Columbian Life Insurance Guaranteed Issue Review

Written by Jeff Root

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With many companies offering guaranteed issue life insurance, it can be difficult to sort through all of the information and know which plan to choose. Life insurance is one of the most important purchases you’ll ever make, and it’s about more than just coverage and premium amounts.

What You’ll Learn

About Columbian Mutual Life Insurance Company
Columbian Life Insurance Ratings
Columbian Life Final Expense Rates & Policy Overview
Pros of Columbian Mutual’s Guaranteed Acceptance Policy
Cons of Columbian’s Guaranteed Issue Life Insurance
Alternatives to Columbian Guaranteed Issue Life Insurance

Columbian Life Insurance Guaranteed Issue ReviewIn order to truly make a good purchase, the company you buy from must also be steady, financially secure, have great customer service, easy claims processes, and provide superior products across the board. This way you know that they are a carrier you can trust and invest in.

This Columbian Life Insurance Guaranteed Issue review will help you to determine if this is the right carrier and guaranteed acceptance product for you.

Disclaimer: We are not Columbian nor are we affiliated with Columbian. This is our honest review as an independent life insurance agency. If you’d like a quote or want to apply, you must contact the company directly or visit

About Columbian Mutual Life Insurance Company

Founded in Brooklyn, New York, Columbian Mutual Life Insurance Company is affiliated with Columbian Financial Services Corporation, New Vision Services Corporation of New York and Columbian Financial Group (CFG). For 135 years, Columbian Mutual has provided customers with family and business insurance needs.

For being one of the oldest and most established companies reviewed on this website, Columbian Mutual is certainly known for its stability as a carrier. When purchasing a policy, the longevity of an insurer adds reassurance to the purchase.

Columbian Life Insurance Ratings

Despite their longstanding history, Columbian was recently downgraded by A.M. Best Rating from “A-” (Excellent) to “B++” (Good).

According to A.M. Best:

“The rating downgrades reflect CFG’s declining level of capital and fluctuating operating performance that is inconsistent with “a-” rated peers. The decline in capital is primarily the result of a substantial increase in CFG’s pension liability due to the low-interest rate environment and changes in mortality assumptions. Additionally, the company’s earnings have been dampened by the costs associated with acquiring new business, the impact of interest rates on product profitability and investment yields, as well as certain one-time charges over the past several years.”

Even with a downgrade, the company is still credible. A.M. Best continued with saying:

“While CFG’s capital position has declined by over 30% from year-end 2013 to March 31, 2015, the group still remains adequately capitalized for its current business and investment risks. The organization maintains a relatively creditworthy liability profile of primarily low face amount ordinary life insurance policies, as well as a generally conservative investment portfolio.”

Today, Columbian Mutual is available in all 50 states and is sold directly through their own agents. They continue to diversify their offerings and pay over $100 million in claims each year.

Columbian Life Insurance Guaranteed Issue Product

The Guaranteed Issue Whole Life Insurance policy by Columbian Mutual is intended for people with health concerns who have been declined for other types of coverage but need a smaller insurance policy to cover final expenses. As a guaranteed issue whole life policy, there are inherent benefits and features available to customers, including:

  • Zero medical underwriting, meaning no health questions whatsoeverColumbian Financial Group Life Insurance logo
  • Premiums are guaranteed
  • Lifetime coverage
  • Return of premiums for non-accidental death within graded period*
  • Full death benefit after graded period*
  • Full death benefit for accidental death at any time

If this is one of the first reviews you’re reading on this site, please note that these features are consistent across all guaranteed issue policies, including the top insurance companies for this year.

*The graded period for this policy is three years, which is one year longer than most other guaranteed acceptance products available today.

Columbian Life Final Expense Rates & Policy Overview

Face Amount & Age Range*: Ages 25 – 80 (50-75 in NY, ME, and VT)

Ages 25 – 44, coverage amounts are $5,000 – $10,000
Ages 45 – 80, coverage amounts are $2,500 – $25,000

State Availability: All

Graded Period: 3 Years

Premiums Returned: 6%

Riders: None available

*The maximum age and face amounts do vary depending on how you pay for your policy.

Pros of Columbian Mutual’s Guaranteed Acceptance Policy

Available For Younger People

This guaranteed issue product is available in smaller face amounts for younger people between the ages of 25 and 44. Even though the coverage amounts are lower, it is still coverage for high-risk young people who are typically declined altogether.

If you are under age 45, your options for guaranteed acceptance insurance includes Columbian Mutual, Great Western, AAA, and Kemper Life.

Known for Great Customer Service

Columbian Mutual has a strong record of high-quality customer service. This is evident in positive consumer reviews online and the lack of negative reviews with the Better Business Bureau (BBB). They even have an “A+” rating from the organization despite not being accredited with them. If you search around, you will find some complaints regarding billing, claims and certain customer service reps, but overall their service is of a higher quality than the industry average.

As agents, we can’t stress how important customer service is in the long run of being insured. If you have questions, need to file a claim, or change anything regarding your policy, the difference between good customer service and bad can be the difference between hours or weeks of frustration. Of course, no company is perfect, including Columbian Mutual. But through their website and call centers, they do offer strong service to meet the needs of their customers.

Cons of Columbian’s Guaranteed Issue Life Insurance

Recent Downgrade in Ratings

The recent downgrade from an “A-” to a “B++” is a bit of a red flag, especially if the downward trend continues. That said, the company is still solvent and provides an option for very young people who otherwise would not be able to get insured.

Low Interest & Long Graded Period

The mandatory graded period is three years, which is a year longer than most other carriers. On top of this, the interest returned on premiums paid is only 6% versus the industry average of 10%. These two points alone might be enough reason to not get a guaranteed acceptance product through Columbian Mutual. If you are concerned about the graded period where natural death is not covered, then we’d advise looking into other no questions policies.

Pro Tip: The graded period is the mandatory waiting period that an insured must outlive before the full policy amount is guaranteed. The only exception is if death occurs from accidental means. If death is from natural causes, then only the premiums plus interest will be paid to the beneficiaries.

Advice About Columbian Life Insurance

There is no perfect policy for all people, just like there is no perfect carrier. Columbian Mutual is one of many and may or may not be the right solution for you. With their recent downgrade in financial rating, longer graded period and lower interest payment, they are not the most competitive carrier available.

That said, they are one of the only options for young high-risk candidates who absolutely need a guaranteed issue policy. If you are over the age of 45, we do suggest looking elsewhere.

Alternatives to Columbian Guaranteed Issue Life Insurance

There are many alternatives to Columbian Mutual and the best way to discover them is to work with an independent agency.

Instead of working directly with the carrier, working with an independent agency gives you the utmost freedom to shop and choose the right policy that is perfect for you.

An example of an independent agency is right here at Guaranteed Issue Life, where a strong and knowledgeable team of independent agents are appointed with dozens of carriers like AIG life insurance, Gerber, and more.

Benefits of Working with an Independent Life Insurance Agency

If you work with us, it is our job to find the best deal for you and match you to a product that fits your individual needs. The opposite path is to work with a captive agent who will strongarm you into purchasing their policy since that is the only thing they can sell.

Life insurance is too important of a decision to not know about all of your options. It can also be an expensive decision if not done correctly. We want you to find the most affordable plan possible.

One of the best ways to secure the most affordable guaranteed issue insurance plan is to act today. Life insurance premiums are based on age and we both know no one is getting any younger.

So what are you waiting for? Let us earn your business and answer any questions you may have.

About Guaranteed Issue Life

We are an independent agency ready and willing to help you along the insurance journey. Give us a call today to speak with an agent licensed in your state or use the instant quote tool on this page to compare rates for your exact birth date. Regardless of which path you choose, knowledge is power with insurance and we want you to know your options.

We look forward to working with you!

Thank you for reading our article, Columbian Life Insurance Guaranteed Issue policy review.

About Jeff Root & Guaranteed Issue Life
About Jeff Root & Guaranteed Issue Life

Jeff Root is the author of The Digital Life Insurance Agent and host of the Modern Life Insurance Selling Podcast.

Guaranteed Issue Life is a nationally licensed agency, that has helped over 1500 consumers purchase guaranteed issue life insurance. We represent over 30 life insurance companies & transact business in every state.

All content on this site has been written by life insurance experts & licensed life insurance agents.

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