Colonial Penn – Mortgage Protection Insurance Review (2024)

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Colonial Penn

Colonial Penn is a life insurance company with its headquarters in Philadelphia, PA. Founded by philanthropist Leonard Davis and owned by the CNO Financial Group, the company’s initial focus was providing life insurance to people over the age of 65. However, the company has expanded its audience since then to include people as young as 50, guaranteeing acceptance to its life insurance program for anyone up to age 85.

Does Colonial Penn Offer Mortgage Protection Insurance?

It’s common for people to assume that because mortgage protection insurance is a form of life insurance, that must mean that all life insurance companies offer it. Unfortunately, that is not the case. Colonial Penn offers only traditional life insurance policies, which means people pay a monthly fee, then wait for two years before being eligible to receive coverage. When a policyholder dies, the people they have assigned as beneficiaries receive the money directly.

Mortgage protection insurance is a little different. Policyholders still pay a monthly fee, although it tends to be lower than those associated with traditional life insurance policies. If they pass away during the coverage period and still owe money on their mortgages, the issuer pays the benefits directly to the mortgage holder. Some people take out mortgage protection insurance in addition to traditional life insurance policies, while others choose one or the other.

Colonial Penn Mortgage Protection Insurance Cost

The cost of Colonial Penn’s life insurance policies varies substantially depending on what type of coverage people choose and how old the policyholder is. However, their life insurance policies are reliably more expensive than mortgage protection insurance, regardless of age. The cost of taking out a mortgage protection plan can be as low as $5 per month. As with traditional life insurance, the costs rise alongside the age of the person taking out the policy. Consider using our mortgage life insurance calculator for Colonial Penn policies.

Riders for Colonial Penn Mortgage Life Insurance

Riders are add-ons that policyholders can purchase for an additional cost. Common examples include disability, unemployment, or bankruptcy riders. These provide extra protections if the situation described in the add-on comes up, meaning that a policyholder who winds up disabled, unemployed, or having to file for bankruptcy may be able to access their benefits while still alive.

Colonial Penn offers multiple types of life insurance policies. The intention is to offer coverage options for people with different budgets and in varied life situations. Riders can be used to further customize their policies. However, both eligibility and the range of options available are much stricter than those associated with mortgage protection insurance. More specifically, there are two types of policies that offer what’s known as an accelerated death benefit rider or a living life insurance rider.

The living life insurance rider is available to people who hold renewable term or whole permanent life insurance policies with Colonial Penn. Those who opt to purchase this insurance add-on may be able to receive up to half of their death benefits while still alive. It’s an attractive option for those with a family history of strokes, heart attacks, cancer, or chronic illnesses.

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