What If I’m Not Perfectly Healthy
Even if youre not perfectly healthy, you should consider applying with Colonial Life if you need life insurance coverage. You might have to answer some basic health questions, but as long as you havent had any major medical issues in the last five years, you should still be able to get guaranteed life insurance at a good rate.
Some plans and coverage amounts require a medical exam. If youre concerned about your health and getting approved for life insurance, ask the sales representative when a medical exam is required and if your specific health concerns will disqualify you from coverage.
Does Colonial Life Have Any Discounts
Sometimes, we worry about our monthly payments and how to keep them at the bare minimum. If youre concerned about affordable Colonial Life insurance rates, start looking into the company discounts. We found a few deals that Colonial Life provides. Lets examine them below:
Colonial Life Discounts
- Better Business Bureau A+
- NAIC Complaint Index 0.62
Colonial Lifes A.M. Best rating stems from Unum Group. How come? Unum Group is the parent organization of Colonial Life. Therefore, Colonial Life shares Unum Groups rating.
The NAIC Complaint Index reports the rate of customer complaints that occur during the year. The average ratio is 1.00, but Colonial Life has a ratio of 0.62, meaning it gets fewer complaints than the average company of its size.
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Company History Financials & Complaints
Colonial Penn was founded by AARPs co-founder Leonard Davis over 50 years ago. CNO Financial Group owns them.
They were one of the first insurers to offer guaranteed acceptance life insurance.
For many years, Alex Trebek was the face of Penn life insurance company. He was a paid endorser until his death on November 8, 2020.
Now, Meredith Viera has assumed the role of their paid spokesperson.
The one rating organization where they shine brightly is the Better Business Bureau. They currently have an A+ rating with them.
Over the years, they have racked up quite a few Colonial Penn life insurance complaints. When you analyze their complaint ratio with the National Association of Insurance Commissioners, their numbers are well above the average.
Them getting many complaints isnt surprising given their misleading advertising.
When you make it seem as though everyone gets $10,000 in coverage for $9.95 per month, you are bound to get some angry customers who file grievances against you.
Recommended Reading: What Is A Good Cheap Health Insurance
Colonial Life Insurance Pricing
You can get a Colonial Life insurance quote by calling their helpline and speaking to a representative. The overall cost of the insurance depends on several factors, like age, gender, health, and location. The average life insurance cost for Colonial Life for individuals between the ages of 50 and 58 are as follows:
The monthly rate of Colonial Life insurance stays the same, but you get more coverage the younger you are. This insurance is cheaper than many other insurance companies but includes a maximum age limit.
The Colonial Life insurance payment can be made in multiple ways, including credit cards, direct billing, and electronic funds transfer.
How Do You File A Colonial Life Insurance Claim
Colonial Life insists that you file a claim using your Colonial Life login.
Once youre logged in, click on the Claims Center. The following webpage should show you a link labeled File an Online Claim when you see it, click on it. Next, click the claim type. Download the claim form you need and follow the instructions.
What Illnesses Are Covered By Critical Illness Insurance
Most critical illness insurance policies kick in when you endure a condition like a heart attack, stroke, cancer, an organ transplant, or a coronary bypass, but some policies include a larger range of conditions including blindness, deafness, or paralysis. As you compare critical illness insurance policies and providers, make sure you have an understanding of the number of illnesses and medical conditions that qualify for coverage.
Colonial Life Insurance: Whats The Bottom Line
Theres plenty of information on Colonial Life insurance company, but you have to jump through hoops to find a reliable quote. Waiting days or weeks for a quote could discourage you from buying from Colonial Life. However, if you have the patience and are willing to wait in order to be put under their care, we go over a few more questions down below.
Now that you know a little more about Colonial Life insurance, enter your ZIP code to compare multiple companies in your local area to locate a cheap and reliable insurance policy.
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Colonial Life Financial Strength And Bbb Ratings
Colonial Life has strong financial stability, meaning they should not have a problem with paying out claims when the time comes. Their financial strength also means they are not likely to default on their obligations or file for bankruptcy.
Here is a list of the rating companies and their scores for Colonial Life:
- Better Business Bureau: A+
Select Your State for an Instant Quote
Best Recurrent Diagnosis Benefit: American Fidelity
American Fidelity offers a unique recurrent diagnosis benefit that pays out 50% of your policy upon the second diagnosis of the same condition. They also stand out due to their simplified underwriting policy with no medical exams required, making American Fidelity the insurer with the best recurrent diagnosis benefit.
Simple underwriting with no medical exams
Health screening benefit of $50 each year
Recurrent diagnosis benefit
You can file a claim online
Pre-existing conditions may not be covered
You must work with an agent to get a quote and coverage some plans are only available through employers
American Fidelity stands out due to their recurrent diagnosis benefit, which will pay 50% of the original policy amount if youre diagnosed with the same condition for a second time. This company has been around since 1960 and has an A+ rating from AM Best.
With American Fidelity, you may be able to get coverage without a medical exam, and coverage amounts from $10,000 to $30,000 are available. You can also get up to $50 per year toward health screenings that might help you avoid a critical illness, and employer policies from this provider are portable, meaning you can take them with you wherever you go.
Better Business Bureau Rating & Reviews
Colonial Penn Life Insurance Company has been a member of the reputable Better Business Bureau since 1985 and currently holds an A+ BBB rating. To understand how this rating was determined, see the following page on the BBBs ratings elements.
The Company has 136 customer complaints filed with the BBB over the past three years.
What Colonial Offers And Doesnt Offer
Colonial Life and Accident Insurance offers a full suite of life insurance products to small, mid-sized and large companies. It was one of the first insurance companies to take advantage of a change to the tax code allowing individuals to deduct benefits from their income pre-tax. Colonial Life Insurance was also one of the first insurance companies to offer accident and cancer insurance, and many of its policies are designed to supplement an employees primary medical insurance policy.
However, Colonial doesnt offer its rates or premiums on its website, and it has no online quoting tool, which could make comparison-shopping tough.
Recommended Reading: How Much Is Health Insurance Usually
Growth As The Provident Companies
The Provident companies was founded in in May 1887 as Mutual Medical Aid and Accident Insurance Company. The company originally specialized in providing both medical-aid and accident insurance to employees in high-risk industries, including miners and coal workers. Within a few months, the companys founders became concerned that a single disease epidemic would bankrupt the company. Mutual Medical Aid and Accident purchased back all outstanding medical-aid policies and reincorporated as Provident Accident Insurance Company. Provident only issued accident policies.
In 1892, Thomas Maclellan and John McMaster purchased a 50% stake in the company for $1000. The two men purchased the remaining 50% equity in 1895 and Maclellan was the company’s sole owner and president by 1900. Maclellan reorganized the company from being mutually held to a stock company in 1910.
Thomas Maclellan served as president of Provident until he was struck by an automobile and unexpectedly died 1916. Robert Maclellan, the son of Thomas, assumed the presidency of Provident following his father’s death. Provident began selling life insurance the following year, in 1917, and the first life insurance policy issued by the company covered Robert Maclellan’s life. The company also began offering railroad insurance.
A Brief History Of Colonial Life
Edwin F. Averyt and J. Clifton Judy had a vision for Mutual Accident Company in 1937. Now known as Colonial Life & Accident Insurance, the company was founded to focus on a specific need – to help employees financially when the unexpected happens.
Financial devastation is a very real fear for the majority of Americas workers. Many live paycheck to paycheck and are just one accident or illness away from losing everything theyve worked hard to obtain. In fact, over 500,000 families file for bankruptcy each year after an illness, according to the American Journal of Public Health.
While the numbers may have changed since the 1930s, the need for supplemental benefits like accident and life insurance is still high. The founders knew this, continuing to evolve over time with new product offerings, as employees needs changed. They have always been ahead of the game with technology and were one of the first to offer payroll deduction in 1955.
The company is a subsidiary of Unum Group, but the companys philosophy has not changed. They now have over 10,000 sales representatives offering benefits through more than 90,000 companies in the United States. Colonial Life has over 3.7 million policyholders and dependents with more than $1.5 billion in annual premiums.
Americans are terrible at this one thing…
What Is Burial Insurance
Burial insurance is just an informal name for whole life insurance policies that are marketed towards seniors.
People refer to policies like these as burial insurance because of the smaller payouts and the typical use of funds . These include burial or cremation costs, embalming services, or paying off debt that the deceased still had outstanding.
For this reason, policies like these are often also called funeral insurance or final expense insurance throughout this review, we will be using all of these names interchangeably.
Finally, note that there is nothing written into the policy contract that restricts the use of funds. If your beneficiary wants to use the funds on a vacation for her family, there is nothing to stop her from doing so.
How Much Does Colonial Penn Burial Insurance Cost
Colonial Penn approaches life insurance pricing different from its competitors. Most life insurers ask customers how much coverage they want and then quote them a price.
Colonial Penn looks at it the other way. They assume that customers want to leave their families with as much money as they can afford to.
$9.95 always buys you one unit of this Colonial Penn guaranteed acceptance policy and customers can buy up to 8 units.
Colonial Penn Pricing: An Example
An example may make it easier to understand. The customer is a 55-year-old male living in California. If this customer says that he wants to buy one unit of insurance , Colonial Penn will let him know that this monthly rate will buy him $1,560 of coverage.
If this is enough burial coverage for you, then your monthly premium payments will be $9.95 .
Additional coverage can be purchased at the same rate . So if you choose to buy 5 units, you will pay $49.75 and receive $7,800 of coverage.
How many units should you buy? That depends a lot on your state, as average funeral expenses vary by geography. Check out our full article on funeral costs to hear more on this topic.
How To Find Better Life Insurance Options Than Colonial Penn
If you are looking for life insurance for final expenses or anything else, you can 100% get a much lower price. In addition, you can very likely get coverage that has no waiting period.
The biggest issue with Colonial Penn is that they are a captive insurance company. That means they can only offer you one insurance company. When you speak to a Colonial Penn agent, they cannot shop around and show you another insurance company that would give you a better deal.
The trick to finding the best and most affordable final expense life insurance is to work with an independent insurance agency. Only an independent agency can compare offers from multiple providers.
In essence, they shop the market for you to determine which carrier has the best price and coverage for your unique situation.
Believe it or not, it does not cost you a fee to work with an independent agency, and the insurance doesnt cost more.
Working with an independent agency can save you as much as 70% on your life insurance .
You can call us at 1-800-644-2926, and we can assist you. Were independent and have over 15 different A rating companies that we will shop for you.
Below are reviews from real customers who dealt with us.
Does Colonial Penn Offer Burial Insurance
To stop the mass confusion, burial insurance, final expense insurance, funeral insurance, and cremation insurance are ALL the same. These all are simplified whole life policies. They are just labeled differently for marketing purposes.
A Colonial Penn burial insurance policy is a guaranteed acceptance whole life plan that has a 2-year waiting period.
The price of $9.95 for one unit varies based on your age and gender, but you get very little coverage in return for the cost.
Most Colonial Penn policies also have their own set requirements: no matter what they look like at first glance, its not cheap when you dig deep into them!
Also Check: Does Health Insurance Cover Birth Control Pills
What Is A Unit
A unit of Colonial Penn coverage corresponds to the life insurance benefit amount you receive for $9.95 per month. Your age and gender determine how much insurance coverage a single unit provides. For example, a 75-year-old male gets $560 in insurance coverage per unit.
Twelve units are the most you can buy. Below is a table that clearly illustrates how much a Colonial Penn life insurance unit provides at each age.
Guaranteed Coverage For $995
Colonial Penn life insurance commercials are among the most recognizable examples of final expense insurance marketing youll encounter. And their promise to offer you coverage for only $9.95 in monthly premiums is always featured front and center.
Is this too good to be true? Why would Colonial Penn quote everyone the same life insurance rates?
Read Also: What Is A Gap Plan Health Insurance
Burial Insurance = Whole Life Insurance
Regarding the policies themselves, burial insurance is nothing more than whole life insurance.
As with all life insurance policies, the product you are purchasing is a payout when you die. If you have a $100,000 policy, this means that your life insurance company will pay your beneficiary $100,000 when you die.
Whole life insurance policies provide you lifetime coverage . This differs from term life insurance, which covers you for a pre-determined period of time , usually between 10 and 30 years.
A Fixed Price For Variable Amounts Of Coverage
Colonial Penn isnt afraid to buck the trend when it comes to selling burial insurance coverage.
Most life insurance carriers let you choose how much insurance coverage you want. They then tell you the monthly premium price they can offer you.
Colonial Penn does it in reverse. They allow you to choose your monthly payments and then let you how much coverage they can offer you.
$9.95 always buys you one unit of coverage.
And how much coverage does that unit give you? Thats where the Companys minimal underwriting comes in depends on your age.
Read Also: Do You Have Health Insurance
Colonial Life Insurance Review
Reviewed by: Chris Lalor | Last Modified: 11/20/2020
Overview: Colonial Life has one of the oldest reputations in the supplemental benefits industry. They offer life, accident, and illness policies to complement your health insurance plan. These plans offer a safety net in the event you’re sick, hurt or have a limited life expectancy.
Colonial Penn 995 Plan
The Colonial Penn life insurance for $9.95 per month is a guaranteed acceptance whole life policy with a2-year waiting period. Everyone pays $9.95 per unit . How much coverage you get for $9.95 depends on age and gender. There are no health questions. They guarantee your approval.
Since its a whole life policy, the way it works is very straightforward:
- Rates cannot increase over time.
- The policy cannot expire.
- Coverage will never decrease.
- It builds cash value.
Basically, it never changes, and it will always be there, provided you reliably make your premium payments.
How does this plan compare to other providers?
Suppose you genuinely need a guaranteed acceptance policy . In that case, you can get a much better deal from multiple other companies. We highly advise against buying the Colonial Penn life insurance for $9.95 a month. You can likely avoid a waiting period and get more bang for your buck. Call us at 1-800-644-2926, and we can show you multiple better options.
Don’t Miss: How Do I Find My Health Insurance