The Colonial Penn Life Insurance Review- What you need to know about the 995 plan! (Pros and Con’s)

Many people argue that life insurance is a waste of money, but they couldn’t be more wrong.

Life insurance can help your family maintain its standard of living and provide your loved ones with financial assistance in the event of unforeseen circumstances.

Unfortunately, many people are not aware of this and vow to live their lives to the fullest regardless of the upcoming potential risks.

So, if you want to protect your family from financial hardship, it is critical you think about and get life insurance coverage.

And, in this article, we will review one of the best companies in the industry: The Colonial Penn Life Insurance.

Keep reading to discover all the in’s and out’s and whether or not you should opt for life insurance from The Colonial Penn.

The Colonial Penn Life Insurance Review

First Thing First, What is The Colonial Penn Life Insurance?

The Colonial Penn Life Insurance company is a financial services company that provides life insurance, annuity, and supplemental benefits.

Founded in 1968, The company’s headquarters are in Philadelphia, PA, became one of the first to provide life insurance to people above the age of 50, with the most popular plan being thee Guaranteed Acceptance Life Insurance, available exclusively for ages 50 and over.

But still, The Colonial Penn also offers life insurance products for ages 18-85, which are designed to help ease financial burdens at a difficult time.

The History Behind The Colonial Penn Life Insurance

The Colonial Penn Life Insurance is one of the oldest insurance companies in America that still operates.

Founded in 1968, it has sustained its longevity through the use of modern marketing and management techniques and by adapting to emerging technologies.

The Colonial Penn Life Insurance continues to deliver quality services, demonstrating its ability to evolve with change.

Things To Consider Before Buying a Life Insurance

Before you start comparing companies, choose the type of life insurance that you want.

Then decide which other parts of the policy that you want the life insurance to include.

You need to calculate how much life insurance you need and the length of time that coverage should last.

You also want to make sure that the insurers you are considering offer the coverage you want.

When you are comparing rates, be sure that you are getting quotes for the same amount of coverage.

You also need to make sure that the medical requirements on the policy match your needs.

Shopping and comparing quotes from multiple companies is the first step in purchasing a life policy.

The process is very similar to shopping for auto insurance. The best rates are the policies with the cheapest rates since life insurance is primarily for death benefit planning.

Below, we will discuss The Colonial Penn Life Insurance available plans and packages including their benefits and age requirements.

The Colonial Penn Life Insurance Available Plans and Packages

Choosing the right life insurance plan is a very personal decision. Do you want a policy that will payout based on reserves?

Or, do you want a policy that will pay out to your beneficiaries whether or not they have been paying premiums? What about Medicare riders or long-term care coverage?

The options are seemingly endless and it can be difficult to decide what might be best for you and your family.

The Colonial Penn Life Insurance offers three main types of life insurance policies.

There are different coverage options in each type, offering the buyer a substantial amount of flexibility.

  • Guaranteed Acceptance Life Insurance A.K.A: The 995 Plan! (Ages 50-85 in most states)

The Colonial Penn life insurance for $9.95 per month is a guaranteed acceptance whole life policy with a 2-year waiting period.

It does not require a medical examination but has a two-year limited benefit period meaning that your policy will not pay out a death benefit in the first two years.

Everyone pays $9.95 per unit (max of 12 units). How much coverage you get for $9.95 depends on age and gender.

The policy builds a cash value, beginning after the first year of coverage, and allows you to choose the death benefit limit.

A Colonial Penn Guaranteed Acceptance Life Insurance covers you for your entire life if you continue to pay the premium.

It also features a fixed rate, so you will pay the same premium throughout the life of the policy.

  • Permanent Whole Life Insurance (Ages 40-75)

People between the ages of 40 to 75 (except for applicants in New York State or the Virgin Islands.) can purchase Permanent Whole Life Insurance Plan, which offers coverage for a lifetime.

The policy does not require a medical examination, but you will need to complete a health questionnaire to determine your eligibility.

One year into your policy, you can also benefit from the cash value building feature that allows you to borrow money in emergencies at a set rate.

The maximum benefit amount you can receive in this policy is $50,000, and the premium depends upon your age, area of residence, and health conditions.

  • Renewable Term Life Insurance (Ages 18-75)

The company offers a term life insurance policy that is renewable until the policyholder reaches 90 years of age, and carries a maximum death benefit of $50,000.

You can purchase the Colonial Penn term life insurance as early as 18 years of age, everywhere across the states except California, Montana, New York State, and the Virgin Islands.

The earlier you purchase it, the lower the monthly premium.

An average 18-year-old male can pay as low as $2.75 per month for a policy offering $5,000 coverage.

The Colonial Penn does not require a medical exam for its term life policies but determines your eligibility based on a medical questionnaire.

Should I Opt For The Colonial Penn Life Insurance?

If you are looking for a simple, yet effective way to protect your family with an insurance policy, then you should look no further than The Colonial Penn’s Life Insurance.

It is designed to help fulfill the many needs of its policyholders.

The life insurance lot can be used in any number of ways, whether it be to provide for your loved ones’ financial future or to fund a charitable gift in honor or in memory of someone.

Colonial Penn ratings Customer Satisfaction and Complaints

For more than 50 years, the company has provided customers with a high level of service, all in a stable financial environment.

This has led to some of the best ratings in the industry, which include A.M. Best granting The Colonial Penn a rating of A- which is good. And an A+ rating with The Better Business Bureau.

All the ratings are positive and depict that the company has the excellent financial strength, ensuring our insurance investment is in safe hands.

The Colonial Penn Life Insurance PROS

  • The availability of the 995 plan.
  • Final expense insurance.
  • Quick turnaround coverage.
  • Flexible coverage lengths.
  • Fixed premium rates.
  • No need for a medical exam.
  • 24/7 Online Customer Access.
  • 30-day money-back guarantee.

The Colonial Penn Life Insurance CONS

  • Low Death Benefits.
  • Income replacement.
  • Low-cost term life insurance.
  • Terminally ill consumers.
  • Maximum coverage of $50,000.

The Colonial Penn Life Insurance Frequently Asked Questions (F.A.Q)

  • How much is a unit of Colonial Penn life insurance? And How Much Do You Get For it?

One unit of Colonial Penn Life insurance costs $9.95 per month.

Take for example, the Guaranteed Acceptance Plan, while the policy doesn’t require a medical exam, it only offers limited benefits for the first two years.

But the price you will pay for the policy may depend on your age, amount of coverage, and location.

  • How much are Colonial Penn’s life insurance rates?

Everyone, regardless of their age and gender, pays just $9.95 for their guaranteed acceptance coverage. The most you can buy is 12 units.

The amount of life insurance provided by a single unit depends on your exact age and gender.

  • What Other Policies Does Colonial Penn Offer?

Today’s high health care costs can cause a serious financial burden, even if you carry medical insurance.

Colonial Penn’s Active Care supplemental health insurance plan can complement your life insurance policy by providing asset protection when you need it most.

It can help pay up to $60,000 in expenses related to a variety of health conditions, including accidental injuries, Alzheimer’s disease, and other complications.

Colonial Penn offers Active Care coverage to adults and children.

If you don’t file a claim before the end of the policy term, Colonial Penn will return a portion of your premium.

Availability of Active Care and the cash return benefit may vary by state.

  • How do I file a life insurance claim with Colonial Penn?

Colonial Penn only accepts claims through the mail.

  • Who is Colonial Penn’s Life Insurance Good For?

The Colonial Penn is a good option for people looking for a whole life policy.

If you have a preexisting condition that might prevent you from purchasing life insurance from another carrier, Colonial Penn’s Guaranteed Acceptance Plan might provide just the coverage you need.

Colonial Penn’s term life policies offer a few advantages over many of its competitors. They don’t require a medical exam and if you continue to renew your term life coverage, your policy may build a cash value.

The best part is that all Colonial Penn policies also come with a 30-day trial period.

If you decide to cancel or change your policy during the first 30 days of coverage, the insurer will issue a full refund of your premium.

  • Does Colonial Penn Have a Waiting Period?

Yes, the guaranteed acceptance life insurance policy comes with a two-year waiting period before it pays out.

  • What Are The Things To Consider Before Applying For a Colonial Penn Life Insurance?

Below are some items to keep in mind:

  • Family History
  • History of substance abuse
  • Current use of alcohol or tobacco
  • Criminal history
  • Job History
  • Hobbies

The Colonial Penn Life Insurance – Final Thoughts

You’re never too young for life insurance.

The cost of life insurance can be costly, but it is still worth it when weighed against the cost of the damage that you might get in the future.

The decision to get life insurance can be difficult, that is why we try our best to bring you reviews about the best life insurance companies in the industry.

Like The Colonial Penn Life Insurance Company that has a wide range of life products for customers to choose from including Whole Life Insurance, Term Life Insurance, and Retirement Services.

Moreover, The Colonial Penn website offers a variety of resources for customers such as an FAQ page, financial calculators, and educational videos.

This shows that the company is committed to providing its customers with affordable, quality insurance coverage.

And, if you still need further guidance you should speak to a financial planner or an advisor who specializes in this area.

Thank you for reading our Colonial Penn Life Insurance review we hope you got a great understanding on their actual insurance plans and packages. Feel free to check our other insurance providers reviews here (insert a hyperlink).