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Colonial Penn Review

Reviews 15
Colonial Penn
Colonial Penn
Poor
Reviews 15
Catherine Miller
Jun. 04, 2023
4 min read
Catherine Miller
Colonial Penn Summary
Colonial Penn Life Insurance Company was founded in Philadelphia and has specialized in life insurance for over 60 years. Its Guaranteed Acceptance whole life insurance policy is available to those aged 50-85, regardless of pre-existing conditions. Colonial Penn makes it straightforward to get your life insurance, with online application, fixed premium prices, and no medical exams, made possible by limiting the benefit for the first two years.

Pros

  • No medical exam needed
  • Fixed premium prices

Cons

  • Limited customization of your policy
  • 2-year limited benefit

Colonial Penn at a glance

8
Editorial score

Coverage type

Guaranteed Acceptance whole life insurance, 2-year limited benefit window
8.0

Customization of policies

Rates and services automatically customized to your details with no option to change rates. Buy online without needing to speak with an agent
6.0

Customer services and support

Multiple communication options, ability to speak to an agent
8.0

Online experience

Basic but clear website with information about insurance offered. Straightforward process to get an online quote
8.0

Direct insurer?

Yes, direct insurer
10.0

Who Can Benefit From Colonial Penn Life Insurance?

Colonial Penn’s Guaranteed Acceptance whole life insurance is ideal for those who want to ensure their loved ones are provided for after they pass away. With this type of insurance, a lump sum death benefit will be paid to your beneficiary after you pass, which can be really helpful to your family in paying off your debts, dealing with funeral costs, or helping them survive without your income. 

Colonial Penn’s Guaranteed Acceptance coverage is available to those aged 50-85 in most states. Note that In Washington DC, the age availability  is 55-85, in Pennsylvania it is 56-85, and in Minnesota, Montana, and New York, 50-75 , in New Jersey it’s 50-77 for a male and 50-82 for a female. You can combine multiple units of coverage, with the value of each unit determined by your age and gender. 

This coverage availability for higher age ranges, plus the waiver of a medical exam, make Colonial Penn’s Guaranteed Acceptance great for the older age group who might otherwise struggle to get life insurance. So, if you’re short on time and want to get your life insurance sorted out quickly or have medical conditions that might make it tough for you to get other insurance, this could be an ideal choice.

Features

Colonial Penn’s Guaranteed Acceptance whole life insurance has a few features I really like. In general, the company makes it straightforward to apply for and secure your insurance, and it’s presented in an uncomplicated way. However, this simplicity does mean there are limited options for customizing your coverage beyond choosing your benefit level. This aside, it’s great to see that Colonial Penn offers:

  • No medical exam: to apply for Colonial Penn’s Guaranteed Acceptance whole life insurance, you don’t need to complete a medical exam. This makes it really convenient to get covered. (They limit the benefit for the first two years.) 

  • Locked-in premium: once your coverage is approved, your premium price is locked in for the life of the policy and won’t change. This makes it easy for you to plan and budget. 

  • Flexible payment plans: you can choose to pay your premium annually, semi-annually, quarterly, or monthly. 

  • 30-day money-back guarantee: if you change your mind soon after purchase, you can get a complete refund within the first 30 days.

Application Process

Applying for Colonial Penn’s life insurance is very straightforward. You can first obtain a quote on the website by inputting a few details such as your age, location, and gender. Once you have your quote, if you want to go ahead and apply, you can do this entirely online. You will need to submit more personal information (although no health details are required) and select your beneficiaries. 

If you want, you can also apply over the phone with an agent or by mail. However, the fact that you can complete the process online without needing to speak to an agent is a great feature, as this can save you lots of time.

Policy Types and Terms

Colonial Penn only offers whole life insurance, with no term insurance available. 

The Guaranteed Acceptance life insurance is available to applicants aged 50-85 in most states. In Washington DC, the age availability  is 55-85, in Pennsylvania it is 56-85, and in Minnesota, Montana, and New York, 50-75 , in New Jersey it’s 50-77 for a male and 50-82 for a female. You can combine multiple units of coverage, with the value of each unit determined by your age and gender. 

For example, I obtained a quote for a 75-year-old male in California. Each unit of cover would cost $9.95/month and provide $549 worth of benefit. The maximum number of units was given as 15, meaning a monthly cost of $149.25 and a benefit of $8,235. You can also opt to add an extra payout for accidental death, from $1,000 up to $10,000. Each $1,000 dollars of payout for accidental death adds $0.20 to your monthly premium.

It’s important to note that this insurance has a two-year limited term, meaning you won’t be able to claim your full payout if you make a claim within the first two years of taking out the policy. However, with this type of coverage, you won’t be turned down for any health reason, making it an ideal choice if you have a pre-existing condition. 

The other useful feature of this policy is that you can borrow against it (after the first year of coverage has elapsed), with an interest of 8% annually. If you haven’t paid off the loan by the time you pass away, the remaining balance will be paid off by the benefit. This could be useful if you want to pay for care or housing in your older age.

How Safe Is It? 

Colonial Penn keeps your personal data safe by using secure servers (with 128-bit encryption) when transferring data. Encryption protocols include Secure Socket Layer (SSL), IPSEC, and TripleDES.

Besides the technical security of the company, it’s worth considering the insurer’s reputation. 

The BBB itself rates the business A+.

Help & Support

You can seek customer support on the phone, Monday-Friday, 8.30am-5.30pm EST (1-800-523-9100). It’s great that Colonial Penn also provides live chat support on the website, 9am-9pm EST. I found the chat support team friendly and helpful, with a quick response time.

Bottom Line

Colonial Penn’s life insurance service is certainly no-nonsense, with few extras, frills, or options for customization. But this simplicity arguably makes it quicker and easier to understand and apply for your life insurance policy. 

The whole process, from obtaining your quote to making your application, can be done online in a small amount of time. And as there are no medical exams needed and no requirement to speak to an agent, this could be a great way to get your life insurance sorted. 

It’s worth bearing in mind that there are some poor customer reviews on sites like the BBB, but with a 30-day money-back guarantee, you can get a full refund if you decide it’s not for you.

Physical Address

Colonial Penn Life Insurance Company

399 Market Street

Philadelphia, PA 19106

Catherine Miller
Written by
Catherine Miller
Catherine Miller is a lead member of personal finance and pension innovator Maji, where she’s responsible for content creation and running Maji’s personal finance masterclass, among others. She is also a freelance writer in the fields of finance and education, and holds degrees in English and education.
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JB
Jim Bergles
2 days ago
Tired of ads
Tired of these people lying to people and constant ads 9.95 a month insurance = 1000.00 dollar coverage give me a break
JW
James Wright
1 month ago
Because they don't pay for 1st 2 years
Because they don't pay for 1st 2 years, you end up paying $2400 for $900 worth of coverage. No wonder they say you can keep it as long as you pay your premiums. After 10 years, you've paid $24,000 for $900 worth of insurance. Sure you want to just make CP rich?
Lynn Hodgdon
2 months ago
They are a terrible insurance company
They are a terrible insurance company, I have had my policy for over 5 years and pay approximately 70.00 a month for a $20,000. whole life policy. Now trying to get a Whole life policy through them for my husband in the amount of 100,000. they refuse saying he can only get a $15,000. policy for 150.00 a month.
Cy
Cynthiatravelingqueen
3 months ago
this place can’t be trusted waste of…
this place can’t be trusted waste of your money they don’t want to as answer any questions they just want to take your information, address phone number name and send you a lot of junk in the mail, but can’t even answer questions. My family members have dealt with this place don’t waste your time or money.
CJ
Curtis Johnson
4 months ago
jonathan
say, aren't you Jonathan the guy who knocked up my wife?
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