Choice Mutual's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
See a complete list of all the pros and cons of Colonial Penn insurance, and decide for yourself if their coverage is worth it.
Don’t make the mistake of looking only at the price and failing to consider all the variables.
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What Are The Pros And Cons Of Colonial Penn Life Insurance?
Colonial Penn advertisements give the impression that their coverage is the best and most affordable life insurance for seniors.
The truth is that their policies have substantial drawbacks that do not outweigh what is good about them.
Below is a complete list of their pros and cons.
- Very small amount of coverage for $9.95: Yes, everyone pays $9.95 monthly for a single unit, but the catch is that you get virtually no coverage for the dollar spent. For example, a 70-year-old male would only get $689 of life insurance for $9.95.
- Units have a 2-year waiting period: Because their coverage is guaranteed acceptance, there is a two-year waiting period. Non-accidental death during the first two years will only result in a refund of your premiums plus roughly 8% interest.
- Deceptive advertising: The ads Colonial Penn produces give most people the impression that they will get $10,000-$25,000 in coverage for $9.95, which obviously isn’t the case.
- Lots of consumer complaints: Hundreds (possibly thousands) of consumers have filed complaints with the BBB, consumeraffairs.com, and with the National Association of Insurance Commissioners.
- No options below 40: If you’re 39 or younger, they have no coverage they can offer you.
- No options above 85: If you’re 86 or older, they have no coverage they can offer you.
- Confusing unit system: The selling of coverage by the unit is confusing to most seniors. Few people realize that how much coverage you get per unit varies based on age and gender.
- Expensive compared to other providers: If you break down the cost of their insurance on a per $1,000 basis, you quickly realize that Colonial Penn is one of the most expensive companies on the market.
- $50,000 is the most you can buy: If you’re looking for coverage beyond $50,000, Colonial Penn cannot help you.
- No waiting period is very hard to get: Colonial Penn does offer whole life final expense insurance with no waiting period. However, the underwriting is rather strict, and most seniors simply won’t qualify.
- Seniors 75+ all have a waiting period: Even if you’re in perfect health, everyone 75 and older will have a two-year waiting period.
- Healthy applicants are often routed to their unit coverage: Colonial Penn primarily pushes their guaranteed acceptance coverage even to seniors who are in really good health. Some of those folks could have qualified for their less expensive whole life coverage with no waiting period.
- No exam or health questions: Your approval is guaranteed regardless of age or health history.
- Online quotes and application: Their online application will show you prices and allow you to formally apply.
- Seniors up to 85 are eligible: Colonial Penn will issue a new policy to someone as old as 85.
- Strong financial ratings: Colonial Penn currently has an A- (Excellent) rating with A.M. Best.
- Coverage available nationwide: Their products are available in all 50 states, including Washington, DC.
- Multiple payment options: You can pay via credit card, bank draft, or mail in a check or money order.
- Free living benefit riders: Some of their policies include a terminal illness rider (at no charge) that enables you to access funds while you’re alive if you have a terminal illness.
- Well-known & established company: Colonial Penn has been in business since 1968 and is a nationally recognized name.
- Permanent whole life insurance: Their policies are whole life insurance which lasts forever and has a fixed cost.
- Spanish-speaking employees: If you speak Spanish, they have staff who can assist you.
- 30-day money back guarantee: If you’re not satisfied for any reason, you can return the policy within 30 days and get a full refund.
- Builds cash value: Cash value will accrue over time since their coverage is whole life insurance.
How Does The $9.95 Plan Work?
Colonial Penn’s $9.95 plan is a guaranteed acceptance whole life policy.
You don’t have to answer health questions or take an exam. Regardless of your health, you will be approved.
Because it’s a guaranteed issue policy, there is a 24-month waiting period. If you die during the waiting period, Colonial Penn will only refund your premiums in addition to a small amount of interest (8-10%).
Because the policy is whole life, the rates will not change, and the coverage will neither decrease nor expire at any age.
The strangest element of the $9.95 plan is the pricing.
They sell the coverage by the “unit,” which is odd because no other burial insurance company does this.
No matter your age or gender, everyone pays $9.95 per month.
What varies is how much coverage you get per unit.
That’s the small detail Jonathan Lawson (the guy in their TV ads) eludes to when you see their commercials.
The older you are, the less coverage you get per unit.
Below is a rate chart that shows you exactly how much coverage you’ll get per unit based on your age and gender.
Colonial Penn Life Insurance Rate Chart
If you select your age and gender in the Colonial Penn rate chart tool below, you’ll see how much coverage you’ll get for 1-15 units.
| Number of Units | Coverage Amount | 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 |
This table defines how much life insurance you get from one unit based on age and gender.
| 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 |
5 Final Expense Insurance Companies That Are Better Than Colonial Penn
Objectively speaking, Colonial Penn is much more expensive than other burial insurance companies.
Plus, multiple other insurance providers offer burial insurance with no waiting period.
Below are five companies (and there are many others) that offer lower final expense rates, fewer complaints, and coverage that fully protects you from day one.
1) Mutual of Omaha
Living Promise final expense insurance from Mutual of Omaha offers low prices, quick approvals, and coverage with no waiting period.
If you need life insurance for a senior over 80, they are one of the best options to consider.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$40,000 | |
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Mutual of Omaha products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 10 Minutes to 2 Business Days | |
Common health conditions still eligible for no waiting period coverage: Aneurysm Arthritis Asthma Blindness Blood clots > 2 years ago Blood thinners Cancer > 4 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis A or B High blood pressure High cholesterol Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 2 years ago Tumors (non-cancerous) |
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2) Aetna
Most people know Aetna for their health insurance products, but they also offer senior burial life insurance.
Amazingly, they offer life insurance to seniors over 85. Most life insurance companies will not insure folks 86 and older.
Overall, their rates are competitive, and they offer coverage with no waiting period, even if you have severe chronic illnesses.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 40-89 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$50,000 (varies by age) |
|
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) |
|
| Application Details | Where to Apply: Agencies licensed to sell Aetna products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes-3 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Chronic bronchitis Circulatory surgery > 2 years ago COPD Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic coma > 2 years ago Diverticulitis Epilepsy Fibromyalgia Graves’ disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis > 2 years ago High blood pressure High cholesterol Insulin shock > 2 years ago Lupus Multiple sclerosis Obesity Over 85 life insurance Pacemaker (installed > 1 year ago) Parkinson’s disease Sarcoidosis Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors (noncancerous) |
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3) Royal Neighbors of America
Believe it or not, Royal Neighbors of America was the first life insurance company to offer life insurance to women and children in the USA.
They offer the best final expense insurance for diabetics and many other health conditions. Royal Neighbors is likely your best option if you have many severe medical conditions.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 50-80 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $7,000-$30,000 | |
| States Available: All States (except AK, AL, HI, LA, MA, NH, NY) |
|
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: None | |
| Application Details | Where to Apply: Agencies licensed to sell Royal Neighbors products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 10 Minutes | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic neuropathy Diverticulitis Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis > 2 years ago High blood pressure High cholesterol Home health care Multiple instances of cancer Pacemaker (installed > 2 years ago) Retinopathy Schizophrenia Scleroderma Severely overweight Sleep apnea Tia mini-strokes Tumors |
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4) American Amicable
American Amicable is unique because they offer up to $50,000 in whole life coverage. Most final expense companies cap out at $25,000-$40,000.
They have some of the lowest prices on the market for people who smoke cigarettes. If you smoke cigars occasionally, they will offer you a non-tobacco price which is a considerable saving.
Additionally, they are very accommodating to people who have been denied life insurance due to prescription history.
Whether you need life insurance for a parent, grandparent, or yourself, they are a company that should be on your shortlist.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 50-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,500-$50,000 (varies by age) | |
| States Available: All States (except CT, ME, MT, NH, NY, VT) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: None | |
| Application Details | Where to Apply: Agencies licensed to sell American Amicable products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: < 10 minutes | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm > 3 years ago Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 3 years ago Circulatory surgery > 3 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Fibromyalgia Grave’s disease Heart attack > 3 years ago Heart surgery > 3 years ago Hepatitis > 3 years ago High blood pressure High cholesterol Pacemaker (installed > 3 years ago) Schizophrenia Scleroderma Sickle cell anemia Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 3 years ago Tumors (non-cancerous) |
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5) Transamerica
Unlike the AARP life insurance program, Transamerica will approve applicants for no waiting period coverage even if they have chronic conditions such as COPD or kidney disease.
Their prices are very competitive, even for smokers. Another unique feature of Transamerica is that they will offer as low as $1,000 in coverage.
So if you only need to cover the cost of a cremation or you deal with serious medical issues, Transamerica is a great company to consider.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $1,000-$50,000 (varies by age) | |
| States Available: All States | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Transamerica products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes- 5 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Angina (chest pains) Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 4 years ago Chronic bronchitis Circulatory surgery > 1 year ago COPD Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis High blood pressure High cholesterol Kidney disease (no dialysis) Lupus Multiple sclerosis Pacemaker (installed > 1 year ago) Parkinson’s disease Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors |
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Colonial Penn earned 1 star out of 5 for overall performance. Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, complaint data from the National Association of Insurance Commissioners, and financial strength ratings.
Learn about our rating methodology.