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Overall Score

Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:

Factor Score Value
Price of Coverage
40%
No-Waiting-Period CoverageNo Waiting Period
20%
Financial Strength
20%
NAIC Complaint Index
20%
Overall Maximum
100%

Our ratings are tested with scoring model 1.1, a review formula that ensures consistency and accuracy in our assessments.

0.75 out of 5
Rating methodology
1.0
Price of Coverage
Price of Coverage
40% of overall score

Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:

  • 50-5% more expensive
  • 46-10% more expensive
  • 311-20% more expensive
  • 221-30% more expensive
  • 1≥ 40% more expensive
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1.0
No-Waiting-Period CoverageNo Waiting Period
No-Waiting-Period Coverage
20% of overall score

This scoring factor assesses whether an insurer offers coverage with no waiting period and, if so, how difficult it is to qualify for it. If an insurer does not provide coverage with no waiting period, it gets an automatic 1. A score from 2 to 5 indicates that immediate coverage is possible, and the higher the rating, the easier it is for the average applicant to qualify for it.

  • 5Most applicants qualify
  • 4Fairly easy qualification
  • 3Somewhat difficult qualification
  • 2Very difficult qualification
  • 1No-waiting-period coverage unavailable
4.0
Financial Strength
Financial Strength
20% of overall score

Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:

  • 5Superior (A+ or A++)
  • 4Excellent (A- to A)
  • 3Fair/Good (B- to B++)
  • 2Weak/Marginal (C- to C++)
  • 1Poor (D or Not Rated)
1.0
NAIC Complaint Index
NAIC Complaint Index
20% of overall score

The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:

  • 50.0 - 1.0 (avg or below avg complaints)
  • 41.01 - 1.5 (slightly above avg complaints)
  • 31.51 - 2.0 (up to 2x avg complaints)
  • 22.01 - 3.0 (up to 3x avg complaints)
  • 1≥ 3.01 (more than 3x avg complaints)
Rating methodology
The cost of Colonial Penn insurance is based on a unit system. Each unit costs everyone $9.95 monthly. To calculate the total price, multiply $9.95 by the number of units you want. For example, 12 units will cost $119.40 per month (9.95 x 12). Remember that the amount of life insurance you get per unit depends on age and gender. For example, a 66-year-old male would get $846 in life insurance from a single 995 unit.
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Pros

  • Low starting cost ($9.95 monthly).
  • No exam or health questions are required.
  • New applicants as old as 85 can apply.

Cons

  • You get a very small death benefit per 9.95 unit.
  • Coverage has a two-year waiting period before being covered for natural causes of death.
  • Colonial Penn has an extraordinarily high amount of negative consumer complaints.

A.M. Best
A
Excellent
Moody's
A3
Stable
S&P Global
A-
Stable

AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.

Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).

S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).

Customer Review Ratings
BBB
1.16/5
275 reviews
Trustpilot
1.8/5
24 reviews
Google
2.8/5
345 reviews
Yelp
1.1/5
31 reviews
Facebook
0/5
0 reviews
Consumer Protection Organization Scores

The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.

BBB Score & Accreditation
A+
Not Accredited

The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.

    Policy Type
    Whole Life
    New Applicant Age Range
    50-85 (50-75 in NY)
    Death Benefit Options
    1-15 Units
    States Where Available
    All
    Builds Cash Value
    Yes
    Has Health Questions
    No
    2-Year Waiting Period
    Yes
    Medical Exam Required
    No
    Age When Policy Expires
    Never
    Prices Increase
    Never
    Policy Type
    Whole Life
    New Applicant Age Range
    Male: 50-73 | Female: 50-75
    Death Benefit Options
    $5,000-$25,000 ($15,000 maximum if ≥ age 66 )
    States Where Available
    New York
    Builds Cash Value
    Yes
    Has Health Questions
    Yes
    2-Year Waiting Period
    No
    Medical Exam Required
    No
    Age When Policy Expires
    Never
    Prices Increase
    Never
    Colonial Penn, based in Philadelphia, Pennsylvania, was founded in 1957 by Leonard Davis. In 1997, CNO Financial Group completed the purchase and became their parent company.

    Colonial Penn was the first insurance provider to sell guaranteed acceptance life insurance directly to seniors. Alex Trebek was their longtime spokesman until his demise in 2020. Now, they lean on one of their sales managers, Jonathan Lawson, as the primary face in their television advertisements.

    Founding Year
    1957
    Official Website
    www.colonialpenn.com
    Headquarters
    399 Market Street Philadelphia, PA 19181
    Phone Number
    800-523-9100

     

    Colonial Penn Life Insurance Rate Chart & Coverage Calculator

    Depending on the amount of coverage you need, you might need to buy more than one unit. Simply multiply $9.95 times the number of units you’re interested in.

    Number
    Of Units    		Total
    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
    **15 units is the most you can buy**
    AGE1 Male Unit ($9.95)1 Female Unit ($9.95)
    50$1,669 in coverage$2,000 in coverage
    51$1,620 in coverage$1,942 in coverage
    52$1,565 in coverage$1,890 in coverage
    53$1,515 in coverage$1,845 in coverage
    54$1,460 in coverage$1,802 in coverage
    55$1,420 in coverage$1,761 in coverage
    56$1,370 in coverage$1,719 in coverage
    57$1,313 in coverage$1,669 in coverage
    58$1,258 in coverage$1,620 in coverage
    59$1,200 in coverage$1,565 in coverage
    60$1,167 in coverage$1,515 in coverage
    61$1,112 in coverage$1,460 in coverage
    62$1,057 in coverage$1,420 in coverage
    63$1,000 in coverage$1,370 in coverage
    64$949 in coverage$1,313 in coverage
    65$896 in coverage$1,258 in coverage
    66$846 in coverage$1,200 in coverage
    67$802 in coverage$1,167 in coverage
    68$762 in coverage$1,112 in coverage
    69$724 in coverage$1,057 in coverage
    70$689 in coverage$1,000 in coverage
    71$657 in coverage$949 in coverage
    72$627 in coverage$896 in coverage
    73$608 in coverage$846 in coverage
    74$578 in coverage$802 in coverage
    75$549 in coverage$762 in coverage
    76$521 in coverage$724 in coverage
    77$493 in coverage$689 in coverage
    78$468 in coverage$657 in coverage
    79$441 in coverage$627 in coverage
    80$426 in coverage$608 in coverage
    81$424 in coverage$578 in coverage
    82$423 in coverage$549 in coverage
    83$421 in coverage$521 in coverage
    84$420 in coverage$493 in coverage
    85$418 in coverage$468 in coverage
    Source: www.colonialpenn.com. Data retrieved on 9/12/2024.

     

    What Types Of Life Insurance Does Colonial Penn Offer?

    According to the products page of their website, Colonial Penn only sells whole life insurance.

    The $9.95 plan is the only option in all states except New York. It’s a guaranteed acceptance policy with no health questions or exam requirements. Because acceptance is guaranteed, there is a two-year waiting period. If you die during the first 24 months, Colonial Penn will only refund your premiums (plus roughly 8% interest).

    If you live in New York, Colonial Penn also offers LifeChoice whole life insurance. It’s a simplified issue policy that does not require a medical exam, but you do have to answer questions about your health history. If you’re approved, there is no waiting period, meaning you will get the full death benefit payout starting on the first day of your policy.

     

    How Much Does Colonial Penn Whole Life Insurance Cost?

    In New York only, Colonial Penn offers a no medical exam whole life policy called LifeChoice whole life insurance. Below is a whole life rate table that outlines the prices for this policy.

    Age & Gender$10,000$15,000$25,000
    Female age 50$28.20$41.40$67.80
    Male age 50$33.50$49.35$81.05
    Female age 55$35.70$52.65$86.55
    Male age 55$42.20$62.40$102.80
    Female age 60$43.80$64.80$106.80
    Male age 60$53.10$78.75$130.05
    Female age 65$59.30$88.05$145.55
    Male age 65$74.30$110.55$183.05
    Female age 70$79.70$118.65$
    Male age 70$100.80$150.30N/A
    Female age 75$106.90$159.45N/A
    Male age 75N/AN/AN/A
    Source: www.colonialpenn.com. Data retrieved on 06/24/2024.

     

    Should You Buy Colonial Penn Insurance?

    Colonial Penn life insurance is rarely worth buying due to the high cost (compared to other life insurance companies). That’s true for the 9.95 guaranteed acceptance plan or the LifeChoice whole life policy only sold in New York.

    The truth is, you can get far more coverage from multiple other providers at a lower cost. In addition, Colonial Penn 9.95 plan policies have a two-year waiting period before you’re covered for natural causes of death. Dozens of other final expense life insurance companies offer no waiting period policies. that fully insure you starting on day one.

    Here are five (and there are many more) such companies that are cheaper and offer immediate coverage:

    Use this quoting tool to compare funeral insurance prices from those companies and many others. You’ll see rates from dozens of companies alongside Colonial Penn.

     

    Frequently Asked Questions

    The life insurance benefit per $9.95 unit varies based on gender and age. For example, a 73-year-old male would get $608 in coverage, whereas a 73-year-old female would get $846. The older you are, the less coverage you get per unit.

    The Colonial Penn guaranteed issue life insurance policy (995 plan) costs only $9.95 monthly per unit. If you want more than one unit, you will multiply $9.95 by the number of units you’d like, yielding the total monthly cost. For example, if you buy 10 units, the total monthly cost would be $99.50.

    Colonial Penn $9.95 rate chart

    The life insurance value of a unit from Colonial Penn depends upon your gender and age. For example, a 65-year-old male gets $896 in coverage from one unit, whereas a 65-year-old female gets $1,258 in coverage from a unit.

    A unit of coverage with Colonial Penn costs only $9.95. That’s true for all ages and genders. What varies is how much coverage you get from a unit. For example, a 70-year-old female gets $1,000 in coverage from one unit, and a 70-year-old male gets just $689 in coverage per unit.

    Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.

    1. Colonial Penn website. https://colonialpenn.com/products/insurance
    2. $9.95 plan. https://colonialpenn.com/products/guaranteedacceptance
    3. Colonial Penn guaranteed acceptance plan. https://colonialpenn.com/products/guaranteedacceptance
    4. CNO Financial Group. https://www.cnoinc.com/what-we-do
    5. 1997. https://www.wsj.com/articles/SB862407721590336500
    6. LifeChoice whole life insurance. https://colonialpenn.com/products/lifechoice-wholelife
    7. A.M. Best. https://ratings.ambest.com/DisclosurePDF.aspx?AMBNum=6240
    8. Moody's. https://ir.cnoinc.com/financials/financial-ratings/
    9. S&P Global. https://ir.cnoinc.com/financials/financial-ratings/
    10. BBB. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
    11. Trustpilot. https://www.trustpilot.com/review/www.colonialpenn.com
    12. Google. https://www.google.com/maps/place/Colonial+Penn+Life+Insurance+Company/@39.9506348,-75.1516416,16z/data=!3m1!5s0x89c6c88446e79631:0xedc6cdcc6712c19c!4m8!3m7!1s0x89c6c8844712c7c7:0x36df3df4d2e9e0b5!8m2!3d39.9506308!4d-75.1467707!9m1!1b1!16s%2Fg%2F1tgw5_2_?entry=ttu
    13. Yelp. https://www.yelp.com/biz/colonial-penn-insurance-philadelphia
    14. Facebook. https://www.facebook.com/ColonialPennLifeInsuranceCompany/
    15. NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=62065&REALM=PROD&COCODE=62065&REALM=PROD
    16. BBB Score & Accreditation. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
    17. www.colonialpenn.com. https://colonialpenn.com/quote