Colonial Penn offers affordable term and whole life policies, but the trade-offs matter

Colonial Penn is a life insurance company owned by Torchmark Corporation that sells directly to consumers, mostly through television and online advertising. They specialize in simplified issue whole life and term policies — meaning you answer health questions but typically skip the medical exam. Their policies are real insurance backed by a real carrier, but they are not the cheapest option, and the coverage limits are modest. Whether Colonial Penn makes sense for you depends on your health, how much coverage you actually need, and what you are willing to pay per month.

The company has been operating since 1957 and holds licenses in all 50 states. They process claims through standard procedures and maintain financial ratings from agencies like A.M. Best. That said, "affordable" and "no medical exam" come with a cost: premiums are higher than you would pay with a traditional insurer if you are in good health, and the death benefit caps are lower than what most people need.

Key Takeaways

  • Colonial Penn does not require a medical exam, which makes it accessible if you have health conditions, but premiums are higher than traditional life insurance for people in good health.
  • Death benefits max out at $25,000 for whole life and $50,000 for term, which is often too low to replace income or cover major expenses for a working-age person.
  • The company targets people over 50 and those with pre-existing conditions, not people shopping for the lowest price or the highest coverage.
  • You should compare quotes from at least one traditional insurer (even if you think you will be declined) before choosing Colonial Penn, because some people get approved at better rates than they expect.

How Colonial Penn's policies work and what they cost

Colonial Penn sells two main types of coverage: whole life and term life. Whole life policies stay in force for your entire life as long as you pay premiums, and they build a cash value over time that you can borrow against. Term policies cover you for a set period — usually 10, 20, or 30 years — and expire if you outlive the term.

Premiums depend on your age, health, and the death benefit amount. A 60-year-old in average health might pay $40 to $80 per month for a $10,000 whole life policy; a 50-year-old might pay $25 to $50. Term policies are cheaper — a $25,000 term policy for a 55-year-old could run $15 to $30 per month. These are estimates; your actual rate depends on the underwriting questions you answer and the state you live in. Colonial Penn publishes rates online, so you can get a specific quote without talking to an agent.

The catch is the death benefit ceiling. If you need $250,000 in coverage — a realistic need for someone with a mortgage and dependents — Colonial Penn cannot provide it. You would have to buy multiple policies or look elsewhere. For people who need modest coverage and have health issues that make traditional insurance difficult, that trade-off may be worth it. For everyone else, it usually is not.

Who Colonial Penn is actually designed for

Colonial Penn's business model targets older adults and people with pre-existing health conditions. Their advertising focuses on people over 50, and their underwriting is built around accepting applicants who would be declined or heavily rated by traditional insurers. If you have diabetes, heart disease, cancer history, or other chronic conditions, Colonial Penn will likely issue you a policy without a medical exam.

A traditional life insurance company would either decline you, charge you much higher premiums, or require extensive medical records and testing. Colonial Penn skips the exam and the detailed medical review, which speeds up approval and removes the uncertainty. That convenience and accessibility has real value — but it is priced in. Everyone pays higher premiums to offset the risk of insuring people with serious health conditions.

If you are under 50, in good health, and have dependents or significant debt, Colonial Penn is almost certainly not the right choice. A term policy from a mainstream carrier (like Term4Sale, PolicyGenius, or directly from companies like State Farm or Mutual of Omaha) will be cheaper and offer higher coverage limits. Even if you think your health will disqualify you, it is worth getting a quote first.

Comparing Colonial Penn to other options

The main alternative is traditional life insurance sold through brokers or direct online platforms. These companies require a medical exam or at least more detailed health underwriting, but they offer lower premiums and higher death benefits if you are approved. A 55-year-old in good health can often get a $250,000 term policy for $30 to $50 per month — less than Colonial Penn charges for $25,000.

If you have health issues, your options narrow. Some traditional insurers offer "simplified issue" policies that skip the exam but ask more detailed health questions than Colonial Penn does. Others offer "may provide issue" policies with no health questions at all, but those are rare and expensive. may provide issue whole life policies from mainstream carriers often cost more than Colonial Penn and still cap benefits at $25,000 or less.

A practical approach: get quotes from Colonial Penn and from at least one online broker (PolicyGenius, Term4Sale, or Ethos all offer quick quotes). If you are approved at a traditional carrier, compare the monthly cost and death benefit. If you are declined or the premium is much higher, Colonial Penn becomes a real option. If you are approved at a reasonable rate, take it.

What to watch for in Colonial Penn's terms

Colonial Penn policies include a contestability period, usually two years from issue. During that time, if you die and the company discovers you misrepresented your health on the application, they can deny the claim and return premiums to your beneficiary. This is standard across the industry, but it means you must answer the health questions honestly. Lying to get approved will void the policy.

Whole life policies build cash value slowly in the early years. If you cancel within the first few years, you will receive little to nothing back. Term policies have no cash value — you pay for coverage only, and if you outlive the term, the policy expires with no payout. Neither is a savings vehicle; both are insurance products.

Colonial Penn also has a "return of premium" option on some policies, which refunds your premiums if you cancel within a set period. This sounds good but costs more per month and is rarely worth it. Read the fine print on any rider or option before you commit.

Red flags and common complaints

Colonial Penn's main complaint is that premiums do not decrease as you age — they stay level or increase. With traditional term insurance, you lock in a rate for 20 or 30 years and it never changes. With Colonial Penn whole life, your premium is may provide not to increase, but it also does not go down. If you live a long time, you end up paying far more in total premiums than you would with a traditional policy.

Another issue is the low death benefit cap. Many people buy Colonial Penn thinking it will be their only life insurance, then realize it does not cover their actual needs. If you have a mortgage, dependents, or significant debt, $25,000 or $50,000 is not enough. You would need to buy multiple policies or supplement with another carrier.

Customer service complaints are mixed. Some people report smooth claims processing; others report delays or difficulty reaching someone by phone. Read recent reviews on the National Association of Insurance Commissioners (NAIC) complaint database and on independent sites like Trustpilot before you buy.

The bottom line: when Colonial Penn makes sense

Colonial Penn is a legitimate insurance company, and their policies will pay out if you die during the coverage period. But they are not the best choice for most people. They make sense if you meet all of these conditions: you are over 50, you have health conditions that make traditional insurance difficult or impossible, you need modest coverage (under $50,000), and you want to avoid a medical exam.

If you are younger, in good health, or need substantial coverage, shop elsewhere first. If you are older or have health issues, get a quote from Colonial Penn and compare it to at least one traditional carrier before deciding. The difference in cost and coverage can be significant, and you may be surprised at what you can get approved for.

Frequently Asked Questions

Does Colonial Penn require a medical exam?

No. Colonial Penn uses simplified issue underwriting, meaning you answer health questions on the application but do not have to visit a doctor or lab. Approval is usually faster than traditional insurance, but the trade-off is higher premiums.

What is the maximum death benefit I can get from Colonial Penn?

Whole life policies max out at $25,000; term policies max out at $50,000. If you need more coverage, you would have to buy multiple policies or use a different insurance company.

Can I get a Colonial Penn policy if I have a pre-existing condition?

Yes. Colonial Penn specializes in insuring people with diabetes, heart disease, cancer history, and other chronic conditions. You will not be declined for most health issues, but you will pay higher premiums than someone in perfect health.

How long does it take to get approved for Colonial Penn?

Approval typically takes one to two weeks. Some policies can be issued within days if you complete the application online and answer all health questions clearly. You can check the status of your application on their website.

What happens if I stop paying premiums?

Your policy will lapse and coverage will end. With whole life policies, you may have a grace period of 30 days to pay a missed premium before the policy cancels. With term policies, a single missed payment usually ends coverage immediately.