If you’ve ever had your television on during the day, I’m sure you’ve seen the commercial for Colonial Penn Life Insurance with Alex Trebek promoting their plans. He’s promoting a guaranteed acceptance life insurance policy that they offer specifically geared toward seniors and encourages viewers to go to www.cpdirect.com to get a quote.
Since we deal with senior life insurance, we’re often asked our thoughts on the Colonial Penn policy. We won’t go as far as to say it’s a bad policy. However, there are several things to be aware of when considering burial insurance policies.
The guaranteed acceptance life insurance policy offered by Colonial Penn on cpdirect.com is positive in that it does not require any health questions for approval. Also it is a permanent life insurance policy, meaning that it will cover the insured for life.
After researching the policy, the disadvantages that we have discovered are the automatic two-year waiting period applied to all policies and the price of the policy itself. The two-year waiting period means that the policy must be in place for a two year period before it will pay out the full death benefit. If the insured passes away during the first two years of the policy, it would simply pay out the premiums that have paid in plus interest.
Though a waiting period may be necessary in certain situations, we find that many seniors are eligible for policies with A-rated companies that do not require a waiting period. Since the Colonial Penn policy is a guaranteed acceptance life insurance policy, it carries a higher price tag per thousand dollar face amount purchased. If your specific health situation does not require a waiting period, you could find the same policy for a much cheaper price.
When comparing the Colonial Penn policy to other senior life insurance policies, there are three questions you should ask to confirm you’re comparing apples to apples. First you should ask whether the policy has a waiting period. Second, you should ask if the monthly premium is fixed for the life of the policy, or will it fluctuate as you age. Third, you should ask if the policy has a cutoff or termination age.
By confirming the answers to these three questions when researching your senior life insurance policy, you can ensure that you are getting the best policy for your situation. The Colonial Penn policy can be a decent option in certain circumstances. However, we often find seniors can purchase a more well-rounded policy for a much cheaper price from many A-rated companies.
It’s important to take time to do your research and make sure you speak with an agent before purchasing a policy. It’s easy to misunderstand the policy terms and conditions by making a selection online.
If you have questions about senior life insurance or would like to have a better understanding of the options available to you, you can speak directly with one of our agents at 866-699-1884. We are licensed throughout the country and would be glad to help.
*dzida.org provides independent reviews and analysis of the Life Insurance company provided. This content is not provided or commissioned by the insurance carrier and dzida.org does not have an affiliation with the company. Opinions expressed here are the author’s alone and not those of the insurance company. This information has not been viewed or approved by the insurance company.*