If we can convey one main point in this Colonial Penn Life Insurance Review it is that it pays to have options when buying insurance. At TermLife2Go, we represent dozens of the top rated best life insurance companies.
Whether you need term life or cash value whole life, we can align you with the best company at the best price based on your unique health and lifestyle profile.
Disclaimer: We are not Colonial Penn nor are we affiliated with Colonial Penn. You can reach the company direct by calling 1-877-877-8052 or visit online at colonialpenn.com
Review of Colonial Penn Life Insurance
In this review of Colonial Penn Life Insurance or CP Direct we will discuss the positives, the negatives, and the alternative to Colonial Penn. Is Colonial Penn the best company for you? Continue reading our Colonial Penn Life Insurance Review to find out.
One of the first things we would like to mention is that, while Colonial Penn should be considered when looking for final expense or burial life insurance, the Company’s low maximum coverage amounts of only up to $50,000 will often make them a non competitive option when someone needs more coverage for things such as protecting a mortgage or protecting the household’s primary wage earner.
For this reason, we will typically recommend one of the best no exam life insurance companies that offer higher coverage amounts, as opposed to Colonial Penn. You may also benefit from our article on the advantages of choosing no exam life insurance versus taking an exam.
Colonial Penn Life Insurance Reviews 2016
In all fairness, Colonial Penn does have many positive going for it. Let’s begin by discussing the companies guaranteed issue coverage.
Colonial Penn Guaranteed Issue Whole Life Insurance
1. No Exam and No Health Questions
All Colonial Penn Life Insurance Reviews need to talk about the companies flagship guaranteed issue product. This is the life insurance Alex Trebek of Jeopardy fame is typically attached to. Guaranteed issue whole life insurance with a 2 year graded death benefit limitation—If you die in the first two years the policy will return your premium plus a small percentage on top of the premium you paid. Typically, someone will choose guaranteed issue life insurance if they have previously been declined for life insurance.
2. Available up to age 85
Available for men and women ages 50-85
3. Death Benefit Remains the Same
The death benefit will not decrease over the life of the policy but will remain fixed as long as you continue to make premium payments.
5. Fixed Premium
Your premium is fixed for the life of the policy.
Colonial Penn Patriot Program Whole and Term Life
1. No Medical Exam
No medical exam required, just a few health questions regarding your medical history.
2. $50,000 of coverage available
Face amounts up to $50,000 available for the no exam coverage from Colonial Penn.
3. Term available from 18-75 and Whole Life available from 40-75.
30 Day Money Back Guarantee
Colonial Penn likes to mention that policy owners have a money back guarantee. Clients of CPDirect.com receive a full refund if they decide they do not want the policy in the first 30 days. In the industry, this is referred to as the “free look” period. Please note: a free look is not exclusive to CPDirect. Basically, all states require it and all companies offer it.
The following are some potential drawbacks of Colonial Penn Insurance.
1. Colonial Penn’s low A.M. Best Rating
Colonial Penn’s A.M. Best rating is a B++. We here at TermLife2Go typically like to see at least A- or better, but again due to the strength of Colonial Penn’s product portfolio, even with a B++ one should still consider them a viable option when considering a final expense policy for their loved ones, especially if you need to layer multiple burial insurance policies.
We have found that in many situations Colonial Penn’s Life insurance rates are not always the most competitive, i.e. lowest. Which is why it is important for you, as a consumer, to “Shop” your options. Since TermLife2Go does not offer Colonial Penn, what we would recommend that you do is give Colonial Penn a call, and once you have a good idea about what they can offer, give us a call so we can compete for your business!
3. Beware the increasing premiums for the term product
With some of Colonial Penn products, the initial premium may be subject to change/increase as you age. Or in other words, as you get older your premium (the cost you pay for your insurance) can increase.
Now this is not a unique feature only offered by Colonial Penn, many different insurance companies offer policies with premiums that increase over time, and in some cases these types of policies are great for certain types of clients, BUT… before anyone buys such a policy, they should take a look at what the rates will look like 10, 15 or even 20 years down the road.
If your premium increases as you get older, then what happens when you hit retirement age and you no longer have an income? A lot of clients end up having to drop the policy because the premiums become way too much to afford.
4. Two Year Graded Death Benefit
Buyer beware that a death claim on the guaranteed issue product will not be paid out if the insured dies of natural causes in the first two years. Now it should be noted that with most if not all guaranteed issue life insurance policies, there will be a graded death benefit clause. So in all fairness, this this not a unique negative against Colonial Penn, that being said however if someone is considering a policy with Colonial Penn it is important that they fully understand what the “Graded death Benefit” clause is.
The alternative to Colonial Penn would be to choose an agency, such as TermLife2Go, who can shop from a large pool of life insurance carriers in order to find you the best company at the best price based on your specific need and circumstances.
Don’t sell yourself short by falling for slick advertising from large insurance companies such as Colonial Penn. Instead, give us a call and let us introduce you to a large array of life insurance companies who compete for your business by offering competitive pricing and liberal underwriting.
We are not a life insurance company. Instead, TermLife2Go is an agency representing dozens of the best life insurance companies. Our job is to shop for you so that you can sleep peacefully knowing you have secured the best life insurance at the best price—for you.
Give us a call today to see how much money we can save you on life insurance.
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