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Colonial Penn Adds 3 Life Policy Early Payout Riders

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Colonial Penn — a subsidiary of CNO Financial Group Inc. — has introduced a collection of three life insurance policy “living benefits” riders aimed at consumers who buy coverage through the direct-to-consumer sales channel.

The new Living Insurance life policy options are the Chronic Illness + Terminal Illness rider, the Critical Illness Heart Attack/Stroke + Terminal Illness rider, and the Critical Illness Cancer + Terminal Illness rider.

(Related: CNO Reports Higher Annuity Sales)

Colonial Penn has already been selling life insurance through direct-to-consumer channels, using a simplified issue underwriting strategy.

The new riders can help a purchaser get up to 50% of the death benefit early, if the purchaser ends up facing the kinds of health problems that trigger a rider benefits payout, such as cancer, a stroke, or a terminal illness, according to Colonial Penn.

The new riders are now available for sale, in 21 states, online, by phone, or mail, with issue ages from 18 to 75 for term life, and issue ages 40 to 75 for whole life, Colonial Penn says.

Colonial Penn says it expects to have the riders available for sale in most other states by the end of the year.

— Read Colonial Penn Takes Back Life Premiums From Swiss Re Unit, on ThinkAdvisor.

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