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Colonial Penn Life Insurance Review

see how Colonial Penn Life Insurance compares

1 Minute Review

Colonial Penn sells simple, no-fuss products for shoppers who don’t need a lot of choices. It’s easy to tell what you’re buying with your policy, and they don’t sell riders with additional coverage. Colonial Penn covers individuals over age 50 and those in poorer health — and does not require medical exams. Many of the policies lock in your rate and promise it won’t increase over the policy’s life.

Best For

  • Those seeking a low death benefit
  • People purchasing life insurance later in life
  • Those with preexisting conditions

Pros

  • Easy online application process
  • Everyone qualifies for coverage
  • Renewable term insurance options

Cons

  • Maximum death benefit on all policies of only $50K
  • No agents or offices for in-person assistance
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Life insurance provides for loved ones and family members after you’re gone. If your spouse wouldn’t be able to pay the mortgage without your income, a life insurance policy payout could be used to pay off the house. If a parental co-signer on a student loan might struggle after you’re gone, the policy could help them. Buying life insurance isn’t about you, but about the ones you love.

Even though life insurance is often marketed to the young, Colonial Penn knows that even people in their 50s, 60s and beyond want to buy life insurance. They’ve been selling to customers in higher age brackets for over 60 years, when other companies might not cover you. 

If you’re shopping for life insurance and fall into an older age bracket or just want a simple policy with no confusing riders, read our Colonial Penn Life Insurance Review.

Who’s Colonial Penn Life Insurance for?

Colonial Penn targets life insurance buyers who are later in life. You might not have been able to afford a policy when you were younger and in better health but still want to provide your family some protection now. For this reason, no policies require medical exams. You might have to answer a few health-related questions from an underwriter, however.

Colonial Penn does not exclude applicants based on preexisting conditions, which is rare in the life insurance industry. Even if you just received an upsetting diagnosis, you can purchase coverage. Be aware, however, that there is a limited death benefit during the first 2 years of the policy’s life.

If you have questions about how to buy life insurance and want to meet with an agent, Colonial Penn isn’t for you. They can only answer questions over the phone or via email.

Colonial Penn Life Insurance Products

Colonial Penn features 3 life insurance products that are sold directly online or over the phone:

  • Guaranteed Acceptance Life Insurance (ages 50–85)
  • Permanent Whole Life Insurance (ages 40–75)
  • Renewable Term Life Insurance (ages 18–75)
  • Living Insurance Permanent Whole Life Insurance
  • Living Insurance Renewable Whole Life Insurance

Focus on Term Life: Colonial Penn Term Life Options

Term Life policies have no value when the term ends. Your premiums pay for the death benefit your loved ones would receive when you pass away. Because the policies contain no savings vehicle like a Whole Life policy premiums are cheaper.

Colonial Penn sells 2 types of Term Life policies: Guaranteed Acceptance life insurance and Renewable Term Life insurance products.

The first product is unique in the industry, guaranteeing that any applicant will be accepted. It’s typically sold to individuals ages 50–85 and doesn’t require a medical exam. That’s because it’s sold differently than standard life insurance. 

Instead of paying a monthly or annual premium, Colonial Penn sells its guaranteed product in units. After you input your age, gender and location, you’re assigned a unit of coverage. Each unit costs $9.95 and you can buy up to 8 of them. The coverage and payout included in the units depend on the factors you gave when applying.

A unit could represent just $10,000 of a payout to beneficiaries. Among cheap life insurance companies, it’s worth considering. 

Colonial Penn’s Renewable Term Life product allows policyholders to renew their policy when it expires, up to age 90. However, rates do increase as you age. The maximum life insurance benefit is only $50,000, which may not be enough coverage for some people. 

The policy has an early payout option, also called an accelerated death benefit rider. If you have a heart attack or stroke, or are diagnosed with cancer or other chronic illness, you can get up to 50% of your life insurance benefit. Flexible payment plans let you pick a payment schedule that works for your budget, whether it’s monthly, quarterly, semi-annually or annually.

Focus on Whole Life: Colonial Penn Term Life Options

Whole Life policies provide both a death benefit and work like a savings account. Your policy builds cash value as you pay premiums. Colonial Penn permits policyholders to borrow against this cash value by taking a policy loan.

Permanent Whole Life, sold to people ages 40–75, has a locked-in rate for life. The maximum death benefit is only $50,000, and premiums paid are based on gender and age. Unlike the Guaranteed Acceptance life insurance, premiums function based on underwriting and can vary.

Living Insurance Permanent Whole Life works just the same except you can take up to 50% of your benefit if you meet 3 early payout options: A heart attack or stroke, a cancer diagnosis and chronic illness all qualify.

The advantage to Whole Life insurance over Term Life is that some of your premiums are returned to you in its cash value. If you hit a rough patch, you can borrow against it, and as long as you keep paying premiums your policy won’t expire.

Available Discounts and Tips on Getting the Best Rates

The only discount that Colonial Penn offers is 1 month free if you pay for the full year in advance. Because they sell no other types of insurance, there are no bundling or multi-policy discounts.

Reducing your blood pressure, quitting smoking, exercising regularly and maintaining a healthy weight would typically help you get the best life insurance rates. But Colonial Penn doesn’t require medical exams, and lifestyle factors aren’t considered when underwriting policies. Therefore, while these are great lifestyle choices, they have no benefit to you with this company.

Colonial Penn Life Insurance Coverage Selections

With other life insurance companies you can select a higher or lower death benefit depending on the premiums you want to pay. You can add riders, such as an accidental death benefit that doubles or triples the payout under certain circumstances. Colonial Penn sells straightforward, no-frills products that offer no true coverage selections.

The only choice you have to make when buying a policy is how many units you want to buy to build up coverage, or the amount of death benefit under other options. Unfortunately, you can’t sit down with an agent to determine how much life insurance you need, but you can talk to Colonial Penn’s salespeople on the phone.

Pricing and Value

It’s difficult to tell if Colonial Penn offers a good value because each unit they sell varies by customer. A unit of $50,000 of coverage for only $9.95 could be a great value to one person, and another might pay the same for just $20,000 of death benefits.

The value that Colonial Penn gives buyers is the ability to buy a policy if you’re older or have preexisting conditions. You can still leave something behind for your family to help them pay off the mortgage or credit card debt.

Customer Service

Colonial Penn doesn’t provide a mobile app to use but there are other ways to get in touch. All changes in beneficiaries, claims, and other forms must be completed by pen and paper and sent through the mail. For more information call Sales at 877-877-8052 Monday through Friday 8:30 a.m. to 10 p.m. and Saturday 9 a.m. to 5 p.m. EST. 

Claims Support

To file a life insurance claim, the beneficiaries must first complete a claimant’s statement. Then, they must mail it and a certified death certificate for the insured to Colonial Penn. If you have questions, Colonial Penn can be reached by email, mail or phone. Service can be reached at 800-523-9100 Monday through Saturday.

Weigh the Options

Younger shoppers will find better value and more coverage options in other insurance companies and may be frustrated by the lack of digital tools on Colonial Penn’s website. They also might want to add riders like accidental death and dismemberment or child coverage. These would pay out a higher death benefit in the case of accidental death, or cover a child’s funeral expenses. 

Colonial Penn’s limited range of products clearly target an older demographic. It’s great to find a company willing to help all ages access life insurance.