Colonial PennLife Insurance Reviews 41

⭐☆☆☆☆
A Complete Rip-Off – Do the Math!

I signed up for the Colonial Penn life insurance plan that’s heavily advertised at "$9.95 per month." What they don’t tell you upfront is that this only buys you a single unit of coverage – which is just $800. That means if you want even a modest $10,000 in coverage, you're paying over $120 a month. Want the full $25,000? That’s nearly $310/month! And here's the kicker — your health status doesn’t change the price OR the benefit. So whether you're fit as a fiddle or have serious medical conditions, you’re getting the same overpriced deal.

It’s misleading advertising, plain and simple. The $9.95 pitch is just a hook to get you in the door. Once you realize how little coverage you’re actually getting, it feels like a total scam. You'd be far better off exploring other life insurance options that give you real value for your money. Colonial Penn’s “Guaranteed Acceptance” plan sounds nice, but it’s financially predatory for what you actually get.

Avoid this unless you enjoy throwing money away.

Date of experience: July 22, 2025

To: Colonial Penn
Subj: Jonathan Lawson
Reply: Cmsgt Ortega

1) Marine, Stop lying to your comrades!!! You are no different than a Drug Dealer......WTF???
2) Shame on YOU!!!!!
3) Pray we never cross paths.
4) Jonathan......That lying Forked tongue of yours.......is

Date of experience: June 05, 2025

I went online to apply for this $9.95/month life insurance and WAS asked health questions- do you have diabetes? I responded yes bc I do and was told my monthly premium would be $59.95…so Jonathan lied saying you’ll not be asked any health questions and the premium would be no more than $9.95.

Date of experience: May 16, 2024

RUN! DONT give them a penny! After 6 years plus I didn’t get a penny back! Taking the case to my attorney!
Shame to exploit old people!

Date of experience: January 25, 2025

Received email for a "free" quote with "rates to fit your budget...starting at $9.99." Wanted to see what different plans/rates they'd offer. I auto-filled my address info and my personal checking account info was also INADVERTENTLY auto-filled. I had no idea they were asking for account numbers just to get a quote. When I submitted my request for a "free quote," I was immediately redirected to a screen thanking me for being a new member and giving me a confirmation that $250 had been deducted from my checking account. They never provided a quote or any indication that I was even being charged.
I immediately called customer service and chose the "new accounts" option. SUPER, SICKLY SWEET, Southern rep was so helpful until she learned I wanted this canceled and a refund. She told me to call the number back and pick another option for a different department that could help me. Well, that option rang and rang and rang. Then, the rudest, thuggiest and most unprofessional rep answered all angry like I was bothering her. She told me she couldn't cancel the policy because it wasn't generated yet. She couldn't refund me without a policy. They charged my account $250 without my consent, and I was told to call back in two days...a weekend. They're not open. This is criminal.

Date of experience: March 18, 2025

If I have been paying into colonial Penn for over twenty years. My advice is understand what kind of policy you're buying. At 9.95 that is when I started with but I turn around 65 it was 25.00 It is not whole life insurance you will pay extra for that. Make sure you know what you're paying for. If you cancel your account, like I did you get nothing back. Not even a thank you 🌿 be aware

Date of experience: March 12, 2025

Customer service -they barely speak English, very difficult to understand which I believe to be very intentional when the average person calling for assistance is more than likely a senior citizen. They are only paying for HALF of my mother's funeral after my parents paid into Colonial Penn for years. When my dad passed in 2023 they paid the 5,000 benefit, but they dropped the entire policy forcing my mom to purchase a new policy, they started the policy in 2023, my mom passed December 2024. Colonial Penn informed me that because it's under two years they will not pay out the entire 5,000 benefit but only half. Very very limited benefits. I will not be utilizing Colonial Penn for my prearrangements for burial. I do not trust Colonial Penn whatsoever

Date of experience: December 18, 2024

I saw $10 bucks / per month and went straight to the reviews to verify. Of course 1.5 stars. You get what you pay for .. whereas in this case, nothing!

Date of experience: December 23, 2024

I believe this company is lying about sending me the funds for my mother. She died Sept 28 of this year, 2024. They claimed to have sent the check twice, but I haven't received it. I have spoken to several people and supposedly a supervisor. They claim I can't go anywhere to pick it up and they say they can't deposit it in my account, yet they took from my account every month for the payment. They should be ashamed, doing this while people are dealing with a loss. No wonder the funeral homes say they don't deal with insurance companies anymore. We had to pay out of pocket
even though mom had insurance. This doesn't make since. The insurance won't even fully cover the burial of the ashes. We need that and more for a niche or ground burial. I didn't know that these insurance companies and some resting places are scammers. The fees are ridiculous. Calling again to complain and see what lies they will tell about the whereabouts of the check. Smh

Date of experience: October 14, 2024

My aunt recently passed away. The family called Colonial Penn to notify the company of death. The family was told that the policy does not exist. However, we had bank statements and policy number showing that my aunt was paying for the insurance for 6 years straight. This COMPANY IS FRAUDULENT AND A SCAM. PLEASE DO NOT WASTE YOUR MONEY. FIND ANOTHER LEGITIMATE INSURANCE COMPANY NOT THIS ONE!!!!

Date of experience: November 12, 2024

Charged me 3 times on one week for the policy then gave me a hard time about canceling and getting my money back. funny, they could charge the account via a phone call, but say you have to send a paper form to get refund. Never ever use this company. They will lie and them gaslight you about their incompetence.

Date of experience: November 04, 2024

Deceptive advertising. Most people do not understand the terms and conditions of what they are buying from Colonial Penn and the likes. Basically, Colonial Penn's guaranteed acceptance life insurance policies r 100% profit for the company as most insured do not usually die within the limits of payout dictated by the policy.

During the first two years this type of policy pays 0 death benefit. If the insured dies all the beneficiary receives is a return of premium. If the insured lives past the fifth year the insured has paid more into the policy than the stated death benefit. So to get the policy to work the insured has to die after the 2nd year but before the 5th year. Sadly, these policies are a scam at most, have little cash value and cannot be converted to traditional whole life.

The low premiums vary from company to company. For the ten dollars a month you are buying an increment and not a policy. Furthermore, many companies that sell this sort of product insist the insured has to buy anywhere from 5 to 10 increments to satisfy policy status which raises the monthly premium between fifty and one hundred dollars a month,

The bottom line - Even if u are uninsurable these policies are not the way to go. You a probably better putting that money you would have paid Colonial Penn once a month in a secure bank account. Annuities are another route, but usually require 500 to a thousand up front to set up an account.

Hope this info has been helpful.

Date of experience: April 28, 2024

I can no longer listen to this well paid spokesman from Colonial Penn push Whole Life Insurance, an investment with such impossibly low returns, it should almost be illegal to sell it.

Price is what you’re overpaying for Colonial Penn “Whole Life Ins”. vs far less expensive TERM LIFE insurance which buys far more life insurance for the same amount of money. Compare for yourself and see the difference! Or better yet call them and ask about their "Terms" of purchase (which is more bad news and how much their insurance is worth for your age upon your demise. Then contact any life insurance company that sells “Term insurance” and see the dramatic difference.

THE LESSON TO BE LEARNED IS NEVER/ NEVER /NEVER BY WHOLE LIFE INSURANCE without comparing it’s value to Term Life insurance … almost all life insurance companies sell Term. They will probably
first try to switch you to “Whole Life ins.” but tell them you ONLY want their quote for Term.

Date of experience: September 18, 2024

This insurance is a Rip-Off, do the math. I’m 78, a male and they offered me $3800 for $80/month.

Date of experience: October 01, 2024

Totally misleading advertising. I’m amazed the Feds haven’t shut them down. A 24karat joke.

Date of experience: August 15, 2024

This is a ripoff. The commercials do not say that you have to wait 2 years to get the full benefit of the life insurance. Be careful!

Date of experience: August 15, 2024

Colonial penn is thee worst life insurance. I have had nothi.g but problems..it is a hassle to even talk to associates, they never answer my questions, and they are not honest and I had to call 3 times a week for months to get claim. I would not recommend this to my worst enemy.

Date of experience: July 15, 2024

9.95 month you get $565 insurance. What a scam

Date of experience: July 08, 2024

I am so tired of watching the TV Commercials because they lie and take advantage of older people. People need to pass the word along to friends and family about how terrible Colonial Penn really is. I certainly do!

Date of experience: July 08, 2024

I contacted colonial Penn about receiving life insurance. I am on SSI. Not SSDI or any other sort.
I was told that colonial Penn would not affect my SSI at all, and there was no problem with me signing up for insurance.
I contacted SSI and found out that yes in fact, it does affect my SSI payments, as well as Medicaid. I had a representative come to my house to speak to me, and he assured me that there would be no repercussions for signing up for their insurance.
This agent named Les boldly lied to my face, or was severely under educated. In fact, if you are on SSI all colonial Penn offers is whole life insurance. Because whole life insurance can be drawn upon as a monetary value, any amount of insurance above $1500 in payout will not only affect your SSI, but may end up having it canceled altogether. Less assured me that was not the case. SSI informed me that in fact that was the case and that I would be penalized for having whole life insurance over the value of $1500 , there is no need for this type of deception .
With their ads on Television and through the mail, They fail to reveal that fact to people. If you are on SSI, do not sign up with colonial Penn. It could permanently eliminate your benefits.

Date of experience: June 17, 2024