Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Mar 12, 2021

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You’ve more than likely seen Alex Trebek, host of Jeopardy!, standing by the benefits of Colonial Penn Life Insurance on your television.

But it’s hard to grasp in a 30-second TV ad everything you need to know about a company and what it offers.

We know that buying life insurance can be an overwhelming process, so we’ll simplify it for you here. Read on to get more information on Colonial Penn and to determine whether they’ve got the right plan for you.

Looking to compare life insurance prices? We can help. Enter your ZIP code to get free quotes from multiple insurers.

Take a look at what Colonial Penn Life Insurance has to offer you

Colonial Penn Life Insurance has had a commitment to the life insurance industry for over 50 years so they’ve been in the business for a long time.

Founded by philanthropist Leonard Davis, the company originally focused on people over 65 who were the original recipients of life insurance through the American Association for Retired Persons (now the AARP).

Over time, they shifted their focus to people between the age of 50 and 85 and began specializing in guaranteed acceptance whole life insurance.

50 years later, Colonial Penn is alive and well. And not just because of Alex Trebek.

The truth of the matter is that we all need life insurance eventually. And Colonial Penn offers a few different options.

Guaranteed Acceptance Whole Life Insurance

As much as you don’t want to add your final expenses to your family’s grief, life insurance is just not affordable for everyone.

That’s where guaranteed acceptance whole life insurance could be helpful because it’s affordable coverage.

The big selling point here, as you’ve likely heard Alex Trebek say, is that you cannot be turned down. Regardless of your health.

That means there are no health questions you have to answer and no physical you must take. They are able to guarantee acceptance though because of a two-year limited benefit period.

Having limited benefits in those first two years could be a deal-breaker though, so be sure you look deeper into this.

This whole life insurance is offered in most states and is available to people ages 50-85.

With guaranteed acceptance, your benefit is locked in. That means it won’t decrease as you grow older. It’s actually based on your gender and your age when the coverage takes effect.

Your rate is also locked in and will never increase for as long as your coverage lasts.

There are a number of ways to pay your premiums, whether monthly, quarterly, semi-annually or annually. And provided you keep paying them, your coverage cannot be canceled by anyone but you.

Colonial Penn is well known for its guaranteed acceptance whole life insurance, but they have other plans as well.

Term and Whole Life Insurance

With these plans, your acceptance is not guaranteed. Your eligibility is determined by questions you answer on their application and enrollment form. There is no medical exam required, although you may be contacted by an underwriter for more information.

So which one is better for you?

In the ongoing battle of term vs. whole life insurance, there’s just not a simple answer as to which is better.

Here’s how they differ individually.

Term Insurance

With term insurance, you’re getting straightforward insurance protection that covers you for a set period of time. It’s one of the most affordable ways to buy life insurance.

Many experts will recommend this type of plan because it is often renewable after the initial term. Even if your health has changed.

Sometimes term insurance can be converted to a whole life policy too. And you don’t have to be in perfect health to do it.

Here’s how term insurance works with Colonial Penn Life Insurance:

  • Available to those ages 18 to 75
  • Guaranteed renewable up to age 90
  • Initial premium based on age and gender when coverage takes effect
  • Rates increase as you enter a new age bracket
  • Depending on the situation, cash value may be available

So term insurance is a reasonable option for those seeking affordable coverage for a specific amount of time.

Whole Life Insurance

If you’re more comfortable having permanent protection over a lifetime, whole life might be what you need. With whole life insurance, your premiums do not increase over time.

Plus, your coverage builds cash value that you can borrow against by taking a policy loan at a guaranteed interest rate.

Here’s how term insurance works:

  • Available to those aged 40 to 75.
  • Permanent, whole life insurance that lasts a lifetime.
  • Premium based on age and gender when coverage takes effect.
  • Rates won’t change for the life of the policy.
  • Builds cash value after the first year of coverage which you can borrow against.

As you begin to ponder whether you want guaranteed acceptance whole life, regular whole life or term insurance, here’s one more thing you’ll need to consider.

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Colonial Penn Life Insurance has some Drawbacks.

One key disadvantage of the Colonial Penn policies is that the maximum coverage you can buy is low ($50,000), and that amount declines the older you are at the time of applying. This is especially true for guaranteed acceptance life insurance.

Plus, guaranteed acceptance life insurance generally costs more than other policies. Particularly those that are fully underwritten because they base prices on your health, family history, and other risk factors. And if those are good, you won’t be charged as much.

Don’t forget about the limited death benefits those first two years on the guaranteed acceptance plan.

Another thing to be aware of is if the initial premium is subject to change or increase as you age. This means that as you get older, your premium could go up.

This last point isn’t unique to Colonial Penn Life Insurance. Other insurance companies offer policies with premiums that increase over time. If you do go with one of these policies, just be sure you know what the rates will look like 10, 15, or even 20 years down the road.

So there you have it. And now that you know a little more about Colonial Penn Life Insurance, so you can consider whether you want to add it or subtract it from your list of possible insurers.

If you’re confused about life insurance, want to talk about your life insurance needs, or are ready for a quote, feel free to contact us at any time. We’re happy to help.

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