Colonial Life Insurance Review & Complaints: Life & Health Insurance (2024)

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Colonial Life Insurance is a South Carolina-based insurer offering life insurance as well as a selection of supplemental health plans. They are a nationwide company with a focus on voluntary employee benefits.

What is Colonial Life?

Colonial Life was founded in 1937 as Mutual Accident Company in Columbia, South Carolina in the United States. They sold accidental death policies and final-expense insurance through a team of mostly female sales representatives. Two years after the company’s founding, the name was changed to Colonial Life and Accident Insurance Company.

Moving into the employee benefits market, the company began offering payroll deduction services for voluntary products. They continued to grow over the following decades and are a large employee benefits insurer today.

Colonial Life operates as a subsidiary of Unum Group and serves more than 3.7 million policyholders at more than 90,000 companies and organizations. Life insurance policies are sold across the country through brokers and consultants.

What products are offered by Colonial Life?

All of the company’s products are voluntary employer benefits, which means they are available only through an employer that has selected them as part of an optional package of insurance to employees. Products are not available on an individual basis.

Employers looking to put together a voluntary benefits package can choose from life policies and supplemental health insurance policy including disability, dental, and vision plan options.

Life Coverage

Although there are no details listed about the company’s policies, they do offer an overview of all three types of life insurance that are available.

Colonial Life writes term life insurance, universal life, and whole life policies. Employers can choose to offer one or more of these options as a group policy to their employees, making it more affordable than if they purchased it individually.

Colonial’s life insurance policies, although offered through employers, are portable, so the policy can be continued if the employee changes jobs.

Disability Coverage

Colonial Life offers short-term disability policies which pays out monthly for up to two years in the event of an accident or illness. These plans are also portable, so they can be continued after a job change.

Colonial Life does not currently offer long-term disability coverage.

Supplemental Health Policies

There are several options for supplemental health policies that provide a payout in the event of the specific medical need they are designed to cover.

Accident coverage is a lump-sum benefit that pays out a set amount based on the type of injury. This plan covers both at-work and off-the-job coverage and is also available for spouses and dependents.

Hospital Indemnity coverage is available at a variety of benefit levels that can be selected by the policyholder. This plan will pay out in the event of a covered hospitalization and can be used to pay bills that are not covered by major medical insurance.

Critical Illness policies are also a lump-sum benefit coverage that pays out directly to the policyholder in the event of a covered illness. The list of covered conditions includes things like heart attack, stroke, and end-stage renal disease. The benefit can be used for any need, including medical bills, child care, rehabilitation, and more.

Cancer Insurance is designed specifically to assist with a cancer diagnosis. The benefits can be used to pay medical bills, travel costs, childcare, and more. Also included are benefits like cancer screenings. (For more information, read our “Life Insurance Guide for Cancer Patients“)

Dental and Vision

Both dental and vision plans are offered that include coverage for the employee as well as spouse and dependents.

These plans cover in-network providers for routine care as well as providing a range of additional benefits including eyewear.

Does it have competitive rates?

Because Colonial Life only offers its policies through employers, rates are not offered online. One of the benefits of group coverage is that the rates are generally lower than if you purchased the coverage individually.

The cost will, of course, depend on what options an employer chooses to offer, and from there what options the employee elects.

Is it easy to file claims?

Claims can be filed online, or the forms can be downloaded, printed, and returned by mail. The site does not offer any sort of checking the status of claims phone number. There is a customer service number where questions can be directed, and in most cases, a phone number is provided with policy information for this type of coverage.

Company HR departments can also assist with the claims process. In the case of dental and vision policies, claims are usually handled directly with providers.

How are ratings and consumer reviews?

Colonial Life is not rated by the Better Business Bureau (BBB) for their home office location; the file states complaints are handled by another BBB. As usual, the BBB does not offer a link or any information to what that location might be. It is possible that they are handled through the parent company, Unum Group.

We did find 104 ratings on Consumer Affairs, most of which are negative customer reviews. Most of the customer complaints are in regards to claims problems, although some also cite poor customer service. Given the size of this company, the number of complaints is not high and the content similar to what we see for other life and accident insurance companies, suggesting an average level of customer satisfaction.

Read more: Unum Insurance Review & Complaints: Health & Life Insurance

Colonial Life Insurance Claims Process: Seamless and Efficient

Ease of Filing a Claim

At Colonial Life Insurance, policyholders will find a strong commitment to simplicity and convenience when initiating a claim. The company understands that individuals facing challenging times deserve a stress-free process. With a variety of user-friendly channels available, Colonial Life Insurance ensures that filing a claim is hassle-free.

Average Claim Processing Time

Efficiency takes center stage in Colonial Life Insurance’s claims processing procedures. The company’s unwavering dedication is to provide swift assistance to policyholders precisely when they need it. Maintaining a competitive average claim processing time is a top priority, eliminating unnecessary waiting periods for claim resolutions.

Customer Feedback on Claim Resolutions and Payouts

At Colonial Life, policyholders’ feedback holds immense value. The company is perpetually committed to enhancing their claim resolutions and payout processes for the betterment of their policyholders. Customer input plays a pivotal role in identifying areas for improvement and refining services.

Exploring Colonial Life Insurance’s Cutting-Edge Digital and Technological Features

Mobile App Features and Functionality

Colonial Life Insurance offers a user-friendly mobile app equipped with a range of features and functionalities. Policyholders can access their insurance information on the go, submit claims digitally, manage insurance documents, receive updates, and easily connect with customer support.

Online Account Management Capabilities

Policyholders benefit from robust online account management capabilities through Colonial Life Insurance’s secure online portal. This platform enables them to review and update policy details, make premium payments conveniently, access digital insurance documents, track claims’ progress, request policy changes, and retrieve policy information whenever needed.

Digital Tools and Resources

Colonial Life Insurance provides policyholders with valuable digital tools and resources. These include educational articles and guides for better insurance understanding, premium calculators to estimate insurance costs, online quoting for auto policies (in select areas), and downloadable claims forms for easy claim submissions.

Access to a direct repair network ensures efficient auto repairs. These digital resources simplify insurance-related tasks, making it easier for policyholders to manage their coverage and access essential information online.

What is the bottom line?

Colonial Life is a big company, and there are no red flags to be found in their reputation. Employers may want to consider them for their employee benefits packages, and employees are likely to find good value, including on life insurance rates, in the products if they choose to enroll.