InsuredBetter's Colonial Penn Life Insurance Final Score
2 Stars
Colonial Penn Life Insurance Company was founded in 1968, making it a well-established insurance carrier with more than half a century of experience in offering multiple life insurance options to individuals in many different age brackets. The carrier was one of the first to begin offering to senior citizens guaranteed acceptance life insurance with no required medical exam.
Colonial Penn’s history has helped it to earn a reputation as a stable company. Coverage is available in 49 out of 50 states, as well as Washington, DC, Puerto Rico, and the Virgin Islands. However, term life insurance policies are not offered in all states. Colonial Penn is a subsidiary of CNO Financial Group, which serves more than four million customers across the nation. It has an "A" (excellent) financial strength rating from AM Best.
We award Colonial Penn an overall rating of 2 out of 5 stars. While the carrier promises it offers life insurance with no medical exam required, many concerning customer reviews have stated that this is false advertising. Several customers state that they were denied coverage by Colonial Penn based on their medical history or current health status. In fact, during our updated review, it seems that customer reviews of this insurance company have only gotten worse.
Further, the carrier’s public website is lacking in terms of important information about its claims processes and timelines. While claim forms can be downloaded online or from the customer portal, the carrier lacks options for customers to file claims entirely online or over the phone. A concerning volume of customer dissatisfaction impacts our overall rating, but the carrier's high rating from AM Best is a positive.
An independent insurance agent can help you learn more about Colonial Penn and other life insurance companies.
Colonial Penn Life Insurance Company Pros and Cons
| Pros: | Cons: |
|---|---|
Well-established company
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Many online customer complaints/poor reviews
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More than 54 years of experience
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No claims response time frame or official claims process provided
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Offers life insurance with no medical exam
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No 24/7 online or phone claims reporting
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Offers affordable rates
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High ratings from AM Best and the Better Business Bureau (BBB)
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Coverage offered in almost every state
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Colonial Penn Life Insurance Company Products
Colonial Penn is a specialized insurance company that focuses on life insurance. They have a few coverage options available, including:
- Guaranteed acceptance (whole) life insurance (ages 50-85)
- Permanent whole life insurance (ages 40-75)
- Renewable term life insurance (ages 18-75)
For individuals of almost any age, Colonial Penn offers a type of life insurance suited to their needs. If you’re in the market for affordable life insurance, Colonial Penn may be the right insurance company for you.
Colonial Penn guaranteed acceptance life insurance
Colonial Penn's guaranteed acceptance life insurance is a whole life insurance product. Whole life insurance is a permanent life insurance policy that lasts your entire or whole life. Your beneficiaries will receive a death benefit provided your premium has been paid. Whole life insurance also builds cash value over time that you can borrow against.
Guaranteed acceptance whole life insurance is a type of whole life insurance in which applicants are issued a policy regardless of health. With this plan there’s no medical exam or health questions to answer so your acceptance is guaranteed. After your first year of coverage, the policy begins to build cash value which can be borrowed against at a guaranteed rate. Premiums are locked in when coverage takes effect and your rate will not change for the life of the policy.
Colonial Penn Life Insurance Average Prices
Here are some sample monthly average prices for life insurance from Colonial Penn, broken down into age and gender categories.
| Age | Women | Men |
|---|---|---|
| 40 | $15.42 | $18.21 |
| 50 | $24.88 | $29.81 |
| 60 | $32.84 | $42.63 |
| 70 | $49.75 | $72.21 |
| 80 | $81.83 | $116.78 |
What Life Insurance Discounts Does Colonial Penn Offer?
Colonial Penn does not publicize its discounts or savings opportunities on its website.
An independent insurance agent can help you find quotes, discounts, and ways to save for life insurance companies across the country.
Colonial Penn Life Insurance Company Customer Service
Colonial Penn handles most customer inquiries via phone and regular mail. The carrier provides the following customer service options:
- Email options available for customer service inquiries.
- Main hotline for customer service has the following hour restrictions:
| Days | Hours (EST) |
| Monday - Thursday | 8:30 am - 10:30 pm |
| Friday | 8:30 am - 7:00 pm |
| Saturday | 9:00 am - 5:00 pm |
While Colonial Penn offers direct contact options, the easiest way to get life insurance coverage and service is to work with a local independent insurance agent.
Colonial Penn Life Insurance Company FAQs
What is Colonial Penn's average claims response time frame?
The carrier’s public website has no mention of any specific time frame in which they will respond to claims. However, a response given to a customer complaint on the Better Business Bureau website stated that they would receive a mail response within 7-10 business days.
What is Colonial Penn's customer service availability?
Colonial Penn offers a customer service phone lines during restricted hours, Monday - Saturday. The carrier does not offer a 24/7 hotline for claims reporting. However, it does offer an email address for additional customer service inquiries.
What is Colonial Penn's claims process?
Colonial Penn customers must download and mail forms to file a claim. A mailing address and a link to download the necessary forms are available on the website. The company allows customers to call or email them if they have further questions.
The carrier’s claims FAQ answers several questions about claims, but none of them actually detail the claims process. Colonial Penn does not make an official claims response time frame promise, however, customers have reported experiencing a 10-14 day total turnaround for filing claims.
Does Colonial Penn Life Insurance Company create a user-friendly experience for customers?
Colonial Penn’s public website is not extremely modern or user-friendly. Many pertinent pieces of information that prospective customers may be seeking are not readily available, such as information about rates, savings, and the claims process.
Customers do not have the option to file claims online or over the phone. The website does provide an online option to request a quote, and a customer portal for customers to pay bills, manage their account, download claim forms, and more.
Who is Colonial Penn's life insurance right for?
Customers who want permanent life insurance that can't be canceled and that offers guaranteed, fixed premiums may find that Colonial Penn's permanent life insurance is right for them.
How much are Colonial Penn's life insurance rates?
Rates for Colonial Penn's guaranteed acceptance life insurance start at just $9.95 per month.
What life insurance products does Colonial Penn Insurance Company offer?
Colonial Penn currently offers the following life insurance products:
- Guaranteed acceptance (whole) life insurance (ages 50-85)
- Permanent whole life insurance (ages 40-75)
- Renewable term life insurance (ages 18-75)
Sources
https://colonialpenn.com
https://news.ambest.com/PR/PressContent.aspx?refnum=34409&altsrc=9
https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800/customer-reviews
https://www.annuityexpertadvice.com/life-insurance/colonial-penn/
