Advantages of getting Colonial Penn life insurance include guaranteed acceptance, a locked-in benefit amount, a locked-in premium rate, non-cancellable coverage and flexible payment options, according to Colonial Penn. This company issues guaranteed acceptance whole life insurance in most states for people who are 50 to 85 years of age.
Colonial Penn guarantees acceptance regardless of health issues and without requiring a physical. The company is able to do this because there is a two-year limited-benefit period, states Colonial Penn. The limited-benefit term does not apply to accidental death, except in Arkansas. The company bases benefits on the age of its policyholders when coverage takes effect.
Colonial Penn does not reduce benefits as members grow older or face health issues. Members pay the same rate for as long as their policies are active, reports Colonial Penn. If policyholders pay their premiums, their coverage cannot be cancelled. Policyholders make payments monthly or annually, and they can switch methods at any time. Paying annually reduces the premium by a full month.
Another benefit is that members can borrow against the value of their life insurance policies, explains Colonial Penn. The interest rate for these loans is 8 percent, compounded annually, as of 2015. If a loan is not repaid when the policyholder dies, the balance is deducted from the death benefit.