Looking for life insurance can be a daunting task. There are many companies with many different rates. It can be hard to know what a “good” price is.
That’s why we’ve put together this guide to help you understand what you are paying before you buy Colonial Penn’s guaranteed acceptance life insurance coverage.
Rate Chart For Colonial Penn’s $9.95 Plan
Instead of reinventing the wheel, we’ll direct you to a recent piece from GetSure, which has published a full rate chart and an excellent analysis of Colonial Penn’s 995 plan rates.
The rest of the article below will give you context for how to interpret these rates and judge whether it’s worth it for you to buy Colonial Penn burial insurance.
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Who is Colonial Penn?
Colonial Penn is a life insurance company that offers a variety of life insurance policies.
They offer term life insurance, and more famously, small whole life insurance policies (often referred to as burial insurance, funeral insurance, or final expense insurance).
Colonial Penn was founded in 1968 by Joshua Harris, and Jeffrey Levinitiallyompany was initially known as Pennsylvania Life Insurance Company, but it changed its name to Colonial Penn in 1986.
Colonial Penn has an A+ rating from the Better Business Bureau and is accredited by the National Association of Insurance Commissioners.
The company is headquartered in Phila, Delphia, Pennsylvania and has over 700 employees.
How Are Life Insurance Rates Calculated?
Life insurance costs are based on a number of factors, including your age, health, and lifestyle.
However, the most crucial facother factor can usually be your age. The younger you are, the cheaper your life insurance policy will be.
This is because younger people are less likely to die than older people. So, insurers see them as a less risky investment and are willing to charge them less.
Of course, there are other factors that can affect your life insurance rates,
For example, if you smoke cigarettes, you will usually pay more for coverage than someone who doesn’t smoke.
This is because smokers are at a higher risk of developing health problems like lung cancer, which can lead to early death.
However, Colonial Penn’s life insurance is a no medical exam whole life insurance policy so there is no price difference for smokers and non-smokers nor do you have to answer health questions.
What is guaranteed acceptance life insurance coverage?
Guaranteed acceptance life insurance is a type of whole life insurance that does not require a medical exam or answers to health questions.
This means that you are guaranteed to be accepted for coverage, no matter your health history.
Because these guaranteed issue life insurance policies are permanent life insurance policies, they will build cash value.
You can access this cash value while you are living, in addition to the death benefit that your beneficiary will receive to help pay your final expenses.
The Cons of Guaranteed Acceptance Policies
The downside of guaranteed acceptance life insurance is that it typically costs more than other types of life insurance. This is because the insurance company is taking on a higher risk by offering coverage to people with health problems.
The second major disadvantage of guaranteed acceptance coverage is that it includes a two-year waiting period.
Note that this is consistent across the life insurance industry, no matter how much life insurance you are purchasing.
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Colonial Penn Rate FAQs
How much does a $50,000 life insurance policy cost?
The $50,000 life plan is estimated to be worth between $750-500 monthly. The cost of life insurance policies varies according to your health, lifestyle, and the amount of coverage you purchase.
Is Colonial Penn’s guaranteed issue policy only for seniors?
Colonial Penn life insurance is for individuals aged 50-85 from all U.S. states.
What is the maximum death benefit you can get for $9.95?
The highest death benefits available is $2,000, which a 50-year-old woman would get for the $9.95 “per unit” price.
Colonial Penn burial insurance policies may work for those thwithhave a complicated medical history or who have an aversion to medical exams when purchasing life insurance products.
Just understand the policy’s terms and conditions before you purchase. You know exactly how much coverage Colonial Penn offers.
If this doesn’t appeal to you, the good news is that you have plenty of other life insurance options from other life insurance companies that will allow you to buy life insurance for your funeral expenses or other life insurance needs at a more reasonable price.