best Insurance company win!

Our Final Thoughts On Colonial Penn Life Insurance Company

Definitely not the worst company you could choose when shopping for a life insurance product.

The products are average, the options are limited and the price isn’t the best.

It’s still a viable option, especially for any diehard Alex Trebek fans.

Always proceed with caution with any low rated companies when it comes to financial strength especially if they have suffered too many recent downturns in financial strength ratings.

Inquire as to why they have been downgraded or do your own due diligence to research any complaints or potential hazards with a life insurance carrier.

Colonial Penn has proven to be a player in the life insurance industry but many stronger options are present and should be considered.

Who are we?   We are an independent rating and review company.

Our goal is to bring the consumer the information needed to make an educated, informed decision when shopping the life insurance market.

We pride ourselves on providing honest, ethical reviews of all carriers so you can get a first-hand glance at the options in today’s life insurance market.

If you enjoyed our article Colonial Penn Life Insurance Review, we would love to hear from you.

Comment below with any feedback or experience using colonial Penn in the past.

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