Our Colonial Penn life insurance company review will tell you all you need to know about them, their products, prices, and their perplexing Unit pricing. With our comprehensive Colonial Penn Life Insurance Company Reviews, we’ll go over how their life insurance plans function and the benefits and drawbacks.
Pricing for Colonial Penn Life Insurance Company
As we said in our study summary, Colonial Penn life insurance policies often cost more than identical products supplied by competitors. Let us look at how elders might save money by shopping around.
Colonial Penn Life Rates:
- Age: 65
Face Amount: $7,456
Why is it just $7,456*?
In our earlier example, the greatest amount of coverage that a man over the age of 65 could acquire without answering any health questions was $7,456.
Why does Colonial Penn use a unit?
So, what precisely is a “unit”? Colonial Penn calculates the total death benefit payable to you using a concept known as a unit. The unit denotes the total death benefit available based on age and gender. Colonial Penn, unlike other businesses, does not give a maximum death benefit. For example, most firms will provide customers with an option between $10,000 and $25,000 for their maximum coverage level. It’s not Colonial Penn.
Colonial Penn Vs Gerber Vs AIG
Colonial Penn’s Confusing Rates
Let’s look at their prices. We generated an example “John Doe” quotation for the Colonial Penn Guaranteed Acceptance offering. Again, we utilized a 65-year-old guy from Florida as an example. Colonial Penn’s plan returned a perplexing range of costs based on their coverage units.
Guaranteed Issue Life Insurance Starts at $9.95 Per Month
Based on the example above, 1 unit provides a minimum death benefit coverage of $932 for $9.95 per month. That is an odd number.
Remember that Colonial Penn’s prices are calculated in “units.” This is the opposite of how practically every life insurance company calculates its rates. Each unit will be determined by the applicant’s age, gender, and the number of units requested.
As a result, each applicant will receive a different level of coverage for the same payment.
With a maximum coverage amount of $7,456, the maximum coverage premium for our sample quotation amounted to $79.60 per month.
Why did Colonial Penn give this unusual coverage amount to life insurance customers? It’s probably so they can employ their clever marketing tactic of providing you life insurance at $9.95 per month.
They do provide it, but it isn’t a fantastic value, as you can see.
You Can Do Better Than Colonial Penn
Colonial Penn’s life insurance plans have a substantially higher premium than other types of coverage. Not only that, but as the graphic below indicates, you’ll typically have substantially lesser coverage quantities.
As you can see, John Doe may have $8,000 worth of coverage for less than $68.
Yes, you read that accurately.
If you buy through AIG or Gerber Life, you’ll get greater coverage for a lesser price.
Why is it that their rates are so much higher?
Colonial Penn’s high costs might relate to its marketing, as its commercials are constantly broadcast on television.
It’s not inexpensive to get superstars like Ed McMahon and Alex Trebek to be your spokesperson.
The customer bears the brunt of the marketing expenditures.
Commercial Colonial Penn Rate Lock
You may have been delighted when Alex Trebek mentioned Colonial Penn’s Rate Lock if you’ve seen their advertising. He says that with their whole life insurance, your Colonial Penn monthly premium will never vary.
Life Insurance Products from Colonial Penn
You’ll have access to three main life insurance plans when you work with Colonial Penn. Each insurance comes with a 30-day money-back guarantee. This is a guarantee that all businesses give. You may buy the following items using Colonial Penn:
- Guaranteed Issue Life Insurance
- Term Life Insurance
- Whole Life Insurance
Term Life Insurance
Colonial Penn offers a renewable term policy to its customers. You must be 18 to 75 years old, with the opportunity to renew until the age of 90. You should be aware that as your life insurance policy renews as you become older, Colonial Penn’s term premiums will rise.
The face value of Colonial Penn’s term life insurance is $50,000.
Whole Life Insurance
You may purchase Colonial Penn’s whole life coverage starting at the age of 40. To be authorized for this coverage, you must first prequalify, but there is no need to take a medical test.
Like other life plans, Colonial Penn’s whole life insurance will rise in cash value. Their whole life insurance has a maximum face amount of $50,000.
Guaranteed Issue Life Insurance
This is most likely the insurance you’ve seen promoted on television. For ages 50 to 85, Colonial Penn offers a guaranteed issue whole life insurance policy. Like other last expenditure life insurance plans, it does not need a medical assessment, but it does have a graded benefit.
If you don’t have to, don’t buy Guaranteed Issue
Unless you’re uninsurable, you should never get guaranteed issue insurance. A guaranteed acceptance policy is a last-resort policy. When you compare the monthly price to the quantity of coverage you get, they are the most costly option.
Even if you have serious health concerns, you may be eligible for simple issue insurance that does not need a medical exam. There are only a few questions in these policies, and each organization is different. Please get assistance from an independent life insurance agent, such as us, at Life Insurance Blog. Everyone wants to acquire life insurance from one of the top ten companies. We shop for our clients with over 60 top-rated firms so they can be confident they’re receiving the best value possible.
Reviews of Colonial Penn Life Insurance Company
As you can probably tell from this review, we aren’t great supporters of the Colonial Penn life insurance firm. If you’re considering a Colonial Penn plan or currently have one, we encourage looking around, especially if you’re in good health.
Sure, having a Colonial Penn life insurance policy is preferable to having no coverage. You are, however, most likely paying more for less coverage. So, who is the better option?
Here’s a look at the market’s Top Final Expense Companies. We also propose the following top three businesses:
- Mutual of Omaha
- Gerber Life
Don’t hesitate to contact us if you have any queries regarding Colonial Penn or any other firm. We’ll assist you in locating the right company for you. You won’t get any high-pressure sales tactics; instead, you’ll get a dedicated, certified independent agent who will assist you from beginning to end.
Let’s talk about how we can help you right now!