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Colonial Penn Life Insurance Review 2024
Lead Writer | Life insurance, auto insurance, insurance data
Andrew Marder is a former lead writer for NerdWallet focusing on insurance and data analysis. He has over a decade of experience in finance, with previous roles at Barclays, The Motley Fool and Gartner. His work has appeared in The Week, The Washington Post and other national news outlets. He has presented his work at the Gartner Marketing Symposium/Xpo and Accountex.
Assistant Assigning Editor | Life insurance, disability insurance, health care
Katia Iervasi is an assistant assigning editor at NerdWallet. An insurance authority, she previously spent over six years covering insurance topics as a writer, where she loved untangling complicated topics and answering readers’ burning money questions. She holds a Bachelor of Arts in communication and has studied writing, fact-checking and editing with Poynter. Her writing and analysis has been featured in The Washington Post, Forbes, Yahoo, Entrepreneur, Best Company and FT Advisor. Originally from Sydney, Australia, Katia currently lives in New York City.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Colonial Penn
3.0
on Nerdwallet
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Pros
- No medical exams required for coverage.
- Guaranteed coverage available to applicants up to age 85.
Cons
- Far more complaints to regulators than expected for a company its size.
- Coverage amounts are relatively low.
on Nerdwallet
Colonial Penn
3.0
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Pros
- No medical exams required for coverage.
- Guaranteed coverage available to applicants up to age 85.
Cons
- Far more complaints to regulators than expected for a company its size.
- Coverage amounts are relatively low.
In our life insurance reviews, our editorial team considers the customer and the insurer. These are some of the factors we take into account:
Policies offered. There are many types of life insurance on the market, and they fall into three key categories:
Term life insurance offers temporary coverage and a guaranteed payout if the policyholder dies during the term.
Permanent life insurance typically lasts a lifetime and builds cash value that can be borrowed against in the future.
No-exam life insurance issues coverage without the need for a medical exam.
Financial strength. We use AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. Here’s the breakdown:
Exceptional: A+, A++.
Strong: A-, A.
Moderate: B, B+.
Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best life insurance companies have fewer than the expected number of complaints.
Buy online. This indicates whether an insurer allows you to apply for and buy a policy completely online.
Dive deeper: Ratings methodology for life insurance
For decades, Colonial Penn has focused on selling life insurance to older customers, including a guaranteed issue whole life policy for people 50 and older. The Philadelphia-based insurer is owned by CNO Financial Group, which is also the parent company of Bankers Life.
» MORE: Compare life insurance quotes
Colonial Penn life insurance rating
3.0
NerdWallet ratingColonial Penn earned 3 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.
» MORE: Best life insurance companies
Colonial Penn life insurance policies
Whole life insurance. Colonial Penn offers whole life insurance to those ages 50 to 75 (or 50 to 73 for men and 50 to 75 for women in New York). Coverage amounts range from $5,000 to $25,000. The application asks health questions, but the insurer doesn’t require a medical exam.
Guaranteed acceptance life insurance. This policy is typically open to people ages 50 to 85 (age eligibility varies by state), and acceptance is guaranteed. Applicants don’t need to answer health questions or take a medical exam. The full life insurance death benefit isn’t paid out if the insured person dies during the first two years of taking out a policy.
How Colonial Penn’s pricing works
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 death benefit that will be paid out to your beneficiaries when you die. In other words, the coverage amount is locked in and doesn't go up or down over time.
Colonial Penn's pricing structure is unique. It's important to calculate how much life insurance you need and aim to buy the number of units to match so you don't end up underinsured.
This table explains what one unit of coverage is worth for male and female applicants ages 50 to 85. This amount of coverage would cost $9.95 per month.
Age | Men, 1 unit | Women, 1 unit |
|---|---|---|
50 | $1,669 in coverage. | $2,000 in coverage. |
55 | $1,420 in coverage. | $1,761 in coverage. |
60 | $1,167 in coverage. | $1,515 in coverage. |
65 | $896 in coverage. | $1,258 in coverage. |
70 | $689 in coverage. | $1,000 in coverage. |
75 | $549 in coverage. | $762 in coverage. |
80 | $426 in coverage. | $608 in coverage. |
85 | $418 in coverage. | $468 in coverage. |
Source: Choice Mutual. Rates are valid as of January 12, 2024. | ||
Here is the maximum amount of coverage you can buy at each age. This amount of coverage would cost slightly less than $150 a month.
Age | Men, maximum coverage amount | Women, maximum coverage amount |
|---|---|---|
50 | $25,035 | $30,000 |
55 | $21,300 | $26,415 |
60 | $17,505 | $22,725 |
65 | $13,440 | $18,870 |
70 | $10,335 | $15,000 |
75 | $8,235 | $11,430 |
80 | $6,390 | $9,120 |
85 | $6,270 | $7,020 |
Source: Choice Mutual. Details are valid as of January 12, 2024. | ||
Colonial Penn customer complaints and satisfaction
Over three years, Colonial Penn has drawn far more than the expected number of complaints to state regulators for a company of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.
Where Colonial Penn stands out
Colonial Penn doesn’t require a life insurance medical exam for any of its policies, including its traditional whole life insurance. But healthy people can generally get better prices from companies that consider more medical information when setting rates.
Where Colonial Penn falls short
Colonial Penn’s advertising may be misleading to those who aren’t familiar with its pricing structure.
The insurer says throughout its website and in commercials that premiums can be locked in for as little as $9.95 a month, but this price earns you one of the insurer's "units," which is very little coverage.
» MORE: Average life insurance rates
More about Colonial Penn
Whether you need help with your application or want to learn more about a policy, Colonial Penn’s live chat feature allows you to choose the type of specialist you’d like to speak with. Once you're a policyholder, you can make premium payments online, but you’ll need to download a form to file a life insurance claim or change beneficiaries.
How to contact Colonial Penn
Colonial Penn can be reached by:
Phone: Call 800-523-9100 on weekdays from 8:30 a.m. to 5:30 p.m. ET. New York policyholders should call 800-323-4542.
Email: No customer service email available.
Live chat: Launch the live chat feature from any page on Colonial Penn’s website.
Life insurance buying guide
Before you start comparing companies, choose the type of life insurance you want, such as term or whole life. Decide which life insurance riders, if any, you want the policy to include. Calculate how much life insurance you need and how long you want the coverage to last. Check that the insurers you’re considering offer the coverage you’re looking for.
When comparing rates, be sure the quotes are for the same amount of coverage over the same period of time. It’s also important to make sure the policy’s medical requirements match your needs. For example, if you want to skip the life insurance medical exam but don’t mind answering health questions, confirm that the application process for each policy you're comparing aligns with that.
Price may not be the biggest driver behind your decision to buy. Look at the number of consumer complaints each company receives, as high numbers can be a red flag about the quality of service.
For more guidance, see our life insurance buying guide.
Life insurance ratings methodology
NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
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