All Life Insurance Tips

Colonial Penn (55 - 85 years old) life insurance?

I have seen the TV comercials where $7.95 a month will buy life insurance with no health questions asked " waratied aceptance" does anyone know what the catch is? Any feedback would be helpful.

Public Comments

1. Call them and ask because there is always a catch if they say no questions asked
2. What's the catch? The advertise $7.95/month is the cost per unit or $1000 coverage. So, if you wanted a $100,000 coverage, that would cost $795.00/month ($100 x $7.95). Which is $9540/year. That's why there's no health questions asked because you are paying lots or premium for a low amount of coverage. If you don't pay your premiums, you will lose coverage automatically! This company is based in Valley Forge, Pennsylvania. New Jersey Department of Banking and Insurance has been questioning this company because they have received over 100 complaints within one year. AM Best gave a "B" rating (fair) to this company. That is a very low grade to receive. So, shop around for better life insurance companies that has a rating of A or A+.
3. Truth is the best option to trust is correct. The advertise $7.95/month is the cost per unit or about $1000 coverage. For instance, if you go on their website and request a quote for a male, age 55, you would get the following quotes: Units Benefit Monthly Premium Annual Premium 1 Unit $1,345 $7.95 $87.45 2 Units $2,690 $15.90 $174.90 3 Units $4,035 $23.85 $262.35 4 Units $5,380 $31.80 $349.80 5 Units $6,725 $39.75 $437.25 6 Units $8,070 $47.70 $524.70 7 Units $9,415 $55.65 $612.15 8 Units $10,760 $63.60 $699.60 If you're considering this option, be sure to shop around, depending on what you want the life insurance for, term life insurance may be a better option.