For decades, Colonial Penn has been offering various life insurance that does not require medical underwriting. But their most popular plan is the guaranteed acceptance life insurance policy that targets seniors aged 50 and above. They are ideal for insurance shoppers that do not exactly aim for a large payout but want to have enough to cover the expenses related to their passing.
The Colonial Penn life insurance for seniors is also suitable for those who experience difficulties obtaining coverage from other companies due to their medical history or age. Before deciding to get the Colonial Penn life insurance for seniors, you need to understand how their life policy offers work and how much each cost.
Three Types Of Colonial Penn Policies
This insurance plan accepts applicants ages 18 to 75. The company does not require any medical exam for application, but you need to answer some health questions when applying for the policy. The initial price you need to pay will be computed based on your age and gender when the policy starts to effect.
It will increase when you move into another five-year age band. You may renew this policy until you reach the age of 90. You may renew this policy until you reach the age of 90. The applicant can get up to a maximum of $50,000 coverage, but not applicable in Montana, Maine, New York, or Vermont.
Because the policy carries a one-year term, the amount of the premiums that you need to pay increases as you age. For example, your $50,000 coverage requires you to pay:
- $35.21/month between 41 to 45 years old
- $45.21/month between 46 to 50 years old
- $56.46/month between 51 to 55 years old
It means that if you want to have coverage that will last longer, you must pay a higher average premium with this insurer compared to other policies.
While this policy provides convenience for all applicants since it does not require any medical exams, you still need to assess if this is the right insurance for you because of certain issues. First, you need to consider that the $50,000 coverage limit is significantly lower than the other insurance options available.
It may not be enough to cover your future expenses based on the average amount of life insurance that you need to carry. The lack of availability based on the state where you live may also be another factor that could lead you to look for other term offerings you may get in your area.
Permanent Whole Life
Colonial Penn offers whole life insurance for applicants aged 40 to 75. The application process will ask you to answer several health-related questions, but you do not have to submit a medical exam. The price of this insurance is based on your age and gender. It is also ideal for those who want a consistent amount for payments throughout the policy. It is also not available for people living in Maine or Vermont.
This whole life policy will allow you to choose the specific death benefit that you want. It means that the premiums that you need to pay differ based on your risk profile.
For example, a 40-year-old male must pay $18.71 for a $10,000 death benefit, while a female of the same age should pay $14.36 for the same amount of death benefit. If the male insurer reaches 75, he must pay $118.29 for the same death benefit coverage, while women aged 75 should only pay $94.07.
Like the Term Life insurance offered by the company, the maximum benefit of Colonial Penn Permanent Whole Life is also generally lower compared to the other comparably priced insurance policies. It also has inconsistent premiums, depending on your health state when you applied for this policy.
Guaranteed Acceptance Whole Life
This policy is the signature Colonial Penn life insurance for seniors. Your acceptance is guaranteed if you are 50 to 85 years old. The application process will not require you to answer any health questions or medical exams. The maximum coverage amount is set at $20,000. It also provides graded benefits for the first two years.
The monthly premiums are directly linked to the number of units of coverage that you bought. Generally, one unit equals $9.95/month. Colonial Penn allows you to buy up to eight units, which means that the total monthly premium you need to pay is $79.60. If you choose to pay annually, you will get a discount equivalent to an entire month's worth of premium or up to an 8.3% discount for the entire year.
Like any guaranteed insurance policy, the insured's main concern is the possibility of outliving the policy. If you want to ensure that you will get the most value under this policy, you may use this formula to help make your decision:
Death Benefit / (Monthly premium x 12) = Number Of Years Until You Outlive Your Policy
Also, the maximum coverage of this policy is considered very low compared to other insurance providers. The graded death benefits also mean that you may only get a small portion of the benefit if you pass away during your policy's first two years.
Who Are Suitable For Colonial Penn Life Insurance?
Based on reviews, pricing, and underwriting requirements, the Colonial Penn life insurance is best for people who are having a hard time getting guaranteed acceptance life insurance from other insurance providers.
While other insurance services provide similar or better-guaranteed policies with lesser cost, it could be your only chance to get life insurance if you have underlying health issues or if your age already exceeded the typical age limit. But if you are younger or in a healthier state, you must try to get quotes from other insurance companies before making the decision.