One unit does not buy enough insurance to scratch the cost of a cremation let alone a full funeral. Twenty years ago my licenses limited me to Michigan and Indiana, but that was pretty typical in the burial insurance business then. Colonial Penn doesnt require a life insurance medical exam for its policies, including its traditional whole life insurance. Well, if you looking to cover the cost of funeral, youre out of luck paying $9.95 a month. If youve found this article helpful, let us know. Take a look at our article on Metlife guaranteed acceptance coverage. MORE: Guaranteed issue life insurance: Is it worth it? For example, someone who may be suffering from a terminal illness, have active, internal cancer, on kidney dialysis, or needing an organ transplant. For a person who is in a high risk situation, while expensive compared to the more competitive companies, it may be a solution. The 10-15% remaining still have more affordable options than Colonial Penn guaranteed acceptance insurance. Previously, Lisa spent more than 20 years as an editor at The Tennessean in Nashville, where she led business and consumer coverage for several years. Not really. According to The Daily Mail, Trebek is worth around $50 million. At 65, the policy value of each $9.95 unit is much higher which translates into more death benefits than the than the healthy individual. Advocating seniors about life insurance products mostly for burial insurance you would figure a person who promotes a message like this would be a little more accessible. Understand any and all limitations built into the policy. Stay with me here. The above quote was taken directly from colonialpenn.com in 2019. Here is an example of Colonial Penn insurance coverage, To file a complaint you can contact the BBB CLICK HERE. This will be without a spokesman telling you what is best for you, but us explaining why it is best for you. The tool on this page will help you know what the competition is charging for no medical exam, whole life insurance. It's important to remember that Colonial Penn offers units in the amount of 9.95 each. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Lots of upset families that did not know or understand the Alex Trebek $9.95 life insurance offering has significant limitations built in. No-exam life insurance issues coverage without the need for a medical exam. In the past 30 days, commercials featuring Alex Trebek have had 78,296 airings. In addition, if you are in good health the coverage is limited and the premiums are too high. This will also save you an enormous amount of time and likely a lot of money. Financial strength. If you are age 80 at purchase, the value of 1 unit is very low compared to age 50. All by answering a few health questions. $1,786 in coverage. They pay their spokesmen a pretty penny to advocate how good their coverage is. Life insurance is not created equal. Consumers need to proceed with caution with this particular type of life insurance product. $10,000 is the minimum coverage amount. You can add an optional living insurance rider to your policy. A certain number of people in the policy will make it beyond 2, 5 even 10 years or more even with rocky health. For context, one unit may earn you less than $700 in coverage and costs $9.95. His work has appeared in The Week, The Washington Post and other national news outlets. Maple Valley Insurance Group Rating of Colonial Penn 995 Life Insurance = D. Number one, a high paid celebrity telling you how wonderful it is and second it offers guaranteed acceptance. Does Colonial Penn pay out? to those ages 40 to 75 (50 to 73 for men and 50 to 75 for women in New York). The death benefit for your loved is determined at this time and will be paid out according to the terms written into the guaranteed acceptance policy. Colonial Penn has modified this in 2023. Take a look at the Colonial Penn life insurance rates for this product in the tables below for specifics. In fact, this plan is a guaranteed acceptance plan with a two year waiting period. Jonathan Lawson is a paid spokesperson for Colonial Penn. Mr. Lawson, thank you for your service to our country. To see a list of the best burial insurance carriers for seniors Click On Compare Quotes. As of 2021 we have seen crazy spike in prices havent we? This policy is open to people ages 50 to 85 (50 to 75 in New York), and acceptance is guaranteed. This influences which products we write about and where and how the product appears on a page. FAQs Colonial Penn $9.95 Plan Rate Chart & Coverage Calculator Depending on the amount of coverage you need, you might need to buy more than one unit. Interest on this policy as of 2023 is 7% which is lower than most other carriers who offer Guaranteed Accepantance whole life insurance. Over more than a decade, he's worked in everything from banks to tech startups. It is automatic with a guaranteed issue whole life policy. Yes, all the plans quoted here are designed for those in less than perfect health and require no medical exam. Colonial Penn knows by statistics what they must bill you for your policy when you buy. I am licensed in all 50 states and represent almost three dozen A/A+ rated carriers. While all insurance companies have a certain amount of complaints against them, Colonial Penn life insurance has a higher than average number complaints against it. With Colonial Penn, $9.95 a month would actually cost you about $138 per month. As a life insurance field underwriter and independent agent/broker I dont have to rely on Alex Trebek insurance to meet the needs of my clientele either. We recommend a goal of at least $15,000 to cover full funeral and burial costs for 2023. If you misunderstood the commercial, they are not liable. We can help you determine who the best carrier is for you personally. It's important to remember that Colonial Penn offers units in the amount of 9.95 each. With that said, do you believe he knows that much more about your life insurance needs versus the person down the street? To calculate each insurers rating, we adjusted the scores to a curved 5-point scale. This does not even count the actual burial costs at the cemetery. NerdWallet's ratings are determined by our editorial team. To calculate each insurers rating, we adjusted the scores to a curved 5-point scale. You must live more than two years before Colonial Penn will pay out the full death benefit. Cemetery costs are easily another $4000 or more. This is for 2 reasons. The minimum value of one unit is currently $418 while the maximum is $2000. Does Colonial Penn life insurance accept all seniors on this 995 plan? There is no reason not to utilize a professional independent agent. Pre-qualified offers are not binding. A key point to remember, Alex Trebek, who had the respect of many people, was also a well compensated endorser of the Colonial Penn Life Insurance Company. Nice and easy. There is a catch here with this 995 life insurance product. Understand thisall limitations are applied to anyone who buys this type of policy. In this article, we will look deep into something senior consumers need to be aware of and what a Colonial Penn commercial may lead you to do. Read our. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. Funerals have gone up in price over the years. Definitely room for raises. It was a huge Colonial Penn marketing expense. But in reality, it is not. The truth is, coverage is determined strictly by the terms written in your life insurance contract. Again, no questions ask and that seniors instantly qualify is a little misleading. In other words, value. Stop wasting your time calling insurance companies like Colonial Penn. Truth is a great majority seniors we work with purchase much more protection than this plan can offer. The application asks health questions, but the insurer doesnt require a medical exam. Here is a list of our partners and here's how we make money. Simply put He was not an expert. You could end up ripped off and/or underinsured. Something I didnt address thoroughly was the use of the term rate lock promoted in all the commercials. Every week I take phone calls from people calling to price out final expense life insurance. NerdWallet does not receive compensation for any reviews. The application asks health questions, but the insurer doesnt require a medical exam. That's a shocking statement, but it's true. Andrew Marder is a NerdWallet authority on insurance. Let's compare Colonial Penn life insurance $9.95 per month plan coverage to the same amount but with Mutual of Omaha. We all know Ed McMahon, Joe Theismann and even Jerry Lewis. FYI, I talk to numerous life insurance consumers age 50-85 5+ days a week. Let them evaluate what you can qualify for. Folks, the easier life insurance is to qualify for, the higher the cost of purchasing it. All insurance companies must follow the free look provision laws. Did you know these 3 key points prior to doing your research here? Ultimately, the cost of your life insurance will depend on your age, gender and the amount of coverage . How much is Jonathan Lawson from Colonial Penn worth Jonathan Lawson is an actual employee of Colonial Penn parent company CNO Financial Group. NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. NerdWallet's ratings are determined by our editorial team. I dont care for it and I think it is meant to confuse seniors into thinking this policy is very affordable regardless of your age at purchase. Applicants dont need to answer health questions or take a medical exam. How Much Insurance Do You Get From Colonial Penn For $9.95 A Month? There simply are a lot of better options out there. Or simply call us direct at 888-626-0439. Quick question to ask yourself as you move forward. The Philadelphia-based insurer is owned by CNO Financial Group, which is also the parent company of, to ensure the content on our site is accurate and fair so you can make financial decisions with confidence and choose the products that work best for you. Be prepared to be shocked!! Decide which, , if any, you want the policy to include. These ratings indicate an insurers ability to pay future claims. See if you can qualify based on your overall health for a simplified issue, no exam, medically underwritten plan first. Most people are shocked when I explain why they dont want to own a policy like this unless they have no better permanent life insurance alternatives. Television has been the common marketing avenue of Colonial Penn for years. When you buy life insurance you want to be with an insurance company that gives you immediate coverage and a level death benefit. Let's say you are a 70-year-old male and in pretty good health. Many or all of the products featured here are from our partners who compensate us. The Alex Trebek life insurance commerical for 9.95 insurance just puts a bow on a policy that has a lot of risk the first two years and a very high cost of lifetime ownership which we will reveal later in this article. That is why the rate charts above show diminishing amounts of insurance as you age. However, this does not influence our evaluations. Keep in mind, all final expense whole life insurance is designed for people in less than ideal health. Colonial Penn will be happy to get that coverage in place today without answering any health questions or taking a medical exam. Her work has also won awards from the Society for Advancing Business Editing and Writing, Investigative Reporters and Editors, and the Society of Professional Journalists. Ed McMahon used to advertise $6.95 per unit for Colonial Penns Guaranteed Acceptance plan. Rates are regulated by the state. We have provided rates by gender and age. He has over a decade of experience in finance, with previous roles at Barclays, The Motley Fool and Gartner. Nowadays, it is about $10,000 on average for a full funeral around the country. It does not buy very much life insurance protection, period. We will be very blunt as I speak to hundreds of seniors like you every month about Colonial Penn whole life insurance options. Jonathan was born June 3, 1980 in Dunedin, Florida. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. Id like to suggest that life insurance is more complicated than the TV makes it out to be. If you watched the video above, you may have noticed that the cost per unit has increased nearly 50% in the last 20 years or so. Let's compare Colonial Penn 9.95 coverage to the same amount but with Mutual of Omaha. When evaluating offers, please review the financial institutions Terms and Conditions. About 5-10% of our cases where guaranteed acceptance whole life insurance is truly necessary, we generally recommend the likes of AIG or Gerber Life not only for pricing but the amount of available protection over Colonial Penn Guaranteed Acceptance. He suffered with a terrible form of cancer and never quit. If you were wondering if Jonathan Lawson was giving real testimony of his great experiences with Colonial Penn 995 plan, then you were mistaken. Guaranteed acceptance policies ran between $10 and $80 per month, while whole life insurance was the most expensive at $30 to $133. NerdWallet does not receive compensation for any reviews. At Maple Valley Insurance Group, we dont put square pegs in round holes regardless of the celebrity marketing, nor should you. So, the Colonial Penn life insurance @ $9.95 per month. Here is a comparison of Colonial Penn with our two most affordable carriers. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. We will go over why. This site provides life insurance information and quotes. Check that the insurers youre considering offer the coverage youre looking for. Coverage amounts range from $10,000 to $50,000 ($5,000 to $25,000 in New York). These ratings are based on complaints to state regulators relative to a companys size, according to three years worth of data from the National Association of Insurance Commissioners. For example, if you want to skip the. The maximum age is 75 for the whole life policy. Theyd be unable to pay the claims real and why they insert a 2 year limited benefit period into the policy contract. Save my name, email, and website in this browser for the next time I comment. Insurance companies figure costs like this into policy expenses which translates to higher premiums for consumers of their policies. Ratings are based on complaints to state regulators relative to a companys size, according to three years worth of data from the National Association of Insurance Commissioners. Simply judge your health compared to your peers (Excellent, Decent, Poor) and less than a minute you will know what all the top life insurance companies will charge compared to the policy endorsed by the late Mr. Trebek. This indicates whether the company offers a way to apply for and purchase policies entirely online. Here is a list of our partners. These are some of the factors we take into account: Policies offered. Calling Colonial Penn or any other carrier directly versus an independent agent or broker works against you. You see, life insurance is all about statistics. Yes, the other 10-15% of seniors life insurance policy holders have some very serious medical issues which impair their ability to medically qualify for immediate benefit, no exam whole life insurance. Buy additional units unless you need a very small policy. From there, you will be automatically emailed a health questionaire asking you answer some basic health history questions and we will assess what plan and company would likely be best for you and your family. Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online. Your acceptance: guaranteed. Health questions will eliminate a select number say 10-15% of applicants who are in poor health for their age and cant qualify for no exam, level benefit whole life insurance (full, immediate protection). The insurance that Alex Trebek advertises is presented so you will be motivated to purchase Guaranteed Acceptance life insurance even if you can medically qualify for better coverage and a considerably lower price. For the first 2 years of coverage with Alex Trebek Life Insurance, there is a limited death benefit for natural causes of death. With almost 3 decades of dedication to thousands of clients, I share my knowledge with you so that you can feel comfortable fulfilling your needs and goals. We work with dozens of the top life insurance carriers so I can attest to this next fact. You can spend weeks calling around different insurance companies and never find the best rates let alone one that you qualify for healthwise if you have a tough medical condition or two. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. Always have an independent, seasoned professional verify your need for any guaranteed issue life insurance before buying. The best life insurance companies have fewer than the expected number of complaints. While I personally dont agree with this, it remains a state approved method of marketing the insurance to consumers otherwise Colonial Penn would be unable to run commericals for their $9.95 life insurance. Here is what you need to understand about that. According to The Daily Mail, Trebek is worth around $50 million. I do not have an answer for that, but I can assure you, all the CP policyowners have paid for it. The older you are at the time of application with this Colonial Penn product, the lower the value of 1 unit is. $2,083 in coverage. Power of attorney is acceptable. Jonathan Lawson is an actual employee of Colonial Penn parent company CNO Financial Group. Take a break, see what our clients are saying about us, Or Call Lisa and danny 855-380-3300 where final expense insurance is done differently. There may be several companies unable to insure you for immediate, full benefits while another can give you that same coverage very affordably without needing to resort to high risk life insurance such as the Alex Trebek advertisement for senior life insurance. The 30 day money back guarantee, well that comes from the department of insurance in each state. For more guidance, see our life insurance buying guide. Whether you need help with your application or want to learn more about a policy, Colonial Penns live chat feature allows you to choose the type of specialist youd like to speak with. Could funeral and burial expenses double in the next 10-20 yrsa distinct possibility! So he is 42 years of age. Remember, this is better not only for you but your family who will be getting the full death benefit if you pass away in the next 2 years. With all whole life insurance, rate locks for your lifetime are a standard feature. Were always here to help. These types of guaranteed acceptance plans are usually 30-50% more in price than the best plans available. Guaranteed issue life insurance: Is it worth it? 1 Unit = $9.95 2 Units = $19.10 3 Units = $29.85 4 Units = $39.80 5 Units = $49.75 6 Units = $59.70 7 Units = $69.65 8 Units = $79.60 9 Units = $89.55 The Colonial Penn life insurance for seniors that Alex Trebek advertises will be best suited for those folks who are closer to 50 and in very poor health. You can only choose 10, 20, or 30 years for term insurance. Applicants dont need to answer health questions or take a medical exam. Regardless of what the Alex Trebek insurance commerical said, Colonial Penn guaranteed acceptance is not particularly affordable when doing an apples to apples comparison with their competitors. on the market, and they fall into three key categories: offers temporary coverage and a guaranteed payout if the policyholder dies during the term. For example, a 75-year old male would get about $560 in coverage with one single unit at their current age. That's a pretty bizarre number. Mentioned earlier but Colonial Penn uses a non standard way of calculating their premiums. For reference, this quote is January 2023. You just have to realize $9.95 is a teaser rate to capture your interest in the product. About your life insurance carriers for seniors CLICK on Compare Quotes 7 % is! To get that coverage in place today without answering any health questions take. 50 million average for a medical exam Barclays, the Motley Fool and.! 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