Colonial Penn provides a selection of life and final expense insurance policies that have both streamlined underwriting and a low death benefit. They’re perfect for people who require a payment large enough to cover funeral costs and have problems getting insurance elsewhere (owing to age or health).
Although this firm’s final-expense offerings are competitively priced, younger, healthier policyholders may find better deals elsewhere. Colonial Penn’s term and permanent life insurance policies offer a maximum death benefit of $50,000 with no medical exam requirement. However, the associated premiums are often higher and more coverage can’t be purchased in the future should your financial needs change.
In this blog, we take a closer look at Colonial Penn’s final expense insurance policies and whether you should consider them based on your situation.
Colonial Penn Term Life Coverage
Colonial Penn’s annual renewable level term life insurance policy treats each year as a brand new policy year. The term life insurance policy’s death benefit is capped at $50,000 and can be split between one or two recipients.
The annual policy term means your premiums will grow with age, usually every five years. Your risk profile rises as you age, so you’ll be paying more for a longer-term policy with Colonial Penn than another insurer. Your premiums will also increase because they cannot confirm your health status.
Moreover, because of their limited underwriting procedure and absence of a medical test, people often find that Colonial Penn’s plans aren’t worth it. Other life insurance companies in Houston, TX, can provide far better deals while still providing enough protection.
Colonial Penn Guaranteed Acceptance Plan
This is a type of whole life insurance with a low death benefit, targeted toward retirees who wish to leave their loved ones with a lower financial burden once they pass away.
Unlike other final expense insurance policies that give you payout choices, Colonial Penn inquires about your gender, age, and location and then assigns you a “unit” of coverage. Due to the constant cost, the level of coverage per unit fluctuates based on the individual’s risk level. This policy also builds cash value that can be borrowed at a set interest rate.
Colonial Penn Whole Life Coverage
Customers aged 40–75 can purchase the permanent whole life insurance policy, with the exception of those residing in New York State or the Virgin Islands. While a medical exam isn’t necessary for this policy, a health questionnaire will need to be filled out to establish your eligibility for benefits.
The protection provided by this whole life insurance policy will last for the rest of your life. If something were to happen to you, the policy would pay a max of $50,000. Value in the policy’s cash component begins to accumulate after the first year. Premiums may vary by age and gender, but coverage is always the same. However, premiums in Montana are calculated solely on the basis of age.
Colonial Penn offers basic whole life plans rather than guaranteed acceptance policies if you are willing to answer health questions about yourself and are under the age of 50. Anyone between the ages of 40 and 75 is eligible to apply for a whole life insurance policy with a death benefit of up to $50,000. While a medical checkup is not required, you will be asked health-related questions. The cost will vary based on the applicant’s age and gender.
Colonial Penn Living Insurance
Living insurance allows you to collect up to half of your whole life or term life death benefit if you are diagnosed with a chronic or terminal illness like cancer or if you experience a heart attack or stroke. This rider can be added to both whole life and renewable term policies to provide a death benefit sooner if the insured dies.
Looking for the Best Final Expense Insurance in Houston, TX?
The problem with Alex Trebek’s life insurance is that you’re working with a captive insurance firm. A Colonial Penn representative will not look for other companies offering a better bargain. Considering how restrictive and expensive Colonial Penn is, you’re better off shopping for a cheaper and better policy elsewhere. Plus, there is a good chance that you can obtain coverage immediately.
Working with an independent consultant is the key to getting a good deal. Only an independent life insurance agency like Franklin Life and Annuity will go above and beyond to find the best and most inexpensive final expense life insurance.
Our life insurance agents in Houston, TX, will research the market on your behalf to find the insurance company that offers the best combination of pricing and coverage for your particular circumstances.