- Guaranteed acceptance coverage.
- Whole life insurance with a fixed cost and coverage that lasts your entire life.
- Financially sound insurance company.
- 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.
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.
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 Colonial Penn. 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 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.
| 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. | ||
How Colonial Penn Compares Other Final Expense Insurance Providers
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 $47.00/month*
- New Applicant Ages 50-80
- Death Benefit Options $5,000-$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 $51.10/month*
- New Applicant Ages 18-85
- Death Benefit Options $5,000-$100,000
- 2-Year Waiting Period No
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.
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
- LifeChoice® Whole Life Insurance. https://colonialpenn.com/products/lifechoice-wholelife
- online portal. https://www.mycolonialpenn.com/customerservice/pay-your-bill
- accidental death benefit rider. https://colonialpenn.com/documents/7880008/7878584/ADR_GBL_new.html/5c8897fa-5ede-1dc3-f89f-b6286d13b2ba?t=1630500060773
