Founded in 1957, Colonial Penn Life Insurance specializes in affordable coverage for seniors, with guaranteed acceptance policies up to age 85.
We like that you can get a policy quickly without having to submit to a medical exam.
But the lack of term or universal life policies and its high volume of complaints keep Colonial Penn from being a great option for everyone.
Colonial Penn Life Insurance
Cost
The best way to estimate your costs is to request a quote
Online quote for term policy
Yes
Policy highlights
Primarily focused on connecting those over age 50 with guaranteed acceptance whole life insurance. It only offers this one type of coverage to seniors up to age 85. Policies don't require a medical exam or any health questions.
Pros
- No health questions or medical exams
- In business since 1957
Cons
- High volume of complaints with the National Association of Insurance Commissioners
- High number of complaints with the BBB
- Limited policy types available
Colonial Penn life insurance review
- Pros and cons of Colonial Penn life insurance
- Types of Colonial Penn life insurance
- Colonial Penn riders
- Colonial Penn customer service
- Other types of Colonial Penn insurance
- How does Colonial Penn compare to other life insurance?
- How do I buy life insurance from Colonial Penn?
- Is Colonial Penn Life Insurance right for me?
- Colonial Penn FAQs
- Our methodology
Colonial Penn Life Insurance pros and cons
- Policies available up to age 85
- Guaranteed acceptance policies available in most states
- Doesn't require a medical exam or health questions
- High number of complaints
- Limited product offerings
- Low coverage limits compared to competitors
Types of Colonial Penn life insurance
Colonial Penn offers guaranteed issue whole life insurance in 49 states and Washington, D.C. In New York, it offers LifeChoice, a standard whole life policy
Guaranteed acceptance whole life insurance
Colonial Penn offers guaranteed acceptance policies to applicants 50 to 85 in all states except New York.
The policies work differently than some other guaranteed acceptance plans: You buy units of coverage for $9.95 each. Up to 25 units are available per person, but the amount of coverage in each unit varies by age and gender.
The maximum coverage for these policies is only $50,000, which makes them a good option for final expense insurance, which can pay for a funeral and burial, medical and legal bills and other end-of-life costs.
As is common with final expense policies, if you die within the first two years of coverage from a non-accidental cause, there's a reduction in the death benefit.
LifeChoice Whole Life Insurance (New York only)
Colonial Penn does not offer guaranteed issue whole life policies in New York, but residents can buy LifeChoice, a standard whole life policy available to men 50 to 73 and women 50 to 75.
Like other Colonial Penn policies, LifeChoice doesn't require a medical exam. You will need to answer some health questions, and acceptance is not guaranteed.
If you're between 50 to 65 you can buy up to $25,000 in coverage with LifeChoice. Policyholders 66 to 75 can choose $5,000, $10,000 or $15,000 worth of coverage. Those limits are much lower than many other companies offer for whole life.
LifeChoice does have a cash value component, but it doesn't start accumulating until after the first year.
Colonial Penn life insurance riders
Colonial Penn only offers two endorsements:
- Accelerated death benefit rider: You can access a portion of your death benefit if you're diagnosed with a chronic or terminal illness or experience a heart attack or stroke.
- Accidental death benefit rider: An additional cash benefit to your beneficiaries in the event of an accidental death.
Colonial Penn customer service
Colonial Penn was not included in J.D. Power's 2024 U.S. Individual Life Insurance Study, but it received seven times the volume of complaints about life insurance as similarly sized providers, according to the National Association of Insurance Commissioners.
Customer service is not available at night or on weekends and there is no online chat feature, which many other insurance companies offer.
Other types of Colonial Penn insurance
Colonial Penn only offers life insurance.
How does Colonial Penn compare to other life insurance?
| Coverage limit | Age limits | NAIC complaint index | |
|---|---|---|---|
| Colonial Penn | $50,000 ($25,000 in New York) | 50 to 85 (50 to 75 in New York) | More than expected |
| AARP guaranteed acceptance | $30,000 | 50 to 80 (50 to 75 in New York) | Fewer than expected |
| State Farm guaranteed issue final expense policy | $15,000 ($10,000 in New York) | 45 to 80 (50 to 75 in New York) | Fewer than expected |
Colonial Penn vs. AARP
Colonial Penn and AARP both offer guaranteed-acceptance life insurance to seniors that don't require taking a medical exam or answering health questions.
AARP Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
AARP offers term and permanent life insurance products through New York Life, alongside other types of insurance.
Pros
- No medical exam
- Guaranteed acceptance option
- A++ financial strength rating
Cons
- Must be an AARP member to apply
- Not available in all states
AARP has more flexible age limits for its guaranteed policies, however, with coverage available to members ages 50 to 80 in most states (50 to 75 in New York).
Its coverage limit is only $30,000, compared to $50,000 with Colonial Penn. You also have to join AARP, which costs $16 a year.
AARP also has a stronger (although not stellar) record on customer service: Its policies are underwritten by New York Life, which has a minimal volume of complaints about life insurance compared to its competitors. But New York Life was ranked well below average in J.D. Power's 2024 U.S. Individual Life Insurance Study.
Colonial Penn vs. State Farm
State Farm's guaranteed-issue whole life policy maxes out at $15,000 ($10,000 in New York), a fraction of Colonial Penn, which offers $50,000 in 49 states and $25,000 in New York.
State Farm Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State Farm offers a variety of term, whole, and universal life insurance products to choose from, alongside other types of insurance. It's rated highly for both financial stability and customer service.
State Farm plans are available to people between 45 and 80, which is a more generous range than Colonial Penn.
And there's no contest when it comes to customer service: State Farm is the top-ranked company on J.D. Power's 2024 U.S. Individual Life Insurance Study and has a minimal number of complaints, according to NAIC.
How do I buy life insurance from Colonial Penn?
You can buy life insurance with Colonial Penn online or by calling 877-877-8052, Monday to Thursday from 8:30 a.m. to 10 p.m. ET, Friday from 8:30 a.m. to 7 p.m. and Saturday from 9 a.m. to 5 p.m.
Either way, you'll need to provide personal information, select how many units you want, choose a billing method and select beneficiaries. (Depending on what state you're in, you may need to answer some health questions.)
Is Colonial Penn Life Insurance right for me?
Colonial Penn is a good fit if you want a modest policy that can pay for a funeral or other final expenses.
It could also be a good option if you want to avoid a medical exam or think you won't qualify for coverage elsewhere.
But if you want more robust coverage or prioritize customer service, you might look to other insurance companies.
FAQs
How much is one unit of Colonial Penn insurance?
Each unit of Colonial Penn life insurance costs $9.95, and up to 25 units are available per person.
Does Colonial Penn require a medical exam for approval?
No, Colonial Penn's policies don't require a medical exam. In many states, you can also get coverage without answering any medical questions.
How do I cancel a Colonial Penn life insurance policy?
To cancel a Colonial Penn life insurance policy, you'll need to fill out a surrender form on the website and mail it to Colonial Penn Life Insurance Company Policyholder Services, P.O. Box 1918 Carmel, Indiana 46082-9903. New York policyholders should address their surrender form to Bankers Conseco Life Insurance Company Policyholder Services. If you are within the 30-day free look period, you can cancel your policy without penalty and receive a full refund.
How much is a $50,000 life insurance policy with Colonial Penn?
The monthly cost of a $50,000 insurance policy with Colonial Penn depends on your age and gender. For a 50-year-old woman in Oklahoma buying a $50,000 guaranteed acceptance policy, Colonial Penn quoted us a rate of $248.75 a month.
Is a Colonial Penn life insurance policy worth it?
Colonial Penn life insurance is worth it if you've been denied elsewhere or are just looking for enough coverage to pay for final expenses. It has a high number of complaints, however, which could influence whether you think it's worth it for you.
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
When reviewing life insurance companies, CNBC Select uses a variety of criteria, including the types of policies, availability, rates and terms, the number of riders, medical exam requirements, the availability of online quotes and overall customer satisfaction.
In addition, we also considered J.D. Power customer satisfaction rankings, financial strength ratings from A.M. Best, Better Business Bureau grades and the National Association of Insurance Commissioners' complaint index.
Life insurance rates may come from various sources, including the provider and state insurance departments.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
