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There are any number of reasons why someone would need life insurance. While many people think that only young families with dependent children are good candidates for this type of insurance coverage, the reality is that people of all ages could end up leaving loved one at risk for financial hardship.
For example, some survivors may need to replace regular, ongoing income and / or retirement income to continue paying their monthly living. Otherwise, they may be required to make some drastic changes to their lifestyle, and ultimately, their lives. Others could be left with the high cost of a loved one’s funeral and other final expenses – which today can easily exceed $10,000.
When searching for the best life insurance coverage for you, it is important to determine the proper amount and type of coverage that could fit your needs. It is also recommended that you review the insurance company you intend to purchase the policy through to make sure that it is strong financially, and that it has a good reputation for quickly paying out its policy holders’ claims. Colonial Penn is one such life insurance company.
The History of Colonial Penn Life Insurance Company
For more than 50 years, Colonial Penn has specialized in offering life insurance directly to patrons at affordable prices. The company is known primarily for its life insurance coverage for seniors, and it advertises heavily via television, the Internet, and through its call center.
Colonial Penn is a forerunner in designing insurance products to meet the needs of the matured market. In 1968, Colonial Penn became one of the first insurance carriers to offer a guaranteed acceptance life insurance plan that was exclusively for those who are age 50 and over.
Insurance products are underwritten by Colonial Penn Life Insurance Company, a wholly owned subsidiary of CNO Financial Group – a financial services entity that is located in Carmel, Indiana. Through its subsidiary companies, CNO Financial currently serves more than 4 million customers. Colonial Penn is headquartered in Philadelphia, Pennsylvania – just a few short blocks away from the Liberty Bell, Independence Hall, the Betsy Ross House, and many other sites that are rich in U.S. historical significance.
Colonial Penn Life Insurance Review
For many years, Colonial Penn Life Insurance Company has run consistent television commercials, with the host of the game show Jeopardy, Alex Trebek. The company touts the ease with which seniors can secure life insurance coverage, without the need to undergo a medical exam to qualify. And, while the maximum amount of coverage that can be purchased is usually low with these types of plans, the coverage can oftentimes provide peace of mind in knowing that burial and other final expenses are taken care of.
As of June 30, 2017, Colonial Penn Life Insurance Company held a total of nearly $1 billion in assets. So far, for the year 2017, the company has brought in nearly $195 million in premiums and annuity considerations for life, accident, and health contracts. The company’s balance sheet also shows, as of mid-2017, more than $100 million in capital and surplus.
Insurer Ratings and Better Business Bureau Grade
Based on its financial stability, as well as its claims paying record, Colonial Penn Insurance Company has received high ratings from the insurer ratings agencies – which includes an A (Excellent) from A.M. Best Company.
In addition, even though Colonial Penn Life Insurance Company is not Better Business Bureau (BBB) accredited, the company has been given a grade of A- from the BBB. This is on an overall grade scale of A+ to F.
Over the previous three years, Colonial Penn Life Insurance Company has reconciled a total of just 5 customer complaints through the Better Business Bureau (one of these cleared within the past 12 months). Of these five complaints, four had to do with problems with the company’s product/service, and the other one was regarding billing/collection issues.
Life Insurance Products Offered by Colonial Penn Life
There are many different life insurance products that are offered through Colonial Penn. While applicants may be as young as 18 in most cases, the company’s life insurance coverage is primarily geared towards those who are seniors.
Colonial Penn offers both term and permanent life insurance coverage. With term insurance, the insured is covered with death benefit protection only, and there is no cash value build up. Because of that, the premiums on these policies can typically be less than a comparable permanent policy.
As its name implies, term life insurance is purchased for a set amount of time, or term. These terms of coverage may be for durations such as 10 years, 15 years, 20 years, or even 30 years, depending on the age and health of the applicant at the time they sign up for the plan.
Colonial Penn offers term life insurance coverage for those who are age 18 to 75 at the time of application. This level term life coverage is guaranteed renewable up to age 90 – and, during the initial duration of the coverage, the premium rate will remain the same, as will the amount of the life insurance protection. Protection can be purchased up to $50,000.
There is no medical examination required to qualify for this coverage. So, for those who have certain health related issues, there is still a way to go through the life insurance application process without having to submit a blood or urine sample. (However, based on the answers to the application questions, a Colonial Penn underwriter may still contact applicants for additional information).
Permanent life insurance coverage offers both death benefit protection, as well as cash value. As with the term policies offered, the permanent plans can be secured with coverage of up to $50,000.
The cash value can grow on a tax-deferred basis. This means that there is no tax on the gain in the cash account unless or until money is withdrawn. Funds can be either borrowed or withdrawn for any reason, and oftentimes, this is done to pay off high interest debts, supplement retirement income, or even to take a nice, long awaited vacation.
The permanent coverage offered via Colonial Penn is whole life insurance coverage. Here, cash value will begin to build after the first year of coverage – and the interest rate for the cash value growth is set by Colonial Penn.
Whole life insurance plans through Colonial Penn Life Insurance Company are available to those who are between the age of 40 and 75 at the time of application, and they are payable up to the insured’s age 121. While there is no medical exam required for approval with this policy, there are some health-related questions to answer on the application for coverage.
The premium that is charged is based on the applicant’s age and gender when the coverage takes effect, as well as the amount of life insurance coverage that they are applying for. Once in force, the premium rate on these plans will not change – so it can be advantageous for those who are on a limited budget to anticipate what their premium will be for the long term. Premiums for both the whole life and the term insurance plans through Colonial Penn can be paid annually, semi-annually, quarterly, or monthly.
With the whole life insurance policy through Colonial Penn, the full amount of the death benefit will be paid out to a named beneficiary (or multiple named beneficiaries), regardless of when death occurs. If, however, death is due to suicide, then the beneficiary will only receive the amount of the premiums paid in, plus interest (in most states).
Colonial Penn Life Burial Insurance Coverage
Colonial Penn offers many life insurance products that could be used for burial and other related expenses. The company’s guaranteed acceptance whole life insurance is available to applicants who are between the ages of 50 and 85 – and there is no medical exam or health questions to answer to be approved.
In fact, an applicant cannot be turned down – even if they have an adverse health condition. And, once approved for this coverage, the premium rate will never go up, even as the insured ages. In addition, this coverage cannot be cancelled by the insurance company (other than for non-payment of premium).
Because this is whole life insurance, the benefit amount of the coverage cannot be decreased – and the policy will also build up cash value. This cash accumulates tax-deferred, by a rate that is set by Colonial Penn.
With the guaranteed acceptance coverage through Colonial Penn, if the insured dies within the first two years of coverage, then the amount of the death benefit paid out to the beneficiary will be reduced. In this case, the beneficiary (or beneficiaries) will receive the amount of the paid-in premiums, plus 7 percent interest compounded annually – if the insured’s death was due to natural causes. If, however, the death was due to an accident, the full amount of the death benefit will be paid. Likewise, if the insured dies after he or she has been insured for more than two years, then the full amount of the policy’s stated coverage will be paid out.
It is important to note that the term and / or whole life insurance plans (including the guaranteed acceptance policies) may not be available in all states, or the components of the coverage could differ, depending on your state of residence.
Other Products and Services Available
Because Colonial Penn Life Insurance Company has a key focus on life insurance coverage, now the company does not offer any additional products or services. This helps the company to provide top notch customer service to its prospects and policy holders.
How to Get the Best Premium Rates on Life Insurance Coverage Through Colonial Penn
When seeking the best premium rates on life insurance coverage through Colonial Penn Life Insurance Company – or from any insurer – it is recommended that you work with an independent insurance agent. In doing so, you will be able to link policies and prices, side-by-side, from multiple different insurers, and from there you can determine which one will be the greatest for you, and for your budget.
When you are ready to look at the life insurance coverage and the premiums that could be available to you, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the industry today. Because of that, we can provide you with all the important details that you need for making a well-informed life insurance buying decision. We can do this for you quickly, easily, and conveniently – all from your own computer – and without you having to meet in person with a life insurance agent. If you are ready to move forward, then all you need to do is just simply <Click Here Now>.
Should you find that, after reviewing our website, you still have any additional questions or concerns regarding life insurance – including burial coverage – then please feel free to reach out to us directly via phone. Our experts can be contacted toll-free by dialing 888-389-8676.
We understand that the purchase of life insurance coverage can at times seem a bit overwhelming. There are so many different factors to consider – and you want to make sure that you are getting the right type of plan, from a strong and stable insurance company.
But there is good news. When you work with an independent expert in this area, you can get unbiased advice, and you can more easily move towards the coverage decision that is right for you. So, contact us today – we’re here to help.