I'll Take Life Insurance For $139.28 Alex

Is Alex Trebek’s life insurance plan a good value?

Sometimes when we give someone a quote for life insurance they will ask, “why is that premium so high compared to what Alex Trebek sells on TV? He says a 50 year old man can get a life insurance policy for just 35¢ per day. I’m a 38 year old man in great health, why are they charging me so much?”

It’s a great question. Alex Trebek says a 50 year old man can get life insurance for just 35¢ per day per unit, and the premium is guaranteed to never go up! Right next to Alex’s picture on the Colonial Penn website it says:

Guaranteed Acceptance

Permanent Whole Life Insurance

• Cannot be turned down due to health
  
• No Medical Exam
• Ages 50-80 in most states

That’s great life insurance at a really low premium. 35¢ a day is cheap. It’s guaranteed, you can’t be turned down, and it’s endorsed by Alex Trebek! Who wouldn’t trust Alex Trebek? Of course it makes sense to go with Alex’s program, doesn’t it?

Let’s make sure.

Alex says 35¢ per day per unit. You probably don’t pay for your life insurance daily, most people pay monthly. According to Colonial Penn’s website 35¢ per day adds up to $9.95 per month. When they put it that way it doesn’t sound quite as good as 35¢ per day, but it still sounds pretty good.

But wait, there’s one more thing we need to find out.

How much is a unit? $25,000? $50,000? Maybe $100,000?

It doesn’t say how much a unit is on the Colonial Penn’s home page, but this is what it says on their FAQ page:

What is a unit?
A unit of coverage corresponds to the life insurance benefit amount you can purchase, and it depends on age, gender and state. Please visit the Guaranteed Acceptance Life quote page to see benefit amounts and premiums available to you for up to 8 units of coverage.

Well that doesn’t make it any clearer, does it? I guess we’ll have to look at the Guaranteed Acceptance Life Page. After entering the info for Alex’s hypothetical 50 year old man it finally tells us how much a unit is. Are you ready?

One Unit = $1,786

$9.95 per month for a $1,786 life insurance policy? This plan is really starting to sound expensive.

For $25,000, the maximum Alex says you can get, the premium is a whopping $139.28 per month!

By comparison, a 50 year old man in good health can get a $25,000 universal life policy from Mutual of Omaha for just $86.93 per month.

The evidence is clear, if you are in good health Alex’s plan is very expensive.

This does not mean that Alex’s plan is bad and that you should never consider it. Anyone can get the Colonial Penn plan regardless of their health. So what it means is that you should contact a qualified life insurance agentthat will have access to all the top life insurance companies. She will help you find the best option for you, and if you are in good health there are better options than what Alex offers.
One last point. If you die within two years of taking out the Colonial Penn plan the policy will not pay the face value (except if death is by accidental means). Your beneficiary will only receive a return of the premiums you paid plus some interest.

The next time you see Alex Trebek’s commercial remember that 35¢ per unit per day quickly adds up to a very expensive life insurance policy. A phone call or email to a qualified insurance agent will be well worth your time.

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Marcy Tooker

The Tooker Agency

Riverhead NY

631-502-0000

marcy@thetookeragency.com