Colonial Penn Life Insurance Review 2025
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
on Nerdwallet
Financial strength rating
Online purchase
NAIC complaints
Policies offered
on Nerdwallet
Colonial Penn
Financial strength rating
Online purchase
NAIC complaints
Policies offered
Why trust NerdWallet
About Colonial Penn life insurance
Colonial Penn earned 3 stars out of 5 for overall performance. 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. Though the company advertises simple plans and affordable rates, its high ratio of consumer complaints makes these policies less appealing than they appear.
The Philadelphia-based insurer is owned by CNO Financial Group, which is also the parent company of Bankers Life.
No medical exams required for coverage.
Guaranteed coverage available to applicants up to age 85.
Far more complaints to regulators than expected for a company its size.
Coverage amounts are relatively low.
» MORE: Compare life insurance quotes
Colonial Penn life insurance policies
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 policy has a waiting period, which means the full life insurance death benefit won’t be paid out if the insured person dies during the first two years of taking out a policy.
Whole life insurance. In New York, Colonial Penn offers whole life insurance to men ages 50 to 73 and women ages 50 to 75. Coverage amounts range from $5,000 to $25,000. The application asks health questions, but the insurer doesn’t require a medical exam.
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.
» MORE: Best life insurance companies
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 amount of money 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 September 12, 2024. | ||
Here is the maximum amount of coverage you can buy at each age. This amount of coverage would cost slightly less than $250 a month.
Age | Man, maximum coverage amount | Woman, maximum coverage amount |
|---|---|---|
50 | $41,725 | $50,000 |
55 | $35,500 | $44,025 |
60 | $29,175 | $37,875 |
65 | $22,400 | $31,450 |
70 | $17,225 | $25,000 |
75 | $13,725 | $19,050 |
80 | $10,650 | $15,200 |
85 | $10,450 | $11,700 |
Source: Choice Mutual. Rates reflect the maximum amount of units available and were generated on 11/5/24. | ||
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
What it’s like to apply for a policy with Colonial Penn
You can get a quote for guaranteed acceptance life insurance right from Colonial Penn’s homepage. The first page of the application asks for basic information like your name, address, gender, phone number and email address. Note that by submitting this page of the application, the fine print states that you consent to have the company send you email, texts and postal mail — even if you don’t end up buying a policy.
Screenshot captured by our editorial team on October 8, 2024.
Colonial Penn says once you choose your coverage amount and complete your application, you’ll be approved for a policy within a few minutes.
How Colonial Penn’s customer experience stacks up
Colonial Penn’s website makes it easy to start an application and find details about the company’s guaranteed acceptance policies. There’s a sidebar you can click on if you want to “chat with a specialist,” as well as a phone number in the top right corner of each page.
We called Colonial Penn twice, and each time we were connected with a representative within two minutes. Both agents accurately told us that Colonial Penn doesn’t offer term life insurance, but we got conflicting answers when we asked about what’s required to activate an accelerated death benefit rider. One representative told us the company doesn’t offer this rider, while the other said you had to make a payment on the policy and then the rider would be activated if available.
We encountered similar confusion when we used the live chat service, with two representatives giving different answers to our question about the accelerated death benefit. Colonial Penn doesn’t actually offer any riders.
The company doesn’t have a mobile app.
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 2021-2023. 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.
