For example, say one unit of coverage provides a $1,621 death benefit for a 60-year-old woman. Guaranteed coverage available to applicants up to age 85. $1,786 in coverage. Check that the insurers youre considering offer the coverage youre looking for. You may have to answer a few health questions, but you will not be limited on how much coverage you need in a ridiculous unit plan system. Guaranteed acceptance policies ran between $10 and $80 per month, while whole life insurance was the most expensive at $30 to $133. Before launching his career in the insurance industry, he was a music producer. To evaluate a companys complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet's ratings are determined by our editorial team. This policy is open to people ages 50 to 85 (50 to 75 in New York), and acceptance is guaranteed. Because it simply does not buy enough burial insurance to cover the costs of death. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. With all whole life insurance, rate locks for your lifetime are a standard feature. The full death benefit isnt paid out if the insured person dies during the first two years of taking out a policy. You must understand that life insurance companies cannot evaluate the risk level of a person accurately without asking health questions. 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. Here is a list of our partners. In addition, if you are healthy do you deserve a two-year waiting period? To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. If your thinkingI didnt know that, read on. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. In fact, other than some information on him serving our country via the marine corps, his LinkedIn profile is limited as well. They pay their spokesmen a pretty penny to advocate how good their coverage is. F. Ill let you make your own assessment there. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Originally, AARP co-founder Leonard Davis founded Colonial Penn, with AARP for a time working with Colonial Penn as its life insurance partner, offering coverage through Colonial Penn to AARP members. Take a paid endorser that does not have insurance expertise with a grain of salt. 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. Never try to sort this out on your own or call an insurance company home office like Colonial Penn. The life insurance policy promoted in the Alex Trebek life insurance ad is the $9.95 life insurance, a Guaranteed Acceptance insurance policy. So if you purchase a whole life policy for $50K from Colonial Penn and add the $50K accidental death benefit rider, your beneficiary could receive up to $100K if you die from an accident. Each rate shown is a quote based on information provided by the carrier. Read our. For many years, Alex Trebek was the face of Penn Life Insurance Company. Remember, there are no health questions. People age 50-85 are the typical buyers of burial insurance. NerdWallets ratings are determined by our editorial team. 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. With premiums being higher than the top carriers and having to wait two years for a policy pays out, do you really think its a good deal? 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. Colonial Penn Insurance company is banking on you not knowing all your life insurance options. The vast majority of people 50-85 do not need guaranteed acceptance life insurance. Colonial Penn is not that type of life insurance company. The fact is, any kind of guaranteed issue life insurance, regardless of the insurance carrier simply cannot claim this. Not really. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. See what size policy that $149.25 per month will buy. May not be adequate for many seniors final expense needs. So sit back, and pay attention, you will probably save thousands of dollars, and youre welcome in advance. This indicates whether the company offers a way to apply for and purchase policies entirely online. For decades, Colonial Penn has focused on selling life insurance to older customers, including a guaranteed issue whole life policy for people 50 and older. They jack those rates up for starters. The Colonial Penn Life Insurance Company (often known as simply Colonial Penn) is an American life insurance company based in Philadelphia, Pennsylvania, founded by philanthropist and AARP co-founder Leonard Davis, owned by CNO Financial Group. Pre-qualified offers are not binding. Each unit of Colonial Penn's life insurance coverage is worth $9.95 per month and provides different amounts depending on age, gender, etc. As you'll see in our in-depth review of Colonial Penn's $9.95 plan, life insurance from Colonial Penn is not nearly as cheap as it sounds. The 10-15% remaining still have more affordable options than Colonial Penn guaranteed acceptance insurance. Jonathan Lawson works for CNO Financial Group, the parent company of Colonial Penn. You can only choose 10, 20, or 30 years for term insurance. NerdWallet's ratings are determined by our editorial team. Funerals have gone up in price over the years. We can help you determine who the best carrier is for you personally. How do I file a complaint against Colonial Penn. Better than having no life insurance protection at all. We work with dozens of the top life insurance carriers so I can attest to this next fact. Colonial Life costs can be expensive compared to other insurance companies' rates. Just because you are a senior does not mean that you are one of these candidates. Inflation over time and if your budget allows, 20-25K would be better. In our life insurance reviews, our editorial team considers the customer and the insurer. No-exam policies dont require a medical exam. Determining the need for high risk life insurance should be done only with an independent life insurance specialist. Here are some typical health questions on a no exam application, for full, first day coverage. Enter your details and request an application for the company and plan you are interested in. For $9.95 a month, you can purchase one "unit" of the Colonial Penn Life Insurance Guaranteed Acceptance policy, the Alex Trebek insurance commerical. Jonathan was born June 3, 1980 in Dunedin, Florida. 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. They were all paid endorsers. Guaranteed Issue Life Insurance from $9.95 month. My average policy is closer to $15K in 2023 for funeral and burial costs. How Does the GlicRX Discount Drug Card Work? Use our free tool on this page, select Poor under the Health Classification and you will see the top pricing from life insurers who offer the same type of protection. Because it affects not only the policyowner but their loved onesdont be surprised if I bring the heat in this review!! Published. No medical exams, no health questions. There is no way around it. It does not ask any health questions for starters. Advertiser. Let's compare Colonial Penn 9.95 coverage to the same amount but with Mutual of Omaha. Now some folks look at that and say, sounds like a good price. Alex Trebek is the second-highest paid game show host on television. Colonial Penn TV Spot, 'Spare Change' Featuring Alex Trebek. Colonial Penn sells coverage in units, and you can buy up to 15 units. Decide which, , if any, you want the policy to include. That is why the maximum policy value is $30,000. For decades, Colonial Penn has focused on selling life insurance to older customers, including a guaranteed issue whole life policy for people 50 and older. Nice and easy. 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. No portion of InsuranceForBurial.com may be copied, published, or distributed in any manner for any purpose without the prior written authorization of the owner. Colonial Penns advertising may be misleading to those who arent familiar with its pricing structure. This site provides life insurance information and quotes. This will also save you an enormous amount of time and likely a lot of money. Guaranteed acceptance/guaranteed issue whole life is the life insurance product to select after all other no exam, simplified issue whole products have been evaluated with an experienced independent agent or broker. Alex Trebek Colonial Penn Whole Life Insurance. That hefty amount is anchored by the reported $10 million annual salary he receives from hosting the show. At The Tennessean, she was part of a 2011 Pulitzer Prize finalist team for coverage of devastating floods in Middle Tennessee. Same product folks. Maple Valley Insurance Group Rating of Colonial Penn 995 Life Insurance = D. This indicates whether an insurer allows you to apply for and buy a policy completely online. First day coverage for accidental deathsuch as a car accident. Most states require life insurance companies to have a free look, 20-30 day period to evaluate the policy to decide if they want a refund or not. Your acceptance: guaranteed. You've probably seen Alex Trebek on your television giving you the low-down on the Colonial Penn Life Insurance Company. By now you probably realize Im not impressed with the Alex Trebek life insurance ad nor the product itself. This influences which products we write about and where and how the product appears on a page. 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. As of 2021 we have seen crazy spike in prices havent we? Here is a comparison of Colonial Penn with our two most affordable carriers. The Colonial Penn guaranteed acceptance $995 plan has a two-year waiting period. Were going to review the $9.95 Alex Trebek life insurance Ad in this article so you know what you may be getting yourself into if you choose to purchase the Colonial Penn, Guaranteed Acceptance insurance plan. Again, Jonathan Lawson is a paid spokesman for Colonial Penn Commercials. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105. Because the insurance company does not ask any health history questions. Decide which life insurance riders, if any, you want the policy to include. Make sure you and your loved ones are covered - compare customized life insurance quotes from our partners. Check that the insurers youre considering offer the coverage youre looking for. For a 50-year-old man, rates for term life insurance from Colonial Penn can range from $13 to $57 per month. Having a real professional protects not only your interests but that of your family. He has been advocating Colonial Penn life insurance as the best plan and best policy for years now. The Philadelphia-based insurer is owned by CNO Financial Group, which is also the parent company of Bankers Life. One unit does not buy enough insurance to scratch the cost of a cremation let alone a full funeral. We do not offer this product. Coverage is limited, no health questions, and a confusing price per unit. He has presented his work at the Gartner Marketing Symposium/Xpo and Accountex. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings. The tool on this page will help you know what the competition is charging for no medical exam, whole life insurance. The most you can get is $2,000 if you are a 50-year-old woman. Just be sure to keep up your premium payments. Absolutely not. Colonial Penn commercials with Jonathan Lawson are overpriced and your coverage is limited. Colonial Penn customer complaints and satisfaction. Is it really a good policy or not? The max term life benefit with Colonial Penn is $50,000 for $45.12 per month. As we get into this article, I will explain the limited use of Guaranteed Acceptance life insurance and why it should be avoided if possible. The older you are at the time of application with this Colonial Penn product, the lower the value of 1 unit is. For more guidance, see our life insurance buying guide. You need to choose coverage for heart attack or stroke, cancer or chronic illness, and youll be able to tap into your policys payout only if you develop the condition you chose or if youre diagnosed as terminally ill (with a life expectancy of 12 months or less). Now that you know the real cost of $9.95 life insurance, put away your thoughts of Alex Trebek insurance. If you are age 80 at purchase, the value of 1 unit is very low compared to age 50. Calculate. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. For context, one unit may earn you less than $700 in coverage and costs $9.95. Every week I take phone calls from people calling to price out final expense life insurance. Ed McMahon used to advertise $6.95 per unit for Colonial Penns Guaranteed Acceptance plan. The Alex Trebek life insurance ad has lots of gimmicks that are easy to fall for. Understand any and all limitations built into the policy. 1 Male Unit ($9.95) 1 Female Unit ($9.95) 12 units is the most you can buy, and this coverage comes with a 2-year waiting period. Based on what you can find online he has a net worth of $15-$17 million dollars. He was not carrying a life insurance license nor taking ongoing education requirements and training to advise people on life insurance. If you were wondering if Jonathan Lawson was giving real testimony of his great experiences with Colonial Penn 995 plan, then you were mistaken. Our opinions are our own. Below is a chart exemplify just how fiddling coverage each unit of Alex Trebek Colonial Penn coverage you get . Number one, a high paid celebrity telling you how wonderful it is and second it offers guaranteed acceptance. In addition, if you are in good health the coverage is limited and the premiums are too high. Since the Alex Trebek advertisement focuses on the $9.95 guaranteed acceptance product with no health questions, we are presenting all the facts here so you understand the limitations of this product. With that said, do you believe he knows that much more about your life insurance needs versus the person down the street? The company's accelerated death benefit rider is also unusual. NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. Most people just want the straight scoop without all the games and limitations. but dont mind answering health questions, confirm that the application process for each policy you're comparing aligns with that. Misunderstanding life insurance policy limitations and features combined with the overall costs of ownership are the common mistakes of consumers. No life insurance company offers individual life insurance without health questions and no medical exam without a mandatory waiting/limited benefit period. Imagine several people paying one months premium for a $10,000 death benefit. That's a shocking statement, but it's true. Stop wasting your time calling insurance companies like Colonial Penn. Andrew Marder is a lead writer for NerdWallet focusing on insurance and data analysis. As mentioned earlier, you are buying a unit of insurance, not a death benefit amount. Their most popular life insurance plan is the guaranteed acceptance whole life. Something I didnt address thoroughly was the use of the term rate lock promoted in all the commercials. Could funeral and burial expenses double in the next 10-20 yrsa distinct possibility! If youve found this article helpful, let us know. We recommend a goal of at least $15,000 to cover full funeral and burial costs for 2023. Guaranteed Acceptance coverage from any life insurance company that offers it, will take high risk life insurance individuals. Rates are regulated by the state. Just a few health history questions will also offer better benefits from day 1 of the coverage. Disclaimer: NerdWallet strives to keep its information accurate and up to date. That is a statistical fact. While there is no short supply of Alex Trebek life insurance reviews out there, here is the straight scoop you need to be absolutely clear on when comparing any life insurance product to another. While Colonial Penn offers one other life insurance product, the Alex Trebek, Colonial Penn insurance product is what most seniors are curious about. Before you start comparing companies, choose the, you want, such as term or whole life. How Much Insurance Do You Get From Colonial Penn For $9.95 A Month? Yes, you will receive quotes for whole life insurance. Ratios are determined separately for auto, home (including renters and condo) and life insurance. The limitations are disclosed if you take a close look at the commerical and website, but carefully placed to be casually overlooked by those who are focused on the celebrity endorser whos selling you on the coverage. Which one would truly give you and your family real peace of mind? The maximum age is 75 for the whole life policy. He is another new actor or pitchman like Alex Trebek that are promoting and marketing Colonial Penns TV Commercials. Both are for $10,000 of no medical question, guaranteed issue whole life insurance with a 2 year waiting period for full benefits. Then, based on how much you're willing to spend per month, Colonial Penn will tell you how much coverage they will give you based on your spending choice. Were always here to help. We will be very blunt as I speak to hundreds of seniors like you every month about Colonial Penn whole life insurance options. For example, if you want to skip the. If you are wondering if the price per month was not accurate, you were just not aware of how the insurance company was pricing the 995 life insurance program. We will get to that specifically later in the article. He gets paid to say what he says. We are not talking trivia when it comes to life insurance and this is a very important decision you need to make for those you care about the most. Aah, here is the problem with Colonial Penn units. $9.95 sounds quite enticing but. Most of them are from overcharging customers accounts, not sending the right death benefit to the grieving family because of the wrong unit, and just incompetent customer service. Therefore, the maximum anyone would pay would be $149.25 per month. Mentioned earlier but Colonial Penn uses a non standard way of calculating their premiums. The scoring formula takes into account consumer experience, financial strength ratings and complaint data. Simply put He was not an expert. In fact, if you are 70 + and buy this product, you may not have enough to simply cover the cost of a funeral and burial in 2023. This is what protects their family. Mr. Lawson, thank you for your service to our country. 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. Guaranteed issue life insurance: Is it worth it? Funeral and burial costs have been rising steadily for years but 2021 is a reminder that managing raging inflation should be part of the financial planning for our family. Twenty years ago my licenses limited me to Michigan and Indiana, but that was pretty typical in the burial insurance business then. They sell you what they are marketing. Applicants dont need to answer health questions or take a medical exam. Sure Im bit biased myself because I have access to all the top burial insurance companies and plans out there. His work has appeared in The Week, The Washington Post and other national news outlets. According to The Daily Mail, Trebek is worth around $50 million. This information may be different than what you see when you visit a financial institution, service provider or specific products site. However, the chronic illness option isn't available to applicants ages 65 to 75. NerdWallet does not receive compensation for any reviews. AGE. 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