Colonial Penn Life Insurance Review (Updated)

Colonial Penn Life Insurance (review below) is most known for their guaranteed acceptance life insurance, in addition to other life products. Get coverage for as low as $9.95/unit.

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Schimri Yoyo is a financial advisor with active life and health insurance licenses in seven states. Born in Haiti. Reared in Brockton, MA. Matured in Philadelphia. Schimri is a proud graduate of Arcadia University, having earned both a Masters in Special Education and an MFA in Creative Writing from the castle-riddled campus in Glenside, PA. By personality and by profession...

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UPDATED: Jul 9, 2020

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Colonial Penn Life Insurance Company Overview
Key InfoCompany Specifics
Year Founded1957
Current ExecutivesCEO – James Prieur
President – Joel Schwartz
Number of Employees290
Total Sales / Total Assets$345,000,000 / $1,031,300,000
HQ Address399 Market Street
Philadelphia, PA 19106
Phone Number1-866-235-3518
Company Websitewww.colonialpenn.com
Premiums Written – Individual Life$296,600,000
Financial Standing$12,400,000
Best ForGuaranteed Acceptance Life Insurance
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This Colonial Penn Insurance review will help you understand which insurance plan works for you.

You may ask some of the following questions: What are the pros and cons of choosing Colonial Penn Insurance? What about Colonial Penn vs Globe Life? What’s good life insurance for seniors? Term or permanent life insurance — which is better for you?

Answering these questions can be overwhelming, so a Colonial Penn Life Insurance Review is just what you need. There are a plethora of Colonial Penn Life Insurance reviews out there, so we’re glad you chose this guide.

Don’t wait — before diving into this Colonial Penn Life Insurance review, enter your ZIP code in the above FREE quote tool to compare rates with others on the market instantly.

Average Colonial Penn Life Insurance Rates by Age

The table below gives you an idea of what types of rates to expect from Colonial Penn between the ages of 50 and 85.

Colonial Penn Life Insurance Coverage Amount by Age
Policyholder AgeColonial Penn Life Insurance
Coverage Amount
50$1,786
51$1,732
52$1,676
53$1,621
54$1,562
55$1,506
56$1,425
57$1,392
58$1,333
59$1,273
60$1,214
61$1,157
62$1,099
63$1,043
64$987
65$932
66$880
67$834
68$792
69$753
70$717
71$683
72$652
73$620
74$589
75$560
76$531
77$503
78$477
79$450
80$426
81$424
82$423
83$421
84$420
85$418
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As you can see from the table, while the monthly rate of $9.95 remains the same, you stand to gain more coverage the younger you are.

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Colonial Penn’s Life Insurance Policies

Colonial Penn advertises that its policies are great life insurance policies for seniors. Let’s see what else they have.

Term Life Insurance

Colonial Penn offers Renewable Term Life Insurance, which is up to $50,000 in coverage. It’s for individuals ages 18–75, so that’s both young folks and seniors.

It also offers:

  • No medical exam
  • Answers to questions on the application help us determine your eligibility
  • Renewable coverage to age 90
  • Locked-in premium rate schedule

Do note that rates increase with age with the term life insurance. For more info about no-exam term life policies, check out this other no medical exam term life QuickQuote article.

Whole Life Insurance

Colonial Penn offers Permanent Whole Life Insurance, as well. It is permanent life insurance with a locked-in-for-life premium. Colonial Penn whole life insurance is for ages 40–75 and also includes:

  • No medical exam
  • Answers to questions on the application help us determine your eligibility
  • Lifetime coverage

The coverage for this policy is also up to $50,000.

Other Life Insurance Products

There are two other products Colonial Penn offers:

  • The “living insurance” Permanent Whole Life Insurance + an Early Payout Option
  • The “living insurance” Renewable Term Life Insurance + an Early Payout Option

Both of these policies are the same as the policies listed above plus up to a 50 percent early payout option for your family, in addition to the already defined payout.

Burial & Final Expense Insurance

If you’re wanting Colonial Penn burial insurance, the company also offers the Guaranteed Acceptance Life Insurance which is its most advertised insurance and is a permanent type of life insurance. See the below, which is from Colonial Penn’s website:

Coverage for:

  • Ages – 50–85 in most states
  • Medical Exam Requirements – You cannot be turned down because of your health. We can guarantee acceptance because of a two-year limited benefit period. This is permanent, whole life insurance with no health questions asked and no physical to take.
  • Length of Coverage – Lifetime
  • Maximum Life Insurance Benefit – Varies
  • Cash Value – Begins to build cash value after the first year of coverage which you can borrow against at a guaranteed rate.
  • Premium Rates – Your rate is locked in when coverage takes effect. Your rate will not change for the life of the policy.
  • Flexible Payment Options – Enjoy the flexibility to pay premiums monthly, quarterly, semi-annually, or annually.

During your research, you may have wondered, What is the best life insurance for seniors? As you can see, this type of policy is directed towards seniors and would be a great fit for them.

How to Get a Quote Online With Colonial Penn

Colonial Penn makes getting a quote for Guaranteed Acceptance Life Insurance rather easy to find.

This is only for the Guaranteed Acceptance Life Insurance. Once you enter this preliminary information, you’re asked to enter another page of information before you can get your instant quote. It’s not actually as quick as the page seems to make it out to be.

For example, we entered some basic information for one of our writers into the quote box and it redirected us to call an agent. But — that might have been because the user’s data we entered was for a birthday younger than someone in the senior-aged bracket.

Canceling Your Life Insurance Policy

Perhaps you’re not satisfied with your policy. Luckily, Colonial Penn makes it quite simple to do so.

How to Cancel

So, yes, you can cancel your life insurance policy. You’ll just need to call Colonial Penn Customer Service at 1-877-877-8052.

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How to Make a Claim With Colonial Penn

Ultimately, you’ll eventually need to make a life insurance claim. The best way to submit a Colonial Penn life insurance claim is to do the following, according to their frequently asked questions:

Most life insurance claims can be processed upon receipt of a claimant’s statement completed by the named beneficiary(s), and a certified death certificate for the insured. The original insurance contract(s) should also be returned, if available. Only one death certificate is required regardless of the number of policies or certificates.

These documents should be sent to:

Colonial Penn Life Insurance Company
Life Claims Dept
PO Box 1918
Carmel, IN 46082-1918

For NY Residents:

Bankers Conseco Life Insurance Company
Life Claims Dept
PO Box 1918
Carmel, IN 46082-1918

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Colonial Penn’s Customer Experience

So, what do the Colonial term life insurance reviews say? There are a few other guides out there similar to this one, and regardless of best customer experience reviews or worst customer experience reviews, the other guides out there lead you to a similar conclusion: Colonial Penn is good for final expense insurance, but not much else.

Colonial Penn’s Programs

Colonial Penn appears to partner with the American Heart Association. The company is partnered in the “Healthy for Good™ campaign” that advocates for individuals to eat better and live well.

The website doesn’t give much information about this program or what else Colonial Penn is doing in this campaign to achieve its goal.

About Colonial Penn Life Insurance

Colonial Penn Life’s headquarters are based in Philadelphia. It was founded by Leonard Davis, the philanthropist, and founder of AARP. Colonial Penn has been through a few sales but lastly landed with CNO Financial Group.

Colonial Penn, according to the Leonard Davis New York Times obituary, specializes in selling insurance policies to the more mature market.

Colonial Penn’s Ratings

Here we’ll discuss Colonial Penn’s financial strength ratings. Companies like A.M. Best and Better Business Bureau are companies that rate many different companies against a standardized model. Here are those ratings:

  • AM Best: A- (Excellent)
  • Colonial Penn is not rated with the BBB, but their parent company is: A-.
  • FItchRatings (CNO Financial): A-

Here’s an up-to-date review of CNO Financial’s Ratings.

Financial Agency Ratings
A.M. BestBetter Business Bureau (BBB)
FitchRatings
A++ (Superior)A+AAA
A+ (Superior)AAA
A (Excellent)A-A (A-)
A- (Excellent)B+BBB
B++ (Good)BBB
B+ (Good)B-B
B (Fair)C+CCC
B- (Fair)CCC
C++ (Marginal)C-C
C+ (Marginal)D+
C (Weak)D
C- (Weak)D-
D (Poor)F
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As you can see from the table above in the respective columns, Colonial Penn has done quite well.

Colonial Penn’s Market Share

Here is an overview of CNO Financial’s (which includes Colonial Penn) competition. The Top 10 Life Insurance Companies are shared below — Colonial Penn falls outside the top 10. Colonial Penn ranked 46th with a .51 percent market share and $829.5 million of direct written premiums.

Top 10 Life Insurance Companies by Market Share
RankCompaniesDirect Written PremiumsMarket Share
1Northwestern Mutual$11,278,801,8226.48%
2New York Life$11,053,776,2276.35%
3MetLife$10,767,180,6686.19%
4Lincoln National$9,651,117,0725.54%
5Prudential$9,642,360,3895.54%
6MassMutual$7,984,470,4234.59%
7Aegon/Transamerica$4,868,457,5512.80%
8John Hancock$4,817,849,5772.77%
9State Farm$4,797,872,9702.76%
10Minnesota Mutual$4,724,702,5912.71%
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Colonial Penn’s Online Presence

Insurance companies use social media, and we would expect Colonial Penn to follow suit. The company has a Facebook page, but no Twitter. Its parent company, CNO, has a Twitter account, though.

Colonial Penn’s Commercials

Many insurance companies have TV commercials, and in Colonial Penn’s case, that is no different. Here’s an example of a commercial run for Colonial Penn. As you can see, Alex Trebek (from Jeopardy!) is a spokesperson for Colonial Penn.

He’s speaking to the Guaranteed Acceptance Life Insurance, insurance where you can call or apply online and be approved in moments.

Colonial Penn in the Community

It’s always great where we hear about businesses that help their communities. Colonial Penn isn’t like larger companies; as mentioned before, according to the website, it has only partnered with one cause and that is the American Heart Association. It doesn’t have updates or much information on the site about what that partnership entails.

Colonial Penn’s parent company, CNO Financial, has been awarded a Gold Workplace Health Achievement Recognition from the American Heart Association though.

Colonial Penn’s Employees

Colonial Penn’s Life Insurance company employee reviews are not positive. Colonial Penn has a 2.2 star rating out of 5 stars. According to the overall reviews, only 23 percent would refer this workplace to a friend, which is abysmally low. Some of Colonial Penn’s employee reviews even say such ominous things as “beware”, and go so far as to call the work environment “Trash Trash Trash” in this employee review.

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Pros & Cons of Colonial Penn Life Insurance

It’s important to consider the pros and cons of Colonial Penn insurance. You might be wondering, Is Colonial Penn a good life insurance company? Below are our considerations.

Pros of Colonial Penn Life Insurance

Here we’ll discuss the pros of Colonial Penn.

  • This company has an Excellent rating (A-) with AM Best.
  • Colonial makes insurance affordable with its $9.95 pricing.
  • Its product is exclusively targeting seniors and older folks, which is helpful if you’re older and looking for a policy.
  • The company’s Guaranteed Acceptance Life Insurance is easy to get because it doesn’t have many forms or medical exams.

Considering their affordable pricing and Guaranteed Acceptance Life for older folks, it makes it easier for seniors.

Cons of Colonial Penn Life Insurance

Now we’ll discuss the cons of Colonial Penn.

  • Poor workplace and employee reviews
  • Colonial Penn isn’t accredited with the BBB which is odd.
  • Its partner website (MyColonialPenn.com) is clunky to use.
  • The company doesn’t have any apps on the Google Play or Apple App Store.
  • Colonial’s insurance is more like final expense insurance because of the coverage of the $9.95 units they offer.

If final expense insurance is what you’re looking for, this is a good choice.

Colonial Penn Life Insurance: The Bottom Line

The unit tiering system (more details on that below; Colonial Penn Guaranteed Life insurance is sold in “units”) strikes us as suspect because the amount you’re covered for as you age decreases. The coverage should, in our opinion, stay the same at the very least.

You’ll notice that the term and whole life insurance coverage only goes to $50,000 in the regular plans through Colonial Penn. You can get much higher coverage elsewhere (depending on demographics — but at places like MassMutual, John Hancock, or even a smaller company like Erie Life Insurance Group) for less than the cost of buying all eight units of care.

We hope you found this Colonial Penn Life Insurance Review helpful. Now, you can also check out our FREE quote tool below where you’ll enter in your ZIP code and compare life insurance companies instantly.

Frequently Asked Questions: Colonial Penn Life Insurance

Here we have a few life insurance company FAQs and answers, which you might find helpful:

#1 – How much life insurance do you get from Colonial Penn for $9.95 a month?

Guaranteed acceptance life insurance is sold in units. According to Effortless Insurance: “1 unit costs $9.95, 2 cost $19.90, 3 cost $29.85, and so on up to 8 units, which cost $79.60.”

The author then goes on to say: “Here is the issue: While the price per unit never changes, the unit max benefit […] is set by your age and what Colonial Penn Life decides is appropriate. So 1 unit costs the same $9.95 for a 77-year-old and a 50-year-old, but the 77-year-old’s benefit amount is $503 while the 50-year-old’s is $1786.”

#2 – How much is a unit of Colonial Penn Life Insurance? What is a unit of life insurance?

According to their website, a unit of coverage corresponds to the life insurance benefit amount you can purchase and it depends on age, gender (except in MT), and state. As stated above, “1 unit costs $9.95, 2 cost $19.90, 3 cost $29.85, and so on up to 8 units, which cost $79.60.”

#3 – What is the Colonial Penn life insurance phone number?

You can contact Colonial Penn at 1-877-877-8052.

References:

  1. https://sec.report/CIK/0001224608
  2. https://www.fitchratings.com/research/insurance/fitch-affirms-cno-financial-group-ratings-outlook-stable-on-coronavirus-review-21-04-2020
  3. https://www.bloomberg.com/press-releases/2019-10-22/cno-financial-group-receives-gold-workplace-health-achievement-recognition-from-the-american-heart-association-for-the-second-y
  4. https://www.glassdoor.com/Reviews/Employee-Review-Colonial-Penn-Life-Insurance-RVW31574167.htm

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