Pros
- Coverage does not require a medical exam
- Guaranteed coverage is offered to applicants up to age 85
- Holds an Excellent rating from AM Best for financial strength
- Customer support is available in both Spanish and English
Cons
- Company receives significantly more complaints from regulators than anticipated for its size
- Coverage options tend to have lower limits
About Colonial Penn
Colonial Penn specializes in offering life insurance to older individuals, including a guaranteed issue whole life policy for those aged 50 and older. While the company promotes simple plans and affordable rates, its high rate of consumer complaints can make these policies less attractive than they initially seem. Based in Philadelphia, Colonial Penn is owned by CNO Financial Group, which also owns Bankers Life.
Coverage
Whole Life Insurance
Colonial Penn offers a simplified issue whole life insurance product called LifeChoice for applicants in New York. This policy does not require a medical exam, but a brief medical questionnaire is necessary to assess eligibility. The fixed-rate policy remains active for life, provided premiums are paid. Males aged 50 to 73 and females aged 50 to 75 who live in New York are eligible to apply. Coverage amounts are available up to $25,000.
Guaranteed Acceptance Life Insurance
A guaranteed acceptance whole life insurance policy, which is a permanent life insurance option that requires no medical questions or exams. This policy provides lifetime coverage as long as premiums are paid and comes with fixed rates. It is available to individuals aged 50-85 in most states.
Coverage amounts range from $1,000 to $25,000, which is relatively low. Whether Colonial Penn is a good choice depends on your coverage needs. The maximum coverage amount varies based on your age and state.
The guaranteed acceptance policy has a two-year limited benefit period starting from the policy’s activation date. If the insured passes away from natural causes during this period, beneficiaries will only receive a partial benefit, depending on the state, rather than the full death benefit.
Pricing
Colonial Penn offers its guaranteed acceptance coverage in “units,” with the coverage amount determined by age and gender. Each unit is priced at $9.95, and you can purchase up to 25 units. The total coverage amount is the sum that will be paid to your beneficiaries upon your death. The coverage amount is fixed, meaning it remains the same throughout the life of the policy, without increasing or decreasing.
Colonial Penn has a unique pricing structure. It’s essential to assess your life insurance needs and purchase the appropriate number of units to ensure you aren’t underinsured. The following table outlines the coverage value of one unit for male and female applicants aged 50 to 85. Each unit of coverage costs $9.95 per month.
| Age | Women – 1 unit | Men – 1 unit | Woman
Maximum coverage | Man
Maximum coverage |
| 50 | $2,000 coverage | $1,669 coverage | $50,000 | $41,725 |
| 55 | $1,761 coverage | $1,420 coverage | $44,025 | $35,500 |
| 60 | $1,515 coverage | $1,167 coverage | $37,875 | $29,175 |
| 65 | $1,258 coverage | $896 coverage | $31,450 | $22,400 |
| 70 | $1,000 coverage | $689 coverage | $25,000 | $17,225 |
| 75 | $762 coverage | $549 coverage | $19,050 | $13,725 |
| 80 | $608 coverage | $426 coverage | $15,200 | $10,650 |
| 85 | $468 coverage | $418 coverage | $11,700 | $10,450 |
Submit a Claim
To file a life insurance claim with Colonial Penn, the beneficiary must submit a form called the “Claimant’s Statement For Life Insurance Death Benefits.” This form is typically included with the insurance policy documents, but it can also be requested by mail or phone, or downloaded from the Colonial Penn website. Beneficiaries can submit the completed claim form, along with the death certificate and any other necessary documents, online, by fax, or by mail.
Colonial Penn typically assigns the claim to a claims associate within one to two weeks. In certain situations, the associate may ask for additional documents, such as estate or trust paperwork. Once all necessary documents are received, the claims associate will evaluate eligibility for benefits within one to two weeks. It’s important to note that the processing time for claims can vary depending on factors like state regulations and the promptness of submitting the required documentation.
Once the claim is approved, Colonial Penn and Washington National customers will receive their payment by mail. Bankers Life customers may be contacted by an agent to arrange the delivery of their payment.
Customer Support
Colonial Penn can be contacted by phone.
- General inquiries: 800-523-9100, available weekdays from 8:30 a.m. to 5:30 p.m. ET
- New York policyholders: 800-323-4542
Conclusion
Colonial Penn Life Insurance was established over 60 years ago by philanthropist Leonard Davis, who also co-founded AARP (American Association of Retired Persons). The company has a long history of providing insurance to older adults. If you’re seeking coverage with a smaller payout and no medical exam, it could be a good option to consider. Recent NAIC ratings suggest that the company is working to enhance its customer service, which has previously been a point of concern for some policyholders.
Colonial Penn Life Insurance Company specializes in whole life insurance, including a guaranteed issue policy, with a primary focus on serving customers aged 50 and older. It may not be the best option for younger individuals seeking a broader range of policy choices.
