Colonial Penn Burial Insurance Review

Colonial Penn is well regarded for its popular television commercials complete with Alex Trebek as pitchman. They have offered life insurance policies for over 60 years.

colonial penn burial insurance reviewThe company uses a combination of call centers, websites, mail, and television to reach people and share with them life insurance options.

The company was among one of the first to design products for older individuals and they became one of the first to offer their guaranteed acceptance plan for those 50 years or older back in 1968.

Colonial Penn has received strong financial ratings from the following agencies:

Company Financial Rating
Moody’s Baa1
A.M. Best A-
Fitch BBB+

Colonial Penn Burial Insurance Review

Guaranteed Acceptance Life Insurance

Colonial Penn offers guaranteed acceptance life insurance policies, which are function as their “burial insurance” policy because it has no medical underwriting and is, as the name suggests, guaranteed.

So no matter your pre-existing conditions, health record, age, or anything else, you can apply and be approved for it. This is one of the biggest selling points.

Now, these guaranteed policies are not going to offer a permanent form of income to your family after you pass, but they will be enough to help ease the financial burdens in the immediate future.

They also are the most expensive type of life insurance policy, because they have the highest risk to insurers. Unless your health is very poor, there is likely a better burial insurance option for you than Colonial Penn.

If you are looking for burial insurance that is not guaranteed acceptance, like simplified issue, we recommend speaking with one of our independent life insurance agents today.

Coverage Options

Colonial Penn offers both term life insurance and whole life insurance.

What is the difference between whole life and term life insurance?

Term Life Insurance

Term life insurance is life insurance coverage for a specific period of time.  Usually, this is between 10 and 30 years and comes in 5-year increments such as 10, 15, 20, 25, 30 years.

Generally, these policies are the least expensive type of life insurance.  Often times, they can be renewed at the end of their term or converted into a whole life policy. Riders can be added to policies that allow for additional coverage and flexibility.

Whole Life Insurance

Whole life insurance insures you for your whole life.  This is more expensive than term, but some policies offer some interesting features such as cash value appreciation and investment options.

These types of life insurance policies offer riders as well, and often times are more customizable than term life insurance policies.

All of Colonial Penn’s life insurance policies are no medical policies and offer smaller amounts of coverage than the most life insurance policies on the market.

This makes them great for a very specific niche market – people looking for affordable, low face value life insurance who also have existing health conditions. Also, people looking for small amounts of burial insurance coverage quickly.

Otherwise, affordable life insurance options can best be found by speaking with an independent life insurance agent today.

Colonial Penn’s Life Insurance Policies

Colonial Penn’s life insurance product offerings include the following:

Term Life Insurance

This term life insurance policy is really an annual renewable term policy, which means it is a one year term, available for renewal each year.

Policies are available for adults ages 18-75. The minimum coverage on these policies is $10,000 and maximum coverage on this policy is $50,000, and rates can be quite expensive when compared with other term life insurance and burial insurance policies on the market.

Pricing for Colonial Penn term life insurance policies usually depends on increments of 5-years in age.   For instance, here is a pricing chart for a 50-year-old female looking for a $50,000 policy:

Age Range Cost
41 to 45 $35.21/mo.
46 to 50 $45.21/mo.
51 to 55 $54.46/mo.

Whole Life Insurance

Their whole life insurance policy also has a maximum face value of $50,000, with a minimum of $10,000.

Depending on the various different age ranges, your rates will change.

Colonial Penn’s whole life insurance policies are offered to anyone who is between the ages of 40-75.  Here are some sample rates for 40 and 70-year-old males and females looking for the minimum and masimum amount of whole life insurance coverage:

Coverage Age Gender Premium
$10,000 40 Male $18.71/mo.
75 Male $118.29/mo.
40 Female $14.36/mo.
75 Female $94.07/mo.
$50,000 40 Male $76.04/mo.
75 Male $576.44/mo.
40 Female $56.79/mo.
75 Female $455.36/mo.

Guaranteed Issue Life Insurance

Colonial Penn’s guaranteed issue life insurance works on a unit basis.  For $9.95, one unit of their coverage can be purchased.  Depending on your age, this can provide anywhere from $400 to $2,100 of coverage.  Up to 8 units can be purchased by one person, with maximum coverage of about $16,000.

This is technically a whole life policy and builds cash value over the life of the policy, which can e borrowed against.  The limit for borrowing is 8% of your face value per year.

Guaranteed issue life insurance policies also have a graded benefit, and only pay out after the first 2 years of the policy being in place, unless the policyholder’s death is a result of an accident.  Colonial Penn’s guaranteed issue whole life insurance policies are offered to anyone who is between the ages of 50-85.   The price of these policies ranges from $9.95 to $79.60 per month.

This policy is considered to be their Burial Insurance policy. For people in less than perfect health needing minimum coverage to protect their family in the event of their death, this is a great policy.

Colonial Penn Money Back Guarantee

Colonial Penn offers a 30-day money back guarantee. If you are not happy with your burial insurance policy, you can return it within 30 days and get a complete refund.

Pre-existing Conditions

There is a nimiety of conditions for which Colonial Penn will decline your application for whole life insurance or term insurance.

If you have one of these conditions, then you might only be able to receive the burial insurance policy which is financially more limited but, again, adequate to cover burial costs and subsequent funeral services in many states. These include:

  • Disabilities resulting from an illness
  • Receiving home health care
  • Being an insulin dependent diabetic
  • Using a wheelchair permanently
  • Have diabetic complications including severe obesity, neuropathy, PVD, or retinopathy
  • Using blood thinners such as Plavix, Coumadin, or Warfarin
  • Being reliant upon an oxygen tank
  • COPD
  • Hepatitis
  • Congestive heart failure
  • Kidney failure
  • Sarcoidosis
  • Muscular dystrophy
  • Cystic fibrosis
  • Coronary artery disease
  • Schizophrenia
  • Multiple sclerosis

Finding the Best Burial Insurance

Choosing life insurance policies is not something you should do quickly. It takes homework. It is in your best interest to consider what costs you want your policy to cover, what your current income is now, what bills might be left unpaid, and what people may be dependent upon you if you passed in the near future.

You will then want to consider your current level of health and get a quote from more than one company. Every case is different; Colonial Penn may or may not be the best option for your situation.

Overall, Colonial Penn is clearly a good option for those who prefer to avoid any medical questions or exams. They have a guaranteed whole life insurance with premiums that remain the same and never decrease.

Their prices, however, are not the lowest out there and they are severely limited in terms of how much coverage you can buy.

The best thing you can do in this process of applying for life insurance is to educate yourself.  The best way to do this is to speak with an independent life insurance agent who can discuss you and your family’s financial needs and current situation to help you find the best rates, policy, carrier, and coverage among hundreds of options.

Skip the headache, and make finding the best burial insurance policy smooth and easy.  We are here to talk any time, give us a call, or begin comparing policies instantly with our online quoting engine!

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