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Colonial Penn Life Insurance $9.95 Per Month Review

Life insurance financially helps your loved ones if you die. The two general types of life insurance differ in multiple ways. Term life, which is cheaper and offers higher death benefits, is for a limited time (often 20 or 30 years). If your policy survives, your survivors do not receive a death benefit.

Permanent life insurance, like all life, is in force for life and guarantees a death benefit to your survivors as long as you have made your payments and have been honest in your term life insurance for seniors application.

What you need to know about Colonial Penn?
It is a Pennsylvania USA based life insurance company that offers term life insurance and permanent life insurance for people ages 18-85.

The colonial Penn Life Insurance generally markets to the senior market using Jeff Hudson as its national spokesperson for print and television advertising.

Colonial Penn Life Insurance $9.95 Per Month Review

As a sister company to Bankers Life and Casualty Company, CNO Financial owns Colonial Penn in its entirety as a subsidiary. In addition, in the state of New York Bankers, Cheap Life Insurance underwrites all Colonial Penn life insurance offerings.

Before making a decision about following one of your policies, you should learn a little more about what Colonial Penn really offers.

The three types of Seniors policy that Colonial Penn offers:

  1. Guaranteed Acceptance Life Insurance
  2. Renewable Term Life Insurance
  3. Permanent Whole Life Insurance
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Colonial Penn Life Insurance 9.95 Per Month Review

Term vs. permanent life insurance

Term life insurance covers you for a specified period, such as 10, 15, or 20 years.

Buyers generally choose a policy that covers them until their mortgages or other debts are paid, such as a child’s college education. A term life policy only pays a death benefit during the term. Therefore, a term life policy can survive. In that case, your loved ones will receive nothing.

Term life is less expensive than permanent life. The average annual cost for a $250,000 20 year term life policy for a 30 year old nonsmoker woman in regular health is $309. A man of the same age and in the same health condition is on average $353. Learn more visit to how to get $10,000,000 life insurance policy here.

Permanent life

Meanwhile, includes policies of whole life and universal life. These policies cover you for life whenever you make payments. It doesn’t matter if you die within a year or within 50 years. Permanent life policies also include an investment component. Cash value allows you to increase an investment, which you can borrow throughout your life.

These policies are more expensive than term life, but they guarantee that your loved ones get something and allow you to invest.

1. Guaranteed acceptance life insurance (that starts from $9.95/month)

  • Available for ages 50-85
  • They cannot cancel their coverage
  • No medical exam, but still requires answers to health questions
  • Graduated benefits for the first two years.
  • Locked in bonuses
  • Maximum benefit of $ 20,000

Considerations:

As with any guaranteed issue policy, policyholders have the problem of surviving their policy. To help remedy this, here is a useful formula to consider:Death Benefit / (Monthly Premium x 12) = How many years until your policy survives?Along with that consideration, the benefit of this policy is also very low compared to others.

Also, gradual death benefits mean that only part of the benefit will be paid if the insured dies in the first two years of their policy. That, along with the chance of surviving your policy, will give you a lot to think about in terms of this policy.

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Colonial Penn Review

That sums up most of how this policy works. As you can see, there is not much that is not a bad thing.

However, there are some other things you need to understand about this policy that are extremely important, so read on.
  • This policy will not pay a death benefit if death occurs during the first 24 months.
  • The main thing to understand about this policy is that it is a guaranteed problem.
  • That means there are no health questions or any medical subscription of any kind.
  • They will literally issue the policy to anyone without knowing a single detail about their health. That’s why they call it guaranteed acceptance.

Now this is important

With this policy, the Colonial Penn insurance company will not pay a death benefit if it dies of natural causes within the first 24 months of the policy.

What they will do is refund your premiums plus 7% interest if you die during this time.

It is important to note that death from an accident (car, plane, train accident, etc.) will result in payment of the full face value of the policy, even if it is during the 24-month waiting period.

After 24 months, your policy will be active and will stay that way forever, unless you cancel it or stop making your payments.

What is a unit?

Seriously, what the hell is a unit?

It is by far the most common question about Colonial Penn’s guaranteed life insurance. All of their ads use “coverage starts at just $ 9.95 per unit” as a hook for you to call.

We give them points for creating something that makes the phone ring, but it’s quite tricky to say the least.

So what the hell is that?

Let’s start with your definition of a unit …

Basically, a unit refers to the amount of coverage provided to you based on your age and gender.

How? Let us explain …

Most life insurance companies adjust the price of coverage to increase with age. For example, ABC insurance could charge a 50-year-old $ 25.00 per month for $ 10,000 in coverage.

They would charge a 51 year old $ 25.50 and a 52 year old $ 26.00. As you can see, prices increase with age. Do you see the pattern that is forming?

Notice how the $10,000 coverage stays the same, and it’s the price that increases with age.

What Colonial Penn does with its unit system is the opposite?

With your unit system, what changes is the amount of coverage a unit provides. The higher, the less coverage a unit offers.

Also, a unit provides less coverage for a man than for a woman (women always pay much less for life insurance than men)

One unit always costs $9.95 for everyone and the most you can buy is 8
Colonial Penn’s life insurance cost per unit is always $ 9.95 for everyone. No matter what age or how old you are, male or female, a single unit always costs $9.95.

Everyone can choose to buy between 1 and 8 units. Again, what will change is the amount of coverage a unit provides.

Let’s see how much coverage a unit provides for a 50 year old man to illustrate how this strange method of insurance pricing unfolds.

According to their website, a single unit would provide a 50-year-old man with $ 1,795 in coverage.

Now let’s take a look at how much coverage a unit provides for a 51-year-old man.

As you can see, a 51 year old man will get exactly $ 54 in less coverage for each unit of insurance compared to a 50 year old man. As age increases, the coverage of each unit will decrease continuously.

At the far end of the spectrum, an 85-year-old man would only get $ 418 of coverage for each unit.

Here’s how much you will pay and how much coverage you will get with Colonial Penn Guaranteed Acceptance Coverage. Remember, you can buy 1-8 units, and each unit costs $9.95 for everyone.

To calculate how much you will pay and how much coverage you will get from Colonial Penn, use the two formulas below.

Your total monthly cost = [$ 9.95] x [Number of units you want to buy]

Your total death benefit = [Coverage provided by a unit at your age and sex] x [Number of units]

Monthly Price Life Insurance

We have taken the liberty of putting together a large table to show you how much coverage you will get for 2, 4, 6, or 8 units and what your monthly rate will be.

Click the button below if you prefer to go directly to the section that shows how your guaranteed issue prices compare to other companies.

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Colonial Penn Life Insurance

2. Renewable Term Life Insurance

  • Available for ages 18 to 75.
  • Without medical examination.
  • Create a cash value component.
  • Rates increase as policyholders age, based on specific age groups.
  • Guaranteed renewable up to 90 years.
  • Up to $50,000 of coverage available
  • Coverage is not available in Maine, Montana, New York, or Vermont

Considerations:

What’s notable here is that while this policy offers the added convenience of not having a medical exam, it does have some problems. Specifically, the $50,000 coverage limit is very low compared to so many other options available. Along with uneven availability based on your state, you may find it better to view other forward offers.

3. Permanent whole life insurance

  • Available for ages 40 to 75.
  • Without medical examination.
  • Create a cash value component.
  • Premiums are based on health and age when the policy begins.
  • Maximum benefit of $50,000 to $80,000.
  • Policy is not available in Maine or Vermont.

Considerations:

Similar to the term and permanent policies, the maximum profit here is much lower than comparable pricing policies. Not to mention, you also have variable premiums depending on your health when you apply for the policy.

Benefits and tips for getting life insurance quotes online

Online vs. offline

Online

  • Great option for healthy people.
  • Instant approval is possible
  • Guaranteed issuance policies allow approval without answering health questions or needing a medical exam
  • Able to compare policies from home, especially term life plans

Offline

  • Buying an offline policy may be the only option for people with health problems.
  • You can find more offline permanent life insurance options.
  • It could be your only option if you have been rejected.
  • Could be a better choice for applicants who like to talk to people face to face.

Calculate life insurance rates: What is the average cost of life insurance?

Determining how much life insurance you need is critical. Use our Life Insurance Calculator to determine how much coverage you need.

* Colonial Penn Life Insurance $9.95 Per Month Review and Quotes.