Colonial Life Helps Insureds Personalize Benefits

PRODUCT: Term Life

COMPANY: Colonial Life

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available for all levels of the agent profession and fits any case size.

FOCUS: Today, employees want their financial protection to fit their unique family situation, income, short- and long-term debt and savings—which means a one-size-fits-all approach to life insurance simply doesn’t cut it.

Colonial Life offers workers new options for customizing their financial protection benefits. The company’s enhanced life insurance plan now features a new 15-year benefit period, living benefit options through Chronic Care and Critical Illness riders, and a new plan for face amounts exceeding $250,000 with gender-distinct rates.

The enhanced policy gives insureds “flexibility during the high-need years” and “lower premiums for life stages where coverage needs are greater,” explains Pam Jenkins, assistant vice president, product & market development, Colonial Life. “It can be combined with other supplemental insurance policies, such as short-term disability and cash-value life insurance, to help build a financial foundation.”

And personalized coverage means the insured can convert all or a portion of the benefit amount into cash-value life insurance, Jenkins adds. No medical information is necessary to convert all or part of the term policy.

Colonial Life has been in the voluntary employee benefits industry since 1939. Life insurance makes up 20% of sales in the company’s product portfolio, according to Jenkins.

COVERAGE DETAILS: Four term periods are available: 10-year, which is an affordable option for a wide range of ages; 15-year, which provides another option for those who may not qualify for a 20-year term due to age but need something longer than the 10-year; and 20- and 30-year, both of which can serve as mortgage protection.

Insureds may select between six optional riders: Spouse Term, Children’s Term, Accidental Death Benefit, Chronic Care Accelerated Death Benefit, Critical Illness Accelerated Death Benefit, and Waiver of Premium Benefit.

Additional coverage highlights include:

  • Benefit for the beneficiary that is typically tax-free
  • Standalone spouse policy available whether or not employee purchases a policy for themselves
  • Same benefit payout throughout the duration of the policy
  • Guaranteed premiums that do not increase during the selected term
  • Portability that enables employees to take coverage with them if they change jobs or retire

UNDERWRITING: The enhanced policy features an updated life application. Flexible underwriting and enrollment options are available. Coverage ranges from $10,000 to unlimited based on underwriting.

Tobacco-distinct and unisex rates on face amounts up to $250,000. Gender-distinct rates for face amounts exceeding $250,000, with non-tobacco standard, preferred, and preferred plus rates available based on health. Non-medical underwriting—no blood profiles or examinations—for certain ages and face amounts.


TARGET: Individuals who are partners or key employees in a business for face amounts over $250,000.

COVERAGE TERRITORY: All U.S. states except California and New York.

CONTACT: Pam Jenkins, assistant vice president, product & market development, Colonial Life; 803-678-6220.

Jacquelyn Connelly is former IA senior editor.