Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, policy cost, underwriting criteria, the insurer’s financial strength ratings, and complaint data.
For instance, $9.95 would buy a 70-year-old male only $689 in life insurance on top of the fact that it has a two-year waiting period.
Dozens of other life insurance companies offer a much higher death benefit at a lower price.
Is Colonial Penn Life Insurance Good?
Colonial Penn life insurance is not a good purchase because the cost is too high for the minuscule amount of coverage you’re insured for. With other life insurance companies, you can obtain the same type and amount of coverage for a considerably smaller price.
For example, a 65-year-old male would spend $119.40 monthly for about $10,000 in coverage (with a waiting period) from Colonial Penn. That same man could get $20,000-$25,000 for the same $119.40 from other life insurance companies.
Additionally, nearly every Colonial Penn policy has a two-year waiting period, whereas other providers would offer immediate coverage.
Pros & Cons Of Colonial Penn Life Insurance
- No medical exam or health questions required
- Guaranteed acceptance life insurance so you cannot be denied due to medical history
- Seniors up to age 85 can apply (75 is the maximum age in New York)
- Coverage is available in all states
- Strong financial rating (A- A.M. Best rating)
- 100% online application
- You can pay via bank draft, credit card, or by mailing in payments
- Highly deceptive ads
- Extremely overpriced coverage relative to other carriers
- No immediate coverage options outside of New York
- Every policyholder will have a two-year waiting period
- No options below age 50 or above 85
- A confusing unit system that makes it hard to understand how much coverage you’re getting
- A high amount of negative reviews online from previous customers
- Very limited life insurance options (no term or universal life insurance)
Colonial Penn Life Insurance Policies
In the past, Colonial Penn offered multiple types of life insurance. Today, they offer only two types of whole life insurance coverage.
The $9.95 plan
The $9.95 plan is the most common type of life insurance that Colonial Penn sells. If you live in any state other than New York, it’s the only product they offer.
It’s a guaranteed issue whole life insurance policy that builds cash value and has a fixed premium. It’s available to seniors 50-85, and there is no underwriting, so you don’t have to complete a health questionnaire or take a medical exam.
Because your acceptance is guaranteed, there is a two-year waiting period. If you die during the first two years, your beneficiaries will only receive a refund of the premiums plus a small interest amount. You must live at least two years before the full death benefit becomes payable.
The 995 plan is sold by the unit, and 15 units is the maximum coverage you can buy. Everyone, regardless of age or gender, pays only $9.95 a month for one unit.
According to Colonial Penn, “A unit of coverage corresponds to the life insurance benefit amount you can purchase. It depends on age, gender (in Montana, age only), and state.”
The critical question to ask is- how much of a life insurance benefit amount do you get for $9.95?
Regardless of your age and gender, the coverage per unit is so low that it doesn’t justify the cost. For example, a 68-year-old female would pay $89.55 monthly for $10,008 in coverage with Colonial Penn. At the same time, Mutual of Omaha life insurance for seniors would charge that same 68-year-old woman just $48.29 monthly for a $10,000 policy that has no waiting period.
This glaring disparity in value is why Colonial Penn is one of the least attractive life insurance providers for seniors.
Term life insurance
Currently, Colonial Penn does not sell term life insurance. If you look at their products page, term life insurance is nowhere to be found.
Many Colonial Penn life insurance reviews on other websites erroneously claim that Colonial Penn sells term life insurance, but they are misinformed. At present, guaranteed acceptance whole life insurance is the only type of policy Colonial Penn offers.
Whole life insurance
Colonial Penn used to offer (in all states) a simplified issue whole life policy that had no waiting period. However, it was discontinued in 2023 for all states except New York.
When you view the life insurance products page for Colonial Penn, the simplified whole life insurance policy is gone unless you click the link at the top of their website that says “View content for NY Residents.”
If you live in New York, Colonial Penn offers LifeChoice® Whole Life Insurance, which is underwritten by Bankers Conseco Life Insurance Company. It’s permanent life insurance that does not require a medical exam, but you do have to answer health questions. If you’re approved, there is no waiting period.
The available coverage amounts vary by age. If you are 65 or under, you can choose $5,000, $10,000, $15,000, $20,000, or $25,000. If you are age 66 or older, you may choose $5,000, $10,000, or $15,000. There are no additional riders, such as an accelerated death benefit rider, that you can add on.
Colonial Penn Rate Chart
Use the calculator or rate table below to see Colonial Penn life insurance rates and coverage amounts per number of units.
| 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 |
Colonial Penn Customer Complaints
Over the years, Colonial Penn has accrued several complaints. The data below is valid as of 11/27/2023:
- Better Business Bureau: 1.17 stars out of 5 based on 171 reviews & 316 complaints within the prior 36 months.
- National Association of Insurance Commissioners (NAIC): A complaint index of 19.73 which means Colonial Penn received protests from consumers about 20 times more than the average life insurance company.
- Yelp: 1.1 rating out of 5 because 99% of the reviews are 1-star
- Trustpilot: 2.0 rating out of 5
When an insurance company makes it appear that everyone can get $10,000 in life insurance coverage for $9.95 per month, it’s no surprise that many angry customers file grievances once they learn how they’ve been deceived.
Colonial Penn Life Insurance Company Background & Financial Ratings
The one area where Colonial Penn shines bright is their financial strength ratings.
Colonial Penn has an A- (Excellent) rating with AM Best, Standard & Poor’s, and Fitch Ratings. Moody’s has their rating at A3. And despite a high number of consumer complaints, they currently have an A+ rating with the BBB.
Leonard Davis, the co-founder of AARP, started Colonial Penn Life Insurance company in 1968. Based out of Carmel, Indiana, Colonial Penn is owned by the parent company CNO Financial Group (formerly Conseco, Inc.), which also owns Bankers Life.
They were one of the first insurers to offer guaranteed acceptance policies. They have even sold healthcare products such as Medicare supplemental plans in the past. For many years, Alex Trebek was the face of Penn Life Insurance Company.
He was their paid endorser until his death on November 8, 2020. Colonial Penn now features sales manager Jonathan Lawson as the pitchman in their commercials. Most of their licensed insurance agents work from the home office in downtown Philadephia Pennsylvania. However, some of their agents work from home. Below is all of Colonial Penn’s contact information:
- Website: 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
How To Find Better Options Than Colonial Penn Final Expense Insurance
If you are looking for the best life insurance for a senior, you can 100% get a much lower price (and coverage with no waiting period) from multiple companies other than Colonial Penn.
The biggest issue with Alex Trebek’s life insurance is that you’re dealing with a captive insurance company. When you speak to a Colonial Penn agent, they cannot shop around and offer you another final expense insurance company that would better fit you.
The trick to finding the best and most affordable burial life insurance (or any other type of life insurance) is to work with an independent insurance agency. Only an independent agency can compare offers from multiple providers.
An independent broker such as Choice Mutual will compare the best life insurance companies to determine which one has the best price and coverage based on your unique situation.
Working with an independent agency does not cost you a fee, and the insurance isn’t more expensive. An independent agency can save you as much as 70% on a final expense policy (that is not an exaggeration).
You can call us at 1-800-644-2926, and we can assist you. You can also use this pricing tool to compare life insurance quotes from all the top companies in your state. We’re independent and have over 15 different highly rated companies that we will compare on your behalf
Final expense life insurance for seniors is our specialty. It’s all we do. Below are genuine reviews from past customers who allowed us to serve them.
Frequently Asked Questions
The life insurance payout you get from Colonial Penn for $9.95 monthly depends on your age and gender. For example, a 62-year-old male would get $1,057 in coverage. A 62-year-old female would get $1,420 in coverage. The older you are, the less coverage you get per $9.95 unit.
In all states except New York, Colonial Penn life insurance policies have a two-year waiting period. If you die during the first 24 months, your loved ones will only receive a refund of your premiums. In New York only, Colonial Penn offers a simplified issue whole life policy that comes with the peace of mind of immediate coverage if you qualify.
Colonial Penn’s life insurance policies are rarely a good deal compared to other providers. For starters, every Colonial Penn policy outside of New York has a 2-year waiting period, whereas other companies offer immediate coverage. That aside, their prices are much higher than many other companies.
One unit of Colonial Penn Life insurance costs $9.95 per month, regardless of your age or gender. The death benefit per unit varies based on your age and gender.
Colonial Penn currently only sells guaranteed acceptance whole life insurance in most states. In New York, they offer a standard whole life policy that requires you to answer health questions and if approved, has no waiting period. Colonial Penn used to offer term life insurance but discontinued it.
Presently, Colonial Penn has no optional riders you can add to your policy. They used to offer living insurance riders that would pay money if you suffered a heart attack or were diagnosed with a chronic illness. However, those riders are no longer available.
Everyone, regardless of age and gender, pays a monthly fee of $9.95 per unit of guaranteed acceptance coverage. The most you can buy is 15 units. The amount of life insurance provided by a single unit depends on your exact age and gender. In New York, the LifeChoice® Whole Life Insurance price is based on your age, gender, tobacco habits and health.
Colonial Penn burial insurance is the guaranteed acceptance 995 plan. You cannot be denied due to pre-existing conditions, and everyone pays just $9.95 monthly per unit. How much coverage you get for a single unit depends on your gender and age.
Fifteen units (each unit costs $9.95 monthly) is the maximum amount of coverage that Colonial Penn offers. How much coverage you get from 15 units depends on your age and gender. For example, a 50-year-old male would have a $25,035 life insurance plan from 15 units. Alternatively, a 71-year-old male would get just $9,855 of coverage from 15 units. In New York, seniors can buy up to $25,000 in whole life insurance.
To sign up for the Colonial Penn $9.95 plan, you won’t have to answer health questions or take a medical exam. As long as you’re 50-85, your acceptance is guaranteed, so the policy will be issued once you make a premium payment. If you live in New York and want to purchase the LifeChoice® Whole Life Insurance, then you must answer health questions when you apply.
