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Colonial Penn life insurance review 2021

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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 Accelerated death benefit rider
Accidental death benefit rider

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 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.

Colonial Penn life insurance rates

Expect to pay a high cost of around $57 a month for a $50,000 term life policy from Colonial Penn, depending on factors like your age, gender and health.

AgeManWoman
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

What factors affect my rates with Colonial Penn life insurance?

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

  1. From Colonial Penn’s homepage, choose your birthdate and state from the drop-down and click Get Quote.
  2. Click Learn More from the list of quotes to get more details, or click Get quote to continue your application.
  3. Enter your address, gender and email address. Click Get quote.
  4. Select any policy add-ons. Click Apply for coverage.
  5. Answer basic health questions and click Continue to enter your beneficiary details.
  6. Review and e-sign your documents, then a licensed agent will contact you to finalize the process.
  7. Once you’re approved, register online to pay your premium, update contact info or review your policy.

What types of life insurance coverage does Colonial Penn offer?

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:

PlanCoverageMedical examAge availabilityProtection untilRate increaseMonthly premiumsDisclaimers
Guaranteed acceptance life Up to $25,000None50 to 85 years old in most states For lifeNo$9.95–$79.60You won’t be denied a policy, but the first two years offer limited coverage
Renewable term life $10,000–$50,000None18 to 75 years old90 years oldYes, based on fixed 5-year age bands$2.54–$800.80Guaranteed ability to convert to permanent life insurance at age 90
Whole life $10,000–$50,000None40 to 75 years oldFor lifeNo$14.36–$576.44Cash 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.

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 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 reviews and complaints

Founded in 1968, the company has over 50 years of financial history, signaling its likely ability to pay claims. The Better Business Bureau (BBB) gave Colonial Penn an A+ rating as of October 2020. The company closed nearly 90 complaints from 2017 to 2020, not terrible for the company’s size.

Colonial Penn also received a complaint index ratio of 1.31 in 2019 from the National Association of Insurance Commissioners (NAIC), close to the national median of 1.00. The complaint index rates companies based on their number of complaints compared to premiums written.

The BBB complaints and other online reviews note pushy salespeople encouraging customers to buy more insurance than they want, lost policies after years of payments, denials for the guaranteed acceptance policy and frequent robocalls.

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

AM Best financial rating A-
BBB accredited Yes
BBB rating A+
1/5 out of 7 customer reviews
Customer reviews verified as of 19 January 2021

How does Colonial Penn compare to other insurers?

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.

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
Bestow
21 - 54 years old
$50,000
$1,000,000
10 or 20 years
No
Get a quote in less than 10 minutes with on-the-spot approval and no medical exam.
Haven Life
18 - 64 years old
$100,000
$3,000,000
10, 15, 20, or 30 years
No exams for some applicants
Fill out a quick online application and get approval in minutes with up to $3 million in coverage.
Ladder
20 - 60 years old
$100,000
$8,000,000
10, 15, 20, 25 or 30 years
Depends on policy
Apply for term life insurance online without the medical exam. Get an instant decision and adjust your coverage at no charge.
Policygenius
18 - 85 years old
$50,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on provider and policy
Compare 12+ top insurers side-by-side to get the best possible deal, and shop return of premium policies online.
Fabric
21 - 60 years old
$100,000
$5,000,000
10, 15, or 20 years
Depends on policy
No-exam term policies up to $1 million online, with the option to upgrade to permanent life insurance later.
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Compare up to 4 providers

Common questions about Colonial Penn

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.

Learn more about our methodology.

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