Affordable Life Insurance Protection for Your Family
Are You a Senior Looking to Buy Life Insurance Coverage?
If so, Colonial Penn offers whole life insurance that combines simplified underwriting with a limited death benefit.
These life insurance plans are best suited for consumers who don't need a large payout — perhaps just enough to cover funeral expenses — and may have trouble buying coverage elsewhere due to age, medical history or health issues.
Colonial Penn offers life insurance with guaranteed approval which is good for those who want quick coverage to cover their final expenses.
Prices start at just $9.95 per month.
Features of the 995 Plan from Colonial Penn
There is no change in premiums, so your premium is guaranteed to remain the same for the life of your policy.
Underwriting: There is no medical examination required and no health questions asked.
Colonial Penn Guaranteed Acceptance Program for Seniors
Colonial Penn's guaranteed acceptance program is a whole life insurance policy with a limited death benefit, and is often marketed to seniors who want to reduce their family's financial costs upon their death.
Unlike some final-expense insurance plans that let you choose a particular payout, Colonial Penn collects your age, gender and location, then assigns you a "unit" of coverage (policyholders can purchase up to eight units).
Since the price is fixed, the amount of coverage available per unit varies according to your Risk Profile. The minimum value of a unit of coverage is approximately $400 and the maximum is approximately $2,100, meaning the maximum death benefit you can select is around $16,800.
For example, say one unit of coverage provides a $1,621 death benefit for a 60-year-old woman. If she wants the policy to cover all of her funeral costs — which generally average $10,000 — she should purchase seven units of coverage.
The policy would offer a total benefit of $11,347 to her beneficiary when she dies.
Since the guaranteed acceptance coverage is a form of whole life insurance, it accumulates a cash value that can be borrowed against at an 8% annual interest rate.
Cost of Your Colonial Penn Plan
Monthly premiums are directly tied to the number of units of life insurance you purchase, and each unit costs $9.95 per month.
You can purchase up to eight units of insurance, so the maximum monthly premium is $79.60. If you pay your insurance premiums annually (once per year), you receive a discount equal to one month's premium, or an 8.3% discount for the year.
Restrictions on Your Plan
A guaranteed acceptance life insurance policy from Colonial Penn can only be purchased between the ages of 50 and 85, and the policy's death benefit is limited for the first two years you are insured.
If you die during the first two years, unless due to an accident, your beneficiaries would receive a smaller payout (the sum of your total premium payments with 7% interest compounded annually).
This type of clause is regularly included by every life insurer that offers guaranteed acceptance policies.
Life insurance Premium Payments
Colonial Penn offers multiple payment options for all its life insurance products:
Who is Colonial Penn's Senior Life Insurance Program Good For?
The Colonial Penn Program for Seniors makes the most sense if you just want a small amount of life insurance coverage for burial and funeral costs, and other end-of-life expenses, rather than full coverage.
Colonial Penn's low underwriting requirements are especially beneficial if you have trouble obtaining coverage elsewhere due to advanced age or a complicated medical history.