Colonial Penn Life Insurance Reviews – Good or Bad?

If you were planning to buy Colonial Penn Life Insurance and were trying to read up on some Colonial Penn Life insurance reviews, you will find that there are many complaints about the insurance company. Some even go to the extent of calling the company a scam. Below, one can get a proper understanding about what Colonial Penn Life Insurance is all about.

Why does Colonial Penn Life Charge high premiums?

colonial penn life insurance

Colonial Penn Life charges about $40 as a monthly insurance premium, for 20 years, to provide a life insurance policy that is worth about $25,000 to a 40 year old man. By paying that same insurance premium at other insurance companies, monthly and for 20 years, a 40 year old man can avail a life insurance cover that is worth a lot more than $25,000.

Many people automatically assume that Colonial Penn Life must hence be ripping people off, by charging high premiums for shoddy insurance covers. However, there is an explanation behind why Colonial Penn Life charges such high premiums.

It is because Colonial Penn Life Insurance, unlike other insurance companies, does not require its policy holders to undergo medical examinations or show their medical history, before they are allowed to sign up for life insurance. The company takes on the risk of insuring people even if their health is in dire straits. However, they pass on the financial risk to other policyholders, by awarding insurance covers that are much smaller than what the traditional insurance company will hand out for a life insurance cover.

Some people just don’t understand this concept and assume that Colonial Penn Life Insurance is a rip off company. Those same people need to understand that the traditional insurance company also sort of rips off people, by calculating insurance premiums that is directly based on the health of a person. In other words, the traditional life insurance company will charge high premiums to people who are sick, because they know that those people might pass away quickly, leading to insurance payouts that will lead to lower profits of the insurance company. Moreover, the traditional life insurance company will also increase premiums as a person ages or as their health conditions deteriorates, often defeating the purpose of having life insurance.

Colonial Penn Life insurance maintains the same insurance premiums, even as a person ages, and also doesn’t depreciate the insurance cover as a person ages.

Why does Colonial Penn Life reduce insurance cover payments on some occasions?

Colonial Penn Life Insurance, in its terms and conditions, clearly states why the value of the life insurance cover might be reduced, quite drastically, in some cases. There are two scenarios that can lead to the reduction of the life insurance cover at Colonial Penn Life Insurance.

First, if a policy holder defaults on insurance premiums, the value of the insurance policy can severely be compromised or even completely canceled. Many people find this particular term of the policy to be very unfair as almost everyone misses a payment every now and them, at least out of carelessness rather than due to not having the ability to pay. However, since Colonial Penn Life Insurance clearly states that missed insurance premiums can lead to a reduction or cancellation of the insurance cover, they continue to enforce the policy. Every time someone becomes a victim of this strict policy, they usually write up a review that Colonial Penn Life Insurance has ripped them off.

In reality however, Colonial Penn Life Insurance might have played by the rules, even though they have set rules that are quite unfair and unpractical to the hardworking consumer, who pays monthly premiums on his or her life insurance policy.

Secondly, the terms and conditions at Colonial Penn Life Insurance clearly state that life insurance payments will be compromised, quite severely, if the insurance holder dies within 24 months of signing up with Colonial Penn Life Insurance. Many beneficiaries of insurance policy holders at Colonial Penn Life Insurance have been enraged when they are told that there is no life insurance or very little life insurance to claim, as the insurance holder died within 24 months of coming on board with Colonial Penn Life Insurance.

However, the company openly reveals this term in its terms and conditions, when it signs up a policy holder. Some people just don’t read the fine print when they sign up, and feel that they have been duped when the company points out the fine print later on.

In conclusion, it can be said that all Colonial Penn Life Insurance reviews that call Colonial Penn Life Insurance company a scam are uncalled for. However, the negative reviews do question the strategies that Colonial Penn Life employs, as a company. The negative reviews are particularly critical of the fact that the company doesn’t do enough to openly discuss the clauses that are mentioned above, and that these clauses are usually buried in paragraphs of fine print that are difficult to read and understand, by the common person.

Visit at http://www.colonialpenn.com

Colonial Penn Life Insurance Scam –Extremely Expensive Insurance

Colonial Penn Life Insurance company has received a lot of flak in the insurance world. Many members of the public have even taken efforts to warn others about the Colonial Penn Life Insurance scam that the people behind Colonial Penn Life Insurance are running. However, Colonial Penn Life Insurance is not a scam. It is just a very expensive type of insurance, as explained below.

Colonial Penn Life Insurance Scam

High insurance premiums

Colonial Penn Life charges insurance premiums according to a unit system. One unit costs $9.95. Depending on a person’s gender, age and state of residence, one unit of insurance premium can get them an insurance cover that is worth anywhere between $500 and $2,500.

As an example, a 38 year old man residing in the state of Texas will have to pay $9.25 per month, for twenty years, to avail a life insurance cover that is worth $5,000. If he wants a $25,000 cover, he will have to pay $37.27 per month, over the next 20 years.

At other insurance companies, a $37.25 monthly payment, for the next 20 years, will fetch a life insurance cover that is worth $500,000, a huge upgrade from the meager $25,000 coverage that Colonial Penn Life Insurance hands out.

The difference however is that Colonial Penn Life does not require its policy holders to undergo medical examinations or get evaluated on health grounds. Anybody can sign up for a life insurance policy at Colonial Penn Life Insurance. Other insurance companies that hand out much larger covers on life insurance policies require policy holders to undergo fairly rigorous physical examinations. If one is found to be plagued by a disease or a serious heart condition or something along those lines, he or she might be denied a life insurance policy. Colonial Penn Life Insurance doesn’t deny anyone although it makes a trade off with reduced coverage on the face value of an insurance policy.

Defaulted premiums lead to cancellation of the life insurance policy at Colonial Penn Life

Another reason for a lot of propaganda surrounding the supposed Colonial Penn Life Insurance scam is that the company strictly enforces a policy where even one defaulted or missed insurance premium can lead to a cancellation of the whole insurance policy, even if the policy holder had made timely payments for several years. Many beneficiaries of insurance policy holders at Colonial Penn Life Insurance started making complaints after they found out that the company didn’t owe them a dime, because the insurance holder defaulted on a few payments that made their life insurance policy null and void.

Colonia Penn Life Insurance Claims – How Does it Work?

This article will provide information on how Colonial Penn Life Insurance Claims can be processed. First of all, one must understand that Colonial Penn Life Insurance does not pay out the life insurance cover if the policy holder dies within 2 years of signing up for a life insurance policy at Colonial Penn. The system is set up that way as this 2 year, No-Payout period is what allows Colonial Penn Life to handout life insurance policies to anyone who wants to sign up for it, regardless of their medical history or current health condition.

How can life insurance at Colonial Penn be claimed?

Colonial Penn Life Insurance ClaimsAssuming that the insurance holder passed away two years after signing up as a policy holder at Colonial Penn Life Insurance, beneficiaries can make a claim by sending in a claims form, along with a certified copy of the insured’s death certificate.

The claims and the certificate must be sent to the following address

Colonial Penn Life Insurance Company

Life Claims Department – 2250, 399 Market Street, Philadelphia, PA 19181 – 2250

Where can one get a Claims form to submit a claim?

When one signs up for a life insurance policy, they will receive a docket of insurance documents that will also contain a claims form. If however one needs an additional claims form, they can download it from the official website of Colonial Penn Life Insurance, at www.colonialpenn.com. They will just have to select an appropriate state and the electronic claims form can be downloaded and printed, to then be filled out and mailed.

What will be the amount that will be paid out?

The face value of the life insurance coverage will be mentioned in the insurance documents that the insurance policy holder might have received. In some cases, the amount mentioned on the policy might differ from the actual amount payable, if insurance premiums had been delayed or readjusted due to some reasons. Family members of the insurance policy holder, looking to claim the life insurance as a beneficiary, can also call customer service lines to find out about the life insurance compensation that will be payable to them.

How to find out the beneficiary of an insurance policy?

This is again another detail that will be mentioned in the insurance policy documents. If family members or friends don’t have access to the actual insurance documents held by the insurance holder, they can again call or email customer service at Colonial Penn Life Insurance Claims department, who will be able to provide details on the beneficiary that is stated in a particular life insurance policy.

colonial penn life insurance rates

Colonial Penn Life Insurance is a very unique company that hands out a no questions asked life insurance policy. In other words, it hands out life insurance policies to anybody who applies for it, regardless of health condition. It only requires that people be in the 50-85 age range to qualify for their life insurance policies. Below, one can get an idea of the Colonial Life Insurance Rates that will apply, when they sign up for an insurance policy from them.

How much does life insurance policy at Colonia Penn Life Cost?

Colonial Penn Life charges insurance rates by the unit, per month. One unit, on an average, buys $1,000 worth of life insurance coverage. The cost of one unit is $9.95. Though the cost of one unit remains the same for almost all age groups, the amount of coverage that people will be entitled to, will vary from state to state and according to age.

Here are some examples of the cost of insurance policies at Colonial Penn Life Insurance

Male, 50 years of age, residing in the state of California

• He will have to pay $9.95 monthly for one unit of life insurance. 1 unit will fetch him a life insurance cover of $1,786
• Similarly, he can pay $79.60 as a monthly premium to get insurance coverage that is worth $14,288

Female, 50 years of age, residing in the state of California

• She will have to pay $9.95 monthly for one unit of life insurance. 1 unit will fetch her a life insurance cover of $2,083
• Similarly, she can pay $79.60 as a monthly premium to get insurance coverage that is worth $16,664

Male, 65 years of age, residing in the state of California

• He will have to pay $9.95 monthly for one unit of life insurance. 1 unit will fetch him a life insurance cover of $932
• Similarly, he can pay $79.60 as a monthly premium to get insurance coverage that is worth $7,456

Female, 65 years of age, residing in the state of California

• She will have to pay $9.95 monthly for one unit of life insurance. 1 unit will fetch her a life insurance cover of $1,333
• Similarly, she can pay $79.60 as a monthly premium to get insurance coverage that is worth $10,664

As one can see from the above figures, the cost of life insurance goes up quite dramatically as one ages, even though the cost of one unit remains the same. Another point to note is that Colonial Penn Life insurance rates can vary from state to state as well, not just with changes in age and gender.

Is Whole Life More Expensive Than Other Policies?

A lot of people tend to avoid obtaining life insurance policies thinking that this is just an added expense or a financial burden. But what they did not know is that a life insurance is actually considered an investment which they will find very useful in the future.

Of all the insurance policies in the market, it is the whole life policy that people find a bit too expensive and this is why they often avoid this kind of policy and would rather choose the term life insurance. But is the whole life insurance really costs a lot than other insurance policies out there?

Is Whole Life Insurance More Expensive?

The whole life insurance policy can become a bit more expensive as compared with the term life insurance simply because it is permanent and it comes with so many benefits which you will not find on a term life insurance. But then again, this kind of insurance policy is not really the most expensive of all the insurance policies in the market. This kind of insurance has a fixed premium which will not change as the time goes by. But if in the event that you encounter some financial difficulties and won’t be able to pay for the premiums of your whole life insurance, you have the option to make use of the gains from your cash value to pay off the premiums.

Cash Value

So you might ask what the cash value is that you could end up gaining if you purchase a whole life insurance policy. When you pay for the premiums of your insurance, a portion of this will actually form part as investments, but it is the insurance company that will choose which investment this will go to. But the good thing is that the company will make sure to choose the kind of investment that will make you gain a bigger amount of money in the future so in the event that you will not be able to pay off the premiums, they will make use of your gains to pay it off.

Over time, your insurance policy will actually gain cash value which you can make use of in the future. Aside from using it to pay for your premiums, you can also borrow the money to be used for some other financial obligations.

Borrowing from your Cash Value

Remember that if you decide to borrow the cash value from your whole life insurance policy, you will need to pay it back plus interest fees and other charges. This might be a good option to those who are in dire need of cash, but doing it more often is not advisable. This is because in the event that you pass away, this will be taken off out of the death benefits that your beneficiaries will receive.

So as you can see, although you could end up paying higher premiums for a whole life insurance policy, you actually benefit from it in the years to come. It might indeed be an expensive policy, but just like with anything else in this world, you will really get what you pay for.

I Smoke, Can I Get Life Insurance?

Yes, smokers can definitely acquire a life insurance policy. But when acquiring a life insurance, it is a must that you declare that you are a smoker. Not declaring that you are a smoker could constitute fraud and this is something that is not taken lightly by insurance companies. So if you are a smoker and you are thinking of acquiring a life insurance, read this article to shed some light about your concerns.

I Smoke, Can I Get Life Insurance

You Could Pay Higher Premiums

It is understandable that smokers are required to pay more for their life insurance premiums. If you declare you are a smoker, the insurance provider will place you on the smoker risk category and this would mean that you will have to pay more for the premiums as compared with those who are not smoking. Whether you like it or not, the mortality rate for smokers is higher than those who do not smoke. Thus, insurers are required to assess each applicant very carefully just to verify if they are a smoker or not.

Verification Procedures

So you might ask how companies would go through the verification procedure just to tell if an individual is a smoker or not. Well, companies will simply ask very specific questions about your health. Insurers would consider you a smoker if you have puffed a cigarette for the past year or even use nicotine patches or tobacco gums. For as long as you puff in some nicotine, you already belong to the smoker risk category of the life insurance policy.

Questions that Insurance Companies Ask

The most common questions that the insurance company would ask is on whether you have used any kind of tobacco product in the last 12 months. If your answer is yes, then you are already considered a smoker and you will have to pay for the higher premiums of your insurance policy. The companies will not differentiate an occasional smoker to someone who smokes a pack of cigarette in a day. For as long as you are smoking, the health risks are pretty much the same in the eyes of the insurers, thus, you are expected to pay higher rates for your insurance premiums.

How Much will You End up Paying?

So now that you know that you could end up paying more for your life insurance, you might be concerned as to how much you could end up paying for your premiums. The answer will basically depend on the insurance company and this is why you should shop for several life insurance quotes before you choose the insurance policy that you want. There are lots of insurance companies online that offer life insurance policies for smoker so better do a search.

Remember that lying about not being a smoker is considered fraud and you could be faced with legal consequences if the company will find out that you are lying. Another thing to consider is that if you die and the company finds out that you were actually a smoker, your life insurance claims will not be given to your beneficiaries.

Annuities and Insurance Investments at Riversource Life Insurance Company

Riversource Life Insurance Company is a company that offers two primary products. First, it offers customers the chance to invest in investment vehicles called annuities, investments that will help them plan for their retirement. Secondly, Riversource Life Insurance Company, as the name suggests, offers a wide range of life insurance products as well.

Below, the product offerings of this company are discussed in more detail.

Introduction to the company

Riversource Life Insurance Company has been around for 115 years now. Currently, the funds managed by this company are invested into more than 60 retail mutual funds and more than 20 different variable portfolio mutual funds.

According to the latest financial reports provided by the company, the company had $60 Billion as assets. The company was first founded in 1894, in Minneapolis, Minnesota.

Annuities

The annuities investment products offered by Riversource are meant to cater to customers who are interested in retirement planning. As people reach retirement age, they need to start planning for their future, taking into accounts things such as money they will need for living expenses, healthcare and emergency expenses, when they don’t have an income generated by a job.

People with such concerns can choose one of the many annuity products offered by Riversource, to plan for their future. Riversource offers variable annuity products, fixed annuity products as well as income annuity investment products, giving every type of customer an annuity product that will service their needs. An analyst at Riversource will talk to a client to understand their retirement needs and then suggest a product accordingly.

Life insurance

Riversource offers term life insurance policies, universal life insurance policies and variable universal life insurance policies. The life insurance policies offered at Riversource can be used to set up a survivor income that will help family members of the insured stay financially afloat, should any misfortune cause the death or permanent disability of the insured policyholder.

These life insurance policies can also be used for retirement planning, to transfer wealth and also to plan an estate.

Investor resources

Riversource Life Insurance Company has also been very popular in the insurance and annuity market as they provide intelligent, well researched and free investor resources, for the public to read, after downloading research documents from their site, located at www.riversource.com. Several notable investment bankers provide weekly commentaries on the market. Currently, Colin Moore, the Chief Investment Officer at Columbia Management has provided a detailed research report on Federal balance sheet, about the retail market and about the housing pause.

American Family Life Insurance – Reputed Life Insurance Provider

If you are considering purchasing American Family life insurance, it must be said that you are making a pretty wise choice. Below, you will find more information about American Family Insurance, the company, along with information on the various types of life insurance policies that it offers.

American Family Insurance – Company Information

American Family Insurance was established in 1927. Thus, it has a great track record, having been profitable and successful for all these years. Currently, American Family Insurance has yearly revenues of almost $7 Billion. The company owns a number of subsidiaries, some of which are; American Family Life Insurance Company, American Family Securities, American Family Mortgage and American Family Brokerage.

Life insurance products available at American Family Insurance

Term life insurance

This is the ideal type of life insurance policy if one wants life insurance for a particular term. In other words, one can choose to have themselves covered with life insurance for a certain term, say 10, 20 or 30 years. Many people sign up for this type of life insurance policies until their mortgages are paid off or until their children graduate out of college. There is no cash value available on these types of insurance policies.

Whole life insurance

As the name suggests, this type of life insurance policy offers protection for life. Premiums for this kind of policy are generally on the higher side and will also have to be paid forever. Unlike term life insurance products that offer no cash value, whole life insurance policies will pay out a cash value that accumulates as premium payments are made on the life insurance policy.

Universal life insurance

This is a hybrid type of life insurance policy that allows for flexible insurance premium payments. People who opt for this insurance policy can sign up anywhere from birth to until they are 80 years old. The death benefits are flexible in the sense that it can be paid out in more than one way.

The life insurance needs calculator

At the American Family Life Insurance website, one can use the life insurance needs calculator to understand what kind of life insurance is best suited for their needs and future. This is a questionnaire like tool that asks the applicant various questions. The applicant will be asked about their monthly expenses, debts, home loans, childcare, educational needs and other expenses that are needed for special needs. They will then be asked about their assets, their age, their health condition and a few other factors, before a particular life insurance policy is presented as a recommendation, along with reasons.