Colonial Life and Accident Insurance Company primarily provides group insurance plans to small businesses. The company makes up one of the over 800 life insurance providers in the country. In the following Colonial Life insurance review we will cover the company’s history, financials, ratings, products and services. Is Colonial Life the right company for you?
Interested in your own individual policy? Please check out our life insurance quotes page for more on private policies.
About Colonial Life Insurance
History – With a history spanning nearly eight decades, Colonial Life & Accident Insurance Company has witnessed some dramatic changes within the life insurance industry over the years. However, their mission has remained largely the same; to protect the assets and finances of hard-working Americans.
Today, their headquarters is located in Columbia, South Carolina, and their group insurance options are applied by 90,000 companies.1 Overall, this means their policies more 3.7 million people.2 With seven main coverage options available, we’re going to discover them all today alongside a review of their finances and whether Colonial Life would be a good fit for your insurance needs.
Financials – Before we head into the scores from official agencies, such as A.M. Best, we first need to know the basics regarding the financial position of Colonial Life. As we’ve already seen, they have nearly 3.7 million policyholders across the United States and this amounts to in-force premiums of just under $1.6 billion.3 With this amount trusted in the company, it suggests they’ll continue to trade for some time to come.
As a testament to their innovative products, sales each year are large and this makes it a good time to choose the provider…but what do official agencies think?
Colonial Life Insurance Financial Ratings
A.M. Best – Under the Unum Group umbrella, Colonial Life has been awarded with an ‘A’ rating in 2019 and this is one of the best available. Generally speaking, anything within the ‘A’ range is considered acceptable for life insurance companies; this includes A++, A+, A, and A-. Sitting well within this range, there’s no reason to be concerned for the financial status of Colonial Life and this backs up the financials we saw in the previous section.
From A.M. Best, we can also pull a Long-Term Issuer Credit Rating. As the name suggests, this rating informs us of the company’s ability to meet all financial obligations in the future. For Colonial Life, they recently (in 2019) enjoyed an increase to ‘a’ which is actually considered ‘Excellent’ with the grades above this extremely hard to achieve. With all of this in mind, Colonial Life is in a superior position with their finances and we shouldn’t have to worry about a collapse any time soon (especially with sales still increasing as they are!).
Better Business Bureau (BBB) – With confidence in the financial side of things, we now need to know how Colonial Life operate within the market. Thanks to the Better Business Bureau, we can find a rating based on the amount of complaints Colonial Life receives along with their failure to honor commitments, advertising issues, and more.
On a scale starting at A+ and moving all the way down to F, Colonial Life has a rating of A in 2019. In addition to receiving very few complaints, this means they rarely have issues with advertising and generally act responsibly within the market…just as you would expect from a company with over 75 years of experience.
Colonial Life & Accident Insurance ratings snapshot:
- A.M. Best rating: A
- S&P rating: A
- Moody’s rating: A2
- Fitch rating: A
- Comdex ranking: 77
All ratings as of 12/26/2019
Products offered by Colonial Life Insurance
As we’ve hinted at previously, Colonial Life is very much targeted towards groups and employers. These days, the cost of healthcare and health insurance is still increasing and providing employees with a certain level of coverage allows them to remain financially secure even after experiencing an illness or injury that prevents them from being able to work. With many different policies on offer, there could be one that appeals to the needs of yourself and your employees. If you’re an employee and you like the look of one or more of these policies, perhaps you could approach your representative with the idea.
Life Insurance – Just as the case is true for you, your employees worry about their loved ones and their financial stability if they were to pass away. Often, employees rely upon a good benefits package from their employer and this is where you come in. With Colonial Life, you have a sound provider of said life insurance policies with an ability to tailor the coverage to the needs of the individual. Regardless of their position in life – i.e. whether they’re married, have children, etc – Colonial Life seems to offer something for everyone. With premiums, they can be deducted directly from the payroll to keep the process efficient.
When selecting the life insurance option, you’ll have a choice of various policies including:
Disability Insurance – Millions of employees miss work every single year after coming down with an illness or disability. To provide support for your employees, the policies Colonial Life provide can be tailored and this is a huge advantage of choosing the provider. Not only do employee absences prevent the employee from earning money, they also cause financial losses to the business so short-term disability and long-term disability insurance can quickly become an absence management strategy.
When you choose Colonial Life, the benefit periods can be selected and you can also choose between various plans. While some companies choose to keep coverage applicable to work alone, others will include off-job plans. Since the paycheck is the most valuable asset for most employees, you, as their employer, can help them to keep it protected with the right policy.
Critical Illness Insurance – With the Accident Insurance policy we saw earlier, small injuries and illnesses were covered for all employees. With Critical Illness insurance, this extends to end stage renal failure, major organ failure, heart attacks, stroke, and coronary artery bypass graft surgery. Unless other arrangements have been installed, benefits will go to the employee directly and the business doesn’t need to pay a cent.
Accident Insurance – Firstly, we have a simple form of insurance that protects employees against dislocations, fractures, and many other injuries after an accident. In total, there are several levels of coverage available as well as various ways of setting up the policy. For example, employee-paid policies are available with Colonial Life depending on whether employees want coverage for just themselves or for family members too.
With Colonial Life, the coverage will typically include a percentage of initial care, any required surgery, transportation, and follow-up care as the employee continues their journey towards being fit for work once again.
Cancer Insurance – Sadly, cancer is still a huge problem across the United States but Colonial Life offers a policy against the disease which is something not all providers will do. With a specialized cancer insurance policy, employees will be protected from the large out-of-pocket expenses that normally come after the medical insurance claims prove insufficient.
As soon as the employee has been diagnosed with the illness, the benefits open up and this includes support for childcare, meals/lodging, loss of income, and co-pays/deductibles. Since Colonial Life is a big advocate of staying safe and healthy, they include a somewhat unique feature in cancer screening tests.
Dental Insurance – In today’s environment, dental insurance is required for competitiveness alone and Colonial Life claims to help in this regard. If you’ve researched group plans before, you’ll know they can be relatively expensive but Colonial Life plans don’t follow in the same traditional suit. Instead, employees can receive the same benefits regardless of the office they visit and coverage includes x-rays and wellness visits.
For flexibility, four levels of plans are available and employees can also cover their families. With no deductibles or co-insurance, added benefits can be found in the optional riders (including vision care).
Hospital Indemnity Insurance – As mentioned previously, the cost of healthcare has been rising for many years now leaving many with large out-of-pocket costs. If you can offer a strong hospital benefits package, your company will look attractive to all and Colonial Life can make it happen. When employees are confined to a hospital bed for any period, this coverage provides benefits in the shape of a lump sum after a claim is made. Wherever the medical insurance falls short, this policy can bridge the gap.
Depending on the way in which you want the benefits to be offered, this policy can provide no extra cost for your business while covering doctor appointments, emergency room tests, diagnostic tests, follow-up treatment and any other hospital-stay-related expenses.
As you can see, these different products are varied in the benefits they provide. If necessary, and if your employees would benefit, there are also options to combine multiple policies with each tailored to the needs of the individual and this is where Colonial Life really excels.
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