Colonial Penn Life Insurance Review

In this article...
  • In our review, we detail Colonial Penn guaranteed acceptance whole life insurance policies that don't require a medical exam and include locked in rates. Learn more about how much Colonial Penn life insurance costs and explore customer review rankings.

Colonial Penn Life Insurance was founded by AARP co-founder Leonard Davis and has been selling life insurance policies for over 60 years. The Philadelphia-based company is now owned by the CNO Financial Group. 

In our Colonial Penn Life Insurance review, we explore the benefits, costs, policy terms and more to help you decide if Colonial Penn is the right choice for your life insurance needs.

Colonial Penn Life Insurance for Seniors

Colonial Penn sells whole life insurance and is known for one product in particular: Guaranteed acceptance whole life insurance for people ages 50 to 85. 

What Is Guaranteed Acceptance Insurance?

Guaranteed acceptance whole life insurance is a permanent policy that does not require an applicant to undergo a medical exam or answer any questions about their health. In other words, you are “guaranteed acceptance” into the coverage.

That’s a big benefit to those over the age of 50, who may otherwise have trouble obtaining affordable premiums due to diminishing health. 

Colonial Penn guaranteed acceptance whole life insurance policy provides up to $50,000 in coverage and pays out full death benefits after just two years. Your benefits won’t decrease due to age, and the company allows policy holders to choose between monthly, quarterly, semi-annual or annual payments.  

Not only are you guaranteed to be accepted into this Colonial Penn policy, but your benefits are guaranteed to never be cancelled if you continue to pay your premiums. 

After one year, the policy can begin to build a cash value from which you can take a loan at a guaranteed rate. 

Colonial Penn also sells more traditional permanent whole life insurance that also does not require any medical underwriting but does require an applicant to answer some basic questions about their health. 

Living benefits may be added to Colonial Penn whole life insurance, including those for cancer, heart attacks or strokes, or critical illness. Living benefits allow you to access up to 50% of your death benefits if you are diagnosed with a covered illness. 

Term life insurance is also available through Colonial Penn, with term lengths of 10, 20 or 30 years and up to $50,000 in benefits. Premiums are based on age, gender and a health questionnaire, and coverage is available up to age 75 and renewable up to age 90. 

Colonial Penn 9.95 Plan

You may have seen Colonial Penn advertising life insurance for just $9.95 per month. But what exactly do you get with that?

Colonial Penn uses unit pricing, and the cost of each unit typically varies by gender and age. But eligible can get guaranteed acceptance life insurance units with rates as low as $9.95 per month. Customers may purchase up to 12 units of coverage. 

Pros and Cons of Colonial Penn Life Insurance 

Some of the pros of Colonial Penn Life Insurance include:

  • Guaranteed acceptance
    Some people, because of poor general health or a pre-existing condition, have trouble obtaining affordable life insurance because it’s common for insurers to perform medical underwriting – or at least a basic health questionnaire – as part of the application process. 

    Colonial Penn serves as a good option for anyone struggling to get approved for affordable coverage from other life insurance companies. This is especially true for those over the age of 50. 

  • Flexible rates
    Colonial Penn offers an opportunity to lock in a fixed rate for your life insurance policy in five-year increments. And you can choose how frequently you wish to pay your premiums (monthly, quarterly, semi-annual or annual). 

    Incremental fixed rates allow for more predictable spending and easier budgeting. And flexible payment deadlines give you a little more control over your finances. 

  • Cash value
    A Colonial Penn Life Insurance policy can begin accumulating a cash value after just one year. This may be a good option for those looking to double-dip their policy as both life insurance coverage and an investment. 

  • Accelerated death benefits
    The ability to receive some of your death benefits while you’re still able to use them is an attractive feature of Colonial Penn’s life insurance policies. 

The cons of Colonial Penn Life Insurance include:

  • Policies not available to everyone
    While Colonial Penn has a broad reach and sells policies across the U.S., certain policies may not be available in every state or to every age group.

    Some people may need to work with a licensed insurance agent to find and secure coverage from another life insurance company is the Colonial Penn product they want is not available in their area or restricted to a certain age limit. 

  • Lower coverage amounts
    Colonial Penn life insurance policies provide coverage of up to $50,000. These policies are designed for those looking to cover end-of-life care, funeral expenses and lingering debts.

    Those looking for life insurance policies to be used more as an inheritance may want to opt for a policy with a larger death benefit. 

Colonial Penn Life Insurance Financial Ratings

Colonial Penn has over $3.5 billion worth of life insurance coverage in force and maintains strong financial strength and stability. The company has strong ratings from the top credit ratings associations:1

  • M. Best: A
  • Standard & Poor’s: A-
  • Fitch: A-
  • Moody’s: A3

Colonial Penn also has an A+ rating with the Better Business Bureau. 

Choosing Colonial Penn Life Insurance

Colonial Penn caters especially well to older adults who can often find themselves priced out of affordable life insurance.

Colonial Penn guaranteed acceptance policies for those over the age of 50 provide an opportunity for older consumers who may have diminished health to secure a modest amount of life insurance coverage, and may do so up until the age of 85. 

Plus, the flexible payments, cash value and accelerated death benefits allow beneficiaries to maintain a lot of control over the money invested in their coverage. 

Contact a licensed insurance agent to learn more about Colonial Penn Life Insurance or for information about similar policies from other carriers that may be available where you live. 

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