A review by Colonial Penn Burial Insurance
The following review is an analysis of one of the most recognized players in his industry. Started nearly fifty years ago by AARP co-founder Leonard Davis, Colonial Penn is a subsidiary of CNO Financial Group Inc. They are licensed in 49 states and are currently rated as B ++ by AM Best. When looking for an insurance policy, it is often recommended to select a company with a rating of no less than A -.
Despite being the first insurance company to develop a health care-free life insurance policy, Colonial Penn has struggled to provide a quality burial insurance product to the market. They command a strong advertising presence with prolific figures like Alex Trebek, Ed McMahon, and Joe Theismann supporting the company. Colonial Penn also has strong web and direct mail advertising targeting people over the age of 50. However, while their policies are described in a way that makes them look like a cheap deal, pricing is obscured in such a way that it can be confusing for its customers. For example, the practice of selling its policies on a “per unit” basis, Colonial Penn intentionally blurs its pricing models to subtly deceive the public. E.g., 1 unit can represent 5 500 in burial insurance or can represent $ 1,000 in coverage. Factors such as an individual’s age and gender determine the amount of coverage provided in the policy. The use of this system of “unity” tends to be subversive and misleading.
Colonial Penn Burial Insurance Plans
Colonial Penn currently has two main burial insurance plans. The most popular offering is their guaranteed acceptance of lifetime burial insurance. The second is an easy question whole life burial insurance plan that requires applicants to provide answers to a few health-related questions. Of the two, the former is the most widely marketed to the public.
Guaranteed acceptance of burial insurance
This is a true permanent burial insurance plan. Its terms are simple, the monthly price will remain constant, and the benefits will never diminish. However, the drawbacks include a waiting period and a high price tag that is largely more expensive than many competitors (notably, Gerber Life and Mutual of Omaha offer a comparable product at a significantly lower price). The waiting period for this plan is a result of guaranteed acceptance of the policy without a health screening or medical checkup required. The waiting period is designated as two years. Members who die during this waiting period are not paid the benefit amount. Rather, the premiums paid are repaid plus 7% compounded interest each year. After the two-year waiting period,
After the two-year waiting period, the full value of the policy becomes effective and will remain so for the remaining life. The policy will pay off even if the death is the result of an accident. For example, policyholders would be covered in the event of a car or plane accident. This policy is offered to customers aged 50-85. Online payments can be made using your bank or credit card information, and there are also three manual payment options. Invoices can be scheduled to be recurring quarterly (every three months), semi-annually (every six months), or annually (once a year). Payments cannot be made by direct invoice. Monthly billing must be done by bank transfer or credit card.
Immediate benefit Whole life plan
Likewise, this plan is true burial insurance. There is no deadline for coverage, and monthly payments cannot change. The benefits will not diminish over time, and the coverage is effective from day one. Smokers, tobacco users, and e-cigarette users do not have to pay an increased premium. The price is high for the guaranteed issue product.
Health qualification applications
To be eligible for Colonial pen insurance, you need to be able to answer the following health questions:
- Are you using a wheelchair, oxygen to assist with breathing, confined to a hospital or nursing facility, receiving health care at home or hospice, or are you currently disabled due to illness?
- Have you been or have you been treated for Acquired Immunodeficiency Syndrome (AIDS), AIDS-Related Complex (ARC), or tested positive for Human Immunodeficiency Virus (HIV) antibodies?
- In the past three years, you have been or have been treated for:
– Chronic obstructive pulmonary disease, coronary artery disease, or any heart disease or disorder of the brain or liver?
– Cancer, chronic kidney disease or kidney failure, muscle disease, mental or nerve disorder, drug or alcohol abuse, or you have been hospitalized for diabetes
– Any chronic disease or condition that requires regular medication or medical care, or you have been advised to undergo surgery that was not performed?
- Are you currently undergoing evaluation, diagnostic testing, or treatment, or have you been advised to have the test not yet completed?
Answering “Yes” to any of these questions will result in being rejected as a policy by Colonial Penn.
Guaranteed issuance policies attract customers with very serious health problems. For this reason, insurance companies, in turn, charge a higher rate for insurance to offset the cost of death claims. The insurance market offers various policy solutions. Many accept clients with various health conditions such as diabetes. Some organizations will charge an increased fee to insure such individuals, which is why it is very important to work with an independent agency. Customers should be tired of avoiding companies that offer burial insurance plans that expire for a customer once they reach a certain age, deeming the policy invalid.
Colonial Life is a well-known company with popular marketing campaigns and celebrity endorsement. Their two policies are mostly straightforward for the customer. Neither product will expire, both have fixed monthly prices, and the benefits will never diminish. There are, however, two major lapses in their policies. The price is high when compared with similar products. There are various competing products that are offered at a lower price. The second drawback is the absence of an independent agent. Colonial life does not offer a dedicated agent for service. Instead, a customer care system is used with representatives authorized to sell insurance.
General consumer objectives
If you are looking for burial insurance that is best for you and most affordable, look no further. Our focus here at Burial Insurance Pro is burial insurance. This is what we do and what we excel at. The years of experience we have with our clients allow us the knowledge of knowing which insurer would suit your needs the best.
If you want an expert opinion, fill out the quote form or call us to help you with all your burial needs!