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Colonial Penn Insurance Review (2018 Update).

Whether you’re in the market for a life insurance policy or not, you’d probably agree with us that it’s almost impossible to go a week without seeing Alex Trebek on TV with his:

“Very important message about security”

In this commercial, Mr. Trebek summarizes the basic features of Colonial Penn’s Guaranteed Acceptance final expense insurance, and leaves the viewer with the understanding that purchasing a life insurance policy doesn’t have to be difficult.

Which is great!

But it’s important to understand that Colonial Penn doesn’t only offer a guaranteed issue final expense insurance policy, they also offer both term and whole life insurance options as well.

Which is why in this…

Review article, we want to be sure to provide you the reader with a general overview of Colonial Penn as a whole so that you can get a better idea on whether or not they will be the right insurance company for you.

***Important Note***

We here at InsuranceBrokersUSA are not affiliated with Colonial Penn in any way.  Nor do we sell any life insurance products offered by Colonial Penn.

In fact, because we here at InsuranceBrokersUSA do sell life insurance products offered by other life insurance companies, we will often find ourselves in direct competition with Colonial Penn.

So, please keep this in mind as you read our review.

Additionally…

Because we feel that Colonial Penn is a good life insurance company, you will not see us make any disparaging remarks about them in this review.

Thanks,

InsuranceBrokersUSA.

 

Colonial Penn Insurance Review.

History – With headquarters in Pennsylvania, Colonial Penn has been operating for nearly 50 years with it’s original goal amied at just helping those over the age of 65. In fact, specific marketing towards older individuals marked the beginning of the extremely popular organization known as the American Association of Retired Persons (AARP).

And from this…

Modest beginning, Colonial Penn has been able to expand to many different products that currently protect millions of people all across North America!

Finances – Owned by CNO Financial Group, the whole company sees revenue of around $4 billion every single year with total assets of over $31 billion. Just a couple of years ago, they were reported as having around 4,500 employees within the group which is made up of Colonial Penn, Washington National Insurance Company, 40/86 Advisors, and Bankers Life.

Although not quite on the Fortune 500, they are comfortably on the Fortune 1000 list but, perhaps more importantly, they have been named on a list of ‘most trusted financial institutions’ which was originally published by Forbes. With trust and reliability so important when it comes to life insurance, this should give you confidence when choosing between companies for your policy.

Ratings

Ultimately, there are many different ways to compare life insurance companies but one of the best is to look at the ratings from a host of different agencies. For example, A.M. Best has been assessing the life insurance market for many years now and we have a backlog of their previous assessments. Therefore, we know how providers have grown and where they stand now compared to where they stood in the past. For Colonial Penn, we have listed some of the most respected agencies’ ratings below.

  • M. Best – A-
  • SP – AA-
  • Moodys – Ba1
  • Fitch – BB+
  • BBB – B

On the whole, a mixed reaction to these ratings would be justified because they aren’t quite on the same level as the largest companies in the industry but they certainly aren’t in poor shape. In terms of finances, an ‘A’ category rating is always welcomed from A.M. Best as this suggests they are secure in operation. As well as being comfortable now, it suggests they will continue to pay claims long into the future.

Moving down the list, we have another ‘A’ grade from Standard and Poor’s. With Moodys and Fitch, there is certainly room for improvement but this improvement is being made. In recent years, they have jumped up a level in both ratings which shows the potential they have within the market. Finally, a ‘B’ rating from the Better Business Bureau is somewhere in the middle of the road once again. Out of 100, the BBB has placed them in the mid-eighties which is respectable yet not quite reaching the peaks of the some other popular life insurance companies. All things considered, they are average ratings but they have the potential to improve if the company continues along the current path of progression.

Life Insurance

With Colonial Penn, there are a few key products within the life insurance market and this is where they have spent all their attention over the years. Whilst other companies have expanded into other areas of insurance such as home or auto, Colonial Penn is well and truly cemented in life insurance.

Here are a list of Colonial Penn’s most popular products on offer:

Term Life Insurance – Firstly, their term life offering is available to those between the ages of 18 and 75 but it can be renewed all the way up to 90 years. When first setting up the policy, a premium amount will be agreed but these will soon increase as you progress through the ‘age bands’. For the death benefit, you will choose an amount up to $50,000 and you won’t have to worry about a medical examination.

Whole Life Insurance – Available for ages 40 to 75, this particular policy is payable until the age of 121 and the premiums you pay will remain exactly the same from the first day to the last. As with the term life policy, the maximum benefit is $50,000 and the medical section of your application will rely upon a few health questions. With both of these policies we have discussed so far, there is one major benefit in that you can pay monthly, quarterly, semi-annually, or annually. With this flexibility, it allows you to plan finances looking ahead.

Guaranteed Acceptance – Designed for the older life insurance users, you can apply for a guaranteed issue whole life insurance policy so long as you are aged between 50 and 85 without having to take a medical exam. No matter how you old you are, the death benefit will not decrease and your premiums will also remain the same throughout. As long as your premiums are paid regularly and on time, your policy will remain in place and you can enjoy the flexible payment options.  One important feature to any guaranteed acceptance life insurance policy that one should be aware of is the “graded death benefit”.  Colonial Penn’s graded death benefit lasts 2 years, which is about as good as they get.

Potential Drawbacks.

Now as we stated before, we’re not interested in engaging in a conversation where we say disparaging things about Colonial Penn after all, at the end of the day, we here at InsuranceBrokersUSA feel that they are a great life insurance company, with excellent customer service and one that any life insurance agent would be happy to provide his or her clients with.

However…

We do feel comfortable saying that “in our opinion” there isn’t one life insurance company out there that is going to be the perfect fit for everyone.  Which is why our only “gripe” with Colonial Penn is that if you decide as a life insurance agent to sell Colonial Penn products, you can ONLY sell Colonial Penn products.  Which wouldn’t be a problem we guess if Colonial Penn is the ABSOLUTE best life insurance policy option for EVERYONE, but in our experiences here at InsuranceBrokersUSA, there simply isn’t a BEST insurance company for EVERYONE.

This is why…

One of the first things that we’ll want to do here at InsuranceBrokersUSA if first try to understand “why” you’re looking to purchase a life insurance policy…

Are you looking to:

  • Pay off a mortgage?
  • Replace lost income?
  • Protect a child or a spouse?
  • Or perhaps just insure your final expenses will be covered when the time comes?

Knowing why…

You want to purchase a life insurance policy will go a long way in determining what “type” of life insurance policy is going to be right for you.  From there, we can then begin to ask you a few questions about your current health status so that we can get a better idea of what “type” of life insurance policy you’ll be able to qualify for.

You see…

Just because a guaranteed issue life insurance policy is easy to qualify for, and just because a guaranteed issue life insurance policy doesn’t require you to take a medical exam or answer any health related questions isn’t enough of a reason to select a guaranteed issue life insurance policy.

After all…

There are many other “simplified” issue life insurance policies out there that won’t require you to take a medical exam either.  Provided that you’re able to “pass” a few medical questions that these “types” of life insurance policies use to determine who will and won’t be able to qualify for coverage.

And since…

We are an independent life insurance brokerage that offers dozens of different life insurance products that are offered by a variety of different life insurance companies we’ll be able to help you sort through all of your options and see if in fact Colonial Penn Life insurance company is right for you!

Now, will Colonial Penn be the right choice?

Who knows?  They could be.

But the problem is…

We won’t know till we know a little bit more about you.

This is why…

What we like to recommend all of our clients to do is “shop” around.  So, in this case, we would encourage you to give Colonial Penn a call and see what they have to offer.  Then, give us a call and see if we can’t do better.

But be sure that…

When you are comparing different insurance companies, in addition to comparing premiums (monthly costs) you also compare the “terms” of each “type” of policy your looking at.

So…

You’ll want to know:

  • The difference between a guaranteed issue life insurance policy vs a term life insurance or a whole life insurance policy
  • If there is a graded death benefit associated with the policy you are considering.
  • What happens to the monthly premium of your policy as you age, does it change?  Or does it remain stable for the life of the policy?
  • And how long will your policy last?

Now…

Don’t fret!  This may seem like a lot, but when you call us here at InsuranceBrokersUSA, our goal isn’t to “sell” you a life insurance policy, its to help you “find” the best policy for you so that you want us to help you complete an application.

You see…

We’ve learned over the years that life insurance isn’t something that should be or needs to be “sold”.  People who spend time researching this topic on line and who bother to call us, already know that want to buy a life insurance policy… So, we don’t need to try to convince you to buy this product.

All we need to do…

Is take our time, help you understand your options and hopefully by offering dozens of different products form dozens of different life insurance companies, one or our options will be the “Best” for you!  The only trick is, we need to convince you that taking a few minutes to review all of your options is a smart and wise decision!

So don’t freak out…

When we ask you about why you want to purchase a life insurance policy or ask you a series of questions so that we an see what “types” of life insurance policies you will and won’t be able to qualify for.  We’re not asking these questions because we’re “nosey” we’re just asking them because we know that ultimately many of the different insurance companies out there will want to know the answers to these questions too!

Now at this point you may be wondering….

“What kind of questions are they talking about?”

And that’s an easy question to answer because if you’re not applying for a guaranteed issue life insurance policy that will really only care about your current age and citizenship status, most “other” types of life insurance policies will be interested in the following:

  • Age,
  • Height and weight,
  • Pre-existing medical conditions,
  • Current medications,
  • Family medical history,
  • Driving record,
  • Occupation (high risk?)
  • Hobbies (are they dangerous?),
  • Tobacco use,
  • Marijuana use,
  • Previous felony or misdemeanor convictions,
  • Ect…

So, is Colonial Penn Insurance Company the right life insurance company for you?

They could be, we just won’t know and neither will you until you compare them to someone else.

And here’s the good news…

While it’s true that we here at InsuranceBrokersUSA don’t offer Colonial Penn Life Insurance Company, we do offer several dozen highly rated life insurance companies.  Which means that if you’d like to have an opportunity to see compare what you’ve been offered by Colonial Penn Life Insurance Company with a bunch of other life insurance companies, we can help!

And if it turns out Colonial Penn is the “best” for you awesome!  You’re all set!  But if they’re not, then let’s help you find that company that is right for you!

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