Alex Trebek and Guaranteed Acceptance Life Insurance
I am sure that any of you who watch television have seen the Alex Trebek commercial talking about Colonial Penn Guaranteed Acceptance Life Insurance. Did you ever wonder if using Alex Trebek as a spokesman adds credence to the product? I would say yes.
First of all I have never met Alex Trebek but just watching him on the TV game show Jeopardy he has always impressed me as a man of high integrity. I know Jeopardy is just a game show but Trebek is one of those people who exudes strong principles even as a game show host. In fact, I know someone who was a limo driver and once had the pleasure of driving Alex to the airport. He said he was one of the kindest and classiest celebrities he ever drove. So, now that I have established respect for Alex and my confidence that he wouldn't advertise something unless it is acceptable, is this Colonial Penn insurance a good deal for everyone?
Life insurance is certainly important for paying burial expenses, paying off existing bills that you leave behind for your spouse and family to pay, and replacing the loss of your income at least until they can get themselves organized without you. For seniors, especially those who still live “social security check to social security check”, it is important to provide at least for funeral expenses. Too often a surviving spouse is left struggling for a way to pay for their mate's funeral. So how well does this life insurance help?
Colonial Penn Guaranteed Acceptance Whole Life does as advertised. You are guaranteed to be insured for the advertised price if $9.95 per unit whether you are 50 or 85. A physical is not required. Normally a certain amount of life insurance costs more to purchase as you get older. With this insurance the older you are the less insurance you will get for that $9.95. A male age 50 will get a little under $1,800 for his 1 unit at $9.95 a month while a male 85 will get just over $400.00. For people in their 50s there are much better options unless they have medical problems. For an 85 year old $400+ is maybe enough to pay for the tissues at their funeral. By the way, this policy doesn't pay off if you die during the first 2 years of the policy.
The good thing is that you can buy up to 8 units for $79.60 a month. A 50 year old male then will get a little over $14,000 of whole life. That isn't exactly a bargain but for an unhealthy person it may be the best they can get. An 85 year old will get slightly over $3,200. Now, that is enough to not only pay for the tissues at a funeral but also the casket and maybe even the luncheon after the funeral if he or she doesn't have too many family members and friends.
Are there any other options? Sure, as mentioned above, for people in their 50s it would be better shopping around for a standard permanent life policy. Also, at any age, for a person who is healthy, Colonial Penn has insurance that may require you to answer medical questions and take a physical but the costs would be much less if deemed healthy. Finally, if you absolutely need a Guaranteed Acceptance policy then look around. There are other companies offering this type of plan, some at a lower cost than Colonial Penn. If you are reading this and wondering, "Why whole life? Why not term insurance"? As you get older the cost of term insurance is prohibitive and continues to increase as you age. Term insurance is a great way for providing a lot of insurance for a cheap price while younger and raising a family. For retirees it is no longer a viable option.
When looking for Colonial Penn coverage chart pricing online I found this site which has more detailed information including comparisons to a couple of extra companies. Check it out.