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0.75/5
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.

Rating methodology
Score Breakdown
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:

  • 5
    0-5% more expensive
  • 4
    6-10% more expensive
  • 3
    11-20% more expensive
  • 2
    21-30% more expensive
  • 1
    ≥ 40% more expensive
Price audit
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.

  • 5
    Most applicants qualify
  • 4
    Fairly easy qualification
  • 3
    Somewhat difficult qualification
  • 2
    Very difficult qualification
  • 1
    No-waiting-period coverage unavailableNo-waiting-period unavailable
1.0
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:

  • 5
    Superior (A+ or A++)
  • 4
    Excellent (A- to A)
  • 3
    Fair/Good (B- to B++)
  • 2
    Weak/Marginal (C- to C++)
  • 1
    Poor (D or Not Rated)
4.0
NAIC Complaint IndexNAIC Complaints
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:

  • 5
    0.0 - 1.0 (avg or below avg complaints)
  • 4
    1.01 - 1.5 (slightly above avg complaints)
  • 3
    1.51 - 2.0 (up to 2x avg complaints)
  • 2
    2.01 - 3.0 (up to 3x avg complaints)
  • 1
    ≥ 3.01 (more than 3x avg complaints)
1.0
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Our Verdict

Although Colonial Penn Life Insurance Company is a legitimate insurer, the truth is that they are rarely worth considering because most other insurers offer lower prices, higher coverage options, and better terms. The biggest problem is that $9.95 buys such a small amount of coverage, and you must wait two years before being covered for natural causes of death.

For example, a 65-year-old male would spend $119.40 monthly with Colonial Penn for about $10,000 in coverage (with a waiting period). That same man could get a $20,000-$25,000 policy for roughly $120 monthly from many other life insurance companies. This glaring disparity in value is why Colonial Penn is one of the least attractive life insurance providers for seniors.

Also, if you prefer a guaranteed acceptance policy, companies such as Mutual of Omaha, AAA, or Physicians Mutual are substantially cheaper than Colonial Penn.

The LifeChoice® whole life insurance policy for New York residents is reasonably priced and is an excellent option (it’s not available in any other state). However, we’ve heard from many customers that they frequently deny applicants with various pre-existing health conditions.

Pros

  • Guaranteed acceptance coverage.
  • Whole life insurance with a fixed cost and coverage that lasts your entire life.
  • Financially sound insurance company.

Cons

  • Very overpriced life insurance options compared to other companies.
  • The 995 plan has a two-year waiting period before you’re covered for nonaccidental death.
  • An enormous amount of negative reviews.

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
282 reviews
Trustpilot
1.6/5
32 reviews
Google
2.9/5
421 reviews
Yelp
1.1/5
37 reviews
Consumer Protection Organization Scores
NAIC Complaint Index
7.75
BBB Score & Accreditation
A+
Accredited

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.

Ratings and scores valid as of 10/30/2024.
    Policy Type
    Whole Life
    New Applicant Age Range
    50-85 (50-75 in NY)
    Death Benefit Options
    1-25 Units (12 in NY)
    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 995 Plan

    The 9.95 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 using a unit system where everyone, regardless of age or gender, pays just $9.95 monthly for one unit of coverage. Your age and gender determine the net death benefit 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 at least $10,000 in coverage, he would need to buy eight units (1,313 x 8= $10,504 in net coverage), costing him $79.60 monthly.

    The fine print notes that there is a two-year waiting period, during which death would only result in a refund of your premiums to your beneficiaries. That means you must live longer than 24 months before the full death benefit will pay out.

    In most states, applicants 50-80 can pay an additional nominal fee to add an accidental death benefit rider that would pay out extra money if death is explicitly caused by an accident.

     

    Colonial Penn $9.95 Life Insurance Rate Chart

    Use the calculator or rate table below to see Colonial Penn life insurance rates and how much coverage you get per unit.

    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.

     

    How Colonial Penn Compares Other Final Expense Insurance Providers

    3.25/5
    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.

    3.25/5
    • $10K Policy Cost $47.00/month*
    • New Applicant Ages 50-80
    • Death Benefit Options $5,000-$50,000
    • 2-Year Waiting Period No
    See Prices Read AARP review
    4.75/5
    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.

    4.75/5
    • $10K Policy Cost $41.01/month*
    • New Applicant Ages 45-85
    • Death Benefit Options $2,000-$50,000
    • 2-Year Waiting Period No
    See Prices Read Mutual of Omaha review
    2.5/5
    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.

    2.5/5
    • $10K Policy Cost $51.10/month*
    • New Applicant Ages 18-85
    • Death Benefit Options $5,000-$100,000
    • 2-Year Waiting Period No
    See Prices Read Trustage review
    *Policy costs are for a 65-year-old female non-tobacco user

     

    Tips To Finding The Best Policy

    If you’re shopping for final expense life insurance, you’ll find the best rates by working with an insurance agency that represents numerous providers.

    Agencies (aka “brokers”) compare multiple companies side by side to identify the best life insurance policy. Insurance agencies don’t charge any fees, and the policy won’t cost more because you didn’t buy it directly from the company.

    One of the biggest problems with Colonial Penn is that their agents cannot and will not recommend products from other companies. All they can offer most people is their overpriced guaranteed issue life insurance (the $9.95 plan).

    Finally, most seniors who need a policy to cover their funeral expenses should not opt for guaranteed acceptance plans. In fact, most applicants can qualify for life insurance coverage with health questions, which will result in a policy that covers you for the full benefit amount and likely has a lower insurance quote.

     

    Frequently Asked Questions

    Colonial Penn 9.95 life insurance policies have a two-year waiting period. Life insurance claims during the first 24 months will only result in your loved ones receiving a refund of your premiums. In New York only, Colonial Penn offers a simplified issue whole life policy with the peace of mind of immediate coverage if you qualify (you must answer health questions).

    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 whole life insurance. Colonial Penn used to offer term life insurance but no longer does.

    For New York residents only, 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 there is underwriting, so you must answer health questions to qualify. If you’re approved, there is no waiting period. Remember that only New York residents can get a quote and buy this policy.

    Presently, Colonial Penn only offers an accidental death rider that can be added to the $9.95 plan. This rider would double the death benefit payout if you die from an accident. They used to offer living insurance riders that would pay a cash payout if you suffered a heart attack or were diagnosed with a chronic illness. However, those riders are no longer available.

    Colonial Penn policies can be used to pay for final expenses. All life insurance policies pay out a tax-free cash benefit once the policyholder dies. There are never any restrictions regarding how the money is spent.

    With the Colonial Penn 9.95 plan, 25 units is the maximum amount of coverage you can buy. How much coverage you get from 25 units depends on your age and gender. To calculate the total, multiply the number of units you want by the coverage per unit. For example, a 66-year-old male gets $846 in coverage per unit. 25 units would yield a maximum coverage amount of $21,150 (846 x 25).

    The Colonial Penn 9.95 plan may be a lackluster life insurance plan, but it’s not a scam. It has a graded death benefit, which means there is a limited benefit payout during the first two years. Also, the monthly premium is indeed $9.95 per unit for all applicants. However, you get a dismal life insurance benefit that doesn’t justify the cost.

    Colonial Penn allows customers to pay via credit card, EFT (bank draft), or direct bill. You can also make a payment via their online portal.

    Colonial Penn is a duly licensed American life insurance company authorized to sell insurance throughout the USA. It has an A rating with AM Best and the Better Business Bureau. However, it is not accredited by the BBB, and has a massive number of consumer complaints. That said, if you have a policy with Colonial Penn and die, they will honor the terms of the contract and pay your beneficiaries the due amount once they have a death certificate.

    Anthony Martin
    Anthony Martin
    Choice Mutual CEO
    • Author
    • Nationally licensed life insurance agent with over 15 years of experience
    • Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.

    Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.

    Jeff Root
    Jeff Root
    Life Insurance Expert
    • Editor
    • Nationally licensed life insurance agent with over 19 years of experience
    • Best selling Amazon author.

    Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.

    David Duford
    David Duford
    Life Insurance Expert
    • Editor
    • Nationally licensed life insurance agent with over 14 years of experience
    • Best selling Amazon author of five insurance sales books.

    David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.

    Jeff Root
    Jeff Root
    Life Insurance Expert
    • Editor
    • Nationally licensed life insurance agent with over 19 years of experience
    • Best selling Amazon author.

    Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.

    David Duford
    David Duford
    Life Insurance Expert
    • Editor
    • Nationally licensed life insurance agent with over 14 years of experience
    • Best selling Amazon author of five insurance sales books.

    David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.

    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. A.M. Best. https://ratings.ambest.com/DisclosurePDF.aspx?AMBNum=6240
    2. Moody's. https://ir.cnoinc.com/financials/financial-ratings/
    3. S&P Global. https://ir.cnoinc.com/financials/financial-ratings/
    4. BBB. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
    5. Trustpilot. https://www.trustpilot.com/review/www.colonialpenn.com
    6. 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
    7. Yelp. https://www.yelp.com/biz/colonial-penn-insurance-philadelphia
    8. NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=62065&REALM=PROD&COCODE=62065&REALM=PROD
    9. BBB Score & Accreditation. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
    10. www.colonialpenn.com. https://colonialpenn.com/quote
    11. AARP. https://www.aarp.org/about-aarp/history/
    12. 1968. https://colonialpenn.com/our-company
    13. CNO Financial Group. https://cnoinc.com/our-companies/colonial/
    14. Bankers Life. https://www.bankerslife.com/about-us/
    15. National Insurance Company. https://washingtonnational.com/about-us/
    16. his death. https://www.nytimes.com/2020/11/08/arts/television/alex-trebek-dead.html
    17. their commercials. https://www.ispot.tv/brands/diy/colonial-penn
    18. from home. https://www.indeed.com/cmp/Colonial-Penn/reviews
    19. $9.95 plan. https://colonialpenn.com/products/guaranteedacceptance
    20. LifeChoice® Whole Life Insurance. https://colonialpenn.com/products/lifechoice-wholelife
    21. online portal. https://www.mycolonialpenn.com/customerservice/pay-your-bill
    22. accidental death benefit rider. https://colonialpenn.com/documents/7880008/7878584/ADR_GBL_new.html/5c8897fa-5ede-1dc3-f89f-b6286d13b2ba?t=1630500060773