ComplaintsforColonial Penn Life Insurance Company

• Initial Complaint

  09/05/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I'm filing this complaint on behalf of my aging mother who is 87years old. There are two life insurance policies for which a combined sum of $62.55 is paid every month. The breakdown is $13.90 and $48.65. Separate sums have never been paid. However Colonial Penn is stating that there is a deficit of 7 months in the amount of $394.18. I've been trying to get answers for over a year now with no resolution to the issue. Both policies should be up to date.

  Business response

  09/11/2023

  We are in receipt of correspondence dated September 5, 2023, ID #********. Thank you for bringing this matter to our attention. As we do not have HIPAA authorization on file to respond to the BBB, we will respond directly to the client regarding this matter.
  Sincerely,
  Consumer Relations Department

• Initial Complaint

  08/06/2023

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  Problem stemmed from a call to a rep. I thought the conversation was about my deceased father, the rep said iam beneficiary to the policy. He asked me to send death certificate..which i did . He sent a check for $4.006 dollars. I didnt realize he thought it was my mother who died. Long story short, i used more than half of said money to pay for mothers medical bills and medication. Then received a letter mentioning my mother who is deceased , we are sorry for your loss etc. I called them to clear up the mistake, a mistake caused by a misinformed rep. And now colonialpenn sent a account recovery letter wanting me to payback the money in full. Iam on a fixed income, disabled, receiving SSI. It would take me 5 years to pay that back. Iam being punished for something that isnt my fault. Iam outing thier inept mistake. Terrible communication, mishandling of information, iam very dissapointed, disatisfied of this outcome

  Business response

  08/30/2023

  August 30, 2023
  
  RE: Colonial Penn Life Insurance Company
  Consumer: *******************
  Complaint ID Number: ********
  
  Dear **************:
  
  We are in receipt of correspondence dated August 16, 2023, regarding the consumer named above. Thank you for bringing this matter to our attention.
  
  We notified the consumer today that this matter is still under review. Since we do not have authorization to release information to the Better Business Bureau, we will respond directly to the consumer when our review is complete.
  
  We want to assure you of our continued commitment to provide our customer with the best possible service. If you have further questions or need additional assistance, please contact our Customer Service Department at **************.
  
  Sincerely,       
  
  ***********************
  Consumer Relations Department
  

  Customer response

  09/07/2023

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  *******************

  P.S. iam agreeing to the response because i dont want this to drag on any furthur. I want to move on from this horrendous mess and never be bothered by colonial penn in future, all the while seeing thier commercials on tv reminding me of the ordeal i had to endure, so be it. Thank you.

  Customer response

  09/07/2023

  Is that it? Case closed for good? I have never ever encountered such unprofessionalism in a reputable company before. I hope that thier reputation was damaged from this. Iam glad that i reached out to BBB, i could not have resolved it without external help. Thank you to BBB

• Initial Complaint

  07/29/2023

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Resolved

  More info

  I filed for the $10000 insurance for $9.95 a month. Not receiving this policy. Way lower than original quote. Only $846. in coverage.

  Business response

  08/10/2023

  August 10, 2023

  BBB serving Metro Washington DC and Eastern Pennsylvania
  50 West North Street 
  Bethlehem, PA 18018
  
  Insured: ***********************
  Reference Number: BBB ID Number ********
  
  We are in receipt of correspondence dated August 9, 2023 regarding the insured named above. Thank you for bringing this matter to our attention.
  
  As we do not have HIPAA authorization on file to respond to the Better Business Bureau, we have responded directly to the insured regarding this matter.
  
  Sincerely,       
  
  *******************************
  Consumer Relations Department

  Customer response

  08/11/2023

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  ***********************
  

• Initial Complaint

  06/17/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  There is an insurance policy on my mother who died in November 2022. I was charged for the insurance through March 2023. I did send paperwork with a death certificate to Colonial Penn with no response and now their website and phone number are disconnected. I have no way to contact them or to find out if theyre still in business, I would like to get the settlement and reimbursement payments made after my mothers death.

  Business response

  07/05/2023

  July 5, 2023
  
  BBB Serving Metro Washington DC and Eastern Pennsylvania
  50 West North Street
  Bethlehem, PA 18018-5789
  
  RE:  Colonial Penn Life Insurance Company
          Complainant: *********************   
          Complaint ID Number: ********
  
  Dear Better Business Bureau:   
  
  This letter is in response to your correspondence dated and received in our office on June 21, 2023, regarding a complaint filed by *********************. Thank you for allowing us the opportunity to respond to your inquiry.
  
  In your correspondence you requested information regarding the above referenced complainant. In compliance with state and federal privacy laws, we are required to restrict access to information in our files and may not disclose such information to other individuals. A complete response is not posted to the BBB portal because the posts are public and can be accessed and viewed by other individuals; therefore, we have communicated directly with ************** on July 5, 2023, and addressed her concerns.
  
  We want to assure you of our continued commitment to provide the best possible customer service. If you have any questions, or if we may provide any further assistance, you may contact our customer service department by dialing **************.
  
  Sincerely,
  
  *****************************
  Consumer Relations  

• Initial Complaint

  06/01/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I cancelled my Colonial Penn Insurance over two months ago and was supposed to be issued a refund check. Even though they've always had my correct address that I've lived at for almost twenty years, once it was time for the refund check to be issued and sent to me, they sent it to a random address in Idaho that is in no way related to me. At first I was told that check was being cancelled and another one issued to be sent to my correct address, then I was told the check that was sent to the wrong address had been cashed and that an investigation was being launched that would take nine business days, and that was 13 business days ago. So far I've called a total of twelve times, been told multiple times that a supervisor named Jay would be giving me a call back which never happened. When I called the day before yesterday they said they had sent a correspondance on May 22nd but then found out they had sent that to the wrong address even though I verified my address in Tennessee three weeks ago during one of my many calls to Colonial Penn. I told them that the refund check being sent to a random address and cashed by a random person has nothing to do with me and that I wanted the refund check sent to me at my address and so far nothing has been done to resolve the issue so that I can get back the money that I'm owed. At present I'm waiting on a call back from the "higher ups" that is supposed to come within the next 24-72 hours, although based on my experience so far, I'm not feeling hopeful about the matter being resolved.

  Business response

  06/15/2023

  PO Box ****
  Carmel, IN **********
  

  June 15, 2023
  
  BBB Serving Metro Washington DC and Eastern Pennsylvania
  50 West North Street
  Bethlehem, PA 18018-5789
  
  RE:  Colonial Penn Life Insurance Company
          Complainant:*********************************   
          Complaint ID Number: ********
  
  Dear Better Business Bureau:   
  
  This letter is in response to your correspondence dated and received in our office on June 1, 2023, regarding a complaint filed by *********************************. Thank you for allowing us the opportunity to respond to your inquiry.
  
  In your correspondence you requested information regarding the above referenced complainant. In compliance with state and federal privacy laws, we are required to restrict access to information in our files and may not disclose such information to other individuals. A complete response is not posted to the BBB portal because the posts are public and can be accessed and viewed by other individuals; therefore, we have communicated directly with ************************ on June 15, 2023, and addressed her concerns.
  
  We want to assure you of our continued commitment to provide the best possible customer service. If you have any questions, or if we may provide any further assistance, you may contact our customer service department by dialing **************.
  
  Sincerely,
  
  *****************************
  Consumer Relations  

• Initial Complaint

  05/23/2023

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  I get so much junk advertisement from this business. I never signed up for anything.

  Business response

  06/07/2023

  To Whom It May Concern:
  ************** expressed her dissatisfaction with the advertisement material received on behalf of our company. We regret any inconvenience this may have caused. We wish to confirm that we have removed ****************** name from future mailings being created and printed. Our solicitation material is created in advance, in bulk, and may have already been scheduled to be mailed. As such, it is possible that our mailings would not cease immediately. We apologize in advance if ************** receives a subsequent offer on behalf of our company and wish to assure her that we have permanently removed her name from future marketing material being created. 

  Sincerely,

  Consumer Relations

  Colonial Penn Life Insurance Company

• Initial Complaint

  05/17/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I initiated a policy with this company on January 8, 2023. Upon receiving and reviewing this policy, we decided to return the policy (as required by the policy docs) for a refund of all money paid. We had originally contracted for $19.90 per month. Today, after withdrawals from my account for Jan, Feb, Mar, Apr, and May; I decided to call Colonial Penn. I spoke to ***** ******* who initially told me there was no record of my having called to cancel! After I informed ***** that their own policy docs called for return of the policy for a full refund and not a phone call, she said there is no record of my policy being returned! She said “it could have been lost in the mail” (unlikely). She said they would mail me a surrender document to fill out and return and then they would refund some $14! This is so wrong, since it is much more likely this is Colonial Penn’s fault. I demand a refund of 19.90 times the 5 months that the money was taken!

  Business response

  05/30/2023

  We are in receipt of correspondence dated May 19, 2023 regarding ***********************************, ID #********. Thank you for bringing this matter to our attention. As we do not have HIPAA authorization on file to respond to the BBB, we will respond directly to the client regarding this matter.
  Sincerely,
  Consumer Relations Department

• Initial Complaint

  05/14/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Colonial Penn without my fraudulently withdrew $166.50 from my bank account at **** ** *******. I DO NOT have any Insurance Policy or any business dealings with Colonial Penn so I called the company. I spoke with a person named ***** last April 25, 2003 and made a complaint. He told me that they will cancel any payment from the card they scammed and used and will send a Form within 7 days that I will fill up for the refund. I HAVE NOT received any form so I called Colonial Penn again last May 8, 2023. I talked to another person named Israel and was told that I should write a letter to the Account Manager at a PO Box ****, Carmel, Indiana ***** for the refund and to cancel a Premium Notice they also made without any authorization. This company have been scamming me and using my information fraudulently.

  Business response

  06/01/2023

  June 1, 2023
  
  BBB serving Metro Washington DC and Eastern Pennsylvania
  50 West North Street
  Bethlehem, PA 18018
  
  Insured: ***********************
  Reference Number: BBB ID Number ********
  
  We are in receipt of correspondence dated May 19, 2023 regarding the insured named above. Thank you for bringing this matter to our attention.
  
  As we do not have HIPAA authorization on file to respond to the Better Business Bureau, we have responded directly to the insured regarding this matter.
  
  Sincerely,       
  
  *******************************
  Consumer Relations Department

• Initial Complaint

  05/11/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  My name is ********************************* and am a policy owner at this company or business since 2013. It's not the first time i have problems with my policies due to their negligence.. they mishandle my policies and then terminate them... I never miss a payment.. and when i have missed a payment is due to their screw ups. Sept of 2023 my account has been all over the place., They took the payments of 71.60 that should cover all four of my policies 3 are for my children and 1 for myself, which are all under 1 single account number..For whatever unknown reason the took it upon themselves to apply the full amount to just one of my children policy and not the others, so the other 3 policies were not being paid since the only applied to one policy, i haven't had any problem in until now, since the last time i filed against them 10 years ago or more.. i called them to find out why my statements were saying no Balance due, i spoke to a Rep that assured me that she was going to take care of the mishandling of my account, took notes and said she would Contact the Billing Dept and have them apply the payment to the right account, she stated that due the situation i would end up with unpaid months according to their billing cycle and calculations, due to the zero Balance letters i was receiving i now owe Jan, Feb,Mar, Apr and May i was never notified...Back in Sept when i was late on the payment they took the liberty to tap into my cash value money for the payment. And this time since Jan to Apr they didnt Contact me.. they purposely let the months go by and three days ago i received a termination letter... So now policies have been terminated due to their mistake... All these years of faithfully paying and all the cash value accumulated has been taken from me when it definitely wasn't my doing. Is there any way i can legally proceed? Because its not fair for me or my children to not have the coverage i fought for so long to maintain.we are all now unprotected. Please Help me. Thank You

  Business response

  05/30/2023

  We are in receipt of correspondence dated May 17, 2023  regarding *********************************, ID #********. Thank you for bringing this matter to our attention. As we do not have HIPAA authorization on file to respond to the BBB, we will respond directly to the client regarding this matter.
  Sincerely,
  Consumer Relations Department

  Customer response

  06/22/2023

  I do not accept their response because:
  Colonial Penn has been mishandling my policies since i first purchased them. I am the owner of these policies and i feel my rights have been violated. Col Penn seem to have total control of what can be done or not... They restrict me from borrowing against my own cash value, but yet Col Penn has the liberty to handle my accumulated cash value at will, back in September, Col penn went into my cash value to pay for that month because according to them i missed that payment, or even if i did what gives then the right to take the money out the cash value without my consent, i wasn't aware that life Insurance companies could do such a thing, or have the right to do so, without the owner's consent...And to make matters worse, someone at the billing department took the liberty ( again without my consent) to apply the full payment to only one of the 4 policies i own, and the other 3 remained unpaid, When all 4 policies are under just one Account number, and that's how they've always been paid, under that one acct #. Someone i dont know why ??? Just applied the payment towards one out of the four...when my method of payment has always been one acct # for all four, since 2014- 2015... So why now Colonial Penn, just applied to one...?  Col Penn os not admitting to any mishandling or accepting any fault in the matter..It is very easy to just send out Reinstatement applications, when i have no fault in all this Screw up... Because of their Negligence my payment didn't go to the right place and didn't cover my other 3 policies, which am now totally behind on... And if Col Penn has been using my cash value to pay for the months that am behind in... Then why my policies are terminated??? And why are they sending new applications to  Reinstate me... I demand that my policies be reinstated to original status, and have whomever in is in charge do their job and Handle t hi is matter correctly, and whomever applied the payment into the wrong account pay the proper consequences...The responsibility falls on Colonial Penn, fo not doing what need to be done, in cases such as these, and find out who's responsible for such a huge mistake... I demand a more agreeable response on their part, And i also need to know why i am beeing asked to sign a HIPPA form, when i've never had to sign one before,i need to know why and for what, i need to sign this form... 
        
  Thank You
  
  ******** ********

  Business response

  06/30/2023

  June 30, 2023
  
  RE: Colonial Penn Life Insurance Company
  Consumer: ******** ********
  Complaint ID Number: ********
  
  Dear *** *****:
  
  We are in receipt of correspondence dated June 22, 2023, regarding the consumer named above. Thank you for bringing this matter to our attention.
  
  Since we do not have authorization to release information to the Better Business Bureau, we have mailed our response regarding a resolution directly to the consumer today.
  
  We want to assure you of our continued commitment to provide our customer with the best possible service. If you have further questions or need additional assistance, please contact our Customer Service Department at (**** ********.
  
  Sincerely,       
  
  ***** ******
  Consumer Relations Department
  

• Initial Complaint

  05/11/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I ********************* is the owner of a policy issued by Colonial Penn Life Insurance Co in 2016 for insured person ******* ********** born September 13, 1952. I moved from **** ****** **, Palmdale Ca in July 2017. I’ve called this company so many times, spoken with different agents changing my address, but they continuously sent correspondence to my old address. November, 2022, I called yet again, changing my address, but they continued sending all correspondence to old address. Meanwhile the insured ******* ********** policy elapsed in November 2022. I had no idea the policy elapsed so I continue making payments of $89.95 each month thereafter. Yet not receiving any correspondence from them I called again in April 2023 and found out that the policy had a lapse back in November 2022. When asked the agent what happened to the payments that I have been sending each month and I was told that they have been returning refund checks of $89.95 to the old address in Palmdale California. I told the agent how wrong it was for the company to still be sending all of my correspondence to my old address, had I known I could have protected that policy by taking care of whatever problems it was, but because I never received any mail, I had no knowledge and that It was their responsibility to update my address per my request. I requested that they send the return checks/payments that they received from me after the policy elapsed and send those checks/payments to my address in GA on *** ****** **** ***** Stockbridge GA *****, instead they took my $449.75 and reinstated the policy to January 2023, then elapsed it again, sent me a check for $121.35. I believe this was done to cover up their negligence of not changing my address. I’m requesting full payment of what is owed to me from this company, they stole my money and now a 70 years old man has no insurance after faithfully paying for nearly 7 years. Please Help 69 year old desperate **** for fairness. Thank you in advance??

  Business response

  06/06/2023

  June 6, 2023
  
  BBB serving Metro Washington DC and Eastern Pennsylvania
  50 West North Street
  Bethlehem, PA 18018
  
  Insured: *********************
  Reference Number: BBB ID Number ********
  
  We are in receipt of correspondence dated May 17, 2023 regarding the insured named above. Thank you for bringing this matter to our attention.
  
  As we do not have HIPAA authorization on file to respond to the Better Business Bureau, we have responded directly to the insured regarding this matter.
  
  Sincerely,       
  
  *******************************
  Consumer Relations Department

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩