Are you aware of the Colonial Penn 2 year wait? The Colonial Penn two-year waiting period on their burial insurance or guaranteed acceptance life insurance will result in no payment for most deaths in the first two years of this policy.
We’ve all seen Alex Trebek advertising for Colonial Penn with a pitch, guaranteed acceptance with no medical exam and no health questions, with a rate lock and fixed benefit for the policy’s life for as low as $9.95 per month.
“Limited benefit” first two years is written in fine print on their television commercials; Colonial Penn two year wait is never fully explained.
If you did a little research, you’d find that most of Colonial Penn’s complaints are regarding customers having difficulty collecting death claims. Most of them are not aware of the two years waiting period. For this reason, some people feel like Colonial Penn has scammed them.
Colonial Penn is a reputable company. You just have to read the fine print. In this review, we will go over Colonial Penn two year wait to understand more about the company’s guaranteed acceptance product and you can see if it’s right for you.
FOR EASIER NAVIGATION:
- Colonial Penn Two Year Wait – Guaranteed Acceptance Life Insurance
- Features Of Colonial Penn’s Guaranteed Acceptance Life Insurance
- Colonial Penn Guaranteed Acceptance Life Insurance Pricing
- Why Not Guaranteed Acceptance Life Insurance?
- How Can Funeral Funds Help Me?
- Additional Questions & Answers On Colonial Penn Two Year Wait
Colonial Penn Two Year Wait – Guaranteed Acceptance Life Insurance
Colonial Penn guaranteed acceptance life insurance is a whole life insurance policy with no health questions asked and no medical exam required. You don’t have to be in perfect health to qualify. This plan is marketed to people between 50 and 85 who want to cover their funeral and final expenses upon death.
States available: All except New York
Features Of Colonial Penn’s Guaranteed Acceptance Life Insurance
Coverage options: $418-$16,664
NO MEDICAL EXAM
No health questions and physical or medical exams are required to qualify for this plan. You cannot be rejected because of your health; your approval is guaranteed. No medical exam from Colonial Penn skips the exams and paperwork, and you can get life insurance even if you have some health issues.
LEVEL PREMIUM AND BENEFIT AMOUNT
Once approved for coverage, your premium gets locked in at your current age. Premium is guaranteed to never increase for life as long as you keep paying it on time. Regardless of your health condition, your death benefit won’t decrease as you grow older. This is true of all other companies we work with at Funeral Funds.
COVERAGE CAN’T BE CANCELLED
Colonial Penn’s guaranteed issue life insurance offers coverage that can’t be canceled after you turn 80. Coverage lasts a lifetime as long as you keep paying your monthly premiums on time. This is true of all other companies we work with at Funeral Funds.
FLEXIBLE PAYMENT OPTIONS
Colonial Penn offers flexible payment options. You can choose to pay monthly, quarterly, semi-annually, or annually. This is true of all other companies we work with at Funeral Funds.
CASH VALUE ACCUMULATION
Guaranteed acceptance from Colonial Penn is a form of whole life insurance with a cash value component. The accumulated cash value from your policy can be borrowed at an 8% annual interest rate. Any loan amount and interest not repaid at the time of death is deducted from the death benefit.
Colonial Penn Guaranteed Acceptance Life Insurance Pricing
Monthly premiums are computed based on the number of units of coverage purchased. A unit costs $9.95 for everyone, and the maximum you can buy is 8 units. A single unit always costs $9.95 whether you are young or old, male or female, smoker or not.
Since you can only purchase up to 8 units, your maximum monthly premium will be $79.60 [8 units x $9.95 per month]. If you choose to pay annually, you will get one month’s worth of premium or an 8.3% discount for the year.
What is a Unit?
A unit of coverage is the amount of death benefit you can buy depending on your age, gender, and state. You can request a quote on their website to see the death benefit amount you can buy up to 8 units of coverage.
How does it work?
Unlike some burial insurance or guaranteed issue life insurance from companies that let you choose a particular face amount or death benefit payout, Colonial Penn gets your age, gender, and state, then they assign you a unit of coverage which you can buy for $9.95.
With Colonial Penn, the amount of coverage that the unit provides. The older you get, the less coverage a unit provides for you. In addition, a unit provides less death benefit for a man than it does for a woman.
For example, for a 50-year-old woman, 8 units of coverage would provide a $16,664 death benefit. A 55-year-old woman would get $15,072 in coverage for 8 units, while a 60-year-old woman would only get $12,968 in coverage for 8 units.
Since the price per unit is fixed, the amount of coverage available per unit decreases as you grow older. The minimum value per unit is $418, and the maximum is $2,083. The maximum death benefit available for 8 units is only $16,664.
Restriction: Colonial Penn Guaranteed Acceptance Life Insurance Will Not Pay A Death Benefit If Death Occurs During The First 2 Years
A guaranteed acceptance life insurance from Colonial Penn can be purchased between the ages of 50 and 85, and the death benefit is limited for the first 24 months of coverage. Colonial Penn’s two-year wait will not pay out a death benefit if you die from natural causes within the first two years of the policy.
Unlike other life insurance providers that do not indicate a two-year limited benefit period, Colonial Penn clearly states on their terms and conditions that life insurance death benefits will not be paid out to the beneficiaries if the insured passes away within the first two years of signing up for coverage.
This restriction is even printed on the commercials but may never have been discussed fully. Many beneficiaries have been outraged when they are informed that there is no death benefit to claim because the insured passed away within two years of signing up from Colonial Penn.
What is a Limited Benefit Period?
A limited benefit period or graded death benefit is a clause written in all guaranteed acceptance life insurance policies, including Colonial Penn. This clause protects the insurance company from insuring someone on their deathbed. This clause makes it economical for the company to offer a no-exam policy.
The limited benefit clause states that your life insurance policy will have to be in force for two years before paying for death due to a natural cause. Natural causes of death are diseases that include heart attack, stroke, diabetes, or cancer. Colonial Penn will not pay a death benefit if you die from a natural cause during the first two years.
Suppose death from natural death occurs during the first two years of the policy. In that case, the beneficiary will receive the return of premiums paid plus 7% interest compounded annually (you are wise to accept offers from many other companies that offer a 10% interest rate).
After the two years limited benefit period, the 100% face amount will be paid for death from any cause.
Immediate protection for Accidental Death
For death from accidental causes such as slip and fall, a victim of crime, or vehicular accident during the first two years, Colonial Penn would pay the full death benefit. The accident must occur while coverage is in force or the death must occur within 90 days (180 days in Oregon and Utah) of the accident.
Accidental death doesn’t include death resulting in mental illness or bodily diseases such as infection, medical or surgical treatment, suicide, voluntary gas inhalation or taking poison, or any act of war.
Customers and their beneficiaries should be aware of the Colonial Penn limited death benefit for the first two years. Every burial insurance company offering guaranteed acceptance life insurance has this limited or graded benefit period for people with serious pre-existing conditions.
NOTE: you won’t find a limited or graded benefit in other life insurance products such as term or whole life plans.
A limited benefit period allows the company to offer this type of policy. And this makes sense when you look at Colonial Penn’s perspective because they never require a medical exam or health questions to qualify. When you purchase the policy, you can be on your deathbed, and they have no way of knowing.
Colonial Penn designed their guaranteed acceptance plan so they are insulated from the inherent risk of insuring those people from death’s door. To be fully covered, you will need to live for two years beyond the initial premium. Be sure you fully understand the limited benefit period before you buy a Colonial Penn policy.
It’s important to note that after the two years limited benefit period, Colonial Penn guaranteed acceptance life insurance policy is active. It will remain for life unless you cancel it or stop paying your premium.
Still confused about the limited benefit period?
No problem, the limited death benefit policy may be confusing, but simply understanding that it exists is the most important factor in determining if a guaranteed acceptance policy from Colonial Penn will be right for you.
Additionally, now that you know that Colonial Penn guaranteed acceptance policy has a limited death benefit period, you can now ask more specific questions about it as you shop for plans so that when you finally make your decision, it will surely fit your needs.
Keep in mind that most people qualify for immediate coverage through other companies. This means you won’t have to endure a 2-year waiting period before you have 100% coverage.
Why Not Guaranteed Acceptance Life Insurance?
Colonial Penn two year wait is designed to make money. They do this by not providing full coverage for the first two years of the policy for natural causes of death.
This means the company will not pay the full death benefit if you die from natural causes or an illness within the first two years of your policy. They will only refund your premium to your beneficiary plus 7% interest.
There are better life insurance options available for seniors. If you want to provide your family with financial security when you die, other life insurance companies can provide the protection you need.
Most folks should not be buying guaranteed acceptance coverage from Colonial Penn. Many people can qualify for a policy that asks health questions with some company. This will result in a substantially cheaper premium and no waiting period.
Unless you have a serious medical condition and cannot get coverage from any other insurer, guaranteed acceptance life insurance should be your last option.
Colonial Penn has the power to sell its life insurance product through massive advertising, but it does not offer the best value in life insurance. The unit system for the guaranteed acceptance plan is confusing; that’s why the rates look appealing, but the practice is considered deceptive by many consumers.
If the death benefit limitation for the first two years is something you are not aware of, work with somebody who is going to give you the best value. Who do we recommend instead?
The best-guaranteed issue final expense plan has only a two-year waiting period that costs the least. If you have any medical condition that disqualifies you from getting a level death benefit with no waiting period, then GI policy is an excellent choice. It doesn’t have a medical exam and asks no health questions.
GI policy has a two-year waiting period, but if you pass away during that time, the insurer will return all your premiums plus 10% interest (this is way higher than the 7% that Colonial Penn is offering). Not all life insurance providers provide a return of premium at 10% interest.
Click our free quote button on the right to get a free quote.
How Can Funeral Funds Help Me?
Trying to find a policy without a 2- year wait needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.
If you have a problem with a two-year wait, let us help you; we will work with you side by side to find a plan that fits your needs.
We will work with you every step to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time searching for multiple insurance companies because we will do the dirty work for you.
We will shop your case with different insurance carriers and get you the best price.
We work with many A+ rated insurance carriers that specialize in covering healthy or high-risk clients like you. We will search for all those companies to get the best rate. We will match you up with the best burial insurance company that gives the best rate.
We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for insurance, burial, or final expense life insurance, we can help. Fill out our quote form on this page or call us at (888) 862-9456, and we can give you an accurate burial insurance quote.
ADDITIONAL QUESTIONS & ANSWERS ON COLONIAL PENN TWO YEAR WAIT
Is Colonial Penn still in business?
Yes, Colonial Penn is still in business. They only offer two-year waiting periods on all of their policies, which is one of the longest wait times in the industry.
How long has Colonial Penn Life Insurance been around?
Colonial Penn has been around since 1968.
Is Colonial life and Colonial Penn the same company?
Colonial Penn and Colonial life are not the same company. Colonial life is a division of Jefferson National, which offers products through independent agents.
What is the Colonial Penn 9.95 plan?
The Colonial Penn 9.95 plan is a guaranteed acceptance life insurance policy with minimal coverage that costs $9.95 per month PER UNIT of coverage (often only between $400-$1,000 depending on your age). This plan also has a 2-year waiting period.
Do I have to take a medical exam for Colonial Penn 9.95?
No, you do not have to take a medical exam for Colonial Penn 9.95. However, you will need to answer some health questions on the application and you will have a 2-year waiting period where it will not pay for any health or medical-related death.
Does Colonial Penn 9.95 have a waiting period?
Yes, there is a mandatory two-year waiting period on all new policies with Colonial Penn.
What is the waiting period for a payout with Colonial Penn?
The waiting period for a payout with Colonial Penn is two years on all new policies.
What are the limited benefits for the first 2 years with Colonial Penn?
The limited benefits for the first two years with Colonial Penn means your beneficiary will not receive a payout when you die of a health or medical-related death during the first two years of the policy.
Is there any way to speed up the waiting period with Colonial Penn?
There is no way to speed up the waiting period with Colonial Penn. All new policies must wait two years before they are eligible for payouts.
Is the Colonial Penn 9.95 plan a whole life policy?
The Colonial Penn 9.95 plan is a whole life policy. This means that it will stay in effect until you die, as long as premiums are paid on time.
What is the Colonial Penn $9.95 policy?
The Colonial Penn $9.95 policy is a guaranteed acceptance life insurance policy with a monthly cost of $9.95 PER UNIT of coverage (often only between $400-$1,000 depending on your age). It has a two-year waiting period on all new policies and maximum coverage of $16,664.
Is the Colonial Penn 9.95 plan a term policy?
The Colonial Penn 9.95 plan is not a term policy. It is a whole life policy that will stay in effect until you die, as long as premiums are paid on time.
How much is a unit of Colonial Penn life insurance?
A unit of Colonial Penn life insurance is $9.95
What is the maximum unit you can buy at Colonial Penn?
The maximum unit you can buy at Colonial Penn is 8 units at $9.95 per unit.
How much insurance is in a unit of Colonial Penn?
A unit of Colonial Penn life insurance is $9.95 and offers maximum coverage of $16,664 (but this will be extremely expensive as you have to add up multiple units to get that much coverage).
What’s the deal with Colonial Penn?
The deal with Colonial Penn is that they offer a two-year wait on their guaranteed acceptance policy, which is one of the longest wait times in the industry. If you are looking for first-day coverage life insurance, Colonial Penn will not be the best option for you.
What is Colonial Penn guaranteed acceptance program?
The Colonial Penn guaranteed acceptance program is a policy that offers guaranteed acceptance for all applicants. It has a two-year waiting period on all new policies and maximum coverage of $16,664 (but this will be extremely expensive as you have to add up multiple units to get that much coverage).
What is the maximum coverage I can get with Colonial Penn 9.95?
The maximum coverage you can get with Colonial Penn 9.95 is $16,664 (but this will be extremely expensive as you have to add up multiple units to get that much coverage).
What does Colonial Penn 995 get you?
Colonial Penn 9.95 gets you a guaranteed acceptance life insurance policy with a two-year waiting period and maximum coverage of $16,664, which is very expensive.
Do Colonial Penn whole life policies increase in value?
Yes, Colonial Penn whole life policies increase in value. This means that the policyholder’s beneficiary will receive a payout upon death, regardless of when it occurs.
What is the minimum age to apply for Colonial Penn?
The minimum age to apply for Colonial Penn is 50 years old.
What is the payout for a Colonial Penn policy?
The payout for a Colonial Penn policy varies depending on the policy and the age of the insured at the time of death. Generally, the payout is the policy’s face value.
How much are Colonial Penn’s life insurance rates?
The rate for Colonial Penn’s life insurance policies is $9.95 per unit; the maximum unit you can buy is eight.
How can I pay my Colonial Penn premiums?
You can pay your Colonial Penn premiums in several ways, including by check, credit card, or automatic withdrawal.
Can I cancel my Colonial Penn policy at any time?
Yes, you can cancel your Colonial Penn policy at any time. However, there are no refunds on premiums paid.
What is the Colonial Penn return policy?
The Colonial Penn return policy is that you can only receive a refund on premiums paid if you cancel your policy within the first 30 days.
Is the Colonial Penn 9.95 plan a permanent policy?
The Colonial Penn 9.95 plan is a permanent policy. It will stay in effect until you die, as long as premiums are paid on time.
What happens if I stop paying premiums to my Colonial Penn plan?
If you stop paying premiums, the policy will lapse, and you will no longer be covered.
Do I get money back if I cancel my Colonial Penn life insurance?
You can only receive a refund on premiums paid if you cancel your policy within the first 30 days.
Can I get life insurance from Colonial Penn if I’m not a U.S. citizen?
No, Colonial Penn does not offer life insurance to non-U.S. citizens.
What insurance did Alex Trebek advertise on?
Colonial Penn life insurance. Alex Trebek has been the spokesman for Colonial Penn since 1988.
Does Jonathan really work at Colonial Penn?
Yes, Jonathan Lawson does work at Colonial Penn. He is an actor and licensed agent and can help you with any questions or concerns you may have about your policy.
Who is Jonathan Lawson from Colonial Penn?
Jonathan Lawson became the official spokesperson of Colonial Penn when Alex Trebek passed away.
What are the benefits of the Colonial Penn 9.95 plan?
The Colonial Penn 9.95 plan has several advertised benefits (which are not great benefits if you want a 1st-day coverage plan with the lowest pricing):
- Guaranteed acceptance for all applicants = very expensive
- No health questions asked = very expensive
- A low monthly cost of $9.95 = is very expensive once you add multiple units of coverage
- A wide range of ages accepted (18-80)