By JLP | February 8, 2008
You see their commercials n TV all the time. Colonial Penn pretty much monopolizes cable TV with their insurance dramas. One of their commercials cracks me up. It opens with a middle-aged guy sitting up in bed in the middle of the night. He can’t sleep because something is on his mind. He gets up to go check on his kids and then he makes his way downstairs to the kitchen. He’s sitting at the table when his wife comes down and asks him what he’s doing. He tells her that he is looking at the application for some life insurance.
Here’s the clincher:
It’s for a $25,000 whole life insurance policy!
This guy was unable to sleep because he was worried about his family and $25,000 of life insurance is the answer.
Anyway, the commercial piqued my interest so I went to the Colonial Penn website to look around. I found out that they also offer term insurance so I ran a quote for the heck of it. Here’s the quote I got for both a 5-year and 20-year term insurance policy for a 38 year-old man:
A $25,000 20-year term life insurance policy runs $37.25 per month. Doesn’t seem too bad does it? Well, it’s not too good when you shop around. I went to IntelliQuote.com and did a quick quote and found out that a $25,000 20-year term policy runs around $10 per month. The same $37 monthly premium would buy you a $500,000 policy!
The only difference is that there is no medical exam required with the Colonial Penn policy, which most likely is not the case with the IntelliQuote companies. Still, I don’t think the extra $27 per month is worth not having to take a medical exam.
I guess Colonial Penn has to charge so much to pay for all those commercials.