FAQ

What is a unit of insurance for colonial penn

Would it surprise you to learn that a single $9.95 colonial penn unit would give a 50-year-old man only $1,669 in life insurance?

if it’s higher, you’ll get even less coverage.

and colonial penn units have a 2 year waiting period before you are insured.

don’t be fooled by their misleading ads.

colonial penn life insurance is objectively one of the worst policies you can buy.

You can get a lot more coverage for your dollar than dozens of other life insurance companies.

Not to mention many other insurance providers don’t offer waiting period coverage.

how the $9.95 colonial penn life insurance plan works

colonial penn life insurance plan for $9.95 per month is a guaranteed acceptance whole life policy with a two-year waiting period.

offers permanent coverage for life at a premium that will never increase and builds cash value.

There are no health questions or tests to determine your eligibility.

guarantee your approval regardless of any health conditions you may have.

Interestingly, they sell this coverage using a unit system. each unit provides a particular amount of life insurance.

Fifteen units is the maximum amount of death benefit coverage you can purchase.

everyone pays only $9.95 monthly premium per unit of insurance.

The amount of coverage you get from each unit varies by age and gender.

Before you sign on the dotted line, consider this very important question:

How much life insurance coverage do you get for $9.95?

The short answer is not much.

The following paragraph shows precisely how much coverage a unit provides for all ages.

what is a unit?

One unit of colonial penn coverage is the amount of life insurance death benefit insureds receive at $9.95 per month.

Your age and gender determine the exact amount of insurance coverage a single unit provides.

Use the penn colonial life insurance calculator and chart below to see how much coverage you get using your unit system.

colonial penn rate chart

Choose your age and gender to see the total monthly cost and how much life insurance you’ll get per number of units.

The table below illustrates exactly how much coverage a single unit provides based on age and gender.

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pros and cons of penn colonial life insurance

advantages

  • no medical exam required
  • guaranteed acceptance coverage options
  • people over 85 years of age can apply
  • Coverage is available in all states
  • strong financial rating (a-am best rating)
  • 100% online application
  • Living Benefit Rider Options for Cancer, Heart Attack, or Stroke
  • you can pay by credit card or by mail in monthly payments
  • cons

    • highly misleading ads
    • extremely expensive coverage relative to other providers
    • everyone over the age of 75 has a waiting period
    • no options for those under 40 or over 85
    • strict underwriting for your lifetime coverage that has health questions that tends to negate common health problems
    • a confusing unit system that makes it hard to understand how much coverage you’re getting
    • lots of negative online reviews from previous customers
    • $50,000 is the most insurance you can buy
    • no term or universal life insurance
    • cologne penn alternative whole life insurance option

      They don’t advertise it, but colonial penn offers another whole life policy outside of their $9.95 plan.

      As you can see on their product page, this whole life policy is very different.

      In short, this policy is not sold per unit and has an underwriting component. it is not a guaranteed issue plan, so you will need to qualify medically.

      No medical exam is required, but you must answer these health questions.

      If approved, there is no waiting period.

      Enrollment for this plan is quite strict, so unless you’re in perfect health, don’t expect to qualify.

      Even if you qualify, prices are not very competitive.

      for example, a 66 year old man would pay $70.15 per month for $10,000 in coverage with this whole life plan from colonial penn.

      By comparison, Mutual of Omaha would charge just $59.85 per month.

      Below is a table comparing the full life options of both.

      colonial penn living insurance®

      When you order their lifetime product with health questions, they allow you to add two additional “lifetime benefit” clauses.

      these clauses have an additional cost and you can only choose one. you can’t add both to your policy.

      • Critical Illness – This allows you to access up to 50% of your death benefit if you suffer a heart attack, stroke, or are diagnosed with a terminal illness.
      • Cancer: Allows you to receive up to 50% of your death benefit if you are diagnosed with cancer (not all forms) or a terminal illness.
      • Essentially, they provide an extra layer of protection if you’re ever diagnosed with a chronic illness or major health problem.

        If you choose to purchase your whole life policy with health questions, it would be a good idea to add one of these riders.

        colonial penn does not offer term life insurance

        Although they did in the past, Colonial Penn does not currently sell term life insurance.

        Currently, whole life insurance is the only type of policy they offer.

        if you currently have a term life policy with colony penn, they will honor it under the terms of the original agreement.

        colonial penn customer complaints

        Over the years, they have racked up quite a few colonial life insurance complaints. When you look at their complaint rate with the National Association of Insurance Commissioners, their numbers are well above average.

        its 2021 naic complaint rate for individual life insurance products was 23.29, nearly 23 times higher than the average life insurance company.

        It is not surprising that they receive many complaints given their misleading advertising.

        When an insurance company makes it seem like everyone can get $10,000 in life insurance coverage for $9.95 a month, it’s no wonder so many angry customers file complaints.

        Third Party Financial Strength Ratings

        colonial penn is rated a- (excellent) with am best, standard & poor and fitch ratings. moody’s is rated at a3.

        The only rating organization where they shine the brightest is the better business bureau. they currently have an a+ rating with bbb.

        cpenn life life insurance company background

        AARP co-founder Leonard Davis founded Colonial Penn Life Insurance Company in 1968. Colonial Penn is owned by parent company CNO Financial Group.

        were one of the first insurers to offer guaranteed acceptance policies. they have even sold Medicare supplemental plans in the past.

        for many years, alex trebek was the face of penn life insurance company. was his paid sponsor until his death on November 8, 2020.

        they now have cologne penn sales manager jonathan lawson as a promoter for their commercials.

        Most of their licensed insurance agents work from the main office in downtown Philadelphia, Pennsylvania. however, some of their agents work from home.

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