Speak with an experienced advisor! Medicare Supplement coverage can be an important piece of many retirees’ health care planning strategy. This is because, even if someone is enrolled in Medicare Part A and Part B, this program will still often leave insureds with a lot of expenses they would be responsible for.
When you’re shopping around for Medicare Supplement insurance plans, you’ll have ten different choices - and, depending on your specific needs and budget, you can opt for a basic benefits, or alternatively, a much more comprehensive policy.
But, before making a Medicare Supplement insurance plan purchase, there are several things to keep in mind. First, Medigap plans aren’t sold through the government, like traditional Medicare. They are sold through private carriers, just like any other insurance plan.
The next thing to know is these plans are required to offer the same types of protection. The government regulates Medigap plans.
Because the plans are the same based on the letter, the main difference between companies is the price. They might have the same protection, but they don’t have the same price. You’ll need to gather a dozens plan quotes before you pick one.
The History of Colonial Penn Life Insurance Company
Colonial Penn has provided insurance coverage - primarily to the senior market - for more than 50 years. The company has always been known for offering insurance directly to consumers at an affordable premium price.
This insurer was a pioneer in designing insurance products that meet the specific needs of the mature market. In 1968, Colonial Penn became one of the first insurance carriers to provide a guaranteed acceptance life insurance policy that is offered specifically and only to those who are age 50 and over.
Colonial Penn is a subsidiary of CNO Financial Group, Inc., which is a large financial services entity with its headquarters in Carmel, Indiana. Through this company’s subsidiaries, CNO serves more than 4 million middle-income working Americans, as well as retirees.
Colonial Penn is headquartered in Philadelphia, Pennsylvania, and its home office is located just a few short blocks from the Liberty Bell, Independence Hall, the Betsy Ross House, and many other historical sites from U.S. history.
Colonial Penn Company Review
Today, Colonial Penn is a well-recognized name in the mature market arena. Currently, the company has approximately 750,000 life insurance policies in force, which equates to more than $3.2 billion of policies in force. The company’s insurance products are underwritten by Colonial Penn Life Insurance Company.
The key values that Colonial Penn strives to achieve include integrity, customer focus, excellence, and teamwork. These values are included in all transactions with Colonial Penn’s customers. The policyholders who are customers of Colonial Penn can rely on the company for personal service, security, and peace of mind.
Colonial Penn Insurer Ratings and BBB Grade
Colonial Penn has an excellent reputation for being timely with its policyholder claims. The company has been given a rating of A-, which is Excellent, by A.M. Best Company.
Colonial Penn Life has not received accreditation from the BBB, but they do have an A- rating from the company. The BBB takes a lot of different factors into their rating,
Which Medicare Supplement Insurance Plans Does Colonial Penn Offer?
Colonial Penn offers a variety of Medicare Supplement insurance plans, so its customers may choose the one that fits their anticipated needs the best. These plans include the following:
If you want the cheapest supplemental plan, Plan A gives you the least amount of protection for the least amount of coverage.
The coverage that is included in Plan A encompasses the following:
- Medicare Part A coinsurance and hospital costs
- Medicare Part B coinsurance
- The first three pints of blood each year
- Medicare Part A hospice care copayment or coinsurance
Medicare Supplement Plan B provides:
- Medicare Part A coinsurance and hospital costs - up to an additional 365 days after Medicare benefits have been used
- Medicare Part B coinsurance
- The first three pints of blood each year
- Medicare Part A hospice care copayment or coinsurance
- Medicare Supplement Part A deductible
Medicare Supplement Plan F could be a possible option for anyone who wants the most protection. That is because this plan offers:
- Medicare Part A coinsurance and hospital costs - up to an additional 365 days after Medicare benefits have been used
- Medicare Part B coinsurance
- The first three pints of blood each year
- Medicare Part A hospice care copayment or coinsurance
- Skilled nursing facility care coinsurance
- Medicare Part A deductible
- Medicare Part B deductible
- Medicare Part B excess charges
- Foreign travel emergency - up to the plan’s limits
Medicare Supplement Plan G is a fairly comprehensive option, as it offers the following coverage:
- Medicare Part A coinsurance and hospital costs - up to an additional 365 days after Medicare benefits have been used
- Medicare Part B coinsurance
- The first three pints of blood each year
- Medicare Part A hospice care copayment or coinsurance
- Skilled nursing facility care coinsurance
- Medicare Part A deductible
- Medicare Part B excess charges
- Foreign travel emergency - up to the plan’s limits
For Medicare enrollees looking for Medicare Supplement insurance protection, but are also looking for an affordable plan alternative, then Plans K or L from Colonial Penn could be a good fit. That is because Medicare Supplement Plan K offers:
- Medicare Part A coinsurance and hospital costs - up to an additional 365 days after Medicare benefits have been used
- Medicare Part B coinsurance - 50%
- The first three pints of blood each year - 50%
- Medicare Part A hospice care copayment or coinsurance - 50%
- Skilled nursing facility care coinsurance - 50%
- Medicare Part A deductible - 50%
Likewise, Medicare Supplement Plan L provides:
- Medicare Part A coinsurance and hospital costs - up to an additional 365 days after Medicare benefits have been used
- Medicare Part B coinsurance - 75%
- The first three pints of blood each year - 75%
- Medicare Part A hospice care copayment or coinsurance - 75%
- Skilled nursing facility care coinsurance - 75%
- Medicare Part A deductible - 75%
Both Plan K and L have annual out-of-pocket dollar limits. For 2016, the limit for Medicare Supplement Plan K is $4,960 and for Plan L it is $2,480. Once these out-of-pocket limits are met, the Medicare Supplement plan will then pay for the covered services.
(It is important to keep in mind that Medicare Supplement is not the same thing as Medicare Advantage.)
Where is Colonial Penn’s Medicare Supplement Coverage Sold?
Medicare Supplement insurance plans are underwritten in most states by Colonial Penn Life Insurance Company. The products and their features can be subject to availability in a particular state.
For example, for those who are residents of Massachusetts, Minnesota, or Wisconsin, they won’t have as many options as applicants in other states.
Other Products and Services Offered By Colonial Penn
Colonial Penn also provides several different life insurance options to choose from - which are primarily geared for applicants in the senior market. These options include the following:
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Whole Life Insurance
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Guaranteed Acceptance Life Insurance
With Colonial Penn’s whole life insurance plan, you can obtain up to $50,000 in coverage. Unlike many other companies’ policies, there is no medical exam required in order to qualify. You just simply are asked a few health-related questions in order for the company to determine your eligibility.
These plans are offered to individuals who are between the ages of 40 and 75 - and, once you have been approved for coverage, the amount of your premium will not go up for the entire lifetime of the policy. This is true, even as you advance in age, and whether you contract an adverse health condition.
The whole life insurance via Colonial Penn will also allow the tax deferred build up of cash value within the policy. No taxes are due on the growth of these funds - unless or until they are withdrawn.
With the Colonial Penn Guaranteed Acceptance Life Insurance plan, there is no medical examination, nor are there any health questions asked in order to qualify for coverage. These policies are offered to those between the ages of 50 and 85 - and you cannot be turned down due to your health.
This plan offers a benefit amount that is locked in after the second year, and the premium rate that you are charged is also locked in and guaranteed not to increase. So, if you need to borrow or withdraw funds from the policy, you can do so for any reason.
Getting the Best Medigap Coverage
Medicare Supplemental insurance is an excellent way to fill in the gaps left behind. Buying one of these plans can be difficult. There are 10 different plans to choose from and hundreds of companies. We are here to make it as simple for you as possible.
We are independent agents, and we have the ability to show you a handful of quotes from dozens of companies. All you have to do is give us a call or use our contact form. We can be reached via phone at 800-376-0824.
If you’re still left with questions about Colonial Penn, Medigap coverage, or life insurance, let us know. It’s our mission to ensure that you’re getting the best coverage available. We know that shopping for Medigap coverage can be confusing, but that’s why we are here to help.