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Colonial Penn life insurance review 2022

Updated Nov 15, 2022
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Colonial Penn Life Insurance Company offers a few different types of life insurance to fit the needs of a range of customers. Universal life insurance isn’t available, though, and whole life policies have a low $50,000 maximum death benefit.

Pros

  • Customer service available in Spanish and English
  • Offers supplemental health insurance
  • Rated A (Excellent) by AM Best for financial strength
  • Offers guaranteed acceptance life insurance

Cons

  • Doesn’t offer universal life insurance or variable universal life
  • More complaints than the expected baseline were filed with the National Association of Insurance Commissioners (NAIC)
  • Low coverage limit of only $50,000 for permanent life insurance

Colonial Penn Life Insurance Company is a subsidiary of CNO Financial Group, headquartered in Philadelphia, Pennsylvania. The company has written life insurance policies for more than 60 years and was one of the first to offer guaranteed acceptance life insurance. Colonial Penn now offers renewable term and whole life insurance, as well. To help determine if Colonial Penn may be the best life insurance company for your needs, consider the following pros and cons:

Colonial Penn’s life insurance offerings are comparable to some other life insurers, although it does not offer a range of permanent and universal life insurance options. Colonial Penn’s selection is limited to guaranteed acceptance, renewable term and whole life insurance. However, if you’re looking for these types of life insurance, Colonial Penn may be a competitive option.

The company began writing life insurance policies more than 60 years ago and currently has more than 760,000 life insurance policies in force. It was the first company to offer guaranteed acceptance life insurance in 1968, making it a veteran company in the life insurance space. The company writes life insurance policies in 49 states, Puerto Rico, U.S. Virgin Islands and Washington, D.C. However, keep in mind that Colonial Penn agents work remotely, so they may not be directly available in your local area or state.

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Colonial Penn life insurance coverage types

Colonial Penn Life Insurance only offers renewable term life, guaranteed acceptance life insurance and whole life insurance, which may make it a competitive option for shoppers over age 50 who are looking for life insurance. Whole life policies are available to those between the ages of 40 and 75 in most states, with the maximum coverage amount being $50,000. Colonial Penn’s whole life coverage limit is considerably low compared to some other life insurance companies.

For Colonial Penn’s guaranteed acceptance policies, the maximum coverage amount depends on your age and state. If you’re wondering how much life insurance you need, a life insurance calculator may help you figure out an amount best fit to your financial goals.

Colonial Penn Life Insurance policyholders have the option to add an accelerated death benefit rider, which will pay out up to 50% of your death benefit while still living if you are diagnosed with a covered illness, such as a heart attack, stroke, cancer or chronic illness.

For a closer look, Colonial Penn offers the following coverage types:

  • Term: Colonial Penn offers renewable term life insurance with coverage up to $50,000 for those between the ages of 18 and 75, renewable up to age 90. The policy is available everywhere except for Montana, New York and the Virgin Islands. Term life insurance only lasts for the set length of the term, making it a good option to consider for those who are worried about short-term financial obligations like caring for a young child. There is also no medical exam requirement, meaning individuals who have difficulty qualifying for traditional life insurance may find Colonial Penn’s renewable term offering a viable option.
  • Permanent: Colonial Penn offers whole life insurance, which is a type of policy that remains in effect for the duration of your life, or as long as you pay your premiums. Whole life insurance also comes with a cash value account designed to accumulate interest and returns, which you may be able to use to pay your premiums or borrow against. Colonial Penn’s whole life insurance policy has a maximum coverage capacity of just $50,000. This policy requires the insured to answer health questions, but not complete a medical exam. It may be a good fit for those who want lifelong coverage with a low death benefit and a cash value account, without a required medical exam.
  • Guaranteed: Guaranteed acceptance life insurance is another permanent policy type available through Colonial Penn, which may be a good choice for individuals with health issues that prevent them from passing a traditional life insurance policy’s medical exam screening process. Guaranteed acceptance life insurance policies don’t require a medical exam for an applicant to be approved. However, premiums are typically high and have a comparatively low death benefit.

Colonial Penn life services

Colonial Penn doesn’t offer any non-insurance-related services such as financial advising or estate planning. However, the company does offer supplemental health insurance that can be applied towards large medical bills in tandem with your existing health insurance.

Other Colonial Penn perks worth considering

Colonial Penn does not offer policy management through a mobile app, but the following perks may be of interest.

  • Supplemental health insurance: In addition to life insurance, Colonial Penn offers supplemental health insurance if you want to have extra financial protection against large medical bills.
  • Instant chat feature: The company’s website features a chat box where you can ask questions and receive answers from a real agent in as little as a few seconds.
  • Living Insurance endorsement: Living Insurance is an accelerated death benefit, which means you can take out up to 50% of your death benefit before you pass away if you’re diagnosed with a covered illness. Approved illnesses typically include heart attacks, strokes, cancer or certain chronic illnesses. You can contact a Colonial Penn agent regarding the specific details of your situation to determine your eligibility.

Colonial Penn life insurance customer and claims satisfaction

With a financial strength rating of A (Excellent) from AM Best, Colonial Penn Life Insurance has proven its historic ability to pay out claims. However, consumers have filed more complaints than normal against Colonial Penn, according to the NAIC, which shows that a significant proportion of policyholders have had issues with the company. Colonial Penn is currently unrated by J.D. Power.

Colonial Penn corporate sustainability

Colonial Penn does not advertise specific corporate social responsibility initiatives on its website. However, you may be able to call the company at 1-877-877-8052 and speak to an agent to learn if the company has any initiatives on the horizon.

Not sure if Colonial Penn is right for you? Consider these alternatives

Colonial Penn Life Insurance may not be right for everyone, especially if you’re looking for universal life or variable universal life. It may also be helpful to look into the different types of life insurance and consult a life insurance guide to learn which policy or coverage types are best for your situation.

Once you’ve determined your life insurance policy needs, insurance experts typically suggest you get a life insurance quote from a few insurers. The carriers below may be a helpful starting place for your search.

  • State Farm: State Farm won a Bankrate Award for the best term life insurance company. It offers a 24/7 payment line, a network of local agents and an easy-to-use mobile app. If these features are important to you or you are interested in a term life insurance policy, you may want to consider State Farm.
  • MassMutual: MassMutual earned a Bankrate Award for best whole life insurance. The company earned this title for its high AM Best financial strength score, high coverage capacity and numerous whole life policy riders. If you’re looking for a whole life insurance provider with a high coverage capacity, you may want to check out MassMutual.
  • Nationwide: Nationwide won a Bankrate Award for best universal life insurance, largely due to the company’s wide range of riders, high J.D. Power score and accessible network of local agents. The company also offers life insurance for children. If you’re interested in universal life insurance or looking for features like the ones mentioned above, you may want to check out Nationwide.