- Low starting cost ($9.95 monthly).
- No exam or health questions are required.
- New applicants as old as 85 can apply.
- You get a very small death benefit coverage amount per 9.95 unit.
- Coverage has a two-year waiting period before being covered for natural causes of death.
- While Colonial Penn has an A rating with AM Best, it has an extraordinarily high number of negative consumer complaints.
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).
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.
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.
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.
Colonial Penn Life Insurance Rate Chart & Coverage Calculator
Depending on the amount of coverage you need for your beneficiaries, 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 |
| 16 | $159.20 |
| 17 | $169.15 |
| 18 | $179.10 |
| 19 | $189.05 |
| 20 | $199.00 |
| 21 | $208.95 |
| 22 | $218.90 |
| 23 | $228.85 |
| 24 | $238.80 |
| 25 | $248.75 |
| Source: www.colonialpenn.com. Data retrieved on 10/15/2024. | |
| AGE | 1 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 their most popular life insurance plan. It’s a guaranteed acceptance policy with no health questions, medical exams, or other underwriting requirements. Because acceptance is guaranteed, there is a two-year waiting period.
According to the fine print, if you die during the first 24 months, Colonial Penn will only refund your premiums (plus roughly 8% interest). In most states, you can add an accidental death benefit rider for a small additional fee that doubles the death benefit payout if you die from an accident.
If you live in New York, Colonial Penn also offers LifeChoice whole life insurance. It’s a simplified issue policy without a medical exam. However, eligibility is based on your current and prior health issues. 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 | $150.30 | N/A |
| Female age 75 | $106.90 | $159.45 | N/A |
| Male age 75 | N/A | N/A | N/A |
| Source: www.colonialpenn.com. Data retrieved on 06/24/2024. | |||
Should You Buy Colonial Penn Insurance?
The Colonial Penn 995 plan is rarely worth buying due to its high cost. You can get far more coverage from multiple other providers for a much lower price.
In addition, the 9.95 plan has 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 three (and there are many more) such companies that are cheaper and offer immediate coverage options:
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.
- $10K Policy Cost $43.99/month*
- New Applicant Ages 45-80
- Death Benefit Options $2,000-$50,000
- 2-Year Waiting Period No
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.
- $10K Policy Cost $41.01/month*
- New Applicant Ages 45-85
- Death Benefit Options $2,000-$50,000
- 2-Year Waiting Period No
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.
- $10K Policy Cost $47.60/month*
- New Applicant Ages 40-89
- Death Benefit Options $2,000-$50,000
- 2-Year Waiting Period No
Use this life insurance quotes tool to compare final expense insurance prices from dozens of companies alongside Colonial Penn.
The purpose of burial insurance is peace of mind, knowing that your loved ones will not be burdened by having to pay for your funeral costs.
You’ll generally find the best life insurance options by working with a licensed insurance agent.
Independent agents represent numerous companies, so they compare multiple policies to find you the best rates. Working with an agent is especially important if you have any pre-existing health conditions.
Frequently Asked Questions
The life insurance benefit per $9.95 unit varies based on gender and age. For example, a 50-year-old male would get $1,669 in coverage, whereas a 50-year-old female would get $2,000. 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 premium. For example, if you buy ten units, the total monthly cost would be $99.50. Remember that how much coverage you get per unit depends on your age and gender.
The life insurance benefit amount of a unit from Colonial Penn depends upon your gender and age. For example, a 70-year-old male gets $689 in coverage from one unit, whereas a 65-year-old female gets $1,000 in coverage from a unit.
A unit of coverage with Colonial Penn costs only $9.95 regardless of your age or gender. Remember that your age and gender determine how much life insurance coverage you get per unit. Also, since it’s a whole life insurance policy, the premiums will never increase.
Colonial Penn does not offer term life insurance options. They only sell permanent life insurance.
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.
- Colonial Penn website. https://colonialpenn.com/products/insurance
- $9.95 plan. https://colonialpenn.com/products/guaranteedacceptance
- Colonial Penn guaranteed acceptance plan. https://colonialpenn.com/products/guaranteedacceptance
- CNO Financial Group. https://www.cnoinc.com/what-we-do
- 1997. https://www.wsj.com/articles/SB862407721590336500
- LifeChoice whole life insurance. https://colonialpenn.com/products/lifechoice-wholelife
- A.M. Best. https://ratings.ambest.com/DisclosurePDF.aspx?AMBNum=6240
- Moody's. https://ir.cnoinc.com/financials/financial-ratings/
- S&P Global. https://ir.cnoinc.com/financials/financial-ratings/
- BBB. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
- Trustpilot. https://www.trustpilot.com/review/www.colonialpenn.com
- 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
- Yelp. https://www.yelp.com/biz/colonial-penn-insurance-philadelphia
- NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=62065&REALM=PROD&COCODE=62065&REALM=PROD
- BBB Score & Accreditation. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
- www.colonialpenn.com. https://colonialpenn.com/quote
- accidental death benefit rider. https://colonialpenn.com/documents/7880008/7878584/ADR_GBL_new.html/5c8897fa-5ede-1dc3-f89f-b6286d13b2ba?t=1630500060773
