First and foremost, We are not going to hold back in this review of colonial penn burial insurance. We are here to tell you bluntly that they have a lot of gimmicks such as their famous “Colonial Penn Life Insurance $9.95 plan“.
The truth is their TV advertising is misleading to consumers. This is no surprise considering what we have mentioned in our previous blogs about burial insurance plans being advertised on TV. To make it simple you should be very skeptical of life insurance companies being advertised on TV.
In fact, TV advertising can be so misleading at times that there is advertiser disclosure’s involved.
The Colonial Penn 995 plan is much more expensive than other life insurance coverage you can find out there and it also has a 2-year waiting period before it pays out to your beneficiary. It is a Colonial Penn Guaranteed Acceptance policy also known as Guaranteed Issue Whole Life Insurance.
Now if you are healthy or have even some moderate health conditions you should not have to settle for a waiting period in fact we help 90% of our clients qualify for day one level coverage even if they have some health issues. This is one of the highlights of our Colonial Penn burial insurance review.
You can also learn more about their new paid spokesman Jonathon Lawson here.
To see pricing on carriers in your state and speak with one of our agents fill out the form to your right.
In this article, we will go over everything you need to know and review about Colonial Penn Burial Insurance and their famous Colonial Penn 995 plan. Also why it is a terrible option for protecting your loved ones from your final expenses.
Does Colonial Penn have Whole Life Insurance?
Yes, they do, They have their Guaranteed Issue Whole Life policy, a Whole Life Policy with day one coverage, and a Term Life Insurance Policy.
Now here’s the problem, both of their whole life insurance products are much more expensive than most other life insurance policies on the market. Their policies are not actually $9.95 a month.
The Colonial Penn 995 plan is actually per unit of insurance. Now, these rates vary by age and gender but we have seen units between $450 to $1,000 so what this really means is that if a unit of insurance for you equals $1,000 then you will be paying $99.5 a month for only $10,000 worth of coverage and have a 2-year waiting period!
Sounds expensive right?
Furthermore, qualifying for their whole life day one coverage policy is extremely difficult. The pricing may be better than their Colonial Penn 995 plan which is a Guaranteed Issue policy but it is still more expensive than what you can find in other places.
This is just 1 of the many reasons why colonial penn whole life insurance reviews are so poor. When you search colonial penn life insurance review they are all negative across the board. We talk extensively with our clients about colonial penn life insurance company offering this guaranteed acceptance life insurance option.
They make it sound like not answering health questions is a good thing when in fact it is not especially if you are healthy. Guaranteed issue policies are always more expensive on their life insurance quotes and coverage amounts. There are no exceptions to this rule this is why here at our agency we specialize in day one level coverage with living insurance benefits.
What this means is that if you get chronically ill and you have one of our carriers like American Amicable you can use the coverage to pay for things while you are alive.
Qualifying for Colonial Penn day one level coverage
They do not send anyone to your home to perform any kind of medical exams or tests. However, considering the medical history and prescription check it seems few people can actually get the policy to begin with. This may be why their Colonial Penn 995 plan is promoted so heavily.
The policy is nothing special it functions just like any other policy. It’s just more expensive and stricter underwriting than most.
It has the following features:
- Level Premiums
- Level Death Benefit
- No waiting period
- Amount of coverage 10,000 – 50,000
- Accidental Death Rider
A 72-year old male can get Greek Catholic Union coverage for $10,000 for $75.52 a month.
A 72-year old male for Colonial Penn’s $10,000 would be $99 depending on the units.
That is a significant difference and qualifying for Colonial is twice as hards as Greek Catholic Union.
Colonial Penns Term Life Insurance Coverage
Out of all their coverage options, we still don’t know which one is worse. Their Guaranteed Issue policy or their Term coverage.
The reason we say that is because their Term life coverage has an increasing premium. We have talked extensively about why term life insurance is not the type of life insurance you want for your final expenses because it terminates.
Now let’s add on the fact that Colonial Penn offers a term policy that increases your premium every 5 years. Here’s the real kicker, once you turn age 90 your policy fully expires and you have no more coverage or any returns on the money spent.
Is there any advantage to having this policy?
There is none whatsoever, you can easily find a term life policy with a fixed premium that never goes up for the length of the term that is significantly less expensive.
We do not recommend term for burial expenses however if you are interested in a term policy give us a call on our number and we can discuss your options.
The only advantage to this policy benefits Colonial Penn not you and your family.
Furthermore, a burial insurance policy is supposed to benefit you and your family it is supposed to be coverage that gives you the peace of mind you always wanted knowing that when you die your family is taken care of. You shouldn’t have to settle for these gimmicks.
To see an insurance quote and speak with an agent that can shop companies that have fixed premiums, benefits, and no gimmicks fill out the quote form to your right.
Colonial Penn Life Insurance Rate Chart
Below you will see rates based on their per unit of insurance rate’s these rates are much higher than other life insurance company rates.
|Age of Applicant||Number of Units|
(Maximum is 12)
|Per Unit of Coverage||Monthly Premium|
Pros and Cons of Colonial Penn Insurance
We do not see any pros in our review with having Colonial Penn burial insurance or any of their policies for that matter.
Their underwritten policies are hard to qualify for and much more expensive compared to other companies. They use misleading TV ads that make consumers think that they are very affordable when they are not.
Their 9.95 policy is a guaranteed issue policy with a 2-year waiting period that a consumer may not need if they are in decent health.
Their term policy has a price that increases over time until it becomes unaffordable for the insured and they are ultimately forced to drop it.
The only pro we can see is that Colonial Penn’s Financial Strength Rating is good.
They have an A- Outlook: Positive from A.M. Best
That being said all that score really means is that they have the finances to pay their client’s insurance claims. Given how much more expensive their policies are we would at least hope they can pay their client’s claims.
Is Colonial Penn Insurance Worth it?
No, absolutely not, from a consumer standpoint why would someone want to pay higher premiums for a policy when there are much more affordable options out there?
Furthermore, you get put into a 2-year waiting period when even if your health is moderate you have a good shot at getting approved for day one coverage with a more affordable and overall better carrier like Mutual of Omaha? With all of these factors considered in this review do yourself a favor and run for the hills from Colonial Penn burial insurance.
does colonial penn cover funeral expenses?
Their whole life policies can be used for final expenses but there are much more affordable options.
what do you get for $9.95 a month from colonial penn?
It depends on age and gender for example you could get $1,000 for $9.95.
how much coverage is a colonial penn unit?
It depends on a few factors but the amount of coverage can be between 450 – 1,000.
is colonial penn life insurance legitimate?
Yes, they are a legitimate life insurance company however they are also much more expensive than others and have misleading advertising for their plans.
does colonial penn life insurance have cash value?
Yes, their whole life policies will build cash value like most traditional whole life insurance policies.
how much is a unit of colonial penn life insurance worth?
It depends but in most cases a unit can be worth between 450 – 1,000
Colonial Penn Life Insurance Burial Marketing
We believe the reason why so many seniors wind up getting this type of coverage is due to their marketing.
They run commercials that have made consumers we have spoken with in the past believe that their plans were only $9.95 a month.
Also that it was a good thing to not have health questions even though this means the consumer ends up with a guaranteed issue policy with a 2-year waiting period for the maximum death benefit.
You see when you call in from one of their commercials for Colonial Penn life insurance you are getting a captive agent on the phone that can only offer you their products and that’s it. This is how most seniors wind up in a gimmicky life insurance plan that does not serve them properly.
Be vigilant when it comes to marketing and ads for these captive companies. They all like to advertise “no medical exam!” for example. We’ll most life insurance companies in today’s age offer products with non-medical exams.
They’ve even had Alex Trebek be part of their advertisements but just because a celebrity endorses Colonial Penn life insurance it does not mean it is the best thing since sliced bread.
When it comes to life insurance coverage to protect your family from the funeral cost’s when you die you need to work with an independent agency like us.
If they were an independent national broker then what Colonial Penn offers would be great because they would have multiple products and companies but they don’t. Guaranteed acceptance plans are not for everyone.
Colonial Penn Final Expense Riders Compared to Other Companies
Colonial Penn life insurance riders are not unique or special.
They only have 2 riders for their plans.
- Accidental Death Rider
- Living Benefit Rider
Both of these riders are pretty standard with most other final expense insurance. This is why Colonial Penn’s final expense riders are not worth it because you are still overpaying for their policy.
The carriers that we represent have the following different riders depending on what company you choose:
- Nursing Home Waiver of Premium Rider
- Accidental Death Rider
- Accelerated Living Benefits Rider
- Grand Child Rider
- Children Rider
These riders vary depending on which company you choose but they offer far more additional benefits than the only 2 Colonial Penn final expense riders offered.
Work with ParamountQuote
We are a national independent agency with access to the top major life insurance carriers nationwide.
There are no gimmicks with the policies and carriers we represent. We pride ourselves on holding our client’s hands every step of the way to help you find the best policy at the best rate for your needs and budget.
The agent you speak with will become your personal service agent for life and will serve you in any way possible when it comes to any questions you may have.
If you decide not to work with us please make sure whoever you decide to go with is a non-captive agency with access to 10 life insurance companies or more so you are guaranteed the best rate and coverage.
To work with us fill out the form to your right.