In other words, value. NerdWallets life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a companys ability to pay future claims. This is not term life insurance which typically expires by age 75 or 80. In short, Colonial Penn coverage is expensive and has a 2-year waiting period for most applicants. Id like to suggest that life insurance is more complicated than the TV makes it out to be. Use the calculator below to determine the net death benefit you'll get per number of units, along with the total monthly premium. No, Alex Trebek did not influence the insurance company nor did he provide the insurance products to anyone. There simply are a lot of better options out there. January 03, 2018. MORE: Best life insurance companies in 2023. A key point to remember, Alex Trebek, who had the respect of many people, was also a well compensated endorser of the Colonial Penn Life Insurance Company. 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. According to The Daily Mail, Trebek is worth around $50 million. With such misleading articles and commercials seniors and potential clients regardless of gender, can find much better insurance coverage with better companies. Would you buy a policy that is probably not in your familys best interest because it has a paid, Alex Trebek paid endorsement on it? Be prepared to be shocked!! 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. While that all sounds nice, it is important to note that Mr. Trebek was not a life insurance expert, but a paid spokesman for Colonial Penn Life Insurance Company. Rates are regulated by the state. To calculate each insurers rating, we adjusted the scores to a curved 5-point scale. Keep in mind, all final expense whole life insurance is designed for people in less than ideal health. In fact, if you are 70 + and buy this product, you may not have enough to simply cover the cost of a funeral and burial in 2023. Coverage maximum amounts are limited to $50,000 for the term and whole life plan. Check that the insurers youre considering offer the coverage youre looking for. Once you have purchased a guaranteed acceptance whole life policy, the price will not go up and the benefits will not decrease. His work has appeared in The Week, The Washington Post and other national news outlets. The older you are on the date of purchase, the less that $9.95 per month will buy in real financial protection for your loved ones. The best life insurance companies have fewer than the expected number of complaints. The 10-15% remaining still have more affordable options than Colonial Penn guaranteed acceptance insurance. Read more. You will see this illustrated later in this article. Theyd be unable to pay the claims real and why they insert a 2 year limited benefit period into the policy contract. This is for 2 reasons. May not be adequate for many seniors final expense needs. For new policy owners, they now pay 15% of the death benefit the first year, 30% the second year. All financial products, shopping products and services are presented without warranty. Much higher premiums than the competition and commonly, lower value, Limited maximum death benefit (face amounts). We generally advise people to use Gerber or AIG IF they need high risk life insurance like the Alex Trebek Life Insurance product. Before I get into the meat of this post, it is advised to use our free, instant quoting tool on this page. My average policy is closer to $15K in 2023 for funeral and burial costs. Make sure you have the right product ladies and gentleman. NerdWallet does not receive compensation for any reviews. He was in the USA marine corps for 14 years and served in combat and as a master instructor. This is not a good way to be transparent about the cost of buying a policy either. Again, selling life insurance in units is not common in the industry at all. Each rate shown is a quote based on information provided by the carrier. If you misunderstood the commercial, they are not liable. The both offer additional benefits during the first 2 years for death due to natural causes. The full death benefit isnt paid out if the insured person dies during the first two years of taking out a policy. Let's compare Colonial Penn 9.95 coverage to the same amount but with Mutual of Omaha. For example, if you want to skip the. She has also studied data journalism with the National Institute for Computer-Assisted Reporting, business editing with the American Press Institute and writing, editing and news research with the Poynter Institute. Published. The life insurance policy promoted in the Alex Trebek life insurance ad is the $9.95 life insurance, a Guaranteed Acceptance insurance policy. Here is a list of. However, you need to know the true value of the units. The insurance that Alex Trebek advertises is presented so you will be motivated to purchase Guaranteed Acceptance life insurance even if you can medically qualify for better coverage and a considerably lower price. The ads you see to buy Colonial Penn, Globe Life or AARP/New York Life etc, are rarely in your best interest. What has been apparent, consumers do not realize the actual cost and the policy limitations. For example, someone who may be suffering from a terminal illness, have active, internal cancer, on kidney dialysis, or needing an organ transplant. How much does each unit of coverage cost? We will be very blunt as I speak to hundreds of seniors like you every month about Colonial Penn whole life insurance options. If you perish due to an accident such as a car wreck or slip and fall, Colonial Penn would be obligated to pay the full policy amount. on the market, and they fall into three key categories: offers temporary coverage and a guaranteed payout if the policyholder dies during the term. Just a few health history questions will also offer better benefits from day 1 of the coverage. Those who call for information about the life insurance plan will also receive a free Beneficiary Planner courtesy of Colonial Penn. Which one would truly give you and your family real peace of mind? Over more than a decade, he's worked in everything from banks to tech startups. No doctors, nurses or needles in your arm. We all know Ed McMahon, Joe Theismann and even Jerry Lewis. Before we get to far, I would like to make in known: In no way do we wish to put down Mr. Trebek. Simply put He was not an expert. Your acceptance: guaranteed. Check that the insurers youre considering offer the coverage youre looking for. Wheres the value in that? Most of the life insurance complaints are from the Better Business Bureau, with a dismal 1.23/5 stars. Alex Trebek is the second-highest paid game show host on television. How do I file a complaint against 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. For context, one unit may earn you less than $700 in coverage and costs $9.95. This is what protects their family. Guaranteed Acceptance coverage hands you a three fold penalty. It's important to remember that Colonial Penn offers units in the amount of 9.95 each. If you are age 80 at purchase, the value of 1 unit is very low compared to age 50. It could cost you, the consumer and your family dearly. No portion of InsuranceForBurial.com may be copied, published, or distributed in any manner for any purpose without the prior written authorization of the owner. Again, no questions ask and that seniors instantly qualify is a little misleading. Medically underwritten, no exam whole life is superior protection for your family, is more affordable and does not have the limitations written into the whole life policy. Absolutely not. There is a catch here with this 995 life insurance product. As you'll see in our in-depth review of Colonial Penn's $9.95 plan, life insurance from Colonial Penn is not nearly as cheap as it sounds. Trebek's endorsements have long been the bedrock of Colonial Penn's marketing efforts, with the game show personality appearing in TV spots for the insurance company since 1998. Both are marketed to senior citizens in general. They offer life insurance and Medicare Supplement insurance for seniors. Nice and easy. Buy additional units unless you need a very small policy. In fact, other insurance companies have far superior products for burial insurance with zero waiting periods. That is a very, very small policy if you are planning for final expenses. Simplified issue, no exam life insurance is actually designed for people age 50-85 and may not been in excellent health.. This could be devastating for your family if you buy the wrong policy. I see no blatant dishonesty, but the responsibility is completely shifted onto a trusting senior who just wants affordable peace of mind for their family. Is it really a good policy or not? You want $10,000 of coverage to take care of your funeral expenses. The death benefit for your loved is determined at this time and will be paid out according to the terms written into the guaranteed acceptance policy. are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a companys ability to pay future claims. This policy is open to people ages 50 to 85 (50 to 75 in New York), and acceptance is guaranteed. Get even more expert advice to help you make informed choices. Your cost does not change whether you have a independent agent or not. Just because you are a senior does not mean that you are one of these candidates. Considering his yearly salary is quite high, it only makes sense that the iconic TV host has a net worth of $75 million! Several different life insurance companies offer it. TV personality Alex Trebek explains the average funeral cost and how a Whole Life Insurance plan from Colonial Penn can help cover final expenses. Not really. One of our friendly insurance representatives will be happy to help with your quote. Colonial Penn would be sunk real quick with a policy like that. However, this does not influence our evaluations. Colonial Penn TV Spot, 'Important Message' Featuring Alex Trebek. The biggest problem your family may never see the benefits you thought they would get. Colonial Penn life insurance products that Jonathan Lawson promotes seniors will not receive benefits for the first two years. This policy is open to people ages 50 to 85 (50 to 75 in New York), and acceptance is guaranteed. We can help you determine who the best carrier is for you personally. You can feel confident that you will not find a better option or a better agent than me. You may choose the Final Expense Life Insurance quoting tool on this page. NAIC complaintsRatings 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. This particular product, titled Colonial Penn Guaranteed Acceptance Whole Life is nothing unique. We welcome comments below. He suffered with a terrible form of cancer and never quit. Colonial Penn sells coverage in units, and you can buy up to 15 units. In our life insurance reviews, our editorial team considers the customer and the insurer. We frequently replace guaranteed acceptance policies with better benefits and lower cost policies. The maximum age is 75 for the whole life policy. While Colonial Penn offers one other life insurance product, the Alex Trebek, Colonial Penn insurance product is what most seniors are curious about. It seems slippery from my perspective. However, he holds a title with CNO Financial Group of Director of Quality Assurance & Escalations. Take a look at an apples to apples comparison to the Alex Trebek $9.95 life insurance above in the appropriate chart. Whether you need help with your application or want to learn more about a policy, Colonial Penns live chat feature allows you to choose the type of specialist youd like to speak with. Do you assume you cannot qualify for a better policy because your health isnt ideal? After high school at age 18, he went to Pierce College and earned his BBA. This allows them to make a profit with the risk profile they are willing to accept and pay out all claims. Look at the number of consumer complaints each company receives, as high numbers can be a red flag about the quality of service. Always have an independent, seasoned professional verify your need for any guaranteed issue life insurance before buying. Bottom line: With a high volume of complaints and relatively low coverage limits, youll likely find better options elsewhere. Sorry, Alex Trebek life insurance is not demonstrating anything special. How much is Jonathan Lawson from Colonial Penn worth Jonathan Lawson is an actual employee of Colonial Penn parent company CNO Financial Group. Television has been the common marketing avenue of Colonial Penn for years. They pay their spokesmen a pretty penny to advocate how good their coverage is. Weve discussed those previously. Advertiser. Not bad not great, but not bad either. Most people are shocked when I explain why they dont want to own a policy like this unless they have no better permanent life insurance alternatives. Better than having no life insurance protection at all. It is automatic with a guaranteed issue whole life policy. Our partners compensate us. Colonial Penn TV Commercial: "Call Sooner" In this commercial, the latest Colonial Penn actor, Jonathan Lawson, makes the pitch. The intention is to get you to call up Colonial Penn and just buy the policy. $10,000 is the minimum coverage amount. In fact, its hard to not see them especially if you are a senior looking into life insurance options. Could funeral and burial expenses double in the next 10-20 yrsa distinct possibility! Call us and we can have you qualified, and matched up with an A/A+ carrier within minutes. This is permanent, whole life insurance that will never go up in cost nor down in death benefits. Guaranteed acceptance policies ran between $10 and $80 per month, while whole life insurance was the most expensive at $30 to $133. It buys you 1 unit of their 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. They are not going to help you get the best insurance at the lowest price. Jonathan Lawson is a paid actor who you have seen in Colonial Penn commercials advocating the $9.95 plan. If you are wondering if the price per month was not accurate, you were just not aware of how the insurance company was pricing the 995 life insurance program. Pre-qualified offers are not binding. See what size policy that $149.25 per month will buy. It is not responsible of a life insurance company to recommend products built for generally poor health applicants and market it like it is the affordable final expense solution for seniors. He also spent time in the marine corps serving his country. He is another new actor or pitchman like Alex Trebek that are promoting and marketing Colonial Penns TV Commercials. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. You buy it, just remember, Colonial Penn will not be making any exceptions for you or your family. So clearly not the best plan for the grandparents. The above quote was taken directly from colonialpenn.com in 2019. Well help you decide. The Philadelphia-based insurer is owned by CNO Financial Group, which is also the parent company of Bankers Life. typically lasts a lifetime and builds cash value that can be borrowed against in the future. The amount of life insurance you can get from Colonial Penn for $9.95 a month depends on your age and gender. They sell you what they are marketing. 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. Because the insurance company does not ask any health history questions. They now feature Colonial Penn sales manager Jonathan Lawson as the pitchman in their commercials. You wouldn't want to mistakenly think you have a free pass to star in your own version of The Fast and the Furious. He has been at Colonial Penn for over 8 years and started off as a customer service manager and then as a telesales manager. Alex Trebek coverage is not a better policy than any other guaranteed acceptance policy from another company. 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. Decide which, , if any, you want the policy to include. While all insurance companies have a certain amount of complaints against them, Colonial Penn life insurance has a higher than average number complaints against it. Be sure to review the rate chart above and see the maximum amount of financial protection that can be bought at your current age with CP. Aah, here is the problem with Colonial Penn units. $9.95 sounds quite enticing but. In addition, if you are healthy do you deserve a two-year waiting period? What do you think they do in to offset the risk of not having a clear picture of whom is requesting life or burial insurance protection from them? With almost 3 decades of dedication to thousands of clients, I share my knowledge with you so that you can feel comfortable fulfilling your needs and goals. When comparing rates, be sure the quotes are for the same amount of coverage over the same period of time. Most people just want the straight scoop without all the games and limitations. If you had not already made the connection, the trivia game show host has driven a lot of people to consider Colonial Penn. The tool on this page will help you know what the competition is charging for no medical exam, whole life insurance. Over more than a decade, he's worked in everything from banks to tech startups. Jeopardy has never been the same in my opinion. Again, Jonathan Lawson is a paid spokesman for Colonial Penn Commercials. Guaranteed acceptance life insurance. He was not carrying a life insurance license nor taking ongoing education requirements and training to advise people on life insurance. Better yet, give us a call and lets talk about your needs and find the right plan to protect your family. Yes, all the plans quoted here are designed for those in less than perfect health and require no medical exam. In year 3 and for the remainder of your life, they will pay the full policy amount. How Much Insurance Do You Get From Colonial Penn For $9.95 A Month? A professional journalist since high school, she was an insurance writer at NerdWallet before becoming an assigning editor. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Now that you know the real cost of $9.95 life insurance, put away your thoughts of Alex Trebek insurance. Youre certainly welcome to experiment with the instant quote tool on this page. The Philadelphia-based insurer is owned by CNO Financial Group, which is also the parent company of, to ensure the content on our site is accurate and fair so you can make financial decisions with confidence and choose the products that work best for you. Guaranteed Acceptance coverage from any life insurance company that offers it, will take high risk life insurance individuals. I am a life insurance expert that specializes in final expense, critical illness, Medicare Supplements, and term/UL policies. 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. Therefore, the maximum anyone would pay would be $149.25 per month. Guaranteed coverage available to applicants up to age 85. In fact, there is no way for a good health 75 year old to obtain the same amount of financial coverage if both purchased the maximum number of units with this particular policy. This site provides life insurance information and quotes. Having a real professional protects not only your interests but that of your family. That is all. Not just the folks in very high risk health situations. Make sure you speak with the right independent life insurance agent who works with people 50-85 daily. Colonial Penns advertising may be misleading to those who arent familiar with its pricing structure. So What Is The Alex Trebek Life Insurance Commerical About? This does not even count the actual burial costs at the cemetery. for its policies, including its traditional whole life insurance. Applicants dont need to answer health questions or take a medical exam. You must understand that life insurance companies cannot evaluate the risk level of a person accurately without asking health questions. 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. Jonathan Lawson works for CNO Financial Group, the parent company of Colonial Penn. Do you want to assume and pay more money for coverage because Alex Trebek was paid to endorse it? Sign up and well send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. 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). 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