How Does Colonial Penn’s $9.95 Plan Work? The guaranteed acceptance plan from Colonial Penn is a whole-life policy with no health questions. Everyone is guaranteed approval, regardless of their pre-existing conditions. The $9.95 Colonial Penn plan requires a two-year waiting period.
Colonial Penn will only reimburse your premiums plus a small amount of interest if you pass away within the first two years. This is a crucial consideration when weighing the advantages and disadvantages of Colonial Penn insurance. Since it is a whole life policy, the monthly premium and coverage will never increase or decrease.
Additionally, it will last forever and accumulate value. Everyone with Colonial Penn pays only $9.95 per month for a single coverage unit. Whether you are 50 or 70, male or female, the monthly cost is only $9.95. It is a peculiar method for pricing final expense life insurance.
- No other life insurer utilizes the unit system.
- The amount of coverage you receive per coverage unit varies based on your age and gender.
- As shown in the table above, one unit of life insurance provides only $1,258 to a 65-year-old female.
- A 75-year-old woman receives $762 in coverage from a single unit.
To apply, you must be between the ages of 50 and 85, and the maximum number of units you can purchase is 15.
| $9.95 Plan Product Details | |
|---|---|
| Policy Type | Whole Life Insurance |
| Policy Duration | Lifetime |
| Fixed Premiums | Yes |
| Underwriting Class | Guaranteed Acceptance Life Insurance |
| Health Questions | No |
| Medical Exam | No |
| 2-Year Waiting Period | Yes |
| States Available | All States |
| New Applicant Age Range | 50-85 |
| Coverage Options | 1-15 Units |
| Cost | $9.95 Per Unit (regardless of age or gender) |
How much is one unit of Colonial Penn insurance worth?
What exactly is a unit? – A Colonial Penn coverage unit corresponds to the amount of life insurance death benefit policyholders receive for $9.95 per month. Age and gender determine the exact amount of coverage a single unit of insurance provides. Utilize the Colonial Penn life insurance calculator and table provided below to determine your coverage using their unit system.
According to Baltimore Life Cos., a unit of life insurance is the minimum amount of coverage that can be purchased, and an increase in coverage will be expressed as a multiple of the basic unit. If, for example, the life insurance company offers coverage in $1,000 increments, you could purchase five units for a total of $5,000 in coverage.
What is the value of a $100,000 life insurance policy?
What is the cash value of a life insurance policy worth $100,000? – So let’s assume you have a $100,000 policy that you wish to sell. The monetary value of your settlement will depend on the aforementioned variables. The typical value of a life settlement is between 10 and 25% of the policy’s face amount.
The value of the fund fluctuates based on the NAV. The NAV is the per-unit price of a fund, which is calculated by subtracting the fund’s liabilities from its assets. Various instances of payout There are three conditions that must be met to receive a payout from a ULIP plan.
- Below is a description of how each option is implemented: Upon Policyholder’s demise In the event of the policyholder’s death during the policy term, his family receives either the sum assured or the fund value, whichever is greater.
- If the fund has underperformed and its value is less than the sum-assured, the sum-assured will be paid.
Policy Surrendering In the event that the policyholder surrenders the policy during the lock-in period, the insurer deducts the applicable fees from the fund value and pays the surrender value after the lock-in period expires. ULIPs have a five-year lock-in period.
If the policyholder surrenders the policy after the lock-in period has expired, the insurer will pay the policy’s fund value. The value of the fund is determined by multiplying the NAV (at the specified date) by the number of units held. After maturation At the conclusion of the policy period, the fund value is paid to the policyholder.
For more information on ULIPs, please visit the HDFC Life website and speak with a consultant. Similar Articles ULIP Withdrawal Conditions What does ULIP Plan mean? Why leaving a ULIP after the end of its lock-in period is preferable ULIP and Traditional Plans: A Detailed Comparison ARN: ED/08/22/28492