Colonial Penn Life Insurance Company Review 2022

Trusted Choice's Colonial Penn Insurance Score:

2 Stars

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TrustedChoice.com awards Colonial Penn an overall rating of 2 out of 5 stars. While the carrier promises it offers life insurance with no medical exam required, many concerning customer reviews have stated that this is false advertising. Several customers state that they were denied coverage by Colonial Penn based on their medical history or current health status. In fact, during our updated review, it seems that customer reviews of this insurance company have only gotten worse.

Further, the carrier’s official website is sorely lacking in terms of important information like claims processes and response time frames. The carrier also lacks an option for customers to file claims online or over the phone, which in comparison to other modern insurance companies, makes them seem extremely dated. A concerning volume of customer dissatisfaction overall knocks the carrier down a couple of stars automatically. However, Colonial Penn does have excellent ratings through both AM Best and the BBB.

Colonial Penn Insurance Company Pros and Cons:

What Type of Insurance Does Colonial Penn Offer?

Colonial Penn is a specialized insurance company that focuses on life insurance. They have a few coverage options available, including:

• Guaranteed acceptance (whole) life insurance (ages 50-85)
• Permanent whole life insurance (ages 40-75)
• Renewable term life insurance (ages 18-75)

For individuals of almost any age, Colonial Penn offers a type of life insurance suited to their needs. If you’re in the market for affordable life insurance, Colonial Penn may just be the right insurance company for you.

What to Know about Colonial Penn

Colonial Penn was founded in 1968, making it a well-established insurance carrier with more than half a century of experience in offering multiple insurance options to individuals in many different age brackets. The carrier was one of the first on the market to begin offering guaranteed acceptance life insurance plans requiring no medical exam to senior citizens.

With several decades of experience under its belt, Colonial Penn’s history has helped it to earn a reputation as a stable company. Coverage is available in 49 out of 50 states, as well as DC, Puerto Rico, and the Virgin Islands. However, term life insurance policies are not offered in all states. Colonial Penn is a subsidiary of CNO Financial Group, which serves more than four million customers across the nation.

Colonial Penn Life Insurance

Permanent, whole life insurance is available from Colonial Penn to provide customers with a policy that lasts their entire lifetime. Folks aged 40-75, in most areas, have the option to apply for coverage. Permanent life insurance customers can enjoy guaranteed premiums that remain the same throughout their lives.

Guaranteed acceptance life insurance is also offered by Colonial Penn. This coverage is a kind of whole life insurance that doesn't require a medical exam or any health survey questions, so approval is guaranteed. Limited benefit periods, such as two years, are offered on this coverage. A widely chosen option provided by Colonial Penn is for customers aged 50-85.

Colonial Penn Life Insurance Average Prices

Here are some sample monthly average prices for life insurance from Colonial Penn, broken down into age and gender categories.

What Life Insurance Discounts Does Colonial Penn Offer?

While Colonial Penn does not make information about their discounts readily available to prospective customers through their website or direct inquiries, there are several standard discounts offered by many life insurance companies. These discounts include:

• Discounts offered to women: Life insurance companies often charge noticeably cheaper premiums on their policies to women over men in the same age bracket.
• Non-tobacco user discount: Life insurance companies tend to reward customers who do not use tobacco products with cheaper premiums.
• Safe hobbies discount: Life insurance companies often award customers who practice safe, non-life threatening hobbies (e.g., no skydiving) with cheaper premiums.
• Healthy BMI discount: Life insurance companies often grant cheaper premiums to customers with healthy body weight respective to their age group and height.
• Annual premium discount: One verified discount offered by Colonial Penn is awarded to customers who pay their premiums annually instead of monthly.

An independent insurance agent can help you find specific discounts and quotes for more exact premium rates available through Colonial Penn, helping you get the most bang for your buck out of your coverage.

Colonial Penn Customer Service

Colonial Penn handles most customer inquiries via phone and regular mail. The carrier provides the following customer service options:

While Colonial Penn offers direct contact options, the easiest way to get set up with the right coverage for you is through working with an independent insurance agent. These agents also help handle claims and insurance concerns for you, making customer service even easier.

Colonial Penn Insurance Customer Reviews

Colonial Penn’s long-standing history and wide reach throughout the country aid the carrier’s reputation as a financially stable insurance provider. AM Best, the leading global credit rating agency monitoring the insurance industry, gives Colonial Penn an “A-” rating, indicating the carrier is an excellent choice for insurance customers. The “A-” rating assures customers that Colonial Penn is capable of offering guaranteed, secure coverage from a trustworthy carrier. AM Best also places Colonial Penn in the $1.5-$2 billion financial size category, further demonstrating the carrier’s financial strength and stability.

Established in 1899, AM Best is one of the oldest rating companies in the world. Reviews from AM Best indicate an insurance company’s financial strength and creditworthiness and are based on comprehensive evaluations of the company’s operating performance, business profile, and balance sheet. 

Better Business Bureau

“The[y're] lousy the[y're] trying to tell me I took out a loan with them in 2015 says it's a personal loan don't remember it and they won't tell me what it is for but expect me to pay it lousy company."

Better Business Bureau

“Do not buy this insurance! My late mother-in-law had 6 policies bought over 25 years, totaling $12,325.00. She passed away in December 2021, and Colonial Penn offers nothing but excuses about why we have only received about 1/3 of the money. They give the same song and dance every time we call. They ask the same questions over and over, acting like they don’t have all the info they need from us. Sometimes they admit they have all they need and the checks will be sent in 5-10 days. Nothing but lies. They took her payments and now refuse to pay out. Disgraceful, dishonest company!"

Better Business Bureau

“Worst insurance company to file a claim with. First was told the policy did not exist and after the words State Insurance Dept, they found the policy. Now they are telling me a funeral home that is not being used is the beneficiary. In Oklahoma the funeral home can not be the beneficiary. It's now a disputed claim and wait time now will be 7-10 days before they get back with us."

Better Business Bureau

“This insurance offered on the commercial is a scam. They guaranteed my rate. I paid 6 months in advance for 3 years, then they went up to $200 a month without notice! Money WASTED! They probably wouldn't have paid if there was a claim. I do Not recommend taking out any insurance with this company!”

Better Business Bureau

“Colonial does not deserve any STAR, 1 because they answered. It has been 2 months trying to collect little claim but yet Colonial goes in circle. I have provided all the paperwork needed but yet they are still incompetent to get that right. The claim has been expedited 2 times but yet it’s still 5-7 days. Unacceptable and should be ashamed for what they are putting families to hell to collect."

Colonial Penn Insurance FAQ