With over 60 years of experience in the industry, Colonial Penn has found its way onto the map providing life insurance products direct to consumers. The company offers several customizable options, including guaranteed acceptance life insurance, living insurance riders, permanent whole life insurance, and renewable term life insurance. Our Colonial Penn life insurance review found clearly laid out plans, flexibility, and options that are attractive to people from all walks of life.
Colonial Penn Overview: Financial Strength, Availability, and History
Best for Guaranteed Acceptance
- 30-day money-back guarantee on all plans
- Whole life insurance with guaranteed acceptance for ages 50-85
- No medical exams required on plans (some may require answering questions)
- Higher than average number of customer complaints
- No options for younger people
The Life Insurance Factors We Analyzed
For the most part, our Colonial Penn life insurance review turned up positive results for the customer experience. The website is quite intuitive, and the company has extremely helpful customer service assets and representatives ready to help. BBB gave the company an A+ rating, but Colonial Penn does have a slightly higher than average number of complaints, according to the National Association of Insurance Commissioners (NAIC).
One of the best places to look for the financial strength of a life insurance company is the AM Best Financial Strength Rating. While an A- isn’t the absolute highest rating available, it still is quite high and certainly a notch in the win column. Colonial Penn is owned by CNO Financial Group, a publicly-traded company on the NYSE with a market cap of $2.28 billion. You can rest assured that the backing of Colonial Penn is from a major and well-established company.
At the surface level, Colonial Penn offers whole, term, and living life insurance policies. Where the company is most notably known, though, is with its guaranteed acceptance policies. The policy is available to anyone aged 50-85 and is exactly what is advertised. You can get life insurance with no health questions and no physical. There is a two-year limited benefit period to be aware of, but everyone will be accepted.
|AM Best Financial Strength Rating||J.D. Power 2019 U.S. Life Insurance Study Score||NAIC Customer Complaints|
|Colonial Penn||3.4||A-||N/A||More complaints than average|
|Northwestern Mutual||5||A++||810||Fewer complaints than average|
|State Farm||5||A++||808||Fewer complaints than average|
|Nationwide||4.8||A+||783||Fewer complaints than average|
|New York Life||4.2||A++||770||Fewer complaints than average|
|Mutual of Omaha||4.2||A+||795||Fewer complaints than average|
|Principal||3.8||A+||789||Fewer complaints than average|
*All information accurate as of 9/22/2020.
The Bottom Line
Overall, Colonial Penn has a lot of options for people aged 50-85 to choose from. If you’re worried about getting approval because of some pre-existing health conditions, Colonial Penn could be a great option, as the company has its guaranteed acceptance life Insurance option. Additionally, you can apply for plans quickly online, and each plan comes with a 30-day money-back guarantee.
With over 60 years in the industry, a robust suite of customer service assets, and several quality options, Colonial Penn is a viable option for people in their later years of life looking for insurance.
Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For the life insurance companies, our editorial team evaluates financial strength, number of riders offered, coverage options, customer satisfaction scores and website functionality to produce our very own Reviews.com score. Since life insurance rates vary widely among different profiles, we encourage you to continue researching options that fit your specific needs.
Colonial Penn FAQ
Colonial Penn has been in business for over 60 years, has a positive track record with clients, and is well-respected by third-party raters like the BBB and AM Best Financial.
Colonial Penn offers whole life insurance, term life insurance, and guaranteed acceptance life insurance. Additionally, you can add riders to get access to your money early if you’re diagnosed with a chronic illness or some debilitating conditions.
Life insurance policies with Colonial Penn start as low as $9.95 per month per unit with the option to get up to 12 units. The exact cost of your premium will depend on the plan you choose and how you decide to customize it.
Colonial Penn does not outline any information on dividends or dividend rates with any policies.
Most of the life insurance plans with Colonial Penn do not require a medical exam. Some of the policies do require you to answer questions before gaining acceptance. The company’s guaranteed acceptance policy requires no physical, medical exam, or the answering of any health-related questions. You can read our article on no-medical exam life insurance to learn more about how they work.
Yes, you can cancel your policies with Colonial Penn with no fee.