Colonial Penn is a well-known insurance company that offers a range of life insurance options to its customers. One of their popular plans is the Guaranteed Acceptance Life Insurance, which guarantees coverage without the need for a medical examination or health questions. This plan is available to individuals aged 50 to 85, making it an attractive option for those who may have difficulty obtaining life insurance elsewhere. But what exactly do you get for $9.95 a month from Colonial Penn?
Colonial Penn’s Guaranteed Acceptance Life Insurance plan offers a death benefit payout that remains level for the duration of the policy. The coverage amount you receive depends on your age at the time of enrollment. For a $9.95 monthly premium, here is a breakdown of the death benefit amounts:
1. Ages 50-59: You can receive a death benefit of $2,500.
2. Ages 60-69: You can receive a death benefit of $1,500.
3. Ages 70-75: You can receive a death benefit of $1,000.
4. Ages 76-85: You can receive a death benefit of $500.
It is important to note that these amounts are subject to change and may vary depending on the specific policy terms and conditions.
Now, let’s take a look at five interesting facts about Colonial Penn:
1. History: Colonial Penn has been in operation for over 60 years, founded in 1968 by AARP co-founder Leonard Davis. It has since become a subsidiary of CNO Financial Group.
2. Endorsements: Colonial Penn has gained recognition for its partnership with popular celebrity spokesperson Alex Trebek, the longtime host of the TV game show “Jeopardy!”
3. Simplified Underwriting: The Guaranteed Acceptance Life Insurance plan offered by Colonial Penn does not require a medical examination or health questions, making it a convenient option for those who may have health concerns.
4. Additional Benefits: In addition to the death benefit payout, Colonial Penn’s Guaranteed Acceptance Life Insurance plan also includes a built-in accidental death benefit. If the insured dies due to an accident, the policy pays out double the death benefit amount.
5. No Expiration: Once you are enrolled in Colonial Penn’s Guaranteed Acceptance Life Insurance plan, your coverage remains in force for your lifetime, as long as you continue to pay the premiums.
Now, let’s address some common questions about Colonial Penn’s life insurance:
1. Can I apply for Colonial Penn’s Guaranteed Acceptance Life Insurance if I have pre-existing health conditions?
Yes, this plan does not require any health questions, so you can still apply and receive coverage regardless of any pre-existing conditions.
2. Can I cancel my policy at any time?
Yes, you can cancel your policy at any time by contacting Colonial Penn’s customer service.
3. Can I increase my coverage amount?
Colonial Penn offers other life insurance plans that provide higher coverage amounts. You can contact their customer service to explore options for increasing your coverage.
4. Will my premiums increase as I age?
No, the premiums for the Guaranteed Acceptance Life Insurance plan do not increase based on your age or health condition.
5. Are there any waiting periods before my coverage begins?
Yes, there is a two-year waiting period before the full death benefit is payable. However, if death occurs due to an accident during this period, the full death benefit will be paid out.
6. Can I get coverage for my spouse?
Yes, you can apply for separate policies to provide coverage for both you and your spouse.
7. Will my premium change each year?
No, the premium for the Guaranteed Acceptance Life Insurance plan remains fixed throughout the policy’s duration.
8. Can I apply online?
Yes, you can easily apply for Colonial Penn’s life insurance plans online through their website.
9. Is the death benefit taxable?
In general, life insurance death benefits are not subject to federal income tax. However, it is recommended to consult with a tax professional for specific advice.
10. Can I convert my policy to a different type of life insurance?
No, the Guaranteed Acceptance Life Insurance plan cannot be converted to another life insurance policy.
11. Can I borrow against my policy’s cash value?
No, the Guaranteed Acceptance Life Insurance plan does not accumulate cash value, so you cannot borrow against it.
12. Can my premiums be paid automatically?
Yes, Colonial Penn offers automatic premium payment options, including direct debit from your bank account.
13. Can I change my policy details after purchase?
Once your policy is issued, you cannot change the coverage amount or any other policy details. However, you can cancel and reapply for a new policy if needed.
In conclusion, Colonial Penn’s Guaranteed Acceptance Life Insurance plan offers coverage amounts ranging from $500 to $2,500, depending on your age at enrollment. This plan is particularly appealing for individuals aged 50 to 85 who may have difficulty obtaining life insurance elsewhere. With its simplified underwriting process and no expiration, it provides peace of mind to individuals seeking affordable coverage without the hassle of medical exams or health questions.
