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Is Colonial Health Insurance Good

Who Owns Colonial Penn Insurance

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The Colonial Penn Life insurance company was founded in 1968 by AARP co-founder Leonard Davis. The company is based in Philadelphia and is owned by CNO Financial Group.

Colonial Penns specialty is offering life insurance directly to the consumer at a lower cost through the mail, internet, phone calls, and TV spots.

The companys most popular plan is the guaranteed acceptance life insurance policy, which is offered exclusively to those 50-85 years old. Colonial Penn started offering this policy in 1968, becoming one of the first to do so. Now, there are several guaranteed issue life insurance companies.

Colonial Penn Life Insurance Review 2021

COLONIAL PENN LIFE INSURANCE

  • Rated 2 stars out of 5 by NerdWallet.
  • No medical exam is required for term or whole life.
  • Coverage amounts are relatively small.

For decades, Colonial Penn has focused on selling life insurance to older customers. Its most popular plan is a guaranteed issue whole life policy for people age 50 and older. Colonial Penn also offers term life insurance for ages 18 to 75, but the maximum coverage amount may be too small for many families.

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.

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Final Thoughts On Colonial Penn

Colonial Penn and Bankers Life use knowledgeable insurance agents to provide quotes and sell their Medigap policies. While some might appreciate that personalized touch, for others, it just means the research will take some extra time. You’ll also need to hand over your contact information. Other popular Medigap providers weve reviewed, including Blue Cross Blue Shield and Aetna, make quotes instantly available online, and you can get those quotes anonymously. If you feel wary of handing out your contact info or prefer the online shopping experience, you might want to pass on Colonial Penn. But if you like the thought of handling it all over the phone, then Colonial Penn is worth looking into.

Still not sure which Medigap plan is right for you? Visit our guide to Medigap insurance to learn more, so you can make an informed decision.

What Is The Bottom Line On Colonial Penn Life Insurance

Colonial Life Insurance

The bottom line? If you are healthy, avoid Colonial Penn. Even if you need a guaranteed issue policy, youll have no trouble finding something better.

Regardless of what company you choose to buy a policy with, two things are certain:

  • Prices are fixed by law, which means you will not get a deal. The rates are calculated by the underwriting department based on gender, age, health, and history, to name a few.
  • You still need to talk to someone. There is no way to buy a policy without talking to someone, even if you buy online.

Colonial Penn offers three life insurance products. Specifically, the company offers guaranteed acceptance, whole, and term life policies. However, there are some unique factors associated with Colonial Penns life insurance products.

When youre looking to buy coverage from Colonial Penn, youll find that the company sells units of coverage. The unit premium never changes, and you can purchase between one and eight units, with a single unit cost of $9.95. The max term life benefit with Colonial Penn is $50,000 for $45.12 per month.

Are you ready to buy Colonial Penn life insurance? To make sure youre getting the right Colonial Penn life insurance rates for your needs, its your responsibility as a consumer to do some homework and reach a conclusion.

Before you leave our Colonial Pen life insurance review, enter your ZIP code in our free tool to find quotes from companies near you.

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Critical Illness Insurance May Make More Sense Than Cancer Insurance

Rather than focus entirely on cancer, critical illness insurance provides supplemental coverage for other worrisome illnesses. Heart attack and stroke are the most common examples. Critical illness insurance sometimes covers kidney failure, major organ transplants and ALS, too.

Aflac and other cancer insurance providers typically offer critical illness policies as well. This makes it relatively easy to purchase both types of coverage at the same time, if needed.

Critical illness insurance policies usually pay out a lump sum shortly after youve been diagnosed. As is the case with some cancer insurance policies, this payment can be used for medical or non-medical expenses.

Something to keep in mind as you consider this type of insurance: critical illness plans have their fair share of critics. Many say there are better ways to prepare for one or more of these illnesses.

How We Chose The Best Critical Illness Insurance Companies

Our experts compared more than a dozen providers to find critical illness insurers with broad policies that include a wide range of illnesses. We looked for companies that have excellent ratings for financial strength, and we checked for areas where each provider stands out, such as additional riders you can add to your policy or complementary coverage for children. We also gave preference to providers who let you compare quotes and apply for a policy online, as well as those that let you file or manage claims using an online portal.

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What Products Are Offered By Colonial Life

All of the companys products are voluntary employer benefits, which means they are available only through an employer that has selected them as part of an optional package to offer to employees. Products are not available on an individual basis.

Employers looking to put together a voluntary benefits package can choose from life and supplemental health insurance policy including disability, dental, and vision.

Life Coverage

Although there are no details listed about the companys policies, they do offer an overview of all three types of life insurance that are available.

Colonial Life writes term life insurance, universal life, and whole life policies. Employers can choose to offer one or more of these options as a group policy to their employees, making it more affordable than if they purchased it individually.

Colonials life insurance policies, although offered through employers, are portable, so the policy can be continued if the employee changes jobs.

Disability Coverage

Colonial Life offers short-term disability policies which pays out monthly for up to two years in the event of an accident or illness. These plans are also portable, so they can be continued after a job change.

Colonial Life does not currently offer long-term disability coverage.

Supplemental Health Policies

There are several options for supplemental health policies that provide a payout in the event of the specific medical need they are designed to cover.

Dental and Vision

Customer Satisfaction: Better Than Average

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Colonial Life Insurance receives fewer complaints than average life insurance companies, according to the NAIC Complaint Index. While an average complaint score is 1.0 , Colonial received a 0.55 score. It has improved over their 2019 score of 0.62, which is still a solid score.

Colonial was not included in the 2020 J.D. Power Life Insurance Study.

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Colonial Life Insurance Review

  • Life insurance sponsored by your employer
  • Offers term life and whole life insurance
  • Extensive online services

Advertiser Disclosure:

Colonial Life is one of the most respected names in the life insurance industry with over 3.5 million customers relying on their products. In terms of life insurance, the company offers term life insurance and whole life insurance through your employer.

Term life insurance is typically more affordable than whole life insurance, but it only covers you for a specific length of time. However, whole life insurance is a type of cash value life insurance that can provide savings and investment opportunities, as well as the ability to hold on to it until you no longer need it. A whole life insurance policy is typically more costly than a term life insurance plan.

Also, Colonial Lifes online services allow you to file claims and view your policy online, but you cant get a quote without calling a customer service representative.

Colonial Penn Company Overview

Colonial Penn offers Medicare supplement plans through one of their affiliated companies Colonial Penn Life Insurance Company and Bankers Life and Casualty, both are part of CNO Financial Group. Colonial Penn has been around since 1879, with a strong history of marketing and selling life insurance policies through television ads.

The company offers standardized Medicare supplement plans in most states. They do not offer Rx plans or Medicare Advantage plans.

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Colonial Penn Whole Life Insurance

If you’re willing to answer health questions about yourself or haven’t yet reached 50, Colonial Penn offers traditional whole life insurance as an alternative to the guaranteed acceptance program. Since the company can better assess your risk through health questions, this policy’s death benefit can be as high as $50,000 in value. However, it’s still significantly lower than what is available through other insurers.

Cost

Colonial Penn’s whole life policy lets you choose the particular death benefit you want, meaning premiums vary based on your risk profile. To give you a sense of the range of monthly premiums, we’ve pulled sample rates for the maximum and minimum coverage amounts offered:

Age
$94.07$455.36

These quotes are meant to be illustrative and are not binding. You may be quoted a different amount based on your personal details.

Restrictions

Colonial Penn does not offer whole life insurance in Maine, New York or Vermont, and policies can only be purchased between the ages of 40 and 75.

How To Buy A Colonial Penn Medigap Policy

Colonial Care Center Announces New Ownership

The best time to purchase a Medigap policy is during your six-month Medigap open enrollment period. During this time, you have access to the best prices and policy options. Open enrollment starts on the first day of the month when you’re 65 or older and enrolled in Medicare Part B.

You can still purchase a Medigap policy after open enrollment. The difference is that the company will use medical underwriting, which means taking a close look at your medical history. For many seniors, this limits the policy options and affects rates. That’s why we think it’s best to enroll when you’re first eligible.

Did You Know: Plans C, F, and High-Deductible F are only available to individuals who were first eligible for Medicare before Jan. 1, 2020.3

If you want to enroll with Colonial Penn , you can call 888-910-3133 or follow the steps below to have an agent contact you.

  • Visit the Bankers Life Medicare Supplement Insurance page.4 They sell the Medigap policies underwritten by Colonial Penn Life Insurance Company. Click on Get a Quote to get started.

    Get a quote for Colonial Penn Medigap plans

  • After you click on Get a Quote, a dropdown will appear with a contact form.

    Filling out your contact form for Colonial Penn Medigap insurance

  • When the agent calls you, you need to get as much information as you can. The following questions are helpful to ask:
  • What policies are available to me based on where I live?
  • Can you give me quotes for all of my different plan options?
  • Read Also: What Is The Health Insurance For Low Income

    Its All About You We Want To Help You Make The Right Coverage Choices

    Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships dont influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

    Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.

    • Colonial Penn offers three life insurance products: guaranteed acceptance, whole, and term life policies
    • Colonial Penn sells units of coverage the unit premium never changes, and they sell between one and eight units. One unit costs $9.95
    • The max term life benefit with Colonial Penn is $50,000 for $45.12 per month

    Youve probably seen Alex Trebek on your television giving you the low-down on the Colonial Penn Life Insurance Company. Known for its late, beloved celebrity spokesman and its affordable insurance programs, this company is best known for its term life coverage.

  • What is the bottom line on Colonial Penn Life Insurance?
  • Colonial Penn Customer Service

    Colonial Penn handles most customer inquiries via phone and regular mail. The carrier provides the following customer service options:

    • Email options available for customer service inquiries.
    • Main hotline for customer service has the following hour restrictions:
    Hours
    Monday-Friday8:30 am – 5:30 pm

    While Colonial Penn offers direct contact options, the easiest way to get set up with the right coverage for you is through working with an independent insurance agent. These agents also help handle claims and insurance concerns for you, making customer service even easier.

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    How Much Insurance Do You Get From Colonial Penn For $995 Per Month

    In its TV ads, Colonial Penn advertises life insurance coverage starting at $9.95 per month for its Guaranteed Acceptance Plan. While the policy doesnt require a medical exam, it only offers limited benefits for the first two years. But the price you will pay for the policy may depend on your age, amount of coverage and location.

    Colonial American Casualty And Surety Company Locations

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    All indications seem to point to a single U.S. office for Colonial American. Although you can certainly contact Zurich International through their corporate office, any inquiries specifically relating to Colonial America should be made using the following information:

    Colonial American Casualty and Surety Company600 Red Brook BoulevardOwings Mills, Maryland 21117 559-8400

    The nature of Colonial Americans business dictates that they probably utilize some local agents for some of the products they carry. Their health insurance is more than likely sold and serviced on a direct-to-customer basis while their life, home, and other types of policies could be handled through local agents. Because Zürich International also deals in specific investment vehicles, it would not be abnormal for your local bank or financial planner to act as a local agent.

    Unfortunately, the Zürich International website does not provide a means to locate local agents in your area. Consumers who might be interested in Zürich or Colonial American products, other than health insurance, would have to either contact the offices listed above or call individual insurance agents and ask who they represent. Just to make your life easier we would recommend the former option rather than the latter.

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    Colonial Life Overview: Financial Strength Availability And History

    The Better Business Bureau gives Colonial Life an A+, but its not accredited. Accreditation is an optional additional vetting process that doesnt affect a companys grade. Therefore, because its financially stable, its unlikely that Colonial Life wont be able to fulfill your claim due to default or bankruptcy. However, its a subsidiary of Unum Group, which has recently seen stock prices fall after the COVID-19 hit. Colonial Life is offered in all 48 contiguous states, as well as the District of Columbia.

    • In business since: 1937
    • S& P financial strength rating: A
    • Moodys financial strength rating: A3
    • AM Best financial strength rating: A
    • States served: 48 states, plus Washington, D.C.

    Colonial Life is best for employer-sponsored life insurance

    Pros

    *All information as of May 12, 2020.

    What Is Colonial Penns Whole Life Insurance

    As the name implies, whole life will last for the rest of your life, providing you with permanent protection as long as you keep up with your payments. There is a cash value to a whole life policy, which you can borrow against. You should know that there is usually a limited benefit period. With most companies, a two-year limited benefit period is standard. During that time, you may not be able to make any life insurance claims. This waiting period helps protect you and the insurance company.

    Most financial advisers recommend that their clients buy traditional term life policies and invest the difference. However, some individuals want whole life and wont settle for another type of policy.

    So lets look at some of the details in Colonial Penns whole life policy.

    The issued ages are 40 to 75 years old. The benefit amounts are $10,000, $20,000, $30,000, $40,000 and $50,000 only. There is no medical exam, but you will have to answer some health questions, and your application could be denied.

    The premium is based on age and gender when the coverage is obtained.

    Premiums are payable up to age 121 or as long as the insured is living, and coverage matures and becomes payable at age 121. The premium remains the same and will not increase coverage cant be canceled as long as premiums are paid.

    According to Colonial Penn Lifes site, you begin to build cash value after a year of coverage and use it for a loan.

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