Colonial Life Insurance Review

Voluntary benefits you can take with if you leave your job

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Colonial Life Insurance Company

Colonial Life Insurance Company

Investopedia’s Rating
2.2

Our Take

If your employer offers Colonial Life Insurance products as part of your voluntary benefits package, it’s worth considering. But be aware that you can also buy life insurance directly from other life insurance providers with better financial strength and customer satisfaction ratings. 

  • Pros & Cons
  • Company Overview
Pros & Cons
Pros
  • Customizable coverage

  • Portable term and whole life policies

  • Coverage available without a medical exam

Cons
  • Limited policy details available online

  • No direct online quotes

Company Overview

Founded in 1937 and headquartered in Columbia, S.C., Colonial Life is a subsidiary of Unum Group. It pioneered the introduction of voluntary benefits to the workplace through payroll deductions. The company offers individual and group life insurance, along with a wide range of other coverages, through employers. As of 2021, Colonial Life had $1.8 billion in insurance in force across more than 4 million employees of more than 87,000 businesses. Colonial Life is authorized to sell insurance in all states (except New York) and the District of Columbia. 

  • Year Founded 1937
  • Kinds of Policies Term life, whole life
  • Payment Options Bank draft
  • Customer Service Mail. Online form. Phone: 1-800-325-4368. Fax: 1-800-880-9325
  • Official Website https://www.coloniallife.com/
Colonial Life Insurance Company

Colonial Life Insurance Company

Investopedia’s Rating
2.2

Pros Explained

  • Customizable coverage: You can choose policy riders that provide additional term coverage, living benefits, and the ability to pause premiums. 
  • Portable term and whole life policies: You can take your coverage with you when you leave your employer. You’ll just need to change your payment method. 
  • Coverage available without a medical exam: Colonial Life offers life insurance without a medical exam, and guaranteed-issue coverage may also be available, which doesn’t even require health questions. 

Cons Explained

  • Limited policy details available online: If you want to know about specific plan details or how the riders work, you’ll need to talk to your benefits counselor. 
  • No direct online quotes: You can’t get a pricing estimate online, so you’ll need to go through your employer. 

Complaint Index

Colonial Life had slightly fewer complaints from consumers over the last three years than expected considering the company’s size, according to the National Association of Insurance Commissioners (NAIC). Each year, the NAIC reports a complaint index for every life insurance company that indicates how the company fares with regards to consumer complaints. An index of 1.00 means that a company received the expected number of complaints given its size. An index of less than 1.00 is ideal, and the lower the better. Over the last three years, Colonial Life had an average complaint index of 0.89 for its life insurance business. 

Colonial Life had a complaint index above 1.00 in 2020. Most of the top insurers we review don’t score higher than 1.00 in any given year. 

Third Party Ratings

Colonial Life fares well with regards to financial stability, according to independent credit ratings agency AM Best. The company received an A (Excellent) financial strength rating from AM Best, which indicates that the company has an excellent ability to honor its ongoing insurance obligations.

AM Best evaluates insurance companies based on the likelihood that they can fulfill their ongoing insurance obligations and pay claims to beneficiaries, and assigns each company a financial strength grade. Grades range from D to A++. We typically don’t recommend insurers that score below an A-. 

Policies Available

Term Life Insurance

Term life insurance consists of affordable coverage that lasts for a predetermined period. For example, Colonial Life offers 10-, 15-, 20-, and 30-year term options with face amounts starting at $10,000. Term coverage is designed to protect your family if you die before certain financial obligations are fulfilled, such as paying off your mortgage or sending kids to college. Premiums stay level for the duration of the term.  

Whole Life Insurance

Whole life insurance is a type of permanent coverage that provides a guaranteed payout to your beneficiaries no matter when you die, as long as premiums are paid. It also has a cash value component that you can typically borrow against. However, whole life insurance is much more expensive than term life insurance. With Colonial Life, you can elect to pay premiums up to age 70 or up to age 100. Your premiums will stay level until they are paid up, and coverage continues once they are paid. 

Available Riders

Riders increase the benefits of your life insurance policy and may be available for an additional cost or, occasionally, included with coverage. Some of the riders Colonial Life offers are below.

Accelerated Death Benefit: Terminal Illness Rider

This rider is a type of living benefit rider and is included with Colonial Life term policies. Terminal illness riders provide a portion of the death benefit while you are still living if you’re diagnosed with a terminal illness and expected to die within a certain time frame. 

Accelerated Death Benefit: Chronic Care Rider

This optional rider provides access to the death benefit while you’re still alive should you be diagnosed with a chronic illness.

Accelerated Death Benefit: Critical Illness Rider

This optional rider pays a lump sum if you are diagnosed with a critical illness. The accelerated death benefit can be helpful for covering your medical bills. 

Spouse Term Rider

At Colonial Life, you can add 10 or 20 years of term coverage for your spouse onto your policy. 

Children’s Term Rider

This optional rider provides term coverage for your children. It typically covers all eligible children in the family for one monthly cost. 

Waiver of Premium Rider

A waiver of premium rider allows you to pause premium payments in certain instances, such as if you become totally disabled. There is typically a waiting period and requirements to meet. 

These riders may be available with Colonial Life term policies. Colonial Life doesn’t specify which riders, if any, are available with its whole life insurance product, so ask your HR representative. 

Customer Service

If you have questions about Colonial Life’s policies, the best place to start is by contacting your company’s Human Resources department. If you’re already a policyholder, many transactions can be completed in your online account. If you still need assistance, you can also fill out this online form to request support or call 1-800-325-4368 on weekdays between 8am and 8pm ET. You can also fax claims information to 1-800-880-9325. 

 Our Methodology: How We Review Life Insurance Carriers

We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost.

In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. NAIC. “Consumer Insurance Search."

  2. AM Best. “Guide to Best’s Financial Strength Ratings - (FSR)."