Colonial Penn, a subsidiary of CNO Financial Group, Inc. (NYSE: CNO), specializes in simplified- and guaranteed-issue life insurance. Both of these options mean you don’t need a medical exam to get coverage. With some of its policies, you do need to answer a few health questions to be approved.
Colonial Penn’s most popular product is its guaranteed-issue life insurance. It’s available to people aged 50 and older. You have to wait 2 years to receive the full death benefit, but being able to obtain coverage regardless of your current health status may be worthwhile.
Colonial Penn has been in business for over 60 years, and it’s licensed to do business in 49 states and D.C. (New York is the exception). While it doesn’t have a mobile app, it does have online chat and account access. It also has extensive customer service hours if you need assistance by phone.
Overall, Colonial Penn serves a particular need in the insurance market, and it does that well. Its policies have relatively low death benefits (up to $50,000), and its easy application process makes it a good fit for folks who may not be in perfect health or who don’t want to deal with a medical exam.
- Older adults who need final expense coverage
- Adults concerned about needing funding for a critical illness
- Offers guaranteed-issue life insurance
- Offers term and whole life insurance
- Offers life insurance with an accelerated death benefit
- 2-year wait for full benefits with guaranteed-issue life insurance
- No mobile app
Colonial Penn Life Insurance Ratings at a Glance
Life insurance provides for loved ones and family members after you’re gone. Buying life insurance isn’t about you, but about the ones you love. Colonial Penn offers a simple application process for its term and whole-life policies. Are one of these right for you? Learn more in this Colonial Penn life insurance review using our guide.
Colonial Penn focuses on simplified and guaranteed-issue life insurance. This means they don’t offer high death benefit amounts, and they only offer whole life and term insurance, not universal life. Within this niche, Colonial Penn offers a few options.
Guaranteed Acceptance Life Insurance
As the name indicates, all applicants are accepted for this life insurance coverage. It’s available to those ages 50 to 85 in most states. You don’t have the full death benefit until you’ve had the policy for 2 years. In the event of your death during the first 2 years, your beneficiaries would receive a refund of your premiums plus interest.
With this whole life policy, the premiums don’t change, and the policy builds cash value. You can borrow against the cash value or surrender the policy and receive the cash value in return.
Permanent Whole Life Insurance
This whole life policy is available to those ages 40 to 75. It’s a simplified-issue policy, which means that you are required to answer a few health questions, and Colonial Penn’s underwriters will decide your eligibility based on those answers. The maximum amount of coverage available is $50,000.
Renewable Term Life Insurance
Term insurance is life insurance that doesn’t accumulate cash value, making it less expensive than whole life insurance. Term insurance is typically in place for a set period of time, and you may or may not have the option to renew your coverage depending on the terms of the company. For example, if you purchase 10-year term insurance, you have the same rate and the same level of coverage for 10 years.
Colonial Penn’s renewable term insurance works a bit differently. You answer a few health questions, and Colonial Penn decides whether to approve your application based on those answers. The policy is renewable up to age 90, and your rates increase as you enter a new age band. Most of Colonial Penn’s age bands cover 5 years. For example, if you’re male and you purchase a $15,000 policy at age 40, you’ll pay $11.61 per month. The next age band starts when you turn 41 and lasts until you turn 46. You would pay $14.50 per month from ages 41 to 45.
This policy is available for ages 18 to 75 and has a $50,000 maximum death benefit.
Colonial Penn also offers 2 insurance policies with an early payout option. It has a whole life version and a renewable term version. You can choose among 3 early payout options:
- Up to 50% of your death benefit if you’re diagnosed with a disabling chronic illness
- Up to 50% of your death benefit if you’re diagnosed with a heart attack or stroke
- Up to 25% of your death benefit if you’re diagnosed with cancer (other than skin cancer)
The whole life version is available to persons between the ages 40 to 75, and the renewable term version is available to ages 18 to 75. Both have a maximum death benefit of $50,000.
Colonial Penn also has a supplemental health insurance policy that pays cash in the event of an accidental injury or critical illness.
Here's a summary of costs for the guaranteed acceptance life insurance for people ages 50 to 85. Keep in mind that a single unit of $9.95 per month only offers about $700 in coverage. But with Colonial Penn's $9.95 plan, you can customize how many units you need.
|# Of Units||Monthly Cost||# Of Units||Monthly Cost|
|8||$79.60||**You can't buy more than 15 units**|
You can reach Colonial Penn directly by phone. The sales team is available from:
- 8:30 a.m. - 10 p.m. Eastern Time, Monday to Thursday
- 8:30 a.m. - 7 p.m. ET Fridays
- 9:00 a.m. - 5 p.m. ET Saturdays
The sales number is 1-877-877-8052, and the customer service number is 1-800-523-9100. New York policyholders can call 1-800-323-4542.
Colonial Penn makes the claims process accessible. It has clear instructions on its website, and you can download the claim forms from there as well. If you need assistance, you can reach out to Colonial Penn’s customer service representatives for assistance.
Riders are options to enhance your insurance coverage. Colonial Penn’s policies are streamlined, and its rider options are limited. The main rider it offers is the living benefit rider discussed above. It also offers an accidental death benefit rider with some of its policies.
Colonial Penn is a good choice for those who have more limited insurance options due to their age or health. If you’re younger, in relatively good health or need higher benefits to ensure your family is protected after you’re gone, Colonial Penn may not be the best choice.
Colonial Penn Life Insurance vs. Competitors
Colonial Penn sets itself apart by offering life insurance policies with no medical exams. Other companies offer simplified-issue policies, however, and at higher benefit amounts. If you’re looking for this type of coverage, consider getting quotes from multiple insurance companies to find the best rate.
- securely through AAA Life Insurance Review's websiteBest For:Guaranteed issue life insuranceRating:
Frequently Asked Questions
Does Colonial Penn have a waiting period?
Colonial Penn has a two year waiting period for its guaranteed acceptance whole life insurCance policies.
How much is Colonial Penn life insurance?
Colonial Penn charges $9.95 for guaranteed acceptance coverage regardless of the applicant’s age or gender.
Who is Colonial Penn's life insurance good for?
Colonial Penn’s life insurance is good for those who want a small death benefit for funeral and other end of life expenses. It’s also good for people who can’t get coverage elsewhere.
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