Columbian Financial Group Life Insurance Review 2021
The Columbian Financial Group is not one of our top rated life insurance companies. You can check out our list of the best life insurance companies for what we think are better options.
- Medical exams are not required for most policies: While many life insurance companies will require you to have a medical exam when you purchase a policy, Columbian offers simplified issue insurance on some policies. You can get coverage by simply completing a questionnaire.
- Several riders available: Columbian offers several optional insurance riders that you can add to your policy for additional coverage. Riders include accelerated death benefits, children’s insurance and accidental death benefits.
- Limited policy information available: Columbian has very little information on consumer policies on its website. For more details on the coverage amounts, available endorsements and underwriting criteria, you should contact an insurance agent.
- Online quotes not available for most policies: The company does not allow you to get quotes for its policies online. The only way to get information on its rates is to work directly with an agent.
- Recently downgraded financial ratings: AM Best, a credit rating agency that rates insurance companies, recently downgraded Columbian’s financial strength rating from B ++ (good) to B (fair). Any degradation is significant and signals potential operational performance issues. A rating of B indicates that AM Best believes the company is vulnerable to changing economic conditions.
Columbian Life sells term and whole life policies. It specializes in policies and final spending plans for the elderly, but it also offers insurance options for young adults. It offers four coverage options:
Term life insurance is the cheapest form of life insurance since it only provides temporary coverage. With Columbian’s SafeShield Simplified Issue Term Policy, you can get coverage from $ 25,000 to $ 250,000. You can choose a term of 15, 20 or 30 years. If you die during the covered period, your beneficiaries will receive the sum insured under the contract.
The SafeShield Streamlined Issue Duration plan uses streamlined pricing, so you don’t need a medical exam to qualify for a policy.
All the life
Unlike term insurance, whole life insurance policies provide coverage for your entire life. As long as you pay your premiums, your policy does not expire. Additionally, whole life insurance policies can create cash value over time.
Columbian Financial Group sells three forms of whole life insurance:
- Dignified Choice final expense: With this option, you can purchase up to $ 35,000 in whole life insurance to pay for your final expenses. The Dignified Choice final spending plan requires a phone interview, and the company can review your prescription drug and motor vehicle reports.
- Life’s Solutions All of life: Life’s Solutions Whole Life plan is Columbian’s strongest policy. You can purchase coverage from $ 20,000 to $ 500,000, and premiums are payable up to age 90.
- Simple security for life: This provides a very basic plan for people who only need a small amount of insurance to cover burial costs. The maximum benefit amount is $ 15,000.
By adding insurance endorsements to your Colombian policy, you can get coverage for your family members, access your benefits if you get sick, or even waive your premiums in certain situations.
The following endorsements are available through Columbian Financial Group:
If you are diagnosed with a terminal illness with a life expectancy of 12 months or less, you can use part of your policy’s death benefit while you are alive.
If you die in a covered accident, your beneficiaries will receive a larger death benefit.
You can purchase term life insurance for your children or grandchildren. Coverage lasts until the child is 25 years old; at this point, the term cover can be converted to permanent insurance.
Available on certain policies, the Guaranteed Purchase Rider allows you to purchase additional coverage at specified ages or after major life events without further evidence of insurability.
Waiver of premium
If you have added the Waiver of Premium Rider to your policy and become permanently disabled, Columbian will waive your premiums after six months.
All Columbian Financial Group policies are sold exclusively through insurance agents. You must contact the company to connect to a partner agent.
Unlike other companies, Columbian does not have a customer portal for online payments or claims. It allows you to download some forms, but the site is fairly basic for existing policyholders.
If you need to contact customer service, you can send a secure message via the company’s website. Or, you can call 800-423-9765 Monday through Friday 8 a.m. to 4:30 p.m. EST.
When it comes to customer complaints, Columbian Financial Group has received more complaints than is typical for an insurer of its size.
The National Association of Insurance Commissioners (NAIC) publishes complaint ratios that reflect the number of complaints filed by customers relative to the insurance market share held by a company. The standard ratio is 1.0. If a company’s ratio is greater than 1.0, it means that it has received more complaints than expected.
In 2020, Columbian’s complaint rate was 1.42, worse than the industry standard.
Over the past three years, the most common complaints submitted by customers concerned delays in claims and service to policyholders.
Third party evaluations
AM Best is a credit rating agency specializing in the insurance industry. It assesses financial data, operating performance and business prospects of companies to determine their financial strength ratings (FSR). Ratings are AM Best’s opinions on the financial strength of companies and the likelihood that they will be able to meet their political obligations.
In 2021, AM Best downgraded Columbian’s FSR from B ++ (good) to B (fair). Any demotion to an FSR is important, but a demotion to Level B indicates that AM Best believes Columbian is financially vulnerable and at risk of future operating losses.
Columbian was not included in the JD Power 2020 US Individual Life Insurance Study. The study evaluated 23 top life insurance companies and ranked them based on price, policy options, and customer communications.
Columbian Financial Group has very little information on online policies. However, all insurance companies offer 10-day “free exam periods”, although this may be longer in your state. During the free consultation period, you can cancel your policy and get a full refund.
After the free consultation period ends, how cancellations are handled depends on your policy type. Whole life insurance policies may incur a surrender charge, but term life insurance policies can generally be canceled without penalty.
Talk to an insurance agent about cancellation procedures and be sure to read your contract carefully before signing it.
Columbian Life does not publicly announce its rates, nor does it have a quote tool. For personalized information on policy costs, contact an insurance agent.
Like other insurance companies, Columbian Life requires you to select “male” or “female” when purchasing life insurance. Being non-binary doesn’t prevent you from purchasing life insurance. However, you should be aware that most insurance companies have not updated their underwriting processes to reflect a current awareness of gender issues.
While Columbian Financial Group offers several policy options and endorsements, its downgraded AM Best financial rating and below-normal complaint rate are cause for concern. And, you must work with an insurance agent to find out more about or purchase a policy.
With these drawbacks in mind, we compared Columbian to Mutual of Omaha, one of our picks for top life insurance companies in 2021.
Mutual of Omaha stands out from Columbian for several reasons:
- Online purchase: Some Mutual of Omaha policies can be purchased entirely online, without the need for a medical examination.
- Policy options: Mutual of Omaha has more political options than Columbian. You can take out temporary, whole, universal or indexed universal life coverage.
- Customer service: Mutual of Omaha performed well in the JD Power 2020 US Individual Life Insurance Study. It was ranked fifth out of 23 companies in terms of customer satisfaction and price.
- Financial stability: Mutual of Omaha has an A + rating from AM Best, indicating that the company is fiscally stable and able to meet its political obligations.
|Colombian financial group||Mutual of Omaha|
|Market share||N / A||17th largest in the United States, 1.4%|
|Number of packages||4||11|
|Dividends for 2020||N / A||N / A|
|Wellness Program Discounts / Smoking Cessation Incentives||N / A||N / A|
|Method of service||Agent||Direct, agent or employer (group)|
|AM Best grade||B||A +|
|Trend in complaints||1.42||0.65|
If you are shopping for a life insurance policy, Columbian Financial Group may not be the best choice. Although it has several policies and optional endorsements, its financial strength rating has recently been downgraded and the company has received more customer complaints than usual. You can probably find more options and better service elsewhere, so it makes sense to shop around.
Our reviews of life insurance companies are based on a quantitative methodology that analyzes each insurer on its stability and reliability, customer service, claims experience, diversity of product lines and costs. We compare the terms of each type of policy offered, including available coverage amounts, optional endorsements and premium payment options, with those of other major life insurance companies. Finally, we look at how the business is rated by third party organizations to determine its reliability and overall reputation.
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