- Acceptance is guaranteed (no health questions or exam)
- Whole life insurance with a fixed cost and lifetime coverage
- Financially sound insurance company
- Very overpriced life insurance 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 consumer reviews (much higher than other providers)
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.
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 Philadelphia, Pennsylvania. However, some of their agents work from home.
Colonial Penn Life Insurance Policies
Currently, Colonial Penn offers only two types of whole life insurance coverage. They do not offer term life, universal life insurance, or other insurance products.
The $9.95 plan
The $9.95 plan is 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.
While your acceptance is guaranteed, there is a two-year waiting period. If you die (accidental death is the only exception) during the first two years, your beneficiaries will only receive a refund of the premiums you paid plus a small interest amount.
The 995 plan is sold by the unit. Everyone, regardless of age or gender, pays only $9.95 per month for one unit. Colonial Penn states, “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 is: How much life insurance benefit do you get for $9.95?
The truth is that the death benefit you get per unit (regardless of your age and gender) is so low that it doesn’t justify the cost. For example, a 71-year-old female would get only $949 in coverage per unit. If she bought 11 units, the total cost would be $109.45 monthly, and her net death benefit would be $10,439 (949 x 11).
At the same time, Mutual of Omaha’s life insurance for seniors would only cost that same 71-year-old woman $56.20 monthly for a $10,000 policy with no waiting period. This glaring disparity in value is why Colonial Penn is one of the least attractive life insurance providers for seniors.
LifeChoice® whole life insurance
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 you do have to answer health questions. If you’re approved, there is no waiting period.
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 |
| Source: www.colonialpenn.com. Data retrieved on 5/27/2024. | ||
Should You Buy Colonial Penn Life Insurance?
Colonial Penn life insurance is not worth buying 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) with 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.
Furthermore, if you want or need a guaranteed acceptance policy, companies such as AAA or Physicians Mutual offer the same product for a much lower price.
Finally, Colonial Penn has a very high number of complaints, which is a big red flag.
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 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.
An independent broker such as Choice Mutual will compare the best life insurance companies to determine the lowest 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.
In fact, 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. One of our licensed agents will answer your questions and will compare over 15 highly-rated companies on your behalf to find the best deal possible.
You can also use this final expense pricing calculator to compare life insurance quotes from all the top companies in your state. 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.
Colonial Penn life insurance policies have a two-year waiting period in all states except New York. With the $9.95 Plan, life insurance claims 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 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.
Presently, Colonial Penn has no optional riders you can add to your policy. They used to offer living insurance riders that would pay additional money if you suffered a heart attack or were diagnosed with a chronic illness. However, those riders are no longer available.
Colonial Penn burial insurance is a guaranteed acceptance policy with no health questions. 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. Because there are no health questions, there’s a two-year waiting period. Death during the first two years will only result in a refund of your premiums.
Fifteen units 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 only, 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, you must answer health questions when applying.
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.
- 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
- Facebook. https://www.facebook.com/ColonialPennLifeInsuranceCompany/
- 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
- AARP. https://www.aarp.org/about-aarp/history/
- 1968. https://colonialpenn.com/our-company
- CNO Financial Group. https://cnoinc.com/our-companies/colonial/
- Bankers Life. https://www.bankerslife.com/about-us/
- National Insurance Company. https://washingtonnational.com/about-us/
- his death. https://www.nytimes.com/2020/11/08/arts/television/alex-trebek-dead.html
- their commercials. https://www.ispot.tv/brands/diy/colonial-penn
- from home. https://www.indeed.com/cmp/Colonial-Penn/reviews
- $9.95 plan. https://colonialpenn.com/products/guaranteedacceptance
- Colonial Penn states. https://colonialpenn.com/service-support/faq#unitGbl
- LifeChoice® Whole Life Insurance. https://colonialpenn.com/products/lifechoice-wholelife
- captive insurance company. https://www.investopedia.com/terms/c/captive-insurance-company.asp
