Colonial Penn is a life insurer perhaps best known for its TV commercials starring Alex Trebek. It was also one of the first life insurers to issue Acceptance Guaranteed Life Insurance. Plans for people over 50, which it did in 1968. Today, it offers life insurance products to customers between 18 and 85 years old. . Here’s what you should know before deciding if Colonial Penn is the right life insurer for you. 

Is Colonial Penn Right for You?

Colonial Penn may be a good option if you are looking for $50,000 or less in life insurance to cover final expenses such as funeral expenses, or if you are between 50 and 85 years of age and do not need to access all death benefits to at least two years (in most states). It can also be a good option if you are looking for life insurance that does not require a medical exam. 

Colonial Penn life insurance may not be the best choice if you want a life insurance policy to provide more than $50,000 in benefits. 

Where is Colonial Penn offered?

Colonial Penn is available in all 50 states, the District of Columbia, Puerto Rico, and the US Virgin Islands. However, plan features and restrictions may differ by state. For example, in New York, Colonial Penn is underwritten by Bankers Conseco Life Insurance Company. Also, your renewable life insurance plan is not offered in Montana, New York or the US Virgin Islands. 

Colonial Penn Insurance Pros and Cons

pros

  • No medical examination required
  • Potential ability to borrow against cash value
  • guaranteed rate

cons

  • Maximum insurance payout of $50,000
  • Two-year limited benefit period

Colonial Penn Pros explained

  • No Medical Examination Required : While many life insurance plans ask health questions or require medical examinations, the guaranteed acceptance full life insurance option does not – and Colonial Penn guarantees that you will pass.  
  • Potential Ability to Borrow Against Cash Value : Some Colonial Penn insurance plans may allow you to borrow money from your life insurance policy. This includes whole and permanent life insurance policies.    
  • Guaranteed Rate : For the guaranteed acceptance plan, your monthly premium remains the same for the life of the policy.  

Colonial Penn Cons explained

  • Maximum insurance payout of $50,000 : The maximum death insurance benefit is $50,000 and some policies have lower or variable maximum amounts. Typically, these lower payments are only sufficient for limited final expenses.      
  • Two-year limited benefit period : For the Guaranteed Acceptance full life insurance plan, you must wait at least two years before you can apply for full benefits for non-accidental death. A percentage of the plan’s face value may be paid for non-accidental deaths, with the full face value paid for accidental deaths. This may vary by state.    

If you are in good health, you may be able to pay less for a life insurance policy that requires a medical examination because it uses your specific health information to decide the premium and underwriting cost. Ask about the difference in cost between insurance with a medical exam and one without. 

Penn Colonial Products and Notable Offerings

Colonial Penn specializes in life insurance, but not all types are available in all states. It offers coverage starting at just $9.95 a month, which can be more affordable than other insurance plans, though it’s always smart to compare. 

  • Guaranteed Acceptance Life Insurance : Age to apply varies by state  
  • Permanent life insurance : must be between 40 and 75 years of age to apply 
  • Renewable Term Life Insurance : Must be between 18 and 75 years of age to apply for up to $50,000 of coverage, renewable up to 90 years, and premium rates increase with age 
  • LifeChoice Full Life Insurance : Exclusive to New York residents, must be between 50 and 75 years of age to apply 
  • Life Insurance : For an additional premium, you can add one passenger per health condition type to a life or whole life insurance policy, so you have the option of receiving up to 50% of your death benefit after the diagnosis of cancer, chronic illness, stroke or heart attack, or terminal illness  

If you’re not satisfied with your plan, Colonial Penn offers a 30-day money-back guarantee.

What discounts are offered?

Colonial Penn advertises few discounts on its website. However, it does offer a prepayment discount on some of its insurance plans. Simply pay annually and save up to one month on your premium. 

If you are younger or in good health, consider investigating other insurance options, such as critical illness insurance, long-term care insurance, or other combined policy options with a professional life or health insurance agent or financial planner. 

Colonial Penn Insurance Reviews and Ratings

Colonial Penn Life Insurance received a financial strength rating of “A- (Excellent)” by AM Best. It is not accredited by the Better Business Bureau (BBB). And more than 80 claims have been filed with the BBB.  

The Bottom Line on Colonial Penn

Colonial Penn has a strong financial strength rating, has been around for over 60 years. And offers life insurance without a medical exam for people age 75 and under. If you’re looking for insurance, you can get a lower price if you’re younger, in good health. Can pass a medical exam. Whenever you’re looking to compare life insurance options. Consider the help of a licensed life insurance broker or agent to help you review policies

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