Colonial Life Insurance Company Review

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Colonial Life Insurance Company is a well-respected name in employee benefits insurance. It was founded in 1939 by Edwin F. Averyt and is headquartered in Columbia, South Carolina. The current CEO and President is Timothy G. Arnold. Other key employees include: Bill Deehan, Senior Vice President of Sales; Rich Williams, Senior Vice President of Growth Markets; David Parker, Senior Vice President of Growth Operations; Linda Bambacus, Vice President of Service Operations; and Deb Rasmussen, Vice President of Voluntary Benefits Claims.

The company was one of the first to offer accident and cancer insurance policies to employees through pre-tax dollars. Colonial Life is a fully owned subsidiary of Unum since its acquisition in 1993. It markets employee benefit packages including, critical illness, cancer, disability, accident and supplemental insurance through more than 10,000 independent insurance agencies and brokerages and over 1,000 home insurance office professionals. The company reports on its website that it insures over 3 million through 90,000 employers and an in-force premium of over $1.5 billion.

Colonial Life actively participates in its community through social and charitable functions and encourages its employees to do the same. For its 75th anniversary, Colonial Life completed a Habitat for Humanity Project. Employee volunteers donate in many ways including fundraising, donating blood and school volunteerism. Unum has naming rights to Colonial Life Arena which is the home to men and women’s basketball teams for the University of South Carolina. 

Financial Stability Ratings, Customer Service Ratings and Company Awards

One important consideration when choosing an insurance company is its financial strength. Organizations that have financial stability are able to meet financial obligations and continue to grow and achieve return on investment. Colonial Life has strong financial strength ratings from the following insurance rating organizations:

·       A.M. Best: “A” Excellent

·       Fitch: “A” Strong

·       S&P: “A” Strong

Colonial Life Insurance Company also has multiple awards from Benefits Selling Reader’s Choice Awards for products, service and innovation.

Better Business Bureau Rating

Although Colonial Life Insurance Company is not accredited with the Better Business Bureau, its parent company, Unum Group, does have an “A-“ rating with the BBB. Unum Group has a 3.29 out of 5-star BBB composite score based on 22 customer reviews. There are 99 closed complaints in these areas:

·       Advertising/Sales issues: 2

·       Billing/Collection issues: 12

·       Delivery issues: 10

·       Problems with product/service: 75

Colonial Life & Accident insurance Company does have a Better Business Bureau company profile page where it list the company as “A+” rating; however, there are no complaints filed and one negative customer review.

Insurance Products

Employers can provide insurance plans and benefits to employees through Colonial Life Insurance Company including these insurance products:

·       Accident Insurance: Provides coverage in addition to primary health insurance plan for out-of-pocket expenses resulting from an accident such as emergency room fees, initial care, surgery, transportation and lodging, ambulance charges, doctor bills and follow-up care.

·       Cancer Insurance: Supplemental insurance for expenses not covered by primary health insurance plan including out-of-network treatments, experimental treatments, loss of income, child care, lodging, meals and home health care.

·       Critical Illness Insurance: Supplemental income insurance to help protect your income in the event you suffer a critical illness such as a heart attack or stroke and are unable to work.

·       Dental Insurance: Covers dental procedures not covered by a regular health insurance plan including cleaning, filling, sealants, tooth removal, crown and dentures in additional to regular dental check-ups.

·       Disability Insurance: Paycheck support to help with expenses such as rent, utilities, groceries and mortgage payments when suffering a covered disability.

·       Hospital Confinement Indemnity Insurance: This plan provides additional assistance with hospital costs not covered by a primary health insurance plan including co-payments and deductibles provided in a lump-sum payment.

·       Life Insurance: Adjustable life insurance options for employee, spouse and children. Plans available for term, universal and whole life insurance plans.

Policyholder Services

From the website, policyholders have the may view benefits, file a claim, find policyholder service forms such as conversion forms, beneficiary forms, change of ownership forms, policy change request forms and form to request a loan/withdrawal or cancellation. You can also request support for your policy or a claim by completing a form on the policyholder service page.

The Employer Resource Center offers articles, eBooks and infographics to help employers grow their businesses. There is also a “WorkLife” section which provides news and articles on workplace trends, benefits and healthy living.

Pros and Cons

Colonial Life has proved itself as a top-rated provider of employee benefits insurance products with over 75 years in business and high financial strength ratings. The employee payroll deduction plan and electronic enrollment options offered make it easier for employees to obtain the protection they need for themselves and their families. One con is the inability to receive a quote online.

Contact Information

To learn more about the products offered by Colonial Life, you can visit the Colonial Life Insurance Company website or call 1-800-325-4368, Monday-Friday, 8 a.m. to 8 p.m. Eastern Standard Time. Spanish-speaking representatives are also available. You can also visit a local agent by finding Colonial Life Insurance agents near you.