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- Seniors with health conditions can qualify for whole life coverage.
- No medical examination is required.
- Some whole life policies are available to people up to age 85.
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Overview
You may know Colonial Penn from his television commercials with pitchman Alex Trebek. The company promotes life insurance that does not require applicants to take a medical exam.
- Financial strength
- Complaints
am Best financial strength rating: A- (excellent)
Colonial Penn’s financial strength is “excellent,” according to rating agency AM Better.
Financial strength is important because it indicates how well an insurer can pay a claim. It is especially important when choosing a life insurance company, as claims may not be made until decades after you buy a policy.
Consumer complaints: worse than median
Colonial Penn attracts more complaints to state regulators than the national median for life insurance companies of its size.
Colonial Penn’s complaint ratio ratio for individual life policies was 1.71 in 2016. The score is the number of complaints adjusted for the insurer’s market share. The national median is 1. Scores higher than 1 mean more complaints.
Colonial Penn Life Insurance Coverage Options
Colonial Penn offers term life insurance and two types of whole life insurance. Applicants do not have to undergo a medical exam, but they do have to answer health questions for term of life and for some whole life policies.
The company’s products have two key disadvantages:
- Only small amounts of coverage are available.
- The price per $ 1,000 of coverage is higher than for policies that take more medical information into account during the application process.
Term of life insurance
| It can be applied to ages | 18 to 75 |
| Answer health questions to apply | Yes |
| May be rejected for coverage | Yes |
| Maximum coverage | $ 50,000 |
| Price | Based on age and gender at the time of application, and increases with age |
| Available in | All states except Maine, Massachusetts, Montana, New York, and Vermont |
Colonial Penn offers two types of permanent life insurance: whole life and guaranteed acceptance of a lifetime. Both types of policies do not require medical exams, provide lifetime coverage, and accumulate cash value. Applicants do not have to answer medical questions, and cannot be turned down for guaranteed acceptance guaranteed life insurance.
| Guaranteed lifetime acceptance of the insurance. | Whole life insurance | |
|---|---|---|
| Availability by age | 50 to 85 | 40 to 75 |
| Health questions? | Not | Yes |
| Can it be rejected? | Not | Yes |
| Maximum coverage | $ 3,344 to $ 16,664, according to age and gender | $ 50,000 |
| Payment if you die within the first two years of coverage | Premiums paid plus 7% interest compounded annually. Full payment if it was an accidental death. | Total amount, except in cases of suicide, in which the payment is premiums plus interest * |
| Not available in | Massachusetts and Washington | Maine, Massachusetts, Montana, New York, Vermont, and Washington |
| * Applies for one year only in Colorado, Montana, and North Dakota, and does not apply in Kentucky. |
