What's the catch with Colonial Penn life insurance?
Asked by: Naomi Gutkowski | Last update: March 7, 2025Score: 4.2/5 (1 votes)
What are negatives with a Colonial Penn life insurance?
Cons Explained
Few policy types available: Colonial Penn's life insurance offerings are limited to two types of whole-life policies: a low-coverage traditional whole-life policy and a guaranteed-issue policy. Low maximum coverage amount: Colonial Penn's traditional whole life policy coverage is capped at $50,000.
What does $9.95 a month get you with Colonial Penn?
What does Colonial Penn provide for $9.95 a month? Colonial Penn provides burial insurance coverage for $9.95 a month. This policy guarantees coverage for funeral expenses as long as premiums are paid.
Does Colonial Penn pay out?
Recapping the 995 plan from Colonial Penn
If you are a female, your unit will pay out $2,000 in death benefits if you pass away after two years. If you are an 85-year old man, that same unit will only pay out $418 if you pass away after two years. If you are an 85-year old woman, the death benefit will go up to $468.
How much insurance do you get for $9.95 a month?
How Much Life Insurance Coverage Do You Get With A 995 Plan? You can receive up to $30,000 at age 50 as a female, $25,035 as a male with the Colonial Penn 995 Plan. The maximum number of units is 15. This plan is available to anyone between the ages of 50 and 85.
What Does $9.95 A Month Get You With Colonial Penn Life Insurance?
How much is a $50,000 life insurance from Colonial Penn?
Colonial Penn term life insurance review
For example, a woman who purchases $50,000 of coverage would pay: $35.21/month between the ages of 41 and 45. $45.21/month between the ages of 46 and 50. $56.46/month between the ages of 51 and 55.
What is the best life insurance for seniors?
The best life insurance companies for seniors at a glance
Guardian Life: Best for payment flexibility. MassMutual: Best for elderly applicants. Northwestern Mutual: Best for the potential to earn dividends. New York Life: Best coverage range.
How much is the payout for the Colonial Penn 995 plan?
One unit corresponds to a $1,845 death benefit for a 53-year-old woman. Colonial Penn accepts applications up to age 85, whereupon the unit of coverage for an 85-year-old man is $418 per unit! That means if the 85-year-old wanted 10 units, he would have to pay $99.50 per month for $4,180 in death benefit ($418 X 10).
How long do you have to have Colonial Penn life insurance before it pays out?
After your two-year limited benefit period ends, your Colonial Penn life insurance policy can pay full death benefits to your beneficiary. Our limited benefit period is why we can offer GUARANTEED ACCEPTANCE life insurance with NO medical exams or health questions!
What is the cheapest life insurance?
Term life insurance typically offers the most affordable premiums of any life insurance policy. With term life insurance, you pay a set premium for a defined period of time, such as 10, 20 or 30 years.
Does Colonial Penn coverage decrease with age?
No. After your senior life insurance coverage begins, your benefit will not decrease as you grow older or if your health changes. Acceptance is guaranteed because of a limited benefit for death during the first two years.
What are the 3 P's of life insurance?
A television commercial selling life insurance speaks about three Ps that all focus on one aspect of their policies… price, price and price. It is an easily understood and remembered sales tool, although the substance, value and need for the product is not included in the tag line.
What are 2 disadvantages of whole life insurance?
A more complex product than term life insurance. Higher premiums than term life insurance. Could be costly if coverage lapses early.
What insurance company did Alex Trebek endorse?
Many of you have probably seen Alex Trebek on TV for many years endorsing Colonial Penn life insurance. He is paid for his commercials which offer consumers a phone number to call in and speak with a Colonial Penn Life Insurance agent licensed in all states Colonial Penn is approved.
How much is one unit of life insurance?
Insurance companies may use units of coverage to determine your death benefit amount or premium. With many life insurance companies, the unit of coverage is set at a fixed death benefit amount. A common amount is $1,000, but it can vary.
How much is 1 unit of Colonial Penn insurance?
Colonial Penn sells its guaranteed acceptance coverage in “units,” and the amount of coverage this gets you varies by gender and age. Each unit costs $9.95 and you can buy up to 25 units. The sum you end up with is the total amount of money that will be paid out to your beneficiaries when you die.
What is the best life insurance?
- Guardian: Best for life insurance coverage without a medical exam.
- MassMutual: Best for whole life insurance.
- Mutual of Omaha: Best for digital accessibility.
- Nationwide: Best for customer satisfaction.
What is the $9.95 plan at Colonial Penn?
$9.95 Insurance
Get Guaranteed Acceptance Life Insurance with locked-in premiums starting at $9.95 a month. No medical exam, health questions or physical. Flexible payment options, such as monthly or yearly. Premiums never increase and benefits never decrease.
What is one major disadvantage of life insurance coverage?
One disadvantage of life insurance is that the older you are, the more you'll pay for a policy. This is because you're more likely to pass away during the policy period than a younger policyholder and will, in turn, cost the life insurance company more money.
How much is $50,000 life insurance?
However, by far the biggest factor impacting term life insurance premiums is age and gender. For example, a $50,000 policy for a healthy 25-year-old woman will cost approximately $14 a month, while a premium for a 55-year-old woman for the same amount would be $60 a month.
Does Colonial Penn life insurance pay out?
Yes. Your LifeChoice® Whole Life Insurance plan will pay benefits directly to your beneficiary or beneficiaries in addition to any other insurance you might have.
Is 70 too old for life insurance?
Get a quote for senior life insurance
Life insurance can be a useful financial tool for seniors over 70 to provide loved ones with a payout in the event of their passing.
How much is $100,000 in life insurance a month?
A $100,000 term life insurance policy can cater to diverse financial goals, including debt coverage, family support, and estate planning. One of the most significant advantages of this coverage amount is its affordability. The average monthly cost of a $100,000 life insurance policy can range from $11-18 monthly.