Colonial Penn vs Great Western: Which Life Insurance Is Right for You?
When it comes to life insurance, finding the right provider can feel overwhelming. Colonial Penn and Great Western are two well-known companies, each offering unique products that cater to different needs. In this article, we’ll compare the two companies based on their policies, pricing, coverage options, and customer satisfaction, so you can decide which one is right for you.
Company Backgrounds
Colonial Penn
Colonial Penn has been in the life insurance business for over 60 years, known for its focus on seniors and guaranteed acceptance life insurance policies, nicknamed the $9.95 plan. The company gained recognition through its affordable and straightforward policies, particularly for people over 50. Colonial Penn specializes in offering life insurance to those who might otherwise have difficulty obtaining coverage due to age or health conditions.
Great Western
Great Western Life Insurance was founded in 1983 and is primarily known for its final expense and pre-need funeral insurance products. The company focuses on helping individuals and families plan for end-of-life expenses, providing peace of mind for seniors and those concerned about covering funeral costs. Their services are tailored to meet the specific needs of the senior market, making them a go-to choice for burial and final expense policies.
Types of Policies Offered
Colonial Penn
Colonial Penn offers one policy:
Guaranteed Acceptance Life Insurance: No medical exam or health questions are required. Anyone between the ages of 50 and 85 is eligible, making it a popular choice for seniors. However, the coverage amounts are typically lower, and the pricing is higher compared to policies requiring health information.
Great Western
Great Western is more specialized, offering the following:
Final Expense Insurance: These policies are designed to cover funeral and burial costs, as well as other end-of-life expenses. This is ideal for seniors looking for affordable protection to ease the financial burden on their loved ones.
Guaranteed Issue Whole Life Insurance: Like Colonial Penn’s guaranteed acceptance policy, this option does not require a medical exam or health questions. Coverage is available regardless of health, but benefits are limited for the first few years.
Pre-Need Funeral Plans: These plans allow individuals to pre-pay for their funeral services, locking in prices and ensuring their wishes are followed. This option offers more control and flexibility for end-of-life planning.
Eligibility Requirements
Colonial Penn
Colonial Penn’s guaranteed acceptance policy is available to anyone between the ages of 50 and 85 without the need for a medical exam or health questionnaire. Their term and whole life insurance policies have broader age ranges, but applicants must meet certain health requirements for approval.
Great Western
Great Western focuses on final expense and guaranteed issue policies, which means they don’t require medical exams for many of their products. However, these policies are generally targeted at older individuals, typically starting at age 50. Their pre-need plans may be available to individuals of various ages, depending on funeral home partnerships.
Policy Pricing and Affordability
Colonial Penn
Colonial Penn’s guaranteed acceptance life insurance is known for its guaranteed acceptance policy, but smaller coverage amounts. However, since no medical information is required, the premiums may be higher than those of traditional life insurance policies. Pricing varies based on age and gender, but the policy typically offers a limited death benefit, which may not be enough to cover extensive final expenses.
Great Western
Great Western’s final expense insurance is competitively priced, particularly for individuals looking for higher coverage to cover burial costs. Their guaranteed issue policies tend to be slightly more expensive due to the lack of health requirements, but the premiums are reasonable given the type of coverage provided. This company offers flexible payment options to help policyholders fit their insurance into their budget.
Coverage Options
Colonial Penn
Colonial Penn offers limited coverage amounts, particularly for their guaranteed acceptance policies. Typically, coverage caps at a lower amount than traditional life insurance, which may be a drawback for those looking for significant financial protection. The company’s term and whole life insurance options offer higher limits but may require a medical review.
Great Western
Great Western is ideal for those looking for comprehensive final expense and burial coverage. Their policies offer coverage amounts that can go as high as $40,000, ensuring that funeral and other final expenses are adequately covered. Pre-need plans offer further customization based on individual funeral preferences, ensuring that every detail is accounted for.
Customer Reviews and Satisfaction
Colonial Penn
Colonial Penn has a mixed reputation among customers. Many appreciate the simplicity of their guaranteed acceptance policies and the ease of enrollment. However, some reviews note that the death benefit is lower than expected, especially given the relatively high premiums for small coverage amounts. Additionally, the company’s claims process can sometimes be slower compared to industry standards.
Great Western
Great Western generally receives positive reviews from customers, particularly for their final expense and pre-need services. Policyholders appreciate the company’s focus on seniors and the flexibility in coverage amounts. Their customer service is often praised for being responsive and helpful during the claims process, which is crucial for final expense and burial insurance.
Pros and Cons of Colonial Penn
Pros:
No medical exam required for guaranteed acceptance policies.
Affordable for smaller coverage amounts.
Well-suited for seniors seeking basic coverage.
Cons:
Limited coverage amounts.
Higher premiums for lower death benefits.
Some customers report slow claims processing.
Pros and Cons of Great Western
Pros:
Strong focus on final expense and burial insurance.
No medical exam required for most policies.
Flexible coverage options, especially for end-of-life expenses.
Cons:
Limited to final expense and burial insurance products.
Higher premiums for guaranteed issue policies.
Who Should Choose Colonial Penn?
Colonial Penn is a good option for seniors looking for simple, no-exam life insurance with guaranteed acceptance. If you’re between the ages of 50 and 85 and want coverage to help with basic final expenses, Colonial Penn’s policies could provide peace of mind at an affordable cost.
Who Should Choose Great Western?
Great Western is ideal for individuals looking for robust final expense and burial coverage. If your primary concern is covering funeral costs and other end-of-life expenses, Great Western’s policies offer higher coverage limits and greater flexibility. Additionally, if you want to pre-plan your funeral and lock in today’s prices, their pre-need plans are a perfect choice.
FAQs for Colonial Penn vs Great Western
What is the biggest difference between Colonial Penn and Great Western?
Colonial Penn focuses more on guaranteed acceptance policies with smaller coverage amounts, while Great Western specializes in final expense and burial insurance with higher coverage limits.
Which company offers better coverage for seniors?
Great Western is more focused on final expense policies with higher coverage amounts, which may make it a better option for seniors looking for comprehensive burial coverage.
Does Colonial Penn offer better pricing than Great Western?
Colonial Penn’s guaranteed acceptance policies may be more affordable for smaller coverage amounts, but Great Western offers better value for those looking for higher coverage.
What is the maximum coverage I can get with Colonial Penn or Great Western?
Colonial Penn offers smaller coverage limits, typically up to a few thousand dollars, while Great Western can provide final expense coverage up to $40,000.
Are there any medical exams required for policies from these companies?
Neither Colonial Penn nor Great Western requires medical exams for their guaranteed acceptance or guaranteed issue policies.
