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Colonial Penn life insurance review 2021
Lock in a term life or no-exam policy, but be wary of low coverage caps.
finder.com's rating: 3 / 5 ★★★★★
Bottom line: You won’t need to take a medical exam with Colonial Penn, though you also can’t get more than $50,000 coverage.
18 to 85
Issue Age
$10,000 to $50,000
Coverage
No
Medical Exam Required
Details
| Policies | Renewable Term, Guaranteed Acceptance, Permanent Whole. |
|---|---|
| Coverage maximum | $50,000 |
| Term lengths | 5 year banded term – up to age 90 |
| Medical exam required | No |
| Available states |
Term insurance is available in all states except Montana, New York, and the Virgin Islands.
Whole life insurance is available in all states except New York and the Virgin Islands. |
| Issue age | 18-75 |
Pros
- No medical exams, minimal health questionnaire
- Locked-in premiums with guaranteed acceptance and whole life plans.
- Flexible payments with monthly, quarterly, semi-annual and annual payment options
- 30-day money-back guarantee
Cons
- Low coverage maximums at $50,000, compared to typical policies up to $5 million
- Few riders to customize policies
- No whole or term life in Maine, New York or Vermont plus no term life in Montana
- Many complaints around pushy sales tactics, denied claims or lost policies
| Riders |
No info available |
|---|
Review by
Rhys Subitch
rhys.subitch@finder.comRhys Subitch is the loans editor at Finder, guiding Americans toward smart borrowing decisions. With over half a decade of experience researching, editing and writing for a Fortune 500 company, university and several independent publications, Rhys brings readers the most up-to-date and curated info in the lending sphere. They make frequent appearances on Finder's YouTube channel to talk through loan topics that range from the very basics to the latest government assistance programs. Before specializing in lending, Rhys was a personal finance writer for Finder’s credit cards, insurance, banking and mortgage verticals. They hold a BA in sociology and a certificate in editing from the University of Washington, Seattle.
Expert review
Colonial Penn offers three basic life insurance options that work well if you need low, guaranteed coverage or short terms. It also offers four payment plans, giving you some budgeting flexibility.
However, the maximum $50,000 whole or term life coverage is much less than you’ll find with other companies that require medical exams.
The company also sees an above-average number of complaints. If you try a Colonial Penn policy, you have 30 days to cancel for a full refund. But if you’re looking to maximize coverage value, compare your options to be sure it’s the right fit.
This article was reviewed by Andrew Flueckiger, a member of the Finder Editorial Review Board and certified insurance counselor and licensed insurance agent in five states.
Colonial Penn life insurance rates
We pulled 2021 samples quotes from Colonial Penn’s online quote tool for a $500,000, 20-year term life policy for a healthy man and woman. Rates stack up competitively, with all running lower than average for a policy of this size and term length. With one exception, 35-year old men pay more with Colonial Penn compared to the average.
| Age | Man | Woman |
|---|---|---|
| 20 | $13.96 | $11.87 |
| 25 | $18.96 | $14.12 |
| 30 | $23.96 | $19.12 |
| 35 | $28.92 | $24.12 |
| 40 | $35.21 | $29.12 |
| 45 | $45.12 | $35.21 |
| 50 | $56.46 | $45.21 |
| 55 | $76.46 | $56.46 |
| 60 | $99.79 | $71.46 |
| 65 | $140.12 | $98.83 |
| 70 | $191.53 | $128.29 |
Factors that affect life insurance rates
You won’t find full guides on Colonial Penn’s website about how to get the lowest premiums, but most insurers look for common factors like:
- Health status. Those who use a wheelchair, are confined to a hospital facility or received home care within three years may see higher rates.
- Critical illness. Those who need surgery or have undergone diagnostic testing for chronic illnesses within five years.
- Chronic illness. People who experience chronic illness within the past three years, such as diabetes, heart, lung or liver disease, or cancer.
- Alcohol or drug use. People who have experienced alcohol or drug abuse within three years may see higher rates.
- Blood pressure. Those whose blood pressure read over 150/95 in the past six months may pay a higher premium.
How to get a quote from Colonial Penn life insurance
You can contact Colonial Penn by phone at 877-877-8052, or follow these steps for a quote online:
- From Colonial Penn’s homepage, choose your birthdate and state from the drop-down and click Get Quote.
- Click Learn More from the list of quotes to get more details, or click Get quote to continue your application.
- Enter your address, gender and email address. Click Get quote.
- Select any policy add-ons. Click Apply for coverage.
- Answer basic health questions and click Continue to enter your beneficiary details.
- Review and e-sign your documents, then a licensed agent will contact you to finalize the process.
- Once you’re approved, register online to pay your premium, update contact info or review your policy.
Colonial Penn offers term and permanent life insurance
Colonial Penn offers a few term and whole life policies that specialize in low coverage without medical exams:
- Guaranteed acceptance life. This whole life plan offers permanent coverage and guarantees that you won’t be denied because of your health. Your rates are locked in the day you buy your policy.
- Term life. Colonial Penn’s term life policies renew every five years depending on your age and are renewable up to age 90. Your rates will increase as you age.
- Whole life. This plan offers lifetime coverage that builds cash value, and your rates are locked in at purchase.
The coverage details and price ranges for Colonial Penn’s life insurance plans:
| Plan | Coverage | Medical exam | Age availability | Protection until | Rate increase | Monthly premiums | Disclaimers |
|---|---|---|---|---|---|---|---|
| Guaranteed acceptance life | Up to $25,000 | None | 50 to 85 years old in most states | For life | No | $9.95–$79.60 | You won’t be denied a policy, but the first two years offer limited coverage |
| Renewable term life | $10,000–$50,000 | None | 18 to 75 years old | 90 years old | Yes, based on fixed 5-year age bands | $2.54–$800.80 | Guaranteed ability to convert to permanent life insurance at age 90 |
| Whole life | $10,000–$50,000 | None | 40 to 75 years old | For life | No | $14.36–$576.44 | Cash value builds after the first year |
Does Colonial Penn offer burial insurance?
Yes. Colonial Penn’s guaranteed acceptance policy functions as burial insurance. As typical, this policy is marketed to seniors ages 50 to 85 with no medical exam needed — and capped with low coverage levels.
If you die of natural causes in the first two years, your beneficiaries’ payout will equal your premiums paid plus interest compounded annually. After this period, the insurer will pay the full death benefit.
Colonial Penn only offers 2 policy add-ons
While most insurers offer add-ons like child or disability coverage, Colonial Penn only offers two riders. Coverage may be limited by state, age and gender.
- Accelerated death benefit rider. Get up to 50% of your life insurance benefit if you have a heart attack, stroke, cancer or chronic illness.
- Accidental death benefit rider. Pays out an extra death benefit to your beneficiaries if you die in an accident, such as a car accident.
Colonial Penn life has mixed reviews
Colonial Penn is accredited with the Better Business Bureau, and holds an A+ rating for the way it interacts with customers. The BBB has recorded 116 complaints over the last three years, a fairly average number for a life insurance company. Customers award the insurer 1.08 out of 5 stars, noting pushy salespeople, lost policies after years of payments and denials for the guaranteed acceptance policies.
Over on TrustPilot, Colonial Penn has 3.2 out of 5 stars, though this is based on just one review.
| AM Best financial rating |
A- |
| BBB accredited | Yes |
| BBB rating | A+ 1.08/5 out of 12 customer reviews |
| Trustpilot score | 3.2/5 out of 1 customer reviews |
| Customer reviews verified as of | 30 June 2021 |
Colonial Penn life stands out for no-exam policies, but at a cost
Colonial Penn specializes in no-exam policies such as its term life policy that renews every five years or guaranteed-approval whole life policy. You can’t find these options everywhere.
However, you can find much higher coverage and more policies with other companies, so Colonial Penn works best if you’re looking for a no-exam policy. Its policies vary widely in cost, based on your age and health.
For example, a healthy, 30-year-old man typically pays $17 a month for a $250,000, 20-year term policy. While Colonial Penn’s term life policy starts with low rates, its cost can increase to several hundred dollars as you age — a rate not worth the coverage it offers.
Find more life insurance companies like Colonial Penn
Wondering how Colonial Penn fares against other companies? Tick the Compare box to see features for up to four companies side by side.
Life insurance ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our experts analyze life insurance companies to help you to find the strongest possible policy and premium for your family’s needs. We assess their financial strength, customer satisfaction, policy features and riders. We then give each insurer a score between one and five stars that reflects their offering and reputation in the industry. Colonial Penn gets two out of five stars for a higher than the average number of complaints, and fewer customization options than many of its competitors.