12/18/2021
If you are currently have COLONIAL PENN Life Insurance or are considering this plan, give me a call.
The Problem With The Colonial Penn $9.95 Life Insurance Unit
When you buy life insurance from a reputable life insurance company, you purchase a death benefit, not a life insurance unit. For example, let’s say you want to pay for funeral expenses and final medical bills, so you want coverage for $25,000.
With a life insurance company, you can buy that amount of coverage. With Colonial Penn, you can only buy a unit.
Units are a bit strange because as you get older the amount of death benefit you are entitled to goes down while the price of the units stay the same.
Let’s say you’re a 68-year-old man living in Houston. You call Colonial Penn to get a quote for $15,000 in coverage and they tell you they can’t do that– you have to buy units.
They ask for your information to plug into their system to give you a quote:
· Name
· Date of birth
· Address
· Phone number
· Email address
For a 68 year-old-male, 1 unit at $9.95 a month qualifies you for a total of $792 in life insurance coverage.
Also See: $50,000 of Coverage for $30/month from Globe Life: FACT OR FICTION
Yes, $792 per $9.95 each month for one unit. Now, you wanted $15,000 in coverage, right? Unfortunately, the maximum number of units you can purchase through Colonial Penn is 12. This means the maximum a 68-year-old male can purchase is $9,504 in life insurance coverage with a monthly premium of $119.40.
Colonial Penn will be happy to get that coverage in place today without answering any health questions or taking a medical exam. Just complete the application, submit payment, and you think that you are fully covered by the amount you qualified for.
However, in addition to not getting as much coverage as you initially wanted, there are other reasons why these policies aren’t always the best choice; especially for seniors with average health.
Guaranteed Acceptance plans like these have a 2-year waiting period for death by natural causes. Meaning, if you die from an illness or pre-existing health condition during the first two years, you don’t receive your full benefit amount.
What Colonial Penn doesn’t tell you is most seniors will qualify for a plan with day-1 coverage, and with lower pricing from other companies.
