Colonial penn 995 plan8/30/2023 As long as you fit the age requirements, you’re guaranteed coverage. Guaranteed-issue policies are a type of whole life insurance that doesn't require you to take a physical exam or answer medical questions. Rates are locked in for the duration of the policy, and cash value begins to accrue after the first year. The policy can be used to supplement existing insurance coverage, is capped at $50,000, and can be issued from the ages of 40 to 75. However, with this policy, applicants are required to answer health questions to determine eligibility. Permanent Whole-Life Insurance: Although this is a traditional whole life policy, it does not require a medical exam. Premium rates are locked in for the life of the policy. Over time, the policy builds cash value, which the insured can borrow against as necessary. It is guaranteed to remain in place for the insured’s entire lifetime if the premiums are paid. Whole-life insurance pays a benefit to beneficiaries when the policyholder dies. Some 90% of the companies we reviewed received a higher grade than Colonial Penn from AM Best.Ĭolonial Penn currently offers two whole life insurance policies, neither of which requires a medical exam. In 2022, Colonial Penn received an A rating, indicating an excellent though not an exceptional level of financial strength. The credit rating agency has a grading system for indicating the ability of a life insurance company to pay claims. (For context, most of the best life insurance companies have an index below 1, and only eight other companies among the 91 we researched received an index average worse than Colonial Penn’s.)Ĭolonial Penn fares better when it comes to financial strength ratings provided by AM Best. This number denotes customer satisfaction well below the industry average. In 2022, Colonial Penn’s NAIC average index was 2.98, meaning that three times as many complaints were lodged against it as a company its size should receive. An index of 2, for example, would indicate twice the expected number of complaints. A number less than 1 means the company received fewer complaints than expected, while a number greater than 1 means it received more. It tracks customer complaints and uses those numbers to create its Complaint Index, which compares companies of similar sizes by the number of complaints filed by policyholders.Īn insurance company is assigned a number based on how many customer complaints it receives in a given year, whereby 1.0 represents the expected number of complaints based on its size. A company with the expected number of complaints is given a complaint index of 1. We base that on information from the National Association of Insurance Commissioners (NAIC). In contrast, most of its competitors offer at least $200,000 in maximum coverage, while several are in excess of $1 million or uncapped.Ĭolonial Penn received an unusually high amount of customer complaints for a company of its size, compared to competitors. Low maximum coverage amount: Colonial Penn’s traditional whole life policy coverage is capped at $50,000.High number of customer complaints: Colonial Penn received an average of three times the annual number of customer complaints expected for a company its size over a three-year period.Few policy types available: Colonial Penn’s life insurance offerings are limited to two types of whole-life policies: a low-coverage traditional whole-life policy and a guaranteed-issue policy.Live chat: Colonial Penn customers have access to real-time chat with policy specialists.Online quote and application platforms: Customers can request quotes and submit policy applications online.Same-day decision: In most cases, you can get an answer about whether your application was accepted the same day you apply.Only about one-third of the insurers we reviewed offer this type of coverage. Guaranteed-issue coverage available: Colonial Penn provides whole life coverage with no health questions or physical exam required, which may appeal to applicants who would be turned down for other types of coverage.
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