The demise of a loved one is a tough time to go through for any family. What might add to those difficult times are the expenses associated with conducting the deceased’s funeral. Burial insurance opted for by the senior member can help with mitigating the costs associated with burial.
Colonial Penn Burial Insurance is one such product available from the company specializing in senior citizens’ insurance. Upon demise, your family will get the payout from them, which will help with funeral expenses.
What to Know About Your Choice
As with any insurance product, Colonial Penn Burial Insurance also comes with its set of conditions. While the company advertises many positives or seemingly positive attributes, it is necessary to do some research before opting for it.
Below are five things that might help with the decision making:
The Two-Year Waiting Period
The burial insurance comes with a two-year waiting period, meaning that you must have two years to receive the money promised under the scheme. This period starts from the date of purchase of the insurance policy.
In case of death within a month or two of being insured, you will not be compensated for it. Likewise, unfortunately, if you pass away in a few months or even a month before the two-year deadline, there won’t be a payout.
It is best to opt for this policy when you are assured of at least completing the two-year wait period.
Whole Life Guaranteed Acceptance
Colonial Penn makes its policy of guaranteed acceptance for whole life to be well heard by everyone by stressing on it in advertisements. That basically means that the company doesn’t conduct the routine health checkup done by insurers to ascertain the insured’s health status. It provides insurance irrespective of the customer’s health condition.
This appeals to its target market i.e., senior citizens, who tend not to have a clean bill of health. As always, advertisements don’t match reality. The feature leaves you with no underwriting from the company’s side. Death within the 24 months will leave the beneficiaries empty.
Policies with health checkups, though seemingly bothersome, actually have no such waiting periods. Beneficiaries will receive at least a part of the money should death occur within the policy period. And that premium tends to be on the lower side too comparatively.
Rate locking refers to the fixing of the premium value to be paid during the policy period. This is opposed to the variable rate premiums, which increase or decrease as the case may be over the policy period. The latter is quite common, which is why Colonial Penn’s advertising also focuses intently on this feature of theirs.
It must be noted that while Colonial Penn Burial Insurance is not wrong to advertise it and there’s nothing deceptive about it, it doesn’t give the whole picture. The fact is, a locked rate is a feature common to all whole life insurance policies.
Knowing this fact will help you to be assured of the rate and will allow you to focus on other aspects of the policy, like what benefits it gives for the money compared to the competition.
Units of Coverage
Behind the fancy jargon, it simply refers to the amount of life insurance benefit a customer obtains when insurance is bought. Several factors of the insured come into play when determining the cost, such as age, gender, and the state he/she resides in.
The conditions Colonial Penn introduces into the mix are limits on the number of units of insurance that you can buy, and the decrease in size of the units of coverage as you age. Women generally tend to have lower premiums than men.
Reliable Customer Care
An unreachable insurance vendor is a nightmare to deal with. That is especially true in the case of senior citizens, who might not even have the capability to pursue an unresponsive provider actively. Colonial Penn does provide an always available customer service that can be contacted regarding any issue.
How well they will resolve that issue, though, might be a difficult question to answer. It is prudent to be well aware of the terms and conditions of the policy obtained and the issue’s particulars. The more you know, the sooner you can resolve the issue.
Colonial Penn Burial Insurance has successfully served many people over their 60-year history. You must ensure that it will happen to you too. If you are apprehensive about choosing the right policy, work with independent insurance agents offering several choices suitable to your needs.