ComplaintsforColonial Penn Life Insurance Company

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Initial Complaint
05/11/2023
Complaint Type:
Service or Repair Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
My mother passed on March 29 2023, she has 2 policies with Colonial Penn. One of the policies is in both my sisters name and my name, the other policy is just in my sisters name. The policy ********** was the policy in my sister (******** **********) and my name (******* *** ****** ****, the policy was for $5,028.00. We agreed to pay ******* Funeral Home for his services which rounded up to being $3000. The funeral home filled out the assignment form and my sister and myself filled out our part . It was sent in. I have been reaching out to Colonial Penn everyday asking about the progress, although every time I call I'm getting another excuse. I I've called 4/27/2023 @ 3:31pm I was told my sister needed to fill out a claim form ,which she did. 5/2/2023 I called again, 5/9/2023 3:23pm when I called I was told check was processed and should receive within 2 weeks.5/10/2023 4:00pm I called and was told Assignment form from funeral home wasn't filled out out properly, so I reached out to funeral home when I received a call back from funeral home director **** ******* he informed me they never received a claim form from my sister ******** ********** which was totally a lie. Called back to Colonial Penn at 5:L50pm 5/10/2023 and they tell me I need to fill out a claim form. I am just getting the total run around d with Colonial Penn and this is why I'm filing this complaint. Thank you for your time.
Business response
05/30/2023
Good afternoon,
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, except as authorized in writing or otherwise permitted by law. As we do not have an authorization on file to respond to the Better Business Bureau, we have contacted the complainant directly to resolve this matter.
Colonial Penn Life Insurance Company
Consumer Relations
Initial Complaint
04/19/2023
Complaint Type:
Service or Repair Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
I called and spoke with a representative on 2/22 to file a claim. She took the information and stated the claim will not be processed until a death certificate is sent. I then called back on 2-22-2023 and asked if there was a way to have the funeral home submit the information and receive the payment since it takes a while for a death certificate. The guy gave me the information on the process. 2-28, I sat down with the owner of *** ******* Funeral Home in Nacogdoches Texas and we spoke with a rep from Colonial Penn who verified the amount was 16,800 and accepted his assignment. Before this, we were not told it was a contingent policy. They then called and told him they could not accept it because they had already cut a check to me unbeknownst to me. I received the check and it was only for 2500. I called the company with the funeral owner and explained the issue. The representatives lied in the notes about the telephone conversations. I asked to have the calls pulled. I have called the company twice since then and have received no call back or communication. I am now stuck with a 14,000 bill because of their lies. I feel this company preys on the elderly and does not intend to payout the benefits the agents quote them for. He told them he would have never accepted a contingent policy and they neglected to inform either of us while on the call. March 16th I called with the funeral owner on the line as was told it would be escalated and I will get a call back the next day as a follow up. After no call or letter I followed up on April 7th and was told she would escalate it again. Still have yet to receive a response. They are very rude when they are caught in their lies. She td me they didn't accept the funerals assignment bc I had already cashed the checked. I then asked how can I cash a check that you stated you mailed on 2-27 and he called on 2-28.
Business response
04/26/2023
We are in receipt of correspondence dated April 24, 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
04/28/2023
[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]

Complaint: ********

I am rejecting this response because:
I still have yet to receive a phone call or email from this company. This is the 3rd time I've been told someone will contact me and it doesn't happen.

Regards,

***********************
Business response
06/12/2023
June 12, 2023

RE: Colonial Penn Life Insurance Company
Consumer: ***********************
Complaint ID Number: ********

Dear **************:

We are in receipt of correspondence dated June 8, 2023, regarding the consumer named above. Thank you for bringing this matter to our attention.

Per the correspondence received, **************** noted on April 28, 2023 that she did not accept the companys April 26, 2023 response to the Better Business Bureau indicating a response would be mailed to her, since she had not yet been contacted at that time.

Please be advised that we mailed a written response directly to **************** regarding this matter on May 8, 2023. In addition, we also received an inquiry regarding this matter from the ***** Department of Insurance in response to **************** having contacted them. We responded directly to the ***** Department of Insurance on May 3, 2023.

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
04/17/2023
Complaint Type:
Product Issues
Status:
Resolved
The complainant verified the issue was resolved to their satisfaction.
Colonial Penn continued drafting monthly payments out of my & my father's joint bank account after he passed away in Dec. They took payments up until March. I'm not the beneficiary listed so they told me to fax proof of death certificate, letters testamentary stating in the Executor, proof of payments taken from my account. They kept saying they would get it taken care of and call me back within 5 days. That was a lie. They continued taking payments while trying to handle this issue. They promised to send me a check but to this day I've only received a letter. The letter even says they are going to send a check within 10 days. The check never comes when they promise. It has now turned into complete denial on their behalf whenever I call them. They now state that they cannot provide me info since I'm not the beneficiary listed. But yet they tell me the check was mailed to the beneficiary! They have stolen money from my account and given it to another person. I will be talking with my estate attorney for advice on an attorney he recommends in order to file a lawsuit. I have documents from Colonial Penn & recorded phone calls proving their negligence. I faxed them constantly for about a week so they are very aware of my situation. Now when I call, they say they are transferring me but it now goes to a voicemail stating they are closed and then disconnects the call. They have countless lawsuits against them and some class action suits. Looks like I'll be getting in line for the next few years of dealing with this. What's right is right and Colonial Penn is just flat out wrong!
Business response
05/02/2023
May 2, 2023

RE: Colonial Penn Life Insurance Company
Consumer: *********************
Complaint ID Number: ********

Dear **************:

We are in receipt of correspondence dated April 25, 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 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
Customer response
05/10/2023
[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]

Complaint: ********

I am rejecting this response because:
Colonial Penn sent a letter denying the proof I have that they automatically drafted monthly payments out of my bank account. They are claiming I approved monthly payments from my bank. I have 2 different phone calls recorded where their reps even admit to their wrong doing and will stop payment to the beneficiary's check that had my payments included. They told me to a separate check would be refunded to me. Their inadequate employees only refunded me 1 out of the 3 they verbally promised to pay. Now they are claiming that the 1 refunded payment they sent was for a good faith "administrative exception." This letter/ response was more of an attempt to cover their behind. Otherwise, that 1 check they sent would be an admission of guilt that they owe me 3 payments, not the beneficiary. I will continue speaking with my father's estate attorney about this matter. Colonial Penn will get laughed out of a courtroom with all the proof I have through phone recordings, bank information, faxes, and letters. This company has had multiple class action & personal lawsuits against them.

Regards,

*********************
Business response
06/27/2023
June 27, 2023

RE: Colonial Penn Life Insurance Company
Consumer: *********************
Complaint ID Number: ********

Dear **************:

We are in receipt of correspondence dated June 21, 2023, regarding the consumer named above. Thank you for bringing this matter to our attention.

We have mailed a response directly to the consumer on June 27, 2023 confirming the matter has been resolved.

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
07/13/2023
[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. It took me contacting BBB to get them to reimburse me. They finally did after 6 months of countless phone calls, emails I found online, & paying for fax services that they told me I was required to send them. I've not been reimbursed for the extra time and money I feel they wasted of mine. But I'll accept the small payment of their original amount they owed. Nobody I know will ever get insurance from them.

Regards,

*********************
Initial Complaint
04/10/2023
Complaint Type:
Customer Service Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
My father passed away January 16, 2023 and he was paying for ******** supplement insurance through Colonial Penn Life Insurance Company. I have called several times over the past 3 months requesting that his policy be closed and for the issuance of the refund for his payment which was taken after he passed. There has still been absolutely no resolution to the problem. I have asked to speak to a supervisor and received a call a few weeks later stating that the policy had been cancelled and they would be sending the refund to me. I have cancelled this policy numerous times over the past 3 months and verified my information (including mailing address) numerous times and still no action from them. My complaints have not been taken seriously therefore I need help to get my issue resolved immediately. Their customer service has been very unprofessional and painful for me because its opening a new wound of grief for my father with each call. I need a resolution immediately.
Business response
04/24/2023
***** *** **** *** ******* ***** ************* *** ******* ************ *********************************************************************** ******** ************************* ********* ******* *** ** ****** ********

We are in receipt of correspondence dated April 12, 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 ********************
Initial Complaint
03/24/2023
Complaint Type:
Order Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
HAD POLICIES WITH THE COLONIAL PENN COMPANY FOR OVER 10 YEARS! RECENTLY THEY HAVE OVERCHARGED ME FOR MY TWO POLICIES AND HAVE BEEN VERY UNREASONABLE IN MANY PHONE CALLS AS MY WONDERFUL HUSBAND AND I HAVE WORKED TO RESOLVE THIS OUTRAGEOUS SITUATION!! WE ARE BOTH SENIOR CITIZENS WITH A VERY LIMITED BUDGET!! THANKS IN ADVANCE FOR ASSISTING US IN THIS UNFORTUNATE MATTER!!
Business response
04/11/2023
April 11, 2023

BBB serving Metro Washington DC & Eastern Pennsylvania
1411 K St. NW 10th Floor
Washington, DC 20005

Insured: ***********************
Reference Number: BBB ID Number ********

We are in receipt of correspondence dated March 29, 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
03/23/2023
Complaint Type:
Billing Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
I needed life insurance so I watched the advertisement on the 9.95 a month plan They lie so bad I want my money refunded There are 2 payments of approximately 39 $ They said they will not refund my money I'm on Social Security disability I can't afford to just give people money My check is 400 $ a month Please help me get a refund and stop them from taking the elderly for granted How can they do this
Business response
04/03/2023
April 3, 2023

BBB serving Metro Washington DC & Eastern Pennsylvania
1411 K St. NW, 10th Floor
Washington, DC 20005

Insured: *************************************
Reference Number: BBB ID Number ********

We are in receipt of correspondence dated March 28, 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
03/20/2023
Complaint Type:
Order Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
EXTREMELY FRAUDULENT COMPANY PREYING ON SENIORS…I purchased life insurance from this company for my husband in 2016. This policy has a face value of only approximately $4200, however my payments thus far have exceeded this amount. My husband is bedridden with *********** ******* and needs 24/7 care for his every need. He’s non-verbal, incontinent and completely bedridden. The claim I submitted would be of great assistance with his care at this point. Allegedly there is a clause in the life insurance policy for a chronic illness claim. I’ve cared for my husband for his every need and have Power Of Attorney for both his Medical and Financial Affairs. The cost of his monthly care exceeds what I’ve paid on this policy since 2016. The policy continues in force even when additional payments consistently exceed the face value. I’ve talked to several individuals regardless this claim and they’ve acknowledged receipt of the claim but thus far they will not give me any information because according to them they have not included my POA to this file. They refuse to comply and provide answers to any of my questions regarding this claiming stating they will call me when they acknowledge my POA. However, they admitted receiving these documents on March 13, 2023. This company abuses and misleads seniors to the extent of failure to disclose what they are truly purchasing for is $9.95 is merely for only $1000 of coverage. Each $1000 is an additional cost of $9.95. However, it’s very difficult getting claims paid through this insurance company. Reviews of this company are inundated with complaints and their negligence in even paying death claims. I submitted documentation including the POA requesting a claim payment for chronic illness as stated on their website. Recently, I was told that the claim I submitted would probably not be honored because I did not purchase a Rider Policy for chronically ill, disabled policy owners, mostly seniors exclusively. Seniors Be Aware.
Business response
03/30/2023
March 30, 2023
RE: Colonial Penn Life Insurance Company
Consumer: ***************************
Complaint ID Number: ********
Dear **************:
We are in receipt of correspondence dated March 21, 2023, regarding the consumer named above. Thank you for bringing this matter to our attention.

As we do not have authorization to release information to the Better Business Bureau,we have mailed our response 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
03/18/2023
Complaint Type:
Order Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
I had a whole life policy for 20 years. Automatically from my acct. Back in 4/2022 without my knowledge my payments stopped. I was not informed until 8/2022 that the money wasn't taken out of my acct. When I contacted them several times over months I was told it was a term policy that expired not whole life. This is not true, I have proof it was whole life. No one will accept my calls or show me proof of a cancellation or provide information on where my whole life policy went. This is fraud. Looking for it to be reinstated for same amount monthly.
Business response
04/07/2023
April 7, 2023

BBB serving Metro Washington DC & Eastern Pennsylvania
1411 K St. NW 10th Floor
Washington, DC 20005

Insured: ***************************
Reference Number: BBB ID Number ********

We are in receipt of correspondence dated March 21, 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
04/11/2023
[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]

Complaint: ********

I am rejecting this response because: they still have not resolved this issue. They insist that I show my proof but they will not show proof that I signed anything to end my policy. They say I did but won't prove it. I never signed anything. I will send proof of the whole life policy once they send me a copy of my signature requesting to cancel the policy they said they have. I want this resolved if it is my signature then that is fine, but I know I didn't sign anything so I need to see proof to know if it's my signature or not.

Regards,

***************************
Business response
05/22/2023
May 12, 2023

Dear *** *****:
This letter is in response to correspondence received from the family of ******* ******. We appreciate the opportunity to respond.
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, except as authorized in writing or otherwise permitted by law. As we do not have an authorization on file to respond to the Better Business Bureau, we have contacted The Family of ******* ****** directly.
Similarly, to provide specific policy information to the family, an authorization is needed from the policyholder or his/her legal representative. If the policyholder is deceased, the policy is deemed property of the Estate of the Decedent. In this case, the enclosed authorization form needs to be accompanied by the estate paperwork. In the absence of an estate, small estate affidavit would suffice. The affidavit can be obtained by the probate court clerk’s office from the county in which the policyholder resided at the time death.
We remain dedicated to providing the best possible service. If you have any additional questions or if we may be of further assistance to you, please feel free to contact our customer service department at (**** ********.
Sincerely,
******** ******, ALMI ACS
Consumer Relations
Initial Complaint
03/16/2023
Complaint Type:
Order Issues
Status:
Resolved
The complainant verified the issue was resolved to their satisfaction.
I was the payor and beneficiary of my step dad's life insurance policy until he passed away in Dec. 2022. Upon his death, I signed the policy over to the insurance company and the company, Colonial Penn was notified of my step dad's passing. However, they have continued to send me bills, even late payment notices, after I've contacted several times to request that they stop sending me bills as my step dad is deceased. They have ignored my requests. I think it is not only insensitive but unprofessional to continue to send bills after a death claim has been made. I would like the notices to stop immediately.
Business response
03/22/2023
March 22, 2023

BBB serving Metro Washington DC & Eastern Pennsylvania
1411 K St. NW 10th Floor
Washington, DC 20005

Insured: NAME ***************************
Reference Number: BBB ID Number ********

We are in receipt of correspondence dated March 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
Customer response
04/11/2023
[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
03/16/2023
Complaint Type:
Service or Repair Issues
Status:
Resolved
The complainant verified the issue was resolved to their satisfaction.
3/16/2023. I called to cancel. I admire anyone who can speak another language but this person could not understand me and I could not understand him. He finally found my policy but continued to call me by the wrong name. The TV ads are very misleading to the point of fraud. $9.95 a month is supposed to get me $10,000 life insurance. I bought 2 units thinking $20,000 It got me only $1300 and it would take 20 years to get that much. Pretty good deal for Colonial Penn but I would have 4 times as much if I just put my money under the mattress. It took only moments to sign up but they have to mail me a special form in 7 to 10 days to cancel! They direct debit my bank account so I can't just not send in the check. Now I see how they can afford all that TV advertising. Cancel! Do not take any more money from my bank account. Matter of fact I will call the bank and cancel you that way too!
Business response
03/22/2023
March 22, 2023

BBB serving Metro Washington DC & Eastern Pennsylvania
1411 K St. NW, 10th Floor
Washington, DC 20005

Insured: NAME *******************
Reference Number: BBB ID Number ********

We are in receipt of correspondence dated March 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
Customer response
04/11/2023
[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.
I could not find a resolution in this correspondence however the situation is resolved. I do not agree with that false advertising but I guess the 1st amendment gives then that right. Buyer beware.
Regards,

*******************

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