Pros and Cons of Colonial Penn Insurance

Colonial Penn life insurance has its pros and cons just like any other permanent whole life insurance policies on the market. The key difference is the cons of colonial penn definitley out weight the pros when compared to other life insurance companies on the market.

The truth is we believe you can find much more affordable and better whole life insurance coverage with other companies.

Final expense insurance should be simple and not complicated when it comes to protecting your family from your burial expenses.

Colonial Penn life insurance is whole life insurance which is also known as final expense insurance. These types of whole life insurance policies offer smaller coverage amounts typically between $2,000 – $40,000 depending on the company you choose.

Now before we get into the pros and cons the most important take aways about Colonial Penn life insurance are it is much more expensive compared to other whole life insurance.

In addition to that the main product they market through their Colonial Penn tv commercial is guaranteed acceptance life insurance with a 2-year waiting period before it pays.

Pros and Cons of Colonial Penn Insurance Deep Dive

We have covered the pros and cons in our article of the Colonial Penn 995 Plan Review however we are now going to do a deep dive into these pros and cons.

Related: Johnathon Lawson Colonial Penn


  • Advertising can Be Misleading – Their TV commercials can make it sound like seniors can get whole life insurance policies of $10,000 or more for $9.95 a month. This is not the case at all the $9.95 per unit of insurance does not equal $10,000 in coverage.
  • Guaranteed Acceptance Life Insurance is What they Mainly Advertise – The product a senior could end up with most likely is an overpriced whole life insurance policy with a 2-year waiting period before benefits payout. This means if you die a month after you purchase Colonial Penn life insurance with a 2-year waiting period your beneficiary will not get the full death benefit.
  • Colonial Penn Life Insurance One Size Fits All Approach – Their advertising focuses heavily on no medical exams and no health questions to be approved. This is how so many seniors wind up with guaranteed acceptance plans and a waiting period even if they are healthy. The Truth is if you are a healthy individual you can qualify for final expense insurance with no waiting periods with us.
  • Colonial Penn Life Insurance No Waiting Period Coverage Strict Underwriting – Colonial Penn does offer whole life insurance that does not have a waiting period. The problem is their underwriting is so strict for this product it can be hard to qualify for. This contributes to seniors winding up with life insurance policies and waiting periods.


Keep in mind when we are listing these pros compared to the cons of Colonial Penn. All final expense insurance has these same pros they are nothing special and should be standard with any permanent whole life insurance policy.

  • No Medical Exams – All types of simplified issue permanent whole life insurance policies do not require a medical exam. The Colonial Penn coverage has this same feature that means you will not have to take a medical exam to get approved for their coverage.
  • Life Insurance Coverage Never Decreases – Again this is a standard issue on these types of life insurance policies. All burial life insurance policies have a death benefit that never decreases.
  • Policy Builds Cash Value – Another standard benefit is the cash value that builds in the policy over time as you pay your premiums. This is a small savings that grows in addition to the coverage amount in your policy. All burial insurance plans have this benefit built into them. You can use cash value to borrow against if you ever need quick cash in a tight situation. Keep in mind that withdrawing cash value is technically a loan against you policy and needs to be paid back. If you do not pay back the cash value borrowed the insurance company can take it out of your death benefit.

Both of Their Whole Life Insurance Products

Now we have mentioned before that Colonial Penn has 2 whole life products. The one most seniors end up with is the plan with no medical exam that does not have them answer health questions.

This coverage puts you in an unwanted waiting period that exposes your family to risk if you die suddenly.

The truth is depending on your age or medical history you can qualify for better life insurance coverage with better companies.

Colonial Penn does have a policy with no waiting period but as we mentioned before when you answer health questions on their application it can be more strict than other companies.

This is why even if you are at a healthy age or medical history you could still get turned down.

Again there are plenty of no medical exam life insurance products with better pricing that we and other agencies represent.

Colonial Penn Life Insurance Guaranteed Acceptance Life Insurance

As you can see Colonial Penn’s life insurance is inferior compared to other plans on the market. The coverage Colonial Penn offers is overpriced and if you are healthy you should not have to settle for a 2 year waiting period.

In addition to this if you are in extremely poor health Colonial Penn’s life insurance is still overpriced compared to other guaranteed acceptance plans on the market.

Their guaranteed acceptance coverage does not provide any advantages compared to companies like American General(AIG). Colonial Penn’s life insurance is overpriced when compared to either AIG, Great Western or Gerber Life Insurance company.

Colonial Penn Life Insurance No Waiting Period Policy

Now the no waiting period policy with Colonial Penn life insurance company is the polar opposite of their guaranteed acceptance life policy.

It can be extremely hard to qualify for based on their health questions. With this kind of strict underwriting most seniors even in decent health will wind up with the guaranteed acceptance plan.

Instead of settling for the guaranteed acceptance Colonial Penn offers try going with Mutual of Omaha Burial Insurance. Their Living Promise product can be much easier to qualify for compared to the coverage Colonial Penn offers.

As we mentioned before in our opinion the cons of Colonial Penn life insurance company outweigh their pros.

Colonial Penn Life Insurance Does Not Offer Term Life Insurance

Colonial Penn Life Insurance Company does not have any term life insurance policies. This means if you are looking for term life insurance with Colonial Penn you need to look elsewhere.

All Colonial Penn offers is burial insurance where as the other companies we are going to recommend have both burial and term life insurance policies.

Better Life Insurance Companies to Consider

If you are looking to buy life insurance you are going to be much better off with the companies we are going to list below.

You can buy life insurance with any of the following companies below they offer whole life coverage, term life coverage, and guaranteed acceptance policies.

There is no medical exam required for any of the burial policies associated with these companies and their guaranteed acceptance policies are much more affordable than Colonial Penn.

Better Companies Instead of Colonial Penn