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Colonial Penn Life Insurance

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					Colonial Penn Life Insurance Colonial Penn Life Insurance company was founded in the
1960s and is a subsidiary of the Conseco Group, a Fortune 500 company. Colonial Penn
Life Insurance and Conseco seek to offer affordable life insurance and financial products
to families and senior citizens. Colonial Penn's offerings include: Term life insurance
policies to issue on people up to age 77; five-year renewable term insurance available to
age 75 with no medical exams necessary and with face amounts of $5,000, $10,000,
$15,000, $20,000, and $25,000 offered; twenty-year term life policies will lock in
premiums without a physical exam available to people age 18 to 77; and accelerated
death benefits which are available in case of a terminal illness. Colonial Penn was one of
the first life insurance companies to offer guaranteed acceptance life insurance--life
insurance policies with small face amounts, high premiums, and no medical exams
required. Colonial Penn Life Insurance marketing mainly targets senior citizens, people
who have health conditions that make them uninsurable by most other insurance
companies, and people with families to protect who are relatively late getting life
insurance into their financial plan. Colonial Penn uses famous, older celebrities such as
Ed McMahon and Alex Trebek featuring in highly-produced, almost absurdly dramatized
TV and radio commercials to advertise its products. Colonial Penn has been investigated
and sued for charging outlandishly high premiums that supposedly are not risk-justified
or not fully disclosed at the point of sale. The company does not receive the highest
ratings from independent insurance and financial institution ratings agencies. Standard
and Poor's gives them a mere BB+, and so does A.M. Best give them just a B++.
Fitchgives them a BBB and Moody's a Ba1; both of those ratings are about the same as
Best's. For instance, Colonial Penn's $25,000 guaranteed acceptance 20-year term life
policy on a standard 38 year old male costs a "mere" $37 a month in premiums. What's
wrong with that? What's wrong is there are many other life insurance companies that
would give that same man the same policy...except he would have $500,000 of death
benefit. The difference would be that for those other life insurance companies, those
aren't guaranteed acceptance policies--they would require a medical exam. Guaranteed
life insurance policies are usually a bad idea to start with--only somebody with a health
condition that's so bad that he can't get life insurance in any other way should consider
one. But Colonial Penn pushes these policies as the greatest thing since sliced bread...and
they mainly market to seniors, people between the ages of 50 and 75. Using celebrities to
bolster their pitch, they play on older people's fears of being uninsurable. They also play
upon the sad fact that most seniors who don't have a financial background are very
ignorant about full financial pictures, even if they own stocks and bonds. These people
may believe that all they need as far as life insurance goes is a "burial policy" to finance
their funeral. Life insurance is not about just being buried--if you're going to buy a policy
for that purpose you'd be better off trying to make sure you have enough real money in
assets to cover that, instead. And even if seniors have to pay higher premiums when they
buy a new life insurance policy, if they take a guaranteed acceptance policy they're not
saving money at all--they're throwing it away. Most seniors are insurable, just at higher
premiums for the same death benefit than younger people of the same gender have to pay.
But those rates are still much lower than guaranteed acceptance policies'. Colonial Penn
agents might very well believe they are giving needy people a good service, but if they do
they have been had by their own company and those expensive celebrity commercials.
Few people would truly benefit from these products. The author lives with her husband in
Maryland, with their two dogs and cat. She put together the website
http://www.affordable-life-insurance-guru.com in order to help the everyday person
navigate the often confusing world of life insurance

				
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posted:8/12/2013
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Marijan Stefanovic Marijan Stefanovic Digital Imagery http://proart-13.blogspot.com/
About Publisher, Web, PC, Marketing, Blogging, Social Networks & More * Please be open minded while reviewing this data, further research is suggested. This documents and articles are in "as is" form, I can not take responsibility for financial or physical harm occurred while using or misuse of information posted, thanks for understanding, Marijan