How can you decide whether or not to pick a particular insurance company? There are many factors you need to know, and Colonial Penn insurance reviews will help you determine if it is the best one for you. Studies show that 60% of Americans (2018) have life insurance, according to LIMRA. When selecting an insurance company, it is essential to know about different terms like “guaranteed acceptance” and “whole life insurance” so you can choose wisely.
Colonial Penn: An Overview
This finance and insurance company was founded over a half-century ago in 1968. It is headquartered in Philadelphia, Pennsylvania. The state and insurance company’s name pay tribute to William Penn, who supported democracy and religious freedom.
Colonial Penn has had various names and owners during its history. In 2011, the company was renamed its original name after being known by others during its 60+ year history.
The insurance company originally focused on providing insurance for seniors. However, its target market now ranges from 50 to 85. Thus, it is a practical option if you are under or above 65 years old.
Colonial Penn is among the best-known life insurance providers in the US. As always, it is still important to learn details about any insurance company, which includes the various life insurance plans offered.
Whole Life Insurance
This is one of the main types of insurance plans offered by various providers. As the name suggests, it covers a person’s whole life.
It differs from term life insurance, which is typically valid for 10 to 30 years. It is always important to know the details of each type to pick the best one for your needs.
Whole life insurance provides coverage for your entire life. Having insurance for your whole life can provide various benefits. However, there are situations when you should select term life insurance, based on your projected life expectancy, for example.
One of the features of whole life insurance is it is designed to boost cash value. The reason is it functions not only as insurance but also as an investment. This makes it a practical option if you want to invest while securing life insurance at the same time.
However, there are times when your main goal of taking out a life insurance policy is just to cover death-related costs like funeral and burial. In that situation, the insurance policy should be less of an investment.
Covering these costs through insurance can prevent one’s family from being burdened by such costs. The average cost for a US funeral is up to $10,000, according to Parting. There is also some debate among experts about whether the main function of life insurance should only be to cover death-related costs.
If you also want to make investments in stocks and mutual funds, then whole life insurance might be a better option. However, the first goal should still be to cover the costs of an untimely death.
Guaranteed Acceptance Insurance
It is important to know why “guaranteed acceptance” would be valuable to a policy-holder. The name highlights that a person will not be denied insurance due to health conditions. There are indeed no health-related questions or physical exams for people who apply for this type of insurance.
If you have a pre-existing condition, this would generally be a good bargain. These plans generally provide less coverage for higher premiums. However, in the case that you have pre-existing conditions, these features of this type of plan can be very convenient.
Your beneficiaries can receive full benefits within two or three years after you take out the policy. In the case of Colonial Penn, the time frame is two years.
If you pass away before two years, the beneficiaries will likely be entitled to a partial payout. It is important to learn what the policy covers to prepare for various costs, including funeral and burial expenses.
This is one of the features of some life insurance plans from companies like Colonial Penn. The timeframe can differ, but in many cases, it is 24-months (2 years). If you passed away within the waiting period after taking out the policy, the beneficiaries would receive the premiums plus interest compounded annually.
The waiting period is a trade-off for no medical questions or physical exams. Thus, in the case you have pre-existing conditions yet want to secure life insurance, the 24-hour waiting period would be a good option. Meanwhile, if you generally have good health, then other policies might also be worth considering.
It’s important to read Colonial Penn insurance reviews so you can learn about the features and benefits of such insurance policies. You can then live a full life after expecting the unexpected.