Colonial Penn Life Insurance: The Real Deal – Read Before you Buy

Colonial Penn is by far one of the most well-known insurance companies in the country. You have probably seen a few Colonial Penn commercials with Alex Trebek and wondered how the company could provide you with quality life insurance.

Do you have any questions about Colonial Penn’s life insurance policies? If so, you’ve come to the right place. By reading this helpful guide, you’ll learn all about Colonial Penn and make an informed decision that’s right for you.

Colonial Penn Life Insurance Policies for Seniors

If you have recently seen a Colonial Penn T.V. commercial, then you’ve likely been sold on their guaranteed acceptance whole life insurance policy. This policy has no medical underwriting and comes with a waiting period of at least two years before it will become activated.

Also, Colonial Penn has another whole life insurance policy with medical underwriting that can disqualify you based on your health conditions. Their last policy is a term policy with a price that increases every five years. This policy will expire at the age of 90.

How Does Colonial Penn’s Rate Lock Work?

Colonial Penn’s T.V. commercials have been coming on for several decades. The one thing that remains the same is how they advertise their “rate lock” feature.

What is a “rate lock” and how does it work?

Colonial Penn’s rate lock is a benefit, in which your monthly premium will never increase in price if you purchase one of their whole life insurance policies.

However, Colonial Penn advertises this benefit as if it’s exclusive to only them. The truth is that every whole life insurance policy will always provide a rate lock. This is just how whole life insurance works.

No matter who you buy whole life insurance from, the monthly premium will never change, so don’t be fooled.

Unfortunately, their rate lock advertisement isn’t special. It really isn’t a benefit. It’s just a ploy to deceive you into purchasing an “exclusive feature” of whole life insurance.

Now that you know this, let’s go over each Colonial Penn life insurance policy in more detail.

Colonial Penn Guaranteed Acceptance Whole Life Insurance

Guaranteed acceptance whole life insurance is Colonial Penn’s premier life insurance policy. If you call them today, a representative will likely sell you on this program.

The major benefit of this policy is that it’s primarily straightforward. It also comes with the following benefits:

  • Premiums will never increase for no reason at all.
  • Death benefits will never increase.
  • Coverage won’t expire at any age.
  • Increases in cash value you can take advantage of.

This is basically how Colonial Penn’s guaranteed life insurance policy works. As you can tell, there’s not much of anything to this policy. While that’s not a bad thing, you should be aware of a few things before you decide to opt-in.

The fundamental thing about this policy is that there isn’t any medical underwriting. Colonial Penn will accept you regardless of any health condition. This is why it’s called guaranteed acceptance.

However, it’s important to remember that Colonial Penn will not pay out any death benefit if you die within two years of the policy’s inception.

If this happens, they will issue you a refund of your entire premium with 7% interest.

This stipulation only comes into effect if you pass away due to natural causes. In the case of an accident, the terms are much different.

For example, if you were to die during a car accident, your entire policy will be paid out regardless of the two-year waiting period. This is how Colonial Penn’s guaranteed life insurance works in a nutshell.

So, you’re probably wondering, “guaranteed life insurance sounds like a great policy, but how does it stack up against other policies.”

Here is something that will shock you.

Guaranteed life insurance is meant to sound attractive, but the fact is that many people can qualify for a health insurance policy that doesn’t conduct health screenings. This can result in much lower payments and no waiting periods.

However, if you absolutely need guaranteed life insurance, you’ll soon find out that they charge more than other insurance companies for the same product.

If you want to explore Colonial Penn’s other life insurance policies, continue reading below.

Colonial Penn Whole Life Insurance

Colonial Penn’s whole life insurance policy is very similar to their guaranteed policy in the following ways:

  • Premiums will never increase for no reason at all.
  • Death benefits will never increase.
  • Coverage won’t expire at any age.
  • Increases in cash value you can take advantage of.

However, people can only qualify if they successfully complete a prescription history check and formal health questions.

You won’t need to take a medical exam to qualify for this program, but the strict underwriting makes it impossible for any senior to become eligible.

Colonial Penn will decline you if you have any of the following conditions:

  • Any usage of blood thinners
  • Any usage of insulin diabetics
  • COPD
  • Currently being examined for an illness
  • Any wheelchair use

There isn’t any need to go on. That’s because these conditions alone can disqualify thousands of people in the preliminary stage. Unfortunately, Colonial Penn can look back three years into your medical history for conditions such as cancer, stroke, and heart attacks.

Unless you have a completely clean bill of health, you may not be able to qualify for this policy.

Colonial Penn Term Life Insurance

The only thing you should remember about this policy is that it will expire if you reach 90 years of age.

Also, the premiums will increase every five years. Interestingly, term life insurance is always cheaper than whole life insurance because it expires.

So, if you want to take a chance of dying before you’re 90 to save money, it’s your decision. Though, remember that the underwriting of term life insurance is strict just like whole life insurance.

Therefore, it may not matter which one you choose because you probably won’t be eligible anyway.

The Final Verdict

Colonial Penn may be one of the most prominent insurance companies because of its namesake, but there are several more affordable options available with lenient underwriting for your medical condition.

This is why it’s important to do your own research to avoid falling in the trap of doing business with companies based solely on their reputation.

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