Final Expense Insurance

2021 Colonial Penn burial insurance review

Colonial Penn’s final expense life insurance advertisements are highly misleading. colonial penn company logo

Here’s the truth.

Their $9.95 coverage has a 2-year waiting period, and you get very little coverage for the dollar spent.

This article will break down how their coverage works and show you the prices and all the fine print. You’ll see for yourself why Colonial Penn burial insurance is one of the worst final expense insurance options you can buy.

 

How does Colonial Penn burial insurance work?

Colonial Penn final expense life insurance is generally their whole life policy that costs $9.95 per month. It’s a guaranteed issue plan with a two-year waiting period before coverage begins. They also offer another whole life policy with health questions and an increasing term that expires in your 80’s.

 

Guaranteed acceptance ($9.95 per unit)

Virtually every one of their advertisements promotes their $9.95 plan. It is a whole life insurance policy with a two-year waiting period. If you have this coverage and die in the first two years, Colonial Penn will not pay out the death benefit. They would only refund your premiums plus a small amount of interest.

Here’s a breakdown of this plan:

  • Fixed monthly rates.
  • Coverage never decreases.
  • The policy will never expire.
  • 2-year waiting period before you’re insured.
  • 50-85 is the age range for new applicants.
  • Each unit costs $9.95 regardless of age or gender.
  • Twelve units are the maximum amount you can buy.
  • Available in all states.

Is this plan a good buy?

Objectively speaking, this is not a good burial insurance plan. It’s not an exaggeration to say this Colonial Penn final expense plan is one of the worst insurances you can buy.

The issue is you get so little for the money paid.

For example, a 75-year-old male will only get $560.00 worth of insurance from each unit (and remember that comes with a two-year waiting period).

Dozens of other companies will give you far more coverage per dollar spent (and most of them have no waiting period).

Check out the table in the next section if you want to see how much coverage you will get from each unit.

 

How much does Colonial Penn final expense insurance cost?

Colonial Penn final expense whole life insurance costs $9.95 – $119.40 per month, depending on how many units you purchase. Twelve units are the most you can buy, and the coverage per unit varies based on your age and gender. The older you are, the less coverage a unit provides.

Below is a complete table showing how much coverage you get per unit.

 

AGE1 Male Unit ($9.95)1 Female Unit ($9.95)
12 units is the most you can buy, and this coverage comes with a 2-year waiting period.
50$1,786 in coverage$2,083 in coverage
51$1,732 in coverage$2,068 in coverage
52$1,676 in coverage$2,022 in coverage
53$1,621 in coverage$1,973 in coverage
54$1,562 in coverage$1,929 in coverage
55$1,506 in coverage$1,884 in coverage
56$1,452 in coverage$1,838 in coverage
57$1,392 in coverage$1,786 in coverage
58$1,333 in coverage$1,732 in coverage
59$1,273 in coverage$1,676 in coverage
60$1,214 in coverage$1,621 in coverage
61$1,157 in coverage$1,562 in coverage
62$1,099 in coverage$1,506 in coverage
63$1,043 in coverage$1,452 in coverage
64$987 in coverage$1,392 in coverage
65$932 in coverage$1,333 in coverage
66$880 in coverage$1,273 in coverage
67$834 in coverage$1,214 in coverage
68$792 in coverage$1,157 in coverage
69$753 in coverage$1,099 in coverage
70$717 in coverage$1,043 in coverage
71$683 in coverage$987 in coverage
72$652 in coverage$932 in coverage
73$620 in coverage$880 in coverage
74$589 in coverage$834 in coverage
75$560 in coverage$792 in coverage
76$531 in coverage$753 in coverage
77$503 in coverage$717 in coverage
78$477 in coverage$683 in coverage
79$450 in coverage$652 in coverage
80$426 in coverage$620 in coverage
81$424 in coverage$589 in coverage
82$423 in coverage$560 in coverage
83$421 in coverage$531 in coverage
84$420 in coverage$503 in coverage
85$418 in coverage$477 in coverage

 

Simplified issue whole life (has health questions)

They don’t make it easy to find. However, Colonial Penn has another whole life policy with no waiting period (if you qualify).

It’s a no medical exam required whole life plan where qualification is based on your answers to their health questions. Additionally, Colonial Penn will ask for your height & weight and analyze your prescription history because that tells them a great deal about your health.

Given their health questions, very few people seem actually to qualify for this plan.

But if you’re approved for this Colonial Penn life insurance burial option, there is no waiting period. Coverage starts as soon as you make your first payment.

Here’s a breakdown of this plan:

  • Fixed monthly rates.
  • Coverage never decreases.
  • The policy will never expire.
  • No waiting period if you’re approved.
  • 40-75 is the age range for new applicants.
  • Available in all states except for New York.
  • No medical exam is required, but you must answer health questions.
  • The only coverage options are $10k, $20k, $30k, $40k, or $50k.
  • You can opt for an accidental death rider that doubles the payout due to accidental death for an extra premium.

Is this plan a good buy?

If you qualify, the price is somewhat fair, but you can get lower rates elsewhere.

For example, a 75-year-old female can get $10,000 in coverage from Mutual of Omaha for $72.41 per month. In comparison, Colonial Penn would charge $94.07 per month.

The price aside, the biggest issue with this plan is the underwriting. In our experience, very few people qualify. If you look at their health questions, you can see why so many seniors fail to qualify.

If you have pre-existing conditions, many other burial insurance companies have underwriting that will accept you.

 

Increasing premium term life

The third and final Colonial Penn life insurance option is their renewable term life plan. It’s a term life insurance policy where the price increases every five years. In addition, once you reach your 90th birthday, the policy expires, and you no longer have coverage.

Here is a breakdown of this plan:

  • Rates increase every five years.
  • The policy terminates at age 90.
  • Coverage does not decrease over time.
  • 18-75 is the age range for new applicants.
  • $5K-$50k in increments of $5K are the coverage options.
  • There is no medical exam to qualify. However, you must complete a health questionnaire.
  • No waiting period if you are approved.
  • Available in all states except for Montana and New York.

Is this plan a good buy?

Firstly, if you seek burial insurance to cover your final expenses, term life insurance is a bad idea. A term policy will expire at some point. What if you live longer than your policy lasts?

Then you have no way to pay for your funeral expenses.

If you need a life insurance policy to cover your end-of-life costs, you should get a permanent whole life burial insurance policy.

That issue aside, if you want term insurance (for any reason), Colonial Penn’s policy is inferior to many other companies. Multiple other life insurance companies offer term insurance with lower rates, and they won’t increase over time.

For example, Colonial Penn will charge a 66 year old female $128.29 per month for a $100,000 term life policy. That price will also increase every five years.

Many other carriers will offer a fixed cost $100,000 term policy for $115-$130 per month.

There is just no reason to buy their term coverage.

 

Three better options to consider

Quite frankly, Colonial Penn burial insurance coverage isn’t the best. You can find superior options from dozens of other companies.

Want a lower price? Many other companies offer that

Want no waiting period? Many other companies offer that.

Below are three great companies to consider. Each one of them has better coverage than Alex Trebek’s insurance.

 

1) Mutual of Omaha mutual of omaha company logo

  • Whole life insurance
  • No 2-year waiting period
  • Premiums never increase
  • Permanent coverage
  • 45-85 new applicant age range
  • Coverage is available from $2,000-$40,000
  • Available in all states except NY

Sample Mutual of Omaha prices

AgeFemale
$10,000
Male
$10,000
Female
$20,000
Male
$20,000
45$22.61$27.11$42.01$51.01
50$24.31$30.68$45.41$58.15
55$27.71$35.95$52.21$68.69
60$32.87$43.76$62.53$84.32
65$41.01$56.48$78.82$109.75
70$53.24$74.61$103.28$146.01
75$72.41$99.97$141.62$196.74
80$98.43$139.73$193.66$276.26
85$135.90$192.74$268.60$382.27

 

2) Aetna aetna company logo

  • Whole life insurance
  • No 2-year waiting period
  • Premiums never increase
  • Permanent coverage
  • 40-89 new applicant age range
  • Coverage is available from $2,000-$50,000
  • Available in all states except NY

Sample Aetna prices

AgeFemale
$10,000
Male
$10,000
Female
$15,000
Male
$15,000
45$25.55$29.92$36.57$43.14
50$27.30$34.39$39.20$49.83
55$34.39$44.10$49.83$64.40
60$40.51$51.10$59.02$74.90
65$47.60$58.19$69.65$85.53
70$58.19$73.15$85.53$107.97
75$75.86$101.41$112.04$150.37
80$101.41$140.26$150.37$208.64
85$136.67$195.82$203.26$291.99
86$171.32$236.25$255.24$352.62
87$205.97$276.67$307.21$413.26
88$240.62$317.10$359.19$473.90
89$275.27$357.52$411.16$534.54

 

3) Transamerica transamerica company logo

  • Whole life insurance
  • No 2-year waiting period
  • Premiums never increase
  • Permanent coverage
  • 40-89 new applicant age range
  • Coverage is available from $1,000-$50,000
  • Available in all states

 

Sample Transamerica prices

AgeFemale
$10,000
Male
$10,000
Female
$20,000
Male
$20,000
50$25.30$30.70$47.10$57.90
55$29.10$35.90$54.70$68.30
60$33.60$43.70$63.70$83.90
65$41.60$56.50$79.70$109.50
70$53.90$74.60$104.30$145.70
75$72.80$100.00$142.10$196.50
80$104.00$140.20$204.50$276.90
85$148.60$200.40$293.70$397.30