colonel Penn life insurance

[Johm221122]

My friend recently got approved for SSI,now she wants to get life insurance. She has many health problems and can't pass any type of health exam.Has anyone have any information on colonel Penn life insurance
Thank you,
John

[Default User BR]

That's Colonial Penn. I assume you refer to the "guaranteed acceptance" product.

http://www.colonialpenn.com/guaranteedacceptance/description.aspx

Obviously some sort of whole life or universal life policy, generally not favored here. With the limited benefits for two years and the doubtlessly high costs, I doubt it's a good deal.

Why does she want life insurance?


Brian

[Johm221122]

That's Colonial Penn. I assume you refer to the "guaranteed acceptance" product.

http://www.colonialpenn.com/guaranteedacceptance/description.aspx

Obviously some sort of whole life or universal life policy, generally not favored here. With the limited benefits for two years and the doubtlessly high costs, I doubt it's a good deal.

Why does she want life insurance?


Brian

Only to be buried. Yes definitely high but guaranteed acceptance but she doesn't want kids to have to bury her.

[dandan14]

Given the waiting period before benefits kick in, she may be better off to just try to save $50/month or so to help fund a future funeral. After that 2 year period, she would already have $1200.

[Grt2bOutdoors]

Given the waiting period before benefits kick in, she may be better off to just try to save $50/month or so to help fund a future funeral. After that 2 year period, she would already have $1200.

2 year waiting period to collect? That's ridiculous.

[BruDude]

Given the waiting period before benefits kick in, she may be better off to just try to save $50/month or so to help fund a future funeral. After that 2 year period, she would already have $1200.

2 year waiting period to collect? That's ridiculous.

That's what happens when you have guaranteed-issue coverage for people with one foot in the grave. Many of the people buying these policies won't make it two years or keep the policy for two years. Usually the policy only pays a return of premiums plus interest if death occurs in the first two years other than by accident. The persistency rate for these policies is incredibly low compared to fully underwritten life insurance, due to a combination of terrible health and the fact that most people buying these are living SSDI check to SSDI check and have no savings. When you are broke, life insurance is one of the first "luxuries" that people get rid of.

Having said that, there are a number of companies that are way less expensive than Colonial Penn that have guaranteed-issue coverage or similar less expensive graded coverage for high-risk individuals.

[mephistophles]

Given the waiting period before benefits kick in, she may be better off to just try to save $50/month or so to help fund a future funeral. After that 2 year period, she would already have $1200.

I think this is good advice. If you wait to buy life insurance until you need it, it is too late. Cremations can be done for under $1,000 and there is no "need" to have other expenses.

[Johm221122]

Given the waiting period before benefits kick in, she may be better off to just try to save $50/month or so to help fund a future funeral. After that 2 year period, she would already have $1200.

2 year waiting period to collect? That's ridiculous.

That's what happens when you have guaranteed-issue coverage for people with one foot in the grave. Many of the people buying these policies won't make it two years or keep the policy for two years. Usually the policy only pays a return of premiums plus interest if death occurs in the first two years other than by accident. The persistency rate for these policies is incredibly low compared to fully underwritten life insurance, due to a combination of terrible health and the fact that most people buying these are living SSDI check to SSDI check and have no savings. When you are broke, life insurance is one of the first "luxuries" that people get rid of.

Having said that, there are a number of companies that are way less expensive than Colonial Penn that have guaranteed-issue coverage or similar less expensive graded coverage for high-risk individuals.

Could you please give me some names of cheaper options, I am still waiting for more companies to send me information .I tried 5 companies and so far two have given almost same quote
John

[Johm221122]

Given the waiting period before benefits kick in, she may be better off to just try to save $50/month or so to help fund a future funeral. After that 2 year period, she would already have $1200.

I think this is good advice. If you wait to buy life insurance until you need it, it is too late. Cremations can be done for under $1,000 and there is no "need" to have other expenses.

Unfortunately she does not want cremation,which was my first suggestion
John

[dhodson]

also keep in mind that paying monthly occurs additional charges with permanent insurance as opposed to paying yearly.
its not a magic bullet. She needs to be okay with likely a poor return and feel confident she wont be like the many who lapse such a policy otherwise she will not only lose her money on this, she still will put her children in a situation where they need to pay for the funeral.

[Joe S.]

I think her first financial priority is not getting life insurance; it's building up an emergency fund. So she should stop worrying about her burial and worry about building up an emergency fund. Once she has an emergency fund, the emergency fund can be used to bury her. The emergency fund can also be used for many other financial problems that may spring up, the life insurance is only good for one financial problem, death.

[Johm221122]

also keep in mind that paying monthly occurs additional charges with permanent insurance as opposed to paying yearly.
its not a magic bullet. She needs to be okay with likely a poor return and feel confident she wont be like the many who lapse such a policy otherwise she will not only lose her money on this, she still will put her children in a situation where they need to pay for the funeral.

I think her first financial priority is not getting life insurance; it's building up an emergency fund. So she should stop worrying about her burial and worry about building up an emergency fund. Once she has an emergency fund, the emergency fund can be used to bury her. The emergency fund can also be used for many other financial problems that may spring up, the life insurance is only good for one financial problem, death.

She is definitely OK with no return as long as she is buried. No interest in saving money and is kind of set in her ways. Does any one think a Pre paid burial plans could be option
John

[BruDude]

Given the waiting period before benefits kick in, she may be better off to just try to save $50/month or so to help fund a future funeral. After that 2 year period, she would already have $1200.

2 year waiting period to collect? That's ridiculous.

That's what happens when you have guaranteed-issue coverage for people with one foot in the grave. Many of the people buying these policies won't make it two years or keep the policy for two years. Usually the policy only pays a return of premiums plus interest if death occurs in the first two years other than by accident. The persistency rate for these policies is incredibly low compared to fully underwritten life insurance, due to a combination of terrible health and the fact that most people buying these are living SSDI check to SSDI check and have no savings. When you are broke, life insurance is one of the first "luxuries" that people get rid of.

Having said that, there are a number of companies that are way less expensive than Colonial Penn that have guaranteed-issue coverage or similar less expensive graded coverage for high-risk individuals.

Could you please give me some names of cheaper options, I am still waiting for more companies to send me information .I tried 5 companies and so far two have given almost same quote
John

Depends what state she's in, her age, and what health problems she has. Mutual of Omaha and Vantis Life are the two cheapest for totally guaranteed-issue coverage, but other companies may be cheaper if she can answer a few basic health questions.

[bluemarlin08]

I would certainly talk with a funeral home regarding pre paid plans. In addition, my brother made the arrangements for his MIL, didn't buy the funeral home casket, bought from another fender, used their church for the service and hired the funeral for other services and total cost 5500 versus the original 15,000 quoted. In addition, you might try Fidelity Life for rates.

[Johm221122]

Thank you will try the companies mentioned. State is Tennessee and is 54 years old.As far as health questions she had Tumors,heart attack, arthritis (severe),asthma,high blood pressure,smokes and some minor other problems
John

[BruDude]

Thank you will try the companies mentioned. State is Tennessee and is 54 years old.As far as health questions she had Tumors,heart attack, arthritis (severe),asthma,high blood pressure,smokes and some minor other problems
John

If she hasn't had any cancerous tumors or a heart attack within two years she can probably get a policy with an immediate death benefit at a much lower price than any of the guaranteed-issue options. $25k death benefit guaranteed for life would be $80-125/mo depending on the company, which is pretty good for a smoker with those kind of health issues. All she has to do is be able to truthfully answer "no" to each of the questions on the application.

[nisiprius]

Does any one think a Pre paid burial plans could be option?

1) "A funeral," a garden-variety traditional U.S. funeral within my personal experience, costs on the very very rough order of $10,000. That's for the "traditional" funeral home, embalming, visitation, services, casket, flowers, obituary placements, a little something for the organist, burial, tent and chairs rented and set up graveside, etc. That's based on two things. a) A few funerals within the last five years in which I was within the extended family and knew about the costs; b) a pretty good 2011 book called Does This Mean You'll See Me Naked?: A Funeral Director Reflects on 30 Years of Serving the Living and the Deceased, by Robert D. Webster. I don't know whether that strikes you or her as a huge amount, but it seems budgetable to me. Unlike healthcare, it's not a wildly unpredictable expense.

2) In one of these cases a prepaid plan was used, and one of my grandparents had a prepaid plan aeons ago. The recent one had been set up about ten years "pre-need." It didn't quite cover all the costs due to price increases in caskets etc. but it was close. The horror stories on prepaid plans would seem to involve situations where the time lapse is very long and the funeral home folds or changes hands or is bought up by megacorp. I wasn't close enough to speak to the investment characteristics. If you accept the general cultural concepts of a traditional funeral, it seemed to me that a prepaid plan was a perfectly reasonable option for dealing with it. I guess when I say this I'm thinking in my head that the prospective deceased "knows" the funeral home.

I mean, it seems like the right tool for the job. A life insurance policy is (usually) a tool for providing for dependents in the event of an unfortunate early death. A prepaid plan is a tool for paying for a funeral.

A lot of it is all about giving the prospective deceased the comfort of feeling that they are in control of what they can control, and that's valuable. In my very limited experience the plans did what they were expected to do, and the family was happy to have it "all set" and not to have to have any intra-family discussions about "what she would have wanted." And in families that are kind and respectful to each other, that can save money; otherwise the discussion tends to result in everything being ratcheted up because the person who is sure the maple casket would be plenty good enough defers to the person who is sure the departed would have liked the look of the walnut.

[Johm221122]

Thank you will try the companies mentioned. State is Tennessee and is 54 years old.As far as health questions she had Tumors,heart attack, arthritis (severe),asthma,high blood pressure,smokes and some minor other problems
John

If she hasn't had any cancerous tumors or a heart attack within two years she can probably get a policy with an immediate death benefit at a much lower price than any of the guaranteed-issue options. $25k death benefit guaranteed for life would be $80-125/mo depending on the company, which is pretty good for a smoker with those kind of health issues. All she has to do is be able to truthfully answer "no" to each of the questions on the application.

Mutual of Omaha $30 a month for 10k this is $20 cheaper than colonial Penn, thank you I'll have to do more research but that is good start.
Thank You
John

[Johm221122]

Does any one think a Pre paid burial plans could be option?

1) "A funeral," a garden-variety traditional U.S. funeral within my personal experience, costs on the very very rough order of $10,000. That's for the "traditional" funeral home, embalming, visitation, services, casket, flowers, obituary placements, a little something for the organist, burial, tent and chairs rented and set up graveside, etc. That's based on two things. a) A few funerals within the last five years in which I was within the extended family and knew about the costs; b) a pretty good 2011 book called Does This Mean You'll See Me Naked?: A Funeral Director Reflects on 30 Years of Serving the Living and the Deceased, by Robert D. Webster. I don't know whether that strikes you or her as a huge amount, but it seems budgetable to me. Unlike healthcare, it's not a wildly unpredictable expense.

2) In one of these cases a prepaid plan was used, and one of my grandparents had a prepaid plan aeons ago. The recent one had been set up about ten years "pre-need." It didn't quite cover all the costs due to price increases in caskets etc. but it was close. The horror stories on prepaid plans would seem to involve situations where the time lapse is very long and the funeral home folds or changes hands or is bought up by megacorp. I wasn't close enough to speak to the investment characteristics. If you accept the general cultural concepts of a traditional funeral, it seemed to me that a prepaid plan was a perfectly reasonable option for dealing with it. I guess when I say this I'm thinking in my head that the prospective deceased "knows" the funeral home.

I mean, it seems like the right tool for the job. A life insurance policy is (usually) a tool for providing for dependents in the event of an unfortunate early death. A prepaid plan is a tool for paying for a funeral.

A lot of it is all about giving the prospective deceased the comfort of feeling that they are in control of what they can control, and that's valuable. In my very limited experience the plans did what they were expected to do, and the family was happy to have it "all set" and not to have to have any intra-family discussions about "what she would have wanted." And in families that are kind and respectful to each other, that can save money; otherwise the discussion tends to result in everything being ratcheted up because the person who is sure the maple casket would be plenty good enough defers to the person who is sure the departed would have liked the look of the walnut.

We just had big horror story in Memphis with prepaid plan.It could fit,but at $30 to $50 a month could take a long time with her worried about this. I will check out and thanks for information
john

[BruDude]

Thank you will try the companies mentioned. State is Tennessee and is 54 years old.As far as health questions she had Tumors,heart attack, arthritis (severe),asthma,high blood pressure,smokes and some minor other problems
John

If she hasn't had any cancerous tumors or a heart attack within two years she can probably get a policy with an immediate death benefit at a much lower price than any of the guaranteed-issue options. $25k death benefit guaranteed for life would be $80-125/mo depending on the company, which is pretty good for a smoker with those kind of health issues. All she has to do is be able to truthfully answer "no" to each of the questions on the application.

Mutual of Omaha $30 a month for 10k this is $20 cheaper than colonial Penn, thank you I'll have to do more research but that is good start.
Thank You
John

You won't find a cheaper guaranteed-issue policy than Mutual of Omaha, so if that's what she wants to do, your search is over.

[mephistophles]

I think what it boils down to is who is going to pay for her last expenses and "how they" will pay for it. If I understand correctly, you are a friend, but will not be responsible for these expenses.

If the kids are going to pay for these expenses, I suggest having your friend talk to them about this. If your friend can't afford to pay their own last expenses, then the wishes of those who will pay the expenses is really what matters most.

Personally, I don't think life insurance is the way to go and I am an insurance agent.

[Johm221122]

I think what it boils down to is who is going to pay for her last expenses and "how they" will pay for it. If I understand correctly, you are a friend, but will not be responsible for these expenses.

If the kids are going to pay for these expenses, I suggest having your friend talk to them about this. If your friend can't afford to pay their own last expenses, then the wishes of those who will pay the expenses is really what matters most.

Personally, I don't think life insurance is the way to go and I am an insurance agent.

She is going to name me beneficiary, it should be covered by the life insurance hopefully. If not I will have to. Pay.t is on here mind all the time,so I guess I am helping her have piece of mind.Kids are not responsible enough to be trusted,I have suggested saving the money herself or cremation but I think she knows something I don't, so for her piece of mind life insurance is probably the wat to go after I look at pre paid burial.I figure 10k plenty and if it isn't I pay rest
John

[Mrs.Feeley]

Prepaid funeral funds have been known to go bankrupt. Like this one here:

From Milwaukee Journal-Sentinal:
"Worry Replaces Security of Prepaid Funeral Plans"

"Since 1999, the Wisconsin Funeral Directors Association has marketed a prepaid funeral plan to funeral directors around the state.

The intent was simple. When a loved one dies, the last thing most families want to deal with is money and how they will pay for the funeral service. Enter the prepaid funeral, which ended the agonizing ordeal of working out financial details when families are still grieving over their loss.

But court documents filed Friday in Dane County Circuit Court allege the program was violating state securities laws. Worse, it left consumers who bought into the program with little or no information about what was being done with their money sitting in a trust account.

On Friday, a Dane County judge appointed a Milwaukee lawyer to take over control of the association in order to protect an estimated 10,500 consumers who had money in the prepaid funeral plan. The prepaid funeral fund should have about $70 million in it, but documents indicate the fund is at least $21 million short.

The news surprised both consumers and many local funeral directors, though some said they were aware the trust had unfunded liabilities......."

http://www.jsonline.com/news/wisconsin/ ... 28096.html


Colonial Penn has always seemed to me to be one of those companies that sell over-priced end-of-life insurance to people who will probably not be paying the premiums while they're sick in the months before they die, allowing the policy to lapse. I think it's a much better idea to deposit a small sum every month into an emergency fund.

[Mordoch]

On the other hand I do have to give Colonial Penn ads credit for inspiring the following SNL skit for "Old Glory Insurance."
http://www.nbc.com/saturday-night-live/ ... ce/229049/

[Johm221122]

Prepaid funeral funds have been known to go bankrupt. Like this one here:

From Milwaukee Journal-Sentinal:
"Worry Replaces Security of Prepaid Funeral Plans"

"Since 1999, the Wisconsin Funeral Directors Association has marketed a prepaid funeral plan to funeral directors around the state.

The intent was simple. When a loved one dies, the last thing most families want to deal with is money and how they will pay for the funeral service. Enter the prepaid funeral, which ended the agonizing ordeal of working out financial details when families are still grieving over their loss.

But court documents filed Friday in Dane County Circuit Court allege the program was violating state securities laws. Worse, it left consumers who bought into the program with little or no information about what was being done with their money sitting in a trust account.

On Friday, a Dane County judge appointed a Milwaukee lawyer to take over control of the association in order to protect an estimated 10,500 consumers who had money in the prepaid funeral plan. The prepaid funeral fund should have about $70 million in it, but documents indicate the fund is at least $21 million short.

The news surprised both consumers and many local funeral directors, though some said they were aware the trust had unfunded liabilities......."

http://www.jsonline.com/news/wisconsin/ ... 28096.html


Colonial Penn has always seemed to me to be one of those companies that sell over-priced end-of-life insurance to people who will probably not be paying the premiums while they're sick in the months before they die, allowing the policy to lapse. I think it's a much better idea to deposit a small sum every month into an emergency fund.

I agreed at first at just saving money,but as I look at mutual of Omaha $30 a month for 10k seems good,considering health. My friend is not willing to risk leaving her death to others to pay for.Colonel Penn does seem to be way over priced.Do not have to worry about not paying money will come directly from bank card (direct exspress)ever quarter with Mutual of Omaha. Just waiting to hear from pre paid funeral inquiries but I'm unfamiliar with product and cautious with fraud possibilities. Also it would be nice if she paid for her own funeral exspences but I will cover if I have to.The most important thing is she enjoy life and stop worrying about this subject and $30 a month is worth piece of mind.I still wouldn't mind her paying less if I can find better options
john

[donall]

There may be local sources to use for a funeral.
http://www.ehow.com/info_8648925_paying ... essee.html

Also some families have a culture of not saving and any extra money goes towards other family member debts,needs, etc.

[Mrs.Feeley]

I agreed at first at just saving money,but as I look at mutual of Omaha $30 a month for 10k seems good,considering health. My friend is not willing to risk leaving her death to others to pay for.Colonel Penn does seem to be way over priced.Do not have to worry about not paying money will come directly from bank card (direct exspress)ever quarter with Mutual of Omaha. Just waiting to hear from pre paid funeral inquiries but I'm unfamiliar with product and cautious with fraud possibilities. Also it would be nice if she paid for her own funeral exspences but I will cover if I have to.The most important thing is she enjoy life and stop worrying about this subject and $30 a month is worth piece of mind.I still wouldn't mind her paying less if I can find better options
john

This is really kind of you to help your friend in this way, and help her shop for and decide between many confusing options. This is not an easy task to undertake. You're a good person to help her in this fashion!

[Johm221122]

I agreed at first at just saving money,but as I look at mutual of Omaha $30 a month for 10k seems good,considering health. My friend is not willing to risk leaving her death to others to pay for.Colonel Penn does seem to be way over priced.Do not have to worry about not paying money will come directly from bank card (direct exspress)ever quarter with Mutual of Omaha. Just waiting to hear from pre paid funeral inquiries but I'm unfamiliar with product and cautious with fraud possibilities. Also it would be nice if she paid for her own funeral exspences but I will cover if I have to.The most important thing is she enjoy life and stop worrying about this subject and $30 a month is worth piece of mind.I still wouldn't mind her paying less if I can find better options
john

This is really kind of you to help your friend in this way, and help her shop for and decide between many confusing options. This is not an easy task to undertake. You're a good person to help her in this fashion!

Thank you,it is definitely a hard subject.
john

[Johm221122]

There may be local sources to use for a funeral.
http://www.ehow.com/info_8648925_paying ... essee.html

Also some families have a culture of not saving and any extra money goes towards other family member debts,needs, etc.

Good information but at current time it's more about her piece of mind.For some reason this is really important to her,hopefully it's long time for the need
John