Colonial Penn Life Insurance Review 2022 – Forbes Advisor

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Colonial Penn Whole Life Insurance

Whole life insurance is a type of permanent life insurance that combines life insurance with an investment product known as cash value. The cash value component offers a guaranteed minimum rate of return.

Colonial Penn’s permanent whole life insurance is available for people between the ages of 40 and 75. Premiums are based on the age and gender of the applicant; they are based solely on age in Montana.

Once a person has purchased Colonial Penn whole life insurance, their premium will not change for the life of the policy. Coverage cannot be canceled as long as premiums are paid and the death benefit will never decrease.

The coverage amounts for Colonial Penn permanent whole life insurance are $10,000, $20,000, $30,000, $40,000 and $50,000. The policy begins to build cash value after the first year of coverage. At this point, you can borrow against the cash value at a guaranteed interest rate. Although your death benefit amount will not decrease, ongoing loans and withdrawals will reduce the amount of death benefit paid if you die.

Colonial Penn’s permanent whole life insurance does not require someone to undergo a medical exam, but does require them to answer health questions on demand.

Colonial Penn Guaranteed Acceptance Life Insurance

With Colonial Penn Guaranteed Acceptance Life Insurance or Guaranteed Issue Life Insurance, you purchase a number of “units” (one to 15). A unit of coverage is the amount of life insurance coverage you have. The unit price is a fixed amount and the price starts at $9.95 per unit. Multiple units can be purchased to build up a larger death benefit.

Colonial Penn offers up to $50,000 in coverage for people ages 50 to 85 in most states.

In all states except Minnesota, New Jersey and Pennsylvania, Colonial Penn Guaranteed Acceptance Life Insurance is available for people ages 50-85. The age range is 50 to 75 in Minnesota and 56 to 85 in Pennsylvania. In New Jersey, the age range is 50 to 82 for females and 50 to 77 for males.

The policy builds cash value after the first year of coverage. Then the policyholder can borrow against the cash value at a guaranteed rate.

Colonial Penn Guaranteed Acceptance Life Insurance does not require a medical exam or health questionnaire. Anyone can purchase this coverage regardless of any pre-existing health conditions.

Colonial Penn says it can offer guaranteed issue life insurance because the policy comes with a two-year limited benefit period in the event of death from non-accidental causes.

If the insured person dies before the end of the two-year period, the beneficiary will receive the premiums paid plus 7% annual compound interest. After the first two years, the full sum insured will be paid in the event of death, whatever the cause.

In the event of death from accidental cause during the first two years, the full face amount of the policy will be paid out. The accident must occur while coverage is in effect and death must occur within 90 days of the accident (or 180 days in Oregon and Utah).

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