It does not ask any health questions for starters. Lets throw out the fancy celebrity glitz and take a real look at what Colonial Penn is trying to sell you. The application asks health questions, but the insurer doesnt require a medical exam. Coverage amounts range from $10,000 to $50,000 ($5,000 to $25,000 in New York). It seems slippery from my perspective. They put you in front of the most benefit rich and affordable final expense plans you can buy. Looking at the sample above, 1 unit shows a minimum death benefit coverage amount of $932 for $9.95 per month. Check that the insurers youre considering offer the coverage youre looking for. If you have not already, run a quote on the final expense quote tool on this page. To calculate each insurers rating, we adjusted the scores to a curved 5-point scale. Sure Im bit biased myself because I have access to all the top burial insurance companies and plans out there. We recommend going the Plan A route first. For new policy owners, they now pay 15% of the death benefit the first year, 30% the second year. Colonial Penn sells units of coverage; the unit premium never changes, and they sell between one and eight units. Our partners cannot pay us to guarantee favorable reviews of their products or services. Either yes or no. Optionally, you can be more specific and use the instant quoting tool on this page. This particular product, titled Colonial Penn Guaranteed Acceptance Whole Life is nothing unique. The first quote below is a fictitious, 75 year old female applicant later followed by a fictitious 75 year old male applicant. Better yet, give us a call and lets talk about your needs and find the right plan to protect your family. This indicates whether the company offers a way to apply for and purchase policies entirely online. In the charts below, note that the pricing per month is displayed on top next to the appropriate number of units you would need to purchase. TV personality Alex Trebek explains the average funeral cost and how a Whole Life Insurance plan from Colonial Penn can help cover final expenses. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Lisa is an alumna of the Wharton Seminars for Business Journalists at the University of Pennsylvania. Heres the breakdown: These 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. The intention is to get you to call up Colonial Penn and just buy the policy. We welcome comments below. Weekly I find myself talking to new seniors who were duped into the wrong life insurance product. Depending on the type of whole life insurance, it may increase the risk to your family of not receiving the monies you intended just because the wrong policy was purchased. Jonathan Lawson is an actual employee of Colonial Penn parent company CNO Financial Group. This means the maximum a 68-year-old male can purchase is $9,504 in life insurance coverage with a monthly premium of $119.40. Youre certainly welcome to experiment with the instant quote tool on this page. That hefty amount is anchored by the reported $10 million annual salary he receives from hosting the show. 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. They bought a term policy that is/was about to expire or bought a guaranteed acceptance policy from one of the few life insurance companies that offer them. This could end poorly for your loved ones. While some people will only qualify for guaranteed acceptance life insurance, you need consult with a experienced independent agent or brokers before assuming you need it. Far more complaints to regulators than expected for a company its size. Find out what is really available to you. They will shop the life insurance market for the right, no exam policy offering the best benefits and lowest price for that financial protection. For those who purchase the coverageColonial Penn will pay the claims according to the terms of the policy. Read our. Andrew Marder is a lead writer for NerdWallet focusing on insurance and data analysis. Ultimately, it is what is written in the contract, the policy itself that matters. 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. Guaranteed acceptance life insurance. At 65, the policy value of each $9.95 unit is much higher which translates into more death benefits than the than the healthy individual. This accelerated death benefit allows you to access 25% to 50% of your payout early if youre diagnosed with certain cancers or debilitating chronic illness or you suffer a heart attack or stroke. This could be devastating for your family if you buy the wrong policy. When evaluating offers, please review the financial institutions Terms and Conditions. However, he holds a title with CNO Financial Group of Director of Quality Assurance & Escalations. This means that they may not be able to purchase a enough financial protection (death benefits) to ensure their goals are met. It was a huge Colonial Penn marketing expense. Copyright 2023 - C & F Associates, LLC All Rights Reserved, Best ACA Marketplace Health Insurance Plans, Michigan, Medicare/Medigap Insurance Education Videos, Verify Any Insurance Agent or Brokers License Here, Prescription Drugs: How To Save Money Now, Alex Trebek Life Insurance Ad: Truth About The $9.95 Plan, Colonial Penn, Alex Trebek Insurance Commerical, The Alex Trebek Colonial Penn $9.95 Per Month Plan. About the author: Andrew Marder is a NerdWallet authority on insurance. He talks about Price you can afford, Price cant increase and Price fits your budget, DUH, of course, $9.95 will fit a seniors budget. Alex Trebek has been the beloved host of the hit NBC game show, "Jeopardy!" The Canadian-born star has been hosting the show since 1984, making him one of the longest-running game show hosts in television history. Our opinions are our own. You dont pay anything for their services, the insurance companies do that part. However, the truth, this life insurance advertisment markets a particular type of whole life insurance with carefully, glossed over limitations and very high real world premiums. Their most popular life insurance plan is the guaranteed acceptance whole life. Over three years, Colonial Penn has drawn far more than the expected number of complaints to state regulators for a company of its size, according to a NerdWallet analysis of data from the. It is a pure, high risk life insurance product for those who cannot qualify for better and more affordable life insurance coverage. These 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. 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. For many years, Alex Trebek was the face of Penn Life Insurance Company. Consumers need to proceed with caution with this particular type of life insurance product. Guaranteed acceptance policies ran between $10 and $80 per month, while whole life insurance was the most expensive at $30 to $133. In this article, we will look deep into something senior consumers need to be aware of and what a Colonial Penn commercial may lead you to do. Colonial Penn has modified this in 2023. Does Colonial Penn pay out? Again, no questions ask and that seniors instantly qualify is a little misleading. Here is the first tip. Each rate shown is a quote based on information provided by the carrier. and how long you want the coverage to last. Before we get to far, I would like to make in known: In no way do we wish to put down Mr. Trebek. 50. This influences which products we write about and where and how the product appears on a page. They are not going to help you get the best insurance at the lowest price. This is not how life insurance is typically priced. Again, it appears to be a marketing tactic to distract you into thinking it is very affordable life insurance. Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online. 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. Because it affects not only the policyowner but their loved onesdont be surprised if I bring the heat in this review!! This is for 2 reasons. This policy is open to people ages 50 to 85 (50 to 75 in New York), and acceptance is guaranteed. With that said, do you believe he knows that much more about your life insurance needs versus the person down the street? How much does each unit of coverage cost? What to understand about Colonial Penn $9.95 Life Insurance units. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. Any questions you have, feel free to give us a call at 269-244-3420. MORE: Best life insurance companies in 2023. No-exam policies dont require a medical exam. After high school at age 18, he went to Pierce College and earned his BBA. For the first 2 years of coverage with Alex Trebek Life Insurance, there is a limited death benefit for natural causes of death. January 03, 2018. According to The Daily Mail, Trebek is worth around $50 million. FYI, I talk to numerous life insurance consumers age 50-85 5+ days a week. There is no way around it. Decide which life insurance riders, if any, you want the policy to include. Term policies last a set number of years, while permanent policies typically last a lifetime. The max term life benefit with Colonial Penn is $50,000 for $45.12 per month. Learn how your comment data is processed. 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. Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. Maple Valley Insurance Group Rating of Colonial Penn 995 Life Insurance = D. These situations do require guaranteed issue life insurance. WebYes, Jonathan Lawson is a real person and he does work for Colonial Penn. Each unit of Colonial Penn's life insurance coverage is worth $9.95 per month and provides different amounts depending on age, gender, etc. 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. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. He was in the USA marine corps for 14 years and served in combat and as a master instructor. The tool on this page will help you know what the competition is charging for no medical exam, whole life insurance. With that said, select poor health only if you want to see who offers guaranteed acceptance policies like the 9.95 life insurance plan from Colonial Penn. Colonial Penn commercials with Jonathan Lawson are overpriced and your coverage is limited. When you compensate paid spokesman its hard to take them seriously. Much higher premiums than the competition and commonly, lower value, Limited maximum death benefit (face amounts). 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. Nowadays, it is about $10,000 on average for a full funeral around the country. No life insurance company offers individual life insurance without health questions and no medical exam without a mandatory waiting/limited benefit period. The value determined will be locked. Its good you are reading $9.95 life insurance reviews like this that show you the real monthly cost of a burial policy with this carrier. We believe everyone should be able to make financial decisions with confidence. Many or all of the products featured here are from our partners who compensate us. Health questions will eliminate a select number say 10-15% of applicants who are in poor health for their age and cant qualify for no exam, level benefit whole life insurance (full, immediate protection). That sounds pretty good right? This site provides life insurance information and quotes. Just be sure to keep up your premium payments. This will be without a spokesman telling you what is best for you, but us explaining why it is best for you. No-exam policies dont require a medical exam. No one pays just $9.95 a month to protect their family. If you are age 80 at purchase, the value of 1 unit is very low compared to age 50. Alex Trebek is the second-highest paid game show host on television. They pay their spokesmen a pretty penny to advocate how good their coverage is. MORE: Guaranteed issue life insurance: Is it worth it? Take a look at an apples to apples comparison to the Alex Trebek $9.95 life insurance above in the appropriate chart. The focus of these advertisements has been to promote a whole life insurance policy that offers guaranteed acceptance, a rate lock, premiums that will never go up and a death benefit which will never go down. Interest on this policy as of 2023 is 7% which is lower than most other carriers who offer Guaranteed Accepantance whole life insurance. Remember, this is better not only for you but your family who will be getting the full death benefit if you pass away in the next 2 years. These ratings indicate an insurers ability to pay future claims. Why do you think you need high risk life insurance? 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. If youve found this article helpful, let us know. Guaranteed issue life insurance: Is it worth it? We have provided rates by gender and age. The insurer says throughout its website and in commercials that premiums can be locked in for as little as $9.95 a month, but this price will earn you less than $700 in coverage. Watch out for other high priced guaranteed issue whole life plans. No matter what the gender is there are many better options out there for both. He has over a decade of experience in finance, with previous roles at Barclays, The Motley Fool and Gartner. This does not even count the actual burial costs at the cemetery. 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. The full death benefit isnt paid out if the insured person dies during the first two years of taking out a policy. All financial products, shopping products and services are presented without warranty. Look at the number of consumer complaints each company receives, as high numbers can be a red flag about the quality of service. Rates are regulated by the state. About 5-10% of our cases where guaranteed acceptance whole life insurance is truly necessary, we generally recommend the likes of AIG or Gerber Life not only for pricing but the amount of available protection over Colonial Penn Guaranteed Acceptance. That's a pretty bizarre number. Inflation over time and if your budget allows, 20-25K would be better. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. AGE. No medical exams, no health questions. Get even more expert advice to help you make informed choices. The 995 Colonial Penn Guaranteed Acceptance insurance plan does have some big surprises in it. I hope you enjoy this analysis of Alex Trebek's life insurance commercials, and learned something new about how burial insurance really works. for its policies, including its traditional whole life insurance. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. So What Is The Alex Trebek Life Insurance Commerical About? They must charge higher premiums and have a limited benefit period to offset their risk of loss. It could cost you, the consumer and your family dearly. The minimum value of a unit of coverage is approximately $400 and the maximum is approximately $2,100, meaning the maximum death benefit you can select is around $16,800. For example, if you want to skip the. Save my name, email, and website in this browser for the next time I comment. What you need to remember about the Guaranteed Acceptance program: it is for high risk life insurance applicants. Well, if you looking to cover the cost of funeral, youre out of luck paying $9.95 a month. Do you assume you cannot qualify for a better policy because your health isnt ideal? Keep in mind, people age 50-85 are the vast majority of our clientele at Maple Valley Insurance Group. Most people we work with desire the most benefits they can get for the dollar spent. No-exam life insurance issues coverage without the need for a medical exam. Dive deeper: Ratings methodology for life insurance. The most you can get is $2,000 if you are a 50-year-old woman. So, the Colonial Penn life insurance @ $9.95 per month. Guaranteed coverage available to applicants up to age 85. What has been apparent, consumers do not realize the actual cost and the policy limitations. The best life insurance companies have fewer than the expected number of complaints. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. We generally advise people to use Gerber or AIG IF they need high risk life insurance like the Alex Trebek Life Insurance product. Based on what you can find online he has a net worth of $15-$17 million dollars. How much does Colonial Penn pay Alex Trebek? Once you have purchased a guaranteed acceptance whole life policy, the price will not go up and the benefits will not decrease. The company has a long history of selecting celebrities to endorse their 995 life insurance. Do not sell or share my personal information. It is not for the average consumer frankly. Because all life insurance companies have different health questions. She is based in Nashville. This is the highest risk the average elderly person faces. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. 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