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Colonial Penn life insurance review 2020

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Find policies that don't require a medical exam, but policies are capped at low amounts.

finder.com's rating: 2 / 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

Free quote Online, Phone
Monthly cost $2.54/month
Policies Renewable Term, Guaranteed Acceptance, Permanent Whole.
Coverage maximum $50,000
Term lengths 5 year banded term – up to age 90
Riders Accelerated death benefit rider, Accidental death benefit rider
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

Expert review

Rhys Subitch

Review by


Rhys Subitch is a writer and editor at Finder who tackles topics across the site. With 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 on all things finance.

Expert review

Colonial Penn offers three basic life insurance options, including term and whole life policies. While none of them require a medical exam, the coverage is less than you might find with other insurers and there aren’t many riders to help customize your policy.

This company also sees a more than the average number of customer complaints. If you decide to try a Colonial Penn policy, you’ll have 30 days to cancel your policy for a full refund.

Colonial Penn life insurance rates

You won’t find any full guides provided on Colonial Penn’s website showing how to get the lowest premiums, but most insurers look for some common traits like:

  • Criminal convictions.
  • Current health measures, such as cholesterol.
  • Family or personal history of certain diseases.
  • High-risk hobbies or jobs.
  • History of alcohol, tobacco or substance abuse.

Compare life insurance rates

Compare quotes for life insurance policies starting at $15/month.

How to apply for Colonial Penn life insurance

  1. To get a quote, from Colonial Penn’s homepage, enter your birthdate and state from the drop-down menu and click Get Quote.
  2. You’ll then be provided quotes for the policies available to you. From here you can click on Learn More to get further details on the policy, or you can continue with the application process by clicking Get quote.
  3. Enter your address, gender, email address and questions then click Get quote.
  4. Select any policy add-ons then click Apply for coverage.
  5. Answer a few basic health questions. From here click Continue, then enter your beneficiary information.
  6. Next, review your documents online, then e-sign to confirm. A licensed agent will contact you shortly to finalize the process.
  7. Once you’re approved, register your account online to pay your monthly premium, update contact info and review your policy.

What types of life insurance coverage does Colonial Penn offer?

Colonial Penn offers both term and whole life policies to help you prepare for the future:

  • 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 Life offer burial insurance?

Yes. Colonial Life’s guaranteed acceptance policy functions as burial insurance. Like most final expense policies, it’s marketed to seniors — in this case, those 50 to 85 years old — and capped at a small amount.

No medical exam is required, and if you die of natural causes in the first two years with the policy, your beneficiaries will get a lump sum equal to the premiums paid plus interest compounded annually. If you die after the two-year mark, the insurer will pay the full death benefit.

What riders does Colonial Penn offer?

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. Get up to 50% of your life insurance benefit if you have a heart attack, stroke, cancer or chronic illness.
  • Accidental death benefit. Pays out an extra death benefit to your beneficiaries if you die in an accident, such as a car accident.

Colonial Penn reviews and complaints

The Better Business Bureau (BBB) gave Colonial Penn an A+ rating as of October 2020. But the company has closed nearly 90 complaints since 2017. Most complaints surrounded issues with the life insurance policies, advertising and billing.

Colonial Penn received a complaint ratio of 1.31 in 2019 from the National Association of Insurance Commissioners (NAIC), a rating that’s close to the national median of 1.00. The NAIC complaint index rates companies based on how many complaints they receive compared to the premiums written.

Other reviews around the web note pushy salespeople encouraging customers to buy more insurance than they want, lost policies after years of payments, application denials for the guaranteed acceptance policy and frequent advertising robocalls.

Colonial Penn’s parent company, CNO Financial Group and its subsidiaries, received a financial strength rating of A- (Excellent) from AM Best. This rating shows Colonial Penn’s ability to pay out death benefits.

Compare alternatives to 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.

Name Product Issue age Minimum Coverage Maximum Coverage Term Lengths Medical Exam Required
Prudential
18 - 75 years old
$100,000
$10,000,000
10, 15, 20, 30 years
Yes
Customize your term life insurance with a long list of life and disability riders. Get a free quote on Policygenius.
Transamerica
18 - 75 years old
$25,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on policy
Purchase a policy worth anywhere from $25,000 to $10 million, with the option to skip the medical exam. Get a free quote on Policygenius.
MassMutual
18 - 80 years old
$2,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on policy
Purchase term life insurance up to age 80 with Finder's #1 ranked company. Get a free quote from this A+ rated insurer on Policygenius.
AIG
AIG
20 - 85 years old
$5,000
$2,000,000
10, 15, 20, 25, 30, 35 years
Yes
Buy term life insurance all the way up to age 85, and choose a policy that lasts up to an incredible 35 years. Get a free quote on Policygenius.
John Hancock
18 - 65 years old
$25,000
$1,000,000
10, 15, 20 years
Depends on policy
Score a low rate on term life insurance with discounts and rewards for your healthy habits. Get a free quote on Policygenius.
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Compare up to 4 providers

Common questions about Colonial Penn

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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.

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