Colonial Life is one of the most respected names in the life insurance industry with over 3.5 million customers relying on their products. In terms of life insurance, the company offers term life insurance and whole life insurance through your employer.
Term life insurance is typically more affordable than whole life insurance, but it only covers you for a specific length of time. However, whole life insurance is a type of cash value life insurance that can provide savings and investment opportunities, as well as the ability to hold on to it until you no longer need it. A whole life insurance policy is typically more costly than a term life insurance plan.
Also, Colonial Life’s online services allow you to file claims and view your policy online, but you can’t get a quote without calling a customer service representative.
Colonial Life Overview: Financial Strength, Availability, and History
The Better Business Bureau gives Colonial Life an A+, but it’s not accredited. Accreditation is an optional additional vetting process that doesn’t affect a company’s grade. Therefore, because it’s financially stable, it’s unlikely that Colonial Life won’t be able to fulfill your claim due to default or bankruptcy. However, it’s a subsidiary of Unum Group, which has recently seen stock prices fall after the COVID-19 hit. Colonial Life is offered in all 48 contiguous states, as well as the District of Columbia.
- In business since: 1937
- S&P financial strength rating: A
- Moody’s financial strength rating: A3
- AM Best financial strength rating: A
- States served: 48 states, plus Washington, D.C.
Colonial Life is best for employer-sponsored life insurance
|Guaranteed coverage with some plans||Have to call for a quote|
|You can keep your plan if you switch jobs||May have to get a medical exam with some plans|
|Online claim filing||Some complaints about difficulty of canceling|
|AM Best Financial Strength Rating||J.D. Power 2019 U.S. Life Insurance Study Score||NAIC Customer Complaints|
|Colonial Life||A||N/A||Fewer complaints than average|
|Northwestern Mutual||A++||5/5||Fewer complaints than average|
|State Farm||A++||5/5||Fewer complaints than average|
|Nationwide||A+||4/5||Fewer complaints than average|
|New York Life||A++||4/5||Fewer complaints than average|
|Mutual of Omaha||A+||4/5||Fewer complaints than average|
|Principal||A+||4/5||Fewer complaints than average|
*All information as of May 12, 2020.
The Bottom Line
At the end of the day, Colonial Life life insurance is a longtime player in the industry. The company is labeled as financially stable by the large credit rating companies and has been around for over 80 years, so it’s not likely to default on its commitment to you. You’ll have to get Colonial Life life insurance through an employer, but if you change jobs, you can transfer your policy over. There were fewer complaints than average about the company, so if you’re looking for a life insurance policy, Colonial Life could be a good option to protect you and your family. However, keep in mind that COVID-19 is hitting the insurance industry hard, and Colonial Life’s umbrella company, Unum, is not immune.
Colonial Life FAQ
Yes, Colonial Life has good to excellent financial strength ratings by Moody’s, S&P, and AM Best credit rating companies. The company guarantees it will pay death benefits if you pass away within the assigned term (for the term life insurance plan) or as long as you continue to pay your premium . Additionally, it has fewer-than-average customer complaints when compared to its counterparts.
Colonial Life offers term life insurance and whole life insurance. The main difference between the two is that term life insurance is available only during a specified period and whole life insurance is available permanently.
Life insurance is typically an affordable insurance option. The monthly cost varies based on factors such as how old you are and which life insurance plan you select. A term life insurance plan is often less expensive than a whole life insurance plan.
Colonial Life doesn’t pay dividends to its customers. Some life insurance policies offer policyholders investment opportunities, but Colonial Life isn’t one of them.