The Colonial Life & Accident Insurance Company is based in South Carolina and has been in business since 1939. They specialize in life insurance but also offer other types of insurance, such as accident and disability insurance. Right now, they offer policies in 49 states.
This company was originally founded as an accident insurance company but started offering life insurance shortly thereafter. They were run as an independent company until 1993 when they were purchased by Unum. The company remains a Unum subsidiary. Most of this company’s business comes from selling policies to employees. However, you can also purchase policies individually through their network of independent agents throughout the country.
You have many choices when it comes to picking a life insurance company, and it can be difficult to determine which option is right for you. In this article, we will take a look at the Colonial Life & Accident Insurance Company to help you determine if they are a good fit for your insurance needs.
What Types of Insurance does Colonial Life & Accident Insurance Offer?
Colonial Life & Accident Insurance offers multiple types of life insurance as well as other types of insurance. Here are the types of policies available.
Term Life
Term life insurance policies are the most affordable type of life insurance policy that this company offers. This type of life insurance only lasts for a specific number of years – Colonial Life & Accident offers 10, 15, 20, and 30 year options.
These policies are simple and easy to purchase and are a good option for most people. You can adjust the length and amount of your life insurance policy to fit your current circumstances. For example, many people will time the end of their term life insurance policy to coincide with their kids becoming financially independent or paying a mortgage off.
Whole Life
Colonial Life & Accident also offers whole life insurance policies, which are more comprehensive than term life policies. This coverage lasts until the age of 100 and comes with a cash value component. After a certain point, you will no longer need to make payments. Depending on the plan, your premium payments will stop either at age 70 or age 100. Although whole life policies are more comprehensive than term life policies, they are also more expensive.
These policies are best for people who need long-term coverage until the end of their life. You can also use a whole life policy as an investment vehicle, and many people use them as part of their wealth-building strategy. However, for the average person, a whole life policy isn’t going to be necessary.
Disability Insurance
This company also offers disability insurance, which can replace your income if you become disabled and cannot work at any point. Depending on what type of policy you have, you can enjoy short- or long-term benefits.
With disability insurance, you can use your payouts for any expenses you would like, and you can specify the frequency of the payouts. This type of insurance can be used for any medical condition that would render you unable to work, including serious injuries, major surgeries, illnesses, or even complicated pregnancies and birth.
Accident Insurance
Accident insurance offers coverage for unexpected accidents that cause serious injury. This type of coverage can pay for medical bills, lost wages, and other unexpected expenses that may pop up after an accident. If you do file a claim, your coverage is typically paid out in a lump sum that directly correlates with the severity of the accident you had. This type of coverage can be helpful for people who participate in athletic or outdoor activities with some physical risk.
Hospital Indemnity Insurance
This type of insurance is designed to supplement your health insurance plan. It covers most hospital stays as well as some surgeries and related expenses. This type of insurance can fill the gap between your total hospital bill and what your traditional health insurance plan covers.
While many health insurance plans do cover inpatient hospitals stays, they won’t necessarily cover other expenses related to them. For example, many people need additional physical therapy, diagnostic tests, and ongoing doctor’s visits after a hospital stay, and these costs can add up. Hospital indemnity insurance can make sure that you get all of the care that you need.
Critical Illness Insurance
If you are diagnosed with a critical illness, this type of insurance can help cover some of the unexpected expenses that come with that. Critical illness insurance can help with medical bills as well as lost wages, additional rehabilitation costs, travel to and from treatment, and more. Colonial Life & Accident also offers a similar type of insurance for individuals diagnosed with cancer.
Dental & Vision Insurance
Unfortunately, most traditional health insurance plans do not offer dental or vision coverage. Colonial Life & Accident’s dental and vision coverage can be used to supplement your existing health insurance coverage to pay for dental treatments as well as eyeglasses and other vision treatments.
Dental and vision care can get expensive very quickly, often without warning. Using dental and vision insurance to supplement your existing health insurance plan ensures that you will be able to get the care you need when you need it.
What Kind of Riders does Colonial Life & Accident Insurance Offer?
Many life insurance companies offer riders to help you further customize your life insurance policy. However, it is unclear whether Colonial Life & Accident Insurance offers riders on their policies. You will need to talk to an agent directly to learn more about the rider options they have available.
What Unique Features does Colonial Life & Accident Insurance Offer?
Colonial Life & Accident Insurance is unique in that they offer a wide variety of coverage types beyond traditional life insurance. Serious injuries and illnesses can be very expensive to manage, and standard health insurance coverage in the United States can be very limited. Colonial Life & Accident Insurance got their start selling accident insurance back in the early 20th century, so it remains an important part of their business. Colonial’s additional disability, accident, and illness policies can give you the peace of mind you need if you are concerned about these additional medical expenses.
Financial Ratings
One of the most important things to consider when selecting an insurance company is its financial ratings. You want to be completely confident that your insurer will be financially stable enough to pay their claims regardless of the current economic landscape.
Colonial Life & Accident Insurance Company has been in business for a very long time and has a reputation for being very financially stable. They currently maintain an “A” rating from A.M. Best, which is an organization that assesses and rates the financial stability of insurance companies. While an “A” rating is not the highest rating available, it does indicate that the Colonial Life & Accident Insurance company is reliable and can be trusted to pay their claims.
While A.M. Best is arguably the most trusted company that rates the financial stability of insurers, there are others that do so as well. Colonial Life & Accident Insurance Company also has an A3 rating from Moody’s, an A- from Fitch, and an A from Standard & Poor’s.
Reviews of Colonial Life & Accident Insurance Company
Another good way to determine if a life insurance company is right for you is by looking at reviews from previous customers. While everyone’s experience is different, reviews can give you a general idea of what you can expect from this insurance company.
Colonial Life & Accident Insurance Company Seems to get Mixed Reviews From Their Customers.
They are not currently accredited by the Better Business Bureau. Online reviews for this company often complain about difficult customer service experiences as well as slow payment processing times.
However, the NAIC Complaint Index reveals that Colonial Life & Accident Insurance Company receives fewer complaints than its competitors. This index is measured yearly to see which insurance companies receive the most formal complaints from their customers.
What is the Application Process for Colonial Life & Accident Insurance Company?
Colonial Life & Accident Insurance Company sells their policies through over 10,000 independent insurance agents throughout the country. Additionally, Colonial Life & Accident Company works with many employers to offer their policies on a larger scale.
Unfortunately, Colonial Life & Accident currently does not offer an easy way to apply through their website. While their website does have information about each type of policy they offer, they don’t have a quick way to get a quote.
Instead, you’ll have to contact an agent in your area. Luckily, Colonial Life & Accident Insurance does offer a full directory of agents throughout the country on their website. If you want to get a quote, you can also call their customer service team directly.
Many people like having a reliable insurance agent they can call anytime issues arise with their policy. However, if you prefer to handle your policy online, this could be frustrating.
Once you’ve found an agent, they can help you find the right policy for your needs. Once you have a policy in place, the company does give the ability to file a claim and get other policyholder support online.
The online claim filing system that Colonial Life offers is fairly straightforward. It walks you through the steps of filing a claim and helps you find the correct paperwork and information to file. Once your claim has gone through, you can track it and they will deposit the funds directly into your bank account.
If you would prefer not to file a claim online, Colonial Life does also allow you to file claims through their customer service line and by faxing in the required claims documents. However, this could result in increased claims processing times.
Is Colonial Life & Accident Insurance Company Legit?
Colonial Life & Accident Insurance Company is a legitimate insurance provider. They have a decent selection of life insurance policies as well as other supplemental insurance policies. They are very financially stable, although they have had some complaints from customers about slow payout times and other customer service issues.
Overall, Colonial Life & Accident Insurance Company is a reliable option for life insurance and is a particularly great choice if you’re also looking to add disability or accident insurance on top of that. They are also a very popular choice for employers who are looking to provide life insurance coverage for their employees.
