Colonial Penn Life Insurance

If your health conditions prevent you from getting or affording a standard life insurance policy, Colonial Penn might be the right one for you. It offers life insurance with guaranteed issues, meaning you won’t be turned down. In addition, individuals over 50 are the target market for Colonial Penn Life Insurance.

Colonial Penn Life Insurance

It is also reasonable to shop around for life coverage from a company with fewer complaints, a higher death benefit, and lower premiums before purchasing a Colonial Penn guaranteed issue product. Furthermore, this article will give you the information you need about Colonial Penn Life Insurance, which will help you decide if it’s the best for your family.

Colonial Penn Life Insurance

Colonial Penn Life Insurance was established over 50 years ago by Leonard Davis, a co-founder of AARP. This company began its purpose in Philadelphia and is now located in Carmel, Indiana, and is popular for its $9.95 life insurance policy via TV advertising. It offers only whole life coverage after it stops selling term life insurance as of 2021.

With no medical exams and a restricted death benefit of $50,000, policy options merge with simplified underwriting. These policies benefit individuals who don’t need a significant disbursement, as it would be hard to get coverage elsewhere due to their age and medical record. Generally, these factors result in higher premiums than other forms of insurance.

Types of Colonial Penn Life Insurance

According to researchers, Colonial Penn life insurance might be the best choice, particularly for consumers over 50 who are looking for life insurance. Guaranteed acceptance whole-life policy is one of the main coverage types Colonial Penn offers. However, if you need term life insurance or any form of life insurance, you should consider searching elsewhere.

Whole life insurance

With a cash value component, Colonial Penn’s permanent whole life insurance provides coverage for the policyholder’s entire lifetime. It doesn’t require a medical exam and is available to those between the ages of 40 and 75. Throughout the policy, premiums are fixed, and coverage cannot be terminated.

The range of coverage amounts is $10,000 to $50,000, and after the first year, the cash value increases. It is permissible to borrow money at a guaranteed interest rate secured by the cash value. Furthermore, the remaining debts and withdrawals could lower the death benefit awarded.

Guaranteed acceptance of life insurance

Colonial Penn offers guaranteed issue life coverage without the need for medical examinations or health questionnaires. Regardless of a person’s pre-existing medical conditions, this coverage is available to them. However, because less personal information is needed, the premium is higher. For non-accidental causes, the policy has a two-year limited benefit period.

After that time, the full face amount is paid. Except in Oregon and Utah, accidental death during the first two years is covered at full face value. Also, candidates may purchase insurance in increments of one to fifteen, with fixed rates beginning at $9.95 each. Except in Minnesota, New Jersey, and Pennsylvania, individuals between the ages of 50 and 85 can purchase guaranteed acceptance life coverage from Colonial Penn.

Simplified whole life

For candidates between the ages of 50 and 75, Colonial Penn provides LifeChoice, a simplified whole-life product, in New York. The policy has set rates and requires eligibility through a brief medical questionnaire. The policy offers benefits up to $25,000 and is perpetual.

How Much Does Colonial Penn Life Insurance Cost?

The cost of life insurance is competitive within the insurance field. Although each provider determines policy costs using a different process, there are a few factors that are always present. Generally, the following factors will determine the premium you pay:

  • Age.
  • Health and past medical records.
  • Gender.
  • Lifestyle.
  • Policy type.
  • Coverage amount.
  • Credit score.

You can purchase whole-life policies from Colonial Penn online or over the phone by contacting their toll-free number. Furthermore, you can find out the same day you apply whether or not your application was accepted.

Advantages and Disadvantages of Colonial Penn Life Insurance

Colonial Penn life insurance has potential benefits and cons, just like any other insurance company. In addition, the following are some of the main focuses that state both the advantages and disadvantages of getting life insurance with this company.

Advantages

  • Provides options for life insurance without a medical exam.
  • AM gave it an A (Excellent).
  • Ideal for monetary stability.
  • Both Spanish and English are available for customer service.

Disadvantages

  • There are very few different types of policies.
  • More complaints than those of other similar-sized companies were filed with the National Association of Insurance Commissioners.
  • Low coverage limits for every kind of policy.

Should I Get Colonial Penn Life Insurance?

Since Colonial Penn life insurance is so expensive, unlike other life insurance companies, it is rarely beneficial to purchase. This is valid for the LifeChoice whole life policy, which is exclusively available in New York, and the 9.95 guaranteed acceptance plans.

In addition, you can obtain much more coverage at a lower cost from several different providers. Furthermore, there is a two-year waiting period before you are covered for natural causes of death under Colonial Penn 9.95 plan policies. Numerous other final expense life insurance providers provide policies with no waiting period that fully insure you from the first day.

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