How Much Life Insurance Do You Get for $995: The Essential Breakdown
Life insurance plays a crucial role in providing financial security for your loved ones in the event of your passing. One popular option is Colonial Penn’s 995 life insurance plan, which offers guaranteed acceptance for individuals between the ages of 18 and 75. This plan is often advertised as costing only $9.95 per month, but it is essential to understand what kind of coverage this amount provides.
A unit of Colonial Penn coverage is the amount of life insurance benefit you receive for the $9.95 monthly premium. As you consider the 995 plan, it’s important to determine whether the coverage offered per unit is sufficient for your family’s needs, such as covering funeral expenses or debts. Keep in mind that you may need to purchase multiple units to provide adequate coverage.
To make an informed decision, assess your own financial situation and the type of coverage you desire. Comparing the Colonial Penn 995 plan to other life insurance options will help determine if it is the most suitable choice for you and your loved ones. Remember that life insurance needs can vary greatly from person to person, so don’t hesitate to seek professional advice if you are unsure about your needs.
Understanding the Colonial Penn 995 Plan
Coverage Options
The Colonial Penn 995 Plan is a guaranteed acceptance life insurance policy that does not require any medical exams or health questions. It is designed for individuals between the ages of 18 and 75, providing up to $50,000 in coverage. The policy has a two-year waiting period, so if the insured dies during this period, the beneficiary will only receive a refund of the premiums paid.
Unit System
Colonial Penn sells the 995 Plan using a unit system, where each unit costs $9.95 per month. This means that the amount of life insurance coverage you get per unit is variable, depending on your age and gender. For example:
- For a 40-year-old non-smoker male, one unit might provide $1,000 of coverage
- For a 60-year-old non-smoker male, one unit might provide $600 of coverage
To obtain sufficient coverage, it may be necessary to purchase multiple units.
Gender and Age Factors
The Colonial Penn 995 Plan determines the amount of coverage you can get per unit based on your age and gender. This is because life expectancy differs between males and females, and among various age groups. Here is an example of how gender and age affect the coverage you receive per unit:
| Age | Male Coverage | Female Coverage |
|---|---|---|
| 40 | $1,000 | $1,200 |
| 60 | $600 | $750 |
As you can see, the amount of coverage per unit decreases as you get older, and females generally get more coverage than males. This means that the older you are when you purchase the 995 plan, the more units you may need to buy in order to secure an adequate payout for your beneficiaries.
In conclusion, understanding the Colonial Penn 995 Plan and its unit system, along with how gender and age factors influence coverage, is essential when considering this life insurance option. Multiple units might be required to achieve the desired coverage amount, depending on your individual circumstances.
Types of Life Insurance
Term Life Insurance
Term life insurance provides coverage for a specified term, usually ranging from 5 to 30 years. If the insured passes away during the term, the policy pays out a death benefit to the beneficiaries. Term life policies are typically more affordable than whole life policies and are often recommended for individuals who need coverage for a specific time period, such as until their children are grown or their mortgage is paid off. A good example would be a 20-year, $500,000 term life insurance policy for a healthy 40-year-old.
Whole Life Insurance
Whole life insurance offers coverage for the entire lifetime of the insured, as long as the premiums are paid. This type of policy also includes a cash value component that can be borrowed against or withdrawn to cover expenses like education or retirement. Whole life policies are generally more expensive than term life policies as they provide coverage for more extended periods and have additional features like the cash value component. In the context of the $9.95 life insurance plan, Colonial Penn’s permanent whole life insurance is different from their $9.95 plan as it is not guaranteed issue life insurance and has underwriting.
Guaranteed Acceptance Life Insurance
Guaranteed acceptance life insurance is a type of whole life insurance that doesn’t require medical exams or detailed health history information. This policy is usually available to individuals within a specific age range, like 50 to 80 years old, and it offers a guaranteed death benefit. The Colonial Penn $9.95 plan is an example of guaranteed acceptance life insurance. In this plan, you can receive up to $50,000 in coverage and it’s available for individuals between the ages of 18 and 75. The policyholder pays $9.95 per month for each unit of coverage purchased, and the benefit amount received is determined by the number of units purchased.
Premiums and Rates
Factors Affecting Rates
Several factors influence life insurance premiums and rates, including age, health, and the type of policy selected. One popular policy option is the Colonial Penn $9.95 per month plan. Here are some factors that affect life insurance rates:
- Age: Your age plays a crucial role in determining life insurance rates. As you grow older, the cost of insurance typically increases, making it more expensive to purchase coverage.
- Health: Insurance carriers consider your overall health when setting policy premiums. Individuals with pre-existing medical conditions or risky habits (such as smoking) may face higher premiums.
- Type of Policy: Different policies offer different coverage levels, which can impact the premium cost. The $9.95 plan offers guaranteed acceptance and a specific coverage amount determined by the number of units purchased.
Sample Rate Chart
Here is a sample Colonial Penn life insurance rate chart for their guaranteed acceptance $9.95 per month plan:
| Age Group | Coverage Amount Per Unit of $9.95 (Men) | Coverage Amount Per Unit of $9.95 (Women) |
|---|---|---|
| 40 – 49 | $1,777 | $2,068 |
| 50 – 59 | $1,280 | $1,481 |
| 60 – 69 | $861 | $1,006 |
| 70 – 79 | $643 | $731 |
| 80 – 85 | $418 | $487 |
Keep in mind that these are sample rates and can change over time. Depending on your age and gender, the life insurance coverage per unit of $9.95 may vary. To get sufficient coverage, you can consider purchasing multiple units. Insurance agents and financial advisors can help provide personalized recommendations based on your unique circumstances.
How to Get a Quote
When considering a life insurance policy, it’s important to know how much coverage you’re getting for your money. One specific plan, Colonial Penn’s $9.95 plan, offers guaranteed acceptance life insurance for those aged 50-85. In this section, we will discuss how to obtain a quote for this plan and others using online resources or by contacting an agent.
Online Quotes
A quick and convenient way to get a life insurance quote is by using an online calculator or comparison tool. Websites like Bankrate, SelectQuote, and Policygenius offer life insurance calculators that can help estimate your coverage needs and provide quotes from various providers.
To use an online quote tool, you will need to input some basic information such as:
- Age
- Gender
- Smoker or non-smoker status
- Desired policy term
- Health information (if required)
Once the information is provided, the online tool will generate a quote based on your specific needs and desired coverage amount.
Agent Assistance
If you prefer a more personalized approach, contacting a life insurance agent can be a valuable option. Agents have in-depth knowledge of various policies, and can help clarify any questions or concerns you may have. To connect with an agent, reach out to a local or online life insurance agency like SelectQuote or American Family Insurance.
Some benefits of working with an agent include:
- Tailored advice based on your unique circumstances
- Expertise in identifying potential coverage gaps or inconsistencies
- Assistance with comparing quotes from different companies
When speaking to an agent, be prepared to provide the same personal information needed for online quotes. This will help the agent understand your requirements and provide accurate policy recommendations.
Remember, it’s important to explore all available options and gather multiple quotes to ensure you’re receiving the best possible coverage at the most affordable price.
Health and Underwriting
Medical Exam
When applying for a life insurance policy, such as the Colonial Penn 995 Plan, a medical exam may or may not be required. In the case of guaranteed acceptance policies, like the 995 Plan, there is usually no medical exam required. Guaranteed acceptance means that as long as you meet the age requirements (typically between 18 and 75 for this plan), you will be accepted without the need for a medical exam.
Health Questions
While the 995 Plan does not require a medical exam, some life insurance policies may include health questions as part of their underwriting process. Health questions serve to determine your overall health and risk factors, which can influence the cost and coverage amount of the policy. These questions can range from inquiries about your weight, height, and tobacco use to more specific questions about your family medical history and any ongoing medical treatments or diagnoses.
Pre-Existing Conditions
Pre-existing conditions are any health issues or medical diagnoses that you have prior to applying for life insurance. While the 995 Plan is a guaranteed acceptance policy and does not take pre-existing conditions into account, other life insurance policies may look at these conditions to determine your coverage eligibility and cost. Life insurance companies will consider the type and severity of your pre-existing conditions, as well as the length of time since the condition was diagnosed or last treated, in order to assess the risk of insuring you.
In summary, the Colonial Penn 995 Plan is a guaranteed acceptance life insurance policy that does not require a medical exam, health questions, or consideration of pre-existing conditions to qualify for coverage. The amount of life insurance coverage you receive for $9.95 per month depends on your age and gender, and it may be useful to purchase multiple units if additional coverage is needed. Remember to carefully assess your individual needs and consult with a licensed insurance professional when considering life insurance policies.
Policy Features
Death Benefit
The death benefit amount for the Colonial Penn 995 Plan depends on various factors such as age, gender, and the number of units purchased. For example, the life insurance benefit amount for a 50-year-old woman can be as much as $2,000, while it may only be $418 for an 85-year-old man. The coverage is sold in units, with each unit costing $9.95 a month. To ensure sufficient payout to cover funeral expenses or support loved ones, you may need to buy multiple units.
Coverage Duration
The Colonial Penn 995 Plan provides guaranteed acceptance life insurance with a two-year waiting period. If the policyholder passes away within the first two years of coverage, their beneficiary will receive a refund of the premiums paid rather than the full death benefit. The policy remains active as long as the premiums are paid, serving as a long-term coverage option for policyholders.
Policy Management
Managing a Colonial Penn 995 Plan is straightforward. Policyholders can modify their coverage options by purchasing additional units or decreasing the number of units, depending on their changing financial needs. It’s essential to evaluate and adjust the policy periodically to ensure adequate coverage over time. However, the premium costs for this plan can be 30%+ higher if purchased directly from Colonial Penn compared to shopping through an independent insurance agent.
Considering Alternatives
Other Insurance Companies
When looking at life insurance, it’s important to consider multiple options to find the best fit. While Colonial Penn offers the 995 plan, there are other reputable insurers to consider, such as AIG, Mutual of Omaha, and Aetna. Each company has its own range of products and services, catering to different needs and budgets.
- AIG: Offers term life, whole life, and universal life insurance plans.
- Mutual of Omaha: Provides term life, whole life, and universal life coverage, as well as other insurance and financial services.
- Aetna: Offers a variety of insurance products, including group life insurance plans through employers.
Comparing Rates and Coverage
When comparing life insurance plans, it’s crucial to evaluate both the rates and the coverage provided. The Colonial Penn 995 plan is priced at $9.95 per month, but the associated coverage might not satisfy everyone’s needs. Keep in mind that funeral costs can vary significantly, so the plan’s coverage may not entirely cover your personal burial expenses.
To get a sense of how Colonial Penn’s 995 plan stacks up against alternatives, consider comparing rates and coverage across different companies. You can use online tools and calculators to help determine your insurance needs and estimate premiums for each insurer.
In conclusion, while Colonial Penn’s 995 plan might be a suitable option for some individuals, it’s essential to explore other options and compare their rates and coverage levels. By doing so, you can ensure you select the right life insurance plan for your specific needs and budget.
Customer Feedback
Positive Reviews
Customers have praised Colonial Penn’s life insurance $9.95 plan, citing affordability and accessibility as key factors that make it an appealing option, especially for seniors on a fixed income or individuals with lower budgets. According to some, getting coverage with the Colonial Penn 995 Plan is straightforward and customer service representatives are helpful and responsive.
Some customers who left positive reviews specifically mentioned:
- Low monthly cost
- Ease of enrollment process
- Friendly and helpful customer service
- Availability to a wide range of ages
Negative Reviews
However, Colonial Penn has also received negative reviews from customers who felt misled by the marketing of the $9.95 plan. Some customers believe that the coverage offered for the $9.95 monthly premium is insufficient or that the pricing model is confusing since the life insurance benefit amount varies widely depending on one’s age and gender.
Common concerns in negative reviews include:
- Misleading marketing with unclear coverage amounts
- Disappointment with the amount of coverage received for the $9.95 premium
- Difficulty navigating the pricing model and understanding “units” of coverage
It’s important to note that, while there are both positive and negative customer experiences, the BBB has received some complaints regarding Colonial Penn’s life insurance offerings, especially around the company’s customer service and billing practices.
