![]() Permanent Whole-Life Insurance: Although this is a traditional whole life policy, it does not require a medical exam. Premium rates are locked in for the life of the policy. Over time, the policy builds cash value, which the insured can borrow against as necessary. It is guaranteed to remain in place for the insured’s entire lifetime if the premiums are paid. Whole-life insurance pays a benefit to beneficiaries when the policyholder dies. Some 90% of the companies we reviewed received a higher grade than Colonial Penn from AM Best.Ĭolonial Penn currently offers two whole life insurance policies, neither of which requires a medical exam. In 2022, Colonial Penn received an A rating, indicating an excellent though not an exceptional level of financial strength. The credit rating agency has a grading system for indicating the ability of a life insurance company to pay claims. (For context, most of the best life insurance companies have an index below 1, and only eight other companies among the 91 we researched received an index average worse than Colonial Penn’s.)Ĭolonial Penn fares better when it comes to financial strength ratings provided by AM Best. This number denotes customer satisfaction well below the industry average. ![]() In 2022, Colonial Penn’s NAIC average index was 2.98, meaning that three times as many complaints were lodged against it as a company its size should receive. An index of 2, for example, would indicate twice the expected number of complaints. A number less than 1 means the company received fewer complaints than expected, while a number greater than 1 means it received more. It tracks customer complaints and uses those numbers to create its Complaint Index, which compares companies of similar sizes by the number of complaints filed by policyholders.Īn insurance company is assigned a number based on how many customer complaints it receives in a given year, whereby 1.0 represents the expected number of complaints based on its size. A company with the expected number of complaints is given a complaint index of 1. We base that on information from the National Association of Insurance Commissioners (NAIC). In contrast, most of its competitors offer at least $200,000 in maximum coverage, while several are in excess of $1 million or uncapped.Ĭolonial Penn received an unusually high amount of customer complaints for a company of its size, compared to competitors.
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