Last Updated: May 2020
Colonial Penn life insurance is well regarded for its popular television commercials complete with Alex Trebek as a pitchman.
In this review of Colonial Penn, you’ll learn about their history, financial ratings, the types of life insurance they offer, and their life insurance rate chart. By the end of this review, you will have a better idea if Colonial Penn is a good choice for your life insurance needs.
- About Colonial Penn Life Insurance
- Types of Policies Offered by Colonial Penn
- Colonial Penn Life Insurance Rate Charts (See Rates Here)
- What To Know Before Applying for Colonial Penn Life Insurance
- Pros and Cons of Colonial Penn Insurance
- Compare Colonial Penn Life Insurance to Other Carriers
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
Colonial Penn Life Insurance has an “A-” (excellent) rating with A.M. Best. They offer guaranteed acceptance, term, & whole life insurance, usually targeting seniors. They have an easy application process & trusted name, but Colonial Penn policies are usually more expensive than other carriers.
About Colonial Penn Life Insurance
Colonial Penn has offered life insurance policies for over 60 years.
The company uses a combination of call centers, websites, mail, and television to reach people and share with them life insurance options.
The company was among one of the first to design life insurance products for older individuals and they became one of the first to offer their guaranteed acceptance plan for those 50 years or older back in 1968.
Colonial Penn’s Financial Ratings
First things first, let’s look at how reputable the company is, and how safe your money is.
Colonial Penn has received strong financial ratings from the following agencies:
| Company | Financial Rating |
|---|---|
| Moody’s | Baa1 |
| S&P | BBB+ |
| A.M. Best | A- |
| Fitch | BBB+ |
You can see that they do have good financial ratings, which ensure your policy is likely to get paid out.
But how does Colonial Penn compare to other top life insurance companies in terms of policies and rates?
Types of Policies Offered by Colonial Penn
Colonial Penn offers 3 different kinds of life insurance. Below we will explain what they are, and help you decide if it’s the right type of insurance for you.
Colonial Penn Guaranteed Acceptance Life Insurance
Colonial Penn offers guaranteed acceptance life insurance policies, which function as their “burial insurance” policy because it has no medical underwriting and is, as the name suggests, guaranteed.
So no matter your pre-existing conditions, health record, age, or anything else, you can apply and be approved for it. This is one of the biggest selling points.
By far, this is Colonial Penn’s number one selling product. It’s the one all over TV.
Now, Colonial Penn’s guaranteed policy is the most expensive type of life insurance policy, because they have the highest risk to insurers. With that said, there is a 2 year waiting period for benefits to be paid out.
We find that most people don’t need a guaranteed issue life insurance policy. We’ve replaced Colonial Penn life insurance policies consistently with better priced coverage and day 1 benefits (no 2 waiting period like Colonial Penn has). Even with significant health complications like COPD or Multiple Sclerosis.
Even if you’re in poor health and need a guaranteed issue policy, there is likely a better burial insurance option for you than Colonial Penn. You can almost always find a better policy.
If you are looking for final expense life insurance, compare Colonial Penn alongside other top life insurance carriers like Globe Life Insurance before deciding on a policy.
Colonial Penn’s Term Life Insurance
Term life insurance is life insurance coverage for a specific period of time. Usually, this is between 10 and 30 years and comes in 5-year increments such as 10, 15, 20, 25, 30 years.
Generally, these policies are the least expensive type of life insurance. Often times, they can be renewed at the end of their term or converted into a whole life policy. Riders can be added to policies that allow for additional coverage and flexibility.
Their term life insurance policy increases in price every 5 years and expires at age 90.
Without a doubt, you can find similar coverage that remains level for the rest of your life for around the same price as Colonial Penn’s term life insurance offering.
I don’t even know why they even have this product on the shelf. Almost anyone on the open market can beat their pricing and guarantees.
Whole Life Insurance from Colonial Penn
Whole life insurance insures you for your whole life. This is more expensive than term, but some policies offer some interesting features such as cash value appreciation and investment options.
These types of life insurance policies offer riders as well, and often times are more customizable than term life insurance policies.
Colonial Penn’s whole life insurance product does have medical questions, but there is no exam. It’s less expensive than the guaranteed issue life insurance, but much more expensive than what you can qualify for on the open market
All of Colonial Penn’s life insurance policies are no medical policies and offer smaller amounts of coverage than the most life insurance policies on the market.
This makes them great for a very specific niche market – seniors who don’t know any better. There is no reason for anyone to own a Colonial Penn life insurance policy. There are just much better options on the market.
Affordable life insurance options can best be found by speaking with an independent life insurance agent today.
Colonial Penn Life Insurance Rate Charts
Colonial Penn’s rates are generally higher than other carriers.
It’s hard to compare them because they have a tricky way of pricing their products through “Units”. Which we’ll clarify below.
We’ll start with the most popular policy – Colonial Penn’s guaranteed acceptance product.
Guaranteed Acceptance Life Insurance Rate Charts
Colonial Penn’s guaranteed issue life insurance works on a unit basis.
For $9.95, one unit of their coverage can be purchased.
Depending on your age, this can provide anywhere from $400 to $2,100 of coverage.
Up to 8 units can be purchased by one person, with maximum coverage of about $16,000.
Here’s a rate chart for Colonial Penn for both men and women. Find your age and see how much it would cost you for this guaranteed acceptance life insurance policy.
Female Rate Chart
| Age | 1 Unit: $9.95 | 2 Units: $19.90 | 4 Units= $39.80 | 6 Units= $59.70 | 8 Units= $79.60 |
|---|---|---|---|---|---|
| Age 50 | $2,083 payout | $4,166 payout | $8,332 payout | $12,498 payout | $16,664 payout |
| Age 51 | $2,068 payout | $4,136 payout | $8,272 payout | $12,408 payout | $16,544 payout |
| Age 52 | $2,022 payout | $4,044 payout | $8,088 payout | $12,132 payout | $16,176 payout |
| Age 53 | $1,973 payout | $3,946 payout | $7,892 payout | $11,838 payout | $15,784 payout |
| Age 54 | $1,929 payout | $3,858 payout | $7,716 payout | $11,574 payout | $15,432 payout |
| Age 55 | $1,884 payout | $3,768 payout | $7,536 payout | $11,304 payout | $15,072 payout |
| Age 56 | $1,838 payout | $3,676 payout | $7,352 payout | $11,028 payout | $14,704 payout |
| Age 57 | $1,786 payout | $3,572 payout | $7,144 payout | $10,716 payout | $14,288 payout |
| Age 58 | $1,732 payout | $3,464 payout | $6,928 payout | $10,392 payout | $13,856 payout |
| Age 59 | $1,676 payout | $3,352 payout | $6,704 payout | $10,056 payout | $13,408 payout |
| Age 60 | $1,621 payout | $3,242 payout | $6,484 payout | $9,726 payout | $12,968 payout |
| Age 61 | $1,562 payout | $3,124 payout | $6,248 payout | $9,372 payout | $12,496 payout |
| Age 62 | $1,506 payout | $3,012 payout | $6,024 payout | $9,036 payout | $12,048 payout |
| Age 63 | $1,452 payout | $2,904 payout | $5,808 payout | $8,712 payout | $11,616 payout |
| Age 64 | $1,392 payout | $2,784 payout | $5,568 payout | $8,352 payout | $11,136 payout |
| Age 65 | $1,333 payout | $2,666 payout | $5,332 payout | $7,998 payout | $10,664 payout |
| Age 66 | $1,273 payout | $2,546 payout | $5,092 payout | $7,638 payout | $10,184 payout |
| Age 67 | $1,214 payout | $2,428 payout | $4,856 payout | $7,284 payout | $9,712 payout |
| Age 68 | $1,157 payout | $2,314 payout | $4,628 payout | $6,942 payout | $9,256 payout |
| Age 69 | $1,099 payout | $2,198 payout | $4,396 payout | $6,594 payout | $8,792 payout |
| Age 70 | $1,043 payout | $2,086 payout | $4,172 payout | $6,258 payout | $8,344 payout |
| Age 71 | $987 payout | $1,974 payout | $3,948 payout | $5,922 payout | $7,896 payout |
| Age 72 | $932 payout | $1,864 payout | $3,728 payout | $5,592 payout | $7,456 payout |
| Age 73 | $880 payout | $1,760 payout | $3,520 payout | $5,280 payout | $7,040 payout |
| Age 74 | $834 payout | $1,668 payout | $3,336 payout | $5,004 payout | $6,672 payout |
| Age 75 | $792 payout | $1,584 payout | $3,168 payout | $4,752 payout | $6,336 payout |
| Age 76 | $753 payout | $1,506 payout | $3,012 payout | $4,518 payout | $6,024 payout |
| Age 77 | $717 payout | $1,434 payout | $2,868 payout | $4,302 payout | $5,736 payout |
| Age 78 | $683 payout | $1,366 payout | $2,732 payout | $4,098 payout | $5,464 payout |
| Age 79 | $652 payout | $1,304 payout | $2,608 payout | $3,912 payout | $5,216 payout |
| Age 80 | $620 payout | $1,240 payout | $2,480 payout | $3,720 payout | $4,960 payout |
| Age 81 | $589 payout | $1,178 payout | $2,356 payout | $3,534 payout | $4,712 payout |
| Age 82 | $560 payout | $1,120 payout | $2,240 payout | $3,360 payout | $4,480 payout |
| Age 83 | $531 payout | $1,062 payout | $2,124 payout | $3,186 payout | $4,248 payout |
| Age 84 | $503 payout | $1,006 payout | $2,012 payout | $3,018 payout | $4,024 payout |
| Age 85 | $477 payout | $954 payout | $1,908 payout | $2,862 payout | $3,816 payout |
Male Rate Chart
| AGE | 1 Unit: $9.95 | 2 Units: $19.90 | 4 Units: $39.80 | 6 Units: $59.70 | 8 Units: $79.60 |
|---|---|---|---|---|---|
| Age 50 | $1,786 payout | $3,572 payout | $7,144 payout | $10,716 payout | $14,288 payout |
| Age 51 | $1,732 payout | $3,464 payout | $6,928 payout | $10,392 payout | $13,856 payout |
| Age 52 | $1,676 payout | $3,352 payout | $6,704 payout | $10,056 payout | $13,408 payout |
| Age 53 | $1,621 payout | $3,242 payout | $6,484 payout | $9,726 payout | $12,968 payout |
| Age 54 | $1,562 payout | $3,124 payout | $6,248 payout | $9,372 payout | $12,496 payout |
| Age 55 | $1,506 payout | $3,012 payout | $6,024 payout | $9,036 payout | $12,048 payout |
| Age 56 | $1,452 payout | $2,904 payout | $5,808 payout | $8,712 payout | $11,616 payout |
| Age 57 | $1,392 payout | $2,784 payout | $5,568 payout | $8,352 payout | $11,136 payout |
| Age 58 | $1,333 payout | $2,666 payout | $5,332 payout | $7,998 payout | $10,664 payout |
| Age 59 | $1,273 payout | $2,546 payout | $5,092 payout | $7,638 payout | $10,184 payout |
| Age 60 | $1,214 payout | $2,428 payout | $4,856 payout | $7,284 payout | $9,712 payout |
| Age 61 | $1,157 payout | $2,314 payout | $4,628 payout | $6,942 payout | $9,256 payout |
| Age 62 | $1,099 payout | $2,198 payout | $4,396 payout | $6,594 payout | $8,792 payout |
| Age 63 | $1,043 payout | $2,086 payout | $4,172 payout | $6,258 payout | $8,344 payout |
| Age 64 | $987 payout | $1,974 payout | $3,948 payout | $5,922 payout | $7,896 payout |
| Age 65 | $932 payout | $1,864 payout | $3,728 payout | $5,592 payout | $7,456 payout |
| Age 66 | $880 payout | $1,760 payout | $3,520 payout | $5,280 payout | $7,040 payout |
| Age 67 | $834 payout | $1,668 payout | $3,336 payout | $5,004 payout | $6,672 payout |
| Age 68 | $792 payout | $1,584 payout | $3,168 payout | $4,752 payout | $6,336 payout |
| Age 69 | $753 payout | $1,506 payout | $3,012 payout | $4,518 payout | $6,024 payout |
| Age 70 | $717 payout | $1,434 payout | $2,868 payout | $4,302 payout | $5,736 payout |
| Age 71 | $683 payout | $1,366 payout | $2,732 payout | $4,098 payout | $5,464 payout |
| Age 72 | $652 payout | $1,304 payout | $2,608 payout | $3,912 payout | $5,216 payout |
| Age 73 | $620 payout | $1,240 payout | $2,480 payout | $3,720 payout | $4,960 payout |
| Age 74 | $589 payout | $1,178 payout | $2,356 payout | $3,534 payout | $4,712 payout |
| Age 75 | $560 payout | $1,120 payout | $2,240 payout | $3,360 payout | $4,480 payout |
| Age 76 | $531 payout | $1,062 payout | $2,124 payout | $3,186 payout | $4,248 payout |
| Age 77 | $503 payout | $1,006 payout | $2,012 payout | $3,018 payout | $4,024 payout |
| Age 78 | $477 payout | $954 payout | $1,908 payout | $2,862 payout | $3,816 payout |
| Age 79 | $450 payout | $900 payout | $1,800 payout | $2,700 payout | $3,600 payout |
| Age 80 | $426 payout | $852 payout | $1,704 payout | $2,556 payout | $3,408 payout |
| Age 81 | $424 payout | $848 payout | $1,696 payout | $2,544 payout | $3,392 payout |
| Age 82 | $423 payout | $846 payout | $1,692 payout | $2,538 payout | $3,384 payout |
| Age 83 | $421 payout | $842 payout | $1,684 payout | $2,526 payout | $3,368 payout |
| Age 84 | $420 payout | $840 payout | $1,680 payout | $2,520 payout | $3,360 payout |
| Age 85 | $418 payout | $836 payout | $1,672 payout | $2,508 payout | $3,344 payout |
This is technically a whole life policy and builds cash value over the life of the policy, which can e borrowed against.
The limit for borrowing is 8% of your face value per year.
Guaranteed issue life insurance policies also have a graded benefit, and only pay out after the first 2 years of the policy being in place, unless the policyholder’s death is a result of an accident.
Colonial Penn’s guaranteed issue whole life insurance policies are offered to anyone who is between the ages of 50-85.
The price of these policies ranges from $9.95 to $79.60 per month.
This policy is considered to be its Burial Insurance policy. For people in less than perfect health needing minimum coverage to protect their family in the event of their death, this is a great policy.
Colonial Penn Term Life Insurance Rates
Colonial Penn term policies are available for adults ages 18-75. The minimum coverage on these policies is $10,000 and maximum coverage on this policy is $50,000, and rates can be quite expensive when compared with other term life insurance and burial insurance policies on the market.
Pricing for Colonial Penn term life insurance policies usually depends on increments of 5-years in age.
For instance, here is a pricing chart for a 50-year-old female looking for a $50,000 policy:
| Age Range | Cost |
|---|---|
| 41 to 45 | $35.21/mo. |
| 46 to 50 | $45.21/mo. |
| 51 to 55 | $54.46/mo. |
Colonial Penn Whole Life Insurance Rates
Their whole life insurance policy also has a maximum face value of $50,000, with a minimum of $10,000.
Depending on the various different age ranges, your rates will change.
Colonial Penn’s whole life insurance policies are offered to anyone who is between the ages of 40-75.
Here are some sample rates for 40 and 75-year-old males and females looking for the minimum and maximum amount of whole life insurance coverage:
| Coverage | Age | Gender | Premium |
|---|---|---|---|
| $10,000 | 40 | Male | $18.71/mo. |
| 75 | Male | $118.29/mo. | |
| 40 | Female | $14.36/mo. | |
| 75 | Female | $94.07/mo. | |
| $50,000 | 40 | Male | $76.04/mo. |
| 75 | Male | $576.44/mo. | |
| 40 | Female | $56.79/mo. | |
| 75 | Female | $455.36/mo. |
What To Know Before Applying for Colonial Penn Life Insurance
There are a few things you should know before applying for life insurance with Colonial Penn.
Colonial Penn has a Money-Back Guarantee
Colonial Penn offers a 30-day money-back guarantee. If you are not happy with your burial insurance policy, you can return it within 30 days and get a complete refund.
There is nothing special about this guarantee. By law, every life insurance company has to have what we call in the life insurance industry as a “free look” period. They dress that up as a 30-day money-back guarantee. Smart marketing, but nothing special.
They Turn Down People with Some Pre-existing Conditions
There’s of conditions for which Colonial Penn will decline your application for whole life insurance or term insurance (not guaranteed issue life).
If you have one of these conditions, then you might only be able to receive the burial insurance policy which is financially more limited but, again, adequate to cover burial costs and subsequent funeral services in many states.
These include:
- Disabilities resulting from an illness
- Receiving home health care
- Being an insulin-dependent diabetic
- Using a wheelchair permanently
- Have diabetic complications including severe obesity, neuropathy, PVD, or retinopathy
- Using blood thinners such as Plavix, Coumadin, or Warfarin
- Being reliant upon an oxygen tank
- COPD
- Hepatitis
- Congestive heart failure
- Kidney failure
- Sarcoidosis
- Muscular dystrophy
- Cystic fibrosis
- Coronary artery disease
- Schizophrenia
- Multiple sclerosis
Pros & Cons of Colonial Penn Life Insurance
Choosing life insurance policies is not something you should do quickly. It takes homework.
It is in your best interest to consider what costs you want your policy to cover, what your current income is now, what bills might be left unpaid, and what people may be dependent upon you if you passed in the near future.
Beyond that, you should consider the Pros and Cons of Colonial Penn Life Insurance.
Pros of Colonial Penn
- No health questions.
- Everyone qualifies for their guaranteed acceptance life insurance.
- Easy application process. Apply right over the phone.
- Trusted, well-known name.
Cons of Colonial Penn
- Their policies are expensive. You can usually find better rates with other companies.
The life insurance companies that are better priced than Colonial Penn also have an easy application process with no health questions and underwritten by trusted names like AIG and Gerber.
In other words, you can do much better. And if you already purchased a Colonial Penn life insurance policy, you can cancel it at any time.
Compare Colonial Penn Life Insurance to Other Carriers
You will then want to consider your current level of health and get a quote from more than one company. Every case is different; Colonial Penn may or may not be the best option for your situation.
Overall, Colonial Penn is clearly a good option for those who prefer to avoid any medical questions or exams. They have guaranteed whole life insurance with premiums that remain the same and never decrease.
Their prices, however, are not the lowest out there and they are severely limited in terms of how much coverage you can buy.
The best thing you can do in this process of applying for life insurance is to educate yourself.
The best way to do this is to speak with an independent life insurance agent who can discuss you and your family’s financial needs and current situation to help you find the best rates, policy, carrier, and coverage among hundreds of options.
Skip the headache, and make finding the best life insurance policy smooth and easy.
Give us a call, and begin comparing Colonial Penn life insurance with other policies instantly with our online quoting engine! We have reviewed over 50 life insurance carriers and agencies to help you compare rates and find the right company for your specific needs.
Here are some other final expense life insurance companies to consider along with Colonial Penn.
- Royal Neighbors Life Insurance
- Monumental Life Insurance
- Prosperity Life Insurance
- Aetna Burial Insurance
- United Home Life
- Globe Life
- AARP Life Insurance
- TruStage Life Insurance
Compare the Best Life Insurance Rates
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I’m 67 years old and need insurance to cover the cost. I also live on a fixed income but its time to think about ins. I don’t want to leave the expence with my children.
Thank you.
Great decision. My biggest tip is to make sure when you do purchase final expense life insurance coverage, make sure you set the draft date for the day your social security payment gets deposited. That way it will never lapse unless you call in to cancel it.
Please call. Website is confusing. Need Life Insurance and I am 75 years ol
Thank you
Jim LoSasso
Thanks Jim. I know we listed a lot of information in this article.
Someone should have been in touch by now.
I am 63 years old and I am looking for basic life insurance that will cover funeral expenses. I want a policy that doesn’t increase.
Hi Kristy,
You’re looking for a final expense life insurance policy. Rates are guaranteed level for the rest of your life. Give us a call at 888-430-7669 and we’ll find the most affordable plan available in your state and for your specific risk. Or get instant quotes by filling the quote form out on this page.
My husband and I need final expenses insurance. I’m 69 and my husband is 73.Both of us have health issues.
Hi Cheryl,
Happy to help. There are options much more affordable than Colonial Penn, even if you have significant health issues. Call us at 888-430-7668 and we’ll go over them with you.
Guaranteed Universal Policy
Bday is 03/29/1945
in good health and active
Can u provide suggested insurers ?
Cost estimate ??
Hi Thomas,
You can fill out the form on this page and choose “lifetime” to see quotes and a list of insurers. Let us know if you have any questions!