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In this Colonial Penn life insurance review, we’ll explain how the $9.95 plan works and prove why we claim they are one of the worst insurance carriers to buy from.
Also, you can see rate charts to know how much insurance you get per unit of coverage and the fine print they conveniently elude to in their commercials.
Topics Covered in this article
How Does The Colonial Penn 995 Plan Work?
The 995 plan is a guaranteed acceptance life insurance policy that does not require you to take a medical exam or answer health questions. Colonial Penn sells the $9.95 plan by the unit. Everyone, regardless of age or gender, pays just $9.95 monthly for one unit.
The most crucial variable is how much coverage you get per unit.
For example, a 57-year-old male gets $1,313 of coverage per unit, whereas a 77-year-old male gets only $493 in coverage. If a 57-year-old male wanted $10,000 in coverage, he would need to buy eight units, costing him $79.60 per month.
Since the $9.95 plan is a type of permanent whole life insurance, the premiums will never increase, the death benefit won’t decrease in value, it builds cash value, and it will last your entire life.
The most you can buy is 15 units.
Colonial Penn Life Insurance $9.95 Per Month Rate Chart
Refer to the Colonial Penn life insurance rate chart below to see the total monthly premium based on how many units you want.
| # Of Units | Monthly Cost | # Of Units | Monthly Cost |
|---|---|---|---|
| 1 | $9.95 | 9 | $89.55 |
| 2 | $19.90 | 10 | $99.50 |
| 3 | $29.85 | 11 | $109.45 |
| 4 | $39.80 | 12 | $119.40 |
| 5 | $49.75 | 13 | $129.35 |
| 6 | $59.70 | 14 | $139.30 |
| 7 | $69.65 | 15 | $149.25 |
| 8 | $79.60 | **15 units is the most you can buy** | |
Colonial Penn $9.95 Coverage Calculator
Use the calculator below to see the amount of coverage you’d get per unit of Colonial Penn coverage.
Just choose your age and gender.
| Number of Units | Coverage Amount | Monthly Cost |
|---|---|---|
| 1 | $ | $9.95 |
| 2 | $ | $19.90 |
| 3 | $ | $29.85 |
| 4 | $ | $39.80 |
| 5 | $ | $49.75 |
| 6 | $ | $59.70 |
| 7 | $ | $69.65 |
| 8 | $ | $79.60 |
| 9 | $ | $89.55 |
| 10 | $ | $99.50 |
| 11 | $ | $109.45 |
| 12 | $ | $119.40 |
| 13 | $ | $129.35 |
| 14 | $ | $139.30 |
| 15 | $ | $149.25 |
Better Options Than Colonial Penn
If you need insurance to cover your funeral expenses or for any other reason, Colonial Penn is the last place you should consider.
Many other insurance providers offer cheaper final expense life insurance with no waiting period.
Please note that most burial insurance companies that offer no waiting period coverage only do so through licensed insurance agencies. For example, the three companies below rely on agencies to sell their products. They don’t directly provide life insurance quotes or sell policies in-house.
1) Mutual of Omaha
Brochure Sample Policy Sample Application
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$40,000 | |
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Mutual of Omaha products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 10 Minutes to 2 Business Days | |
Common health conditions still eligible for no waiting period coverage: Aneurysm Arthritis Asthma Blindness Blood clots > 2 years ago Blood thinners Cancer > 4 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis A or B High blood pressure High cholesterol Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 2 years ago Tumors (non-cancerous) |
|
2) Aetna
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 40-89 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$50,000 (varies by age) |
|
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) |
|
| Application Details | Where to Apply: Agencies licensed to sell Aetna products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes-3 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Chronic bronchitis Circulatory surgery > 2 years ago COPD Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic coma > 2 years ago Diverticulitis Epilepsy Fibromyalgia Graves’ disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis > 2 years ago High blood pressure High cholesterol Insulin shock > 2 years ago Lupus Multiple sclerosis Obesity Over 85 life insurance Pacemaker (installed > 1 year ago) Parkinson’s disease Sarcoidosis Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors (noncancerous) |
|
3) AIG
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 50-80 | |
| 2-Year Waiting Period: Yes | |
| Coverage Amount Range: $5,000-$25,000 | |
| States Available: All States (except ME & NY) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: None | |
| Application Details | Where to Apply: Agencies licensed to sell AIG products or directly from AIG. |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: Yes | |
| Application Approval Time: 5 Minutes | |
Common conditions where AIG is a great choice Alzheimer’s Congestive heart failure Cancer within last 12 months Dementia Dialysis HIV/AIDS Oxygen usage Wheelchair usage |
|
Colonial Penn Life Insurance Company Background
Colonial Penn was started in 1968 by Leonard Davis, one of AARP’s co-founders.
CNO Financial Group owns Colonial Penn and many other insurance companies, such as Bankers Life.
Alex Trebek was their former spokesman in their television advertisements until his death in 2020. Now Jonathan Lawson is the primary actor in their commercials.
Colonial Penn’s home office is in downtown Philadelphia Pennsylvania, where most of their insurance agents work.
Below is an outline of their contact information:
- Website: www.colonialpenn.com
- Address: 399 Market St, Philadelphia, PA 19181
- Phone number (all states except NY): 1-877-877-8052
- Phone number for New York residents: 1-800-323-4542
Below are third-party financial strength ratings and customer reviews:
- BBB (Better Business Bureau rating): A+
- AM Best rating: A-
- Moody’s: A3
- Fitch Ratings: A-
- Standard & Poor’s: A-
Frequently Asked Questions
The coverage you get per 995 unit varies by your age and gender. In short, the older you are or if you’re male, the less coverage you get. For example, a 68-year-old male gets $762 in life insurance coverage per $9.95 unit. A 68-year-old female would get $1,112 in coverage. An 80-year-old male gets $426 in coverage per unit, whereas an 80-year-old female would get $608 in coverage.
Colonial Penn has two life insurance products that do and don’t have a waiting period. The 995 plan has a two year waiting period because its guaranteed acceptance coverage. The other option is their simplified whole life policy with no waiting period if you qualify.
Colonial Penn only offers whole life insurance. The 995 plan is the most common, which is a guaranteed acceptance plan that will not deny you due to pre-existing conditions. It comes with a two year waiting period before you’re insured. Death in the first two years will result in a refund of your premiums. The second type of whole life policy they offer has underwriting and no waiting period if you qualify. Eligibility depends on your medical history. Colonial Penn whole life insurance pays the full death benefit even if you die during the first two years (if you qualify).
The Colonial Penn 9.95 plan has no additional fees or surcharges. The monthly premium is simply $9.95 times however many units you want. Depending on your insurance needs, you might need to buy more than one unit to secure the amount of coverage you want. For example, if you wish to buy seven units of coverage, then the total monthly fee would be $69.65.
The 9.95 plan is Colonial Penn’s most popular whole life insurance policy type. It’s guaranteed issue life insurance that costs only $9.95 monthly per unit. At the same time, Colonial Penn also offers a simplified issue whole life insurance plan that requires you to qualify medically. If you’re approved, there is no waiting period, so you can have peace of mind knowing you’re fully insured immediately. Your loved ones would receive the full death benefit even if you passed away a week after the policy began. Also, you can add on a living insurance benefit rider which costs extra. With this rider, Colonial Penn would pay out a lump sum of money if you suffer a heart attack, stroke, or a chronic illness.
The 995 plan costs $9.95 monthly per unit. Multiply 9.95 times the number of units you want for the total monthly cost.
- 1 unit: $9.95
- 2 units: $19.90
- 3 units: $29.85
- 4 units: $39.80
- 5 units: $49.75
- 6 units: $59.70
- 7 units: $69.65
- 8 units: $79.60
- 9 units: $89.55
- 10 units: $99.50
- 11 units: $109.45
- 12 units: $119.40
- 13 units: $129.35
- 14 units: $139.30
- 15 units: $149.25
Colonial Penn no longer sells term life insurance. They did in the past, and some websites still erroneously claim they do. According to their website, permanent life insurance is the only coverage they sell.
The payout from the Colonial Penn 995 plan depends on your age and gender. Since they sell this coverage by the unit, the benefit amount varies based on your DOB and gender. Also, remember that the coverage options are limited to 15 units maximum. For example, a 50-year-old female would get a $2,000 death benefit per 995 unit. If she bought five units at $49.75 monthly (9.95 x 5), the total payout would be $10,000. Lastly, remember that the 9.95 plan has a two year waiting period. If you die during the waiting period, Colonial Penn will only refund your premiums plus roughly 10% interest.