2024 Colonial Penn Life Insurance Review

Since its establishment in 1957, Colonial Penn Life Insurance has been providing affordable insurance coverage for seniors, with policies that guarantee acceptance up to age 85.

We appreciate the convenience of obtaining a policy without undergoing a medical examination.

The absence of universal life policies and the high volume of complaints make Colonial Penn less than ideal for everyone.

Colonial Penn Life Insurance pros and cons

Types of Colonial Penn life insurance

In New York, Colonial Penn offers a standard whole life policy called LifeChoice, while it provides guaranteed issue whole life insurance in 49 states and Washington, D.C.

Guaranteed acceptance whole life insurance

In all states except New York, Colonial Penn guarantees acceptance to applicants aged 50 to 85.

Unlike some other guaranteed acceptance plans, you can purchase coverage units for $9.95 each, with a maximum of 25 units available per person. However, the amount of coverage provided in each unit varies based on age and gender.

These policies have a maximum coverage of $50,000 and are suitable for final expense insurance, which covers funeral and burial expenses, medical and legal fees, and other end-of-life costs. However, if you die within the first two years of coverage due to a non-accidental cause, there is a reduction in the death benefit.

LifeChoice Whole Life Insurance (New York only)

In New York, Colonial Penn does not provide guaranteed issue whole life policies, but residents can purchase LifeChoice, a standard whole life policy designed for men aged 50 to 73 and women aged 50 to 75.

Like other Colonial Penn policies, LifeChoice does not require a medical exam. However, you will need to answer some health questions, and acceptance is not guaranteed.

Individuals aged 50 to 65 can purchase up to $25,000 in coverage with LifeChoice, while policyholders aged 66 to 75 have the option to choose between $5,000, $10,000, or $15,000 in coverage. These coverage limits are significantly lower compared to many other companies that offer whole life insurance.

The cash value component of LifeChoice does not begin accumulating until after the first year.

Colonial Penn life insurance riders

Colonial Penn only offers two endorsements:

• A portion of your death benefit can be accessed if you're diagnosed with a chronic or terminal illness, have a heart attack, or stroke.
• In the event of an accidental death, your beneficiaries will receive an additional cash benefit through an accidental death benefit rider.

Colonial Penn customer service

J.D. Power's 2024 U.S. Individual Life Insurance Study did not include Colonial Penn, but it received seven times the volume of complaints about life insurance compared to similarly sized providers, according to the National Association of Insurance Commissioners.

While many other insurance companies provide online chat support and offer customer service round the clock, our company does not have those features.

Other types of Colonial Penn insurance

Colonial Penn only offers life insurance.

How does Colonial Penn compare to other life insurance companies?

Colonial Penn vs. AARP

Both Colonial Penn and AARP provide seniors with guaranteed-acceptance life insurance without requiring a medical exam or answering health questions.

AARP offers more flexible age limits for its guaranteed policies, with coverage available to members aged 50 to 80 in most states (50 to 75 in New York). However, its coverage limit is only $30,000, compared to $50,000 with Colonial Penn. Additionally, you must join AARP, which costs $16 a year.

Although AARP has a decent customer service record, its policies are underwritten by New York Life, which has fewer complaints about life insurance compared to its competitors. However, New York Life was ranked below average in J.D. Power's 2024 U.S. Individual Life Insurance Study.

Colonial Penn vs. State Farm

State Farm's guaranteed-issue whole life policy has a maximum coverage of $15,000 ($10,000 in New York), which is significantly lower than Colonial Penn's coverage of $50,000 in 49 states and $25,000 in New York.

State Farm offers plans to individuals aged 45 to 80, which is a more generous range than Colonial Penn. Additionally, State Farm has been ranked as the top-rated company in J.D. Power's 2024 U.S. Individual Life Insurance Study and has a minimal number of complaints, according to NAIC.

How do I buy life insurance from Colonial Penn?

You can purchase life insurance from Colonial Penn either online or by phone at 877-877-8052, during specific hours on weekdays and weekends.

To complete your order, please provide personal information, select the number of units you want, choose a billing method, and specify beneficiaries. In some states, you may also need to answer health questions.

Is Colonial Penn Life Insurance right for me?

If you're looking for a modest policy that covers funeral expenses or other final costs, Colonial Penn may be a suitable choice. It could also be a good option if you want to avoid a medical exam or believe you won't qualify for coverage elsewhere. However, if you require more comprehensive coverage or prioritize customer service, you may want to consider other insurance companies.

Why trust CNBC Select?

Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each insurance review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of insurance products. At CNBC Select, we are committed to maintaining our journalistic standards and ethics, even though we earn a commission from our affiliate partners on many offers and links.

Our methodology

CNBC Select evaluates life insurance companies based on several factors, including policy types, availability, rates and terms, number of riders, medical exam requirements, online quote availability, and customer satisfaction.

We took into account J.D. Power customer satisfaction rankings, A.M. Best financial strength ratings, Better Business Bureau grades, and the National Association of Insurance Commissioners' complaint index in addition to our own research.

The sources of life insurance rates can include the provider and state insurance departments.

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