Final Expense Insurance

2021 Colonial Penn life insurance review

Colonial Penn Life Insurance Company specializes in life insurance for seniors.

But are they are good option?

Here is a summary:

They unnecessarily impose a 2-year waiting period that could be avoided elsewhere, and their rates are higher than most.

That’s the cold hard truth. We’ll explain how we came to that conclusion.

In this article, you will see prices (for all their options), the fine print, how they compare to other insurance companies, and much more.

Topics covered in this article

 

Colonial Penn life insurance for seniors

Colonial Penn life insurance company offers three different types of coverage for adults: Guaranteed acceptance whole life ($9.95 per unit), simplified issue whole life and increasing term life. The saddest part about Colonial Penn life insurance for seniors is that anyone above 75 always has a 2- year waiting period.

 

Colonial Penn 995 plan (guaranteed acceptance)

The Colonial Penn life insurance for $9.95 per month is a guaranteed acceptance whole life policy with a 2-year waiting period. Everyone pays $9.95 per unit (max of 12 units). How much coverage you get for $9.95 depends on age and gender. There are no health questions. They guarantee your approval.

Since it’s a whole life policy, the way it works is very straightforward:

  • Rates cannot increase over time.
  • The policy cannot expire.
  • Coverage will never decrease.
  • It builds cash value.

Basically, it never changes, and it will always be there, provided you reliably make your premium payments.

 


How does this plan compare to other providers?

Suppose you genuinely need a guaranteed acceptance policy (which few people do). In that case, you can get a much better deal from multiple other companies. We highly advise against buying the Colonial Penn life insurance for $9.95 a month. You can likely avoid a waiting period and get more bang for your buck. Call us at 1-800-644-2926, and we can show you multiple better options.


 

What is a unit?

A unit of Colonial Penn coverage corresponds to the life insurance benefit amount you receive for $9.95 per month. Your age and gender determine how much insurance coverage a single unit provides. For example, a 75-year-old male gets $560 in insurance coverage per unit.

Twelve units are the most you can buy. Below is a table that clearly illustrates how much a Colonial Penn life insurance unit provides at each age.

 

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

 

Colonial Penn whole life insurance

Colonial Penn has two types of whole life insurance available. The first and most common is their guaranteed acceptance plan that costs $9.95 per unit and has a 2-year waiting period. Second is a simplified issue whole life policy that you must qualify for based on your health.

Here’s a breakdown of both plans:

  • No medical exam is required.
  • Prices are fixed and cannot increase.
  • Coverage is guaranteed never to expire.
  • The death benefit will never decrease in value.

If you qualify for their simplified issue plan (that has health questions), your policy will have no waiting period. Sadly, very few people do since their underwriting is rather strict.

Here is a side-by-side comparison of both of their whole life policies.

 

FeaturesGuaranteed Acceptance Whole LifeSimplified Issue Whole Life  
Age Range:50-8540-75
Coverage Options:1-12 Units$10,000 - $50,000
Locked in rates:YesYes
Policy Expires:NoNo
Has Health Questions:NoYes
2-Year Waiting Period:YesNo
Medical Exam Required: NoNo


How does this plan compare to other providers?

While this plan is competitive, many other final expense whole life insurance companies offer better pricing. In addition, Colonial Penn’s underwriting is stringent, so few people qualify for this plan. Many other carriers have superior pricing and underwriting. Call us at 1-800-644-2926, and we can give you a side-by-side comparison of Colonial Penn and some other top providers.


 

Below are some Colonial Penn whole life insurance rates for their simplified issue plan.

Please remember, these are not the prices for their guaranteed acceptance coverage that costs $9.95 per unit.

 

AGEMale $10,000Female $10,000
40$18.22$14.36
45$22.74$17.11
50$29.65$21.28
55$39.07$27.42
60$51.00$35.84
65$66.45$47.43
70$87.46$65.68
75$118.29$94.07

 

Renewable term life insurance

Colonial Penn term life insurance is available from age 18-75. It’s an increasing term policy meaning that every five years, the price will increase. The policy is renewable until age 90, where on your 90th birthday, it will expire, and you have no more coverage.

There is no exam to qualify. However, you do need to answer health questions. In addition to the health questions, Colonial Penn will analyze your prescription history because that tells them a great deal about your health.

 


How does this plan compare to other providers?

If you genuinely want term insurance, dozens of other life insurance companies offer better rates (that don’t increase over time). It’s also worth noting that it’s never a good idea to buy term life insurance to cover final expenses. There is a high chance that you’ll outlive the term policy (Over 90% of term policies never pay out a death benefit). Then you’d have no insurance to cover your funeral expenses.


 

Below are two tables showing how much Colonial Penn’s term life insurance costs. Please note, just like AARP’s burial insurance, your rate will increase over time every time you enter into a new bracket.

Female

Age Bracket$10,000$20,000$30,000$40,000$50,000
51-55$12.49$23.48$34.47$45.46$56.46
56-60$15.49$29.48$43.47$57.46$71.46
61-65$20.17$38.83$57.50$76.16$94.83
66-70$26.86$52.21$77.57$102.93$128.29
71-75$36.86$72.21$107.57$142.93$178.28
The rates below are for renewal only. They will not issue a new term policy to someone above 75.
76-80$52.86$104.21$155.57$206.93$258.28
81-85$75.86$150.21$224.57$298.92$373.28
86-90$106.94$212.37$317.81$423.25$528.69

Male

Age Bracket$10,000$20,000$30,000$40,000$50,000
51-55$16.49$31.48$46.47$61.46$76.46
56-60$21.16$40.82$60.47$80.13$99.79
61-65$29.22$56.95$84.67$112.40$140.12
66-70$39.51$77.51$115.52$153.53$191.53
71-75$55.12$108.75$162.37$215.99$269.61
The rates below are for renewal only. They will not issue a new term policy to someone above 75.
76-80$79.12$156.74$234.37$311.99$389.61
81-85$111.68$221.86$332.04$442.22$552.39
86-90$161.36$321.22$481.08$640.94$800.80

 

What is the colonial penn rate lock?

The Colonial Penn rate lock is not unique. In fact, it’s very common. They’re referring to their whole life insurance, which has a fixed monthly price for life. Whole life insurance, no matter whom you buy it from, always has a locked-in rate.

 

Colonial Penn final expense insurance coverage

Colonial Penn burial insurance is a guaranteed acceptance whole life policy that has a 2-year waiting period. No matter your age or gender, you will pay $9.95 for one unit of their final expense coverage. How much insurance you get per unit varies based on your age and gender.

While $9.95 sure does sound inexpensive, it’s quite the opposite. You get very little insurance for $9.95. In addition, most Alex Trebek life insurance coverage always has a 2-year waiting period before you’re insured.

The truth is that most applicants looking for final expense insurance coverage can get a policy with no waiting period and a much lower price by going with another insurance company.

 

Company history, financials & complaints

Colonial Penn was founded by AARP’s co-founder Leonard Davis over 50 years ago. CNO Financial Group owns them.

They were one of the first insurers to offer guaranteed acceptance life insurance.

For many years, Alex Trebek was the face of Penn life insurance company. He was a paid endorser until his death on November 8, 2020.

Now, Meredith Viera has assumed the role of their paid spokesperson.

Currently, A.M. Best has granted Colonial Penn a rating of A- which is good. However, Standard & Poor’s and Fitch have dropped their rating to BBB+. Moore’s has their rating at Baa1.

The one rating organization where they shine brightly is the Better Business Bureau. They currently have an A+ rating with them.

Over the years, they have racked up quite a few Colonial Penn life insurance complaints. When you analyze their complaint ratio with the National Association of Insurance Commissioners, their numbers are well above the average.

Them getting many complaints isn’t surprising given their misleading advertising.

When you make it seem as though everyone gets $10,000 in coverage for $9.95 per month, you are bound to get some angry customers who file grievances against you.

 

How to find better life insurance options than Colonial Penn

If you are looking for life insurance for final expenses or anything else, you can 100% get a much lower price. In addition, you can very likely get coverage that has no waiting period.

The biggest issue with Colonial Penn is that they are a captive insurance company. That means they can only offer you one insurance company. When you speak to a Colonial Penn agent, they cannot shop around and show you another insurance company that would give you a better deal.

The trick to finding the best and most affordable final expense life insurance (or any other type of life insurance) is to work with an independent insurance agency. Only an independent agency can compare offers from multiple providers.

In essence, they shop the market for you to determine which carrier has the best price and coverage for your unique situation.

Believe it or not, it does not cost you a fee to work with an independent agency, and the insurance doesn’t cost more.

Working with an independent agency can save you as much as 70% on your life insurance (this is not an exaggeration).

You can call us at 1-800-644-2926, and we can assist you. We’re independent and have over 15 different A rating companies that we will shop for you.

Below are reviews from real customers who dealt with us.

 

Frequently asked questions

Below are the most common Penn Life insurance questions people ask. If you have a question not addressed in this article, email us at info @ choicemutual.com.

 

How much is a unit of Colonial Penn life insurance?

One unit of Colonial Penn Life insurance costs $9.95 per month regardless of your age or gender.

 

Is Colonial Penn life insurance good?

Colonial Penn life insurance plans are generally not a good deal compared to other providers. For starters, most Colonial Penn clients have a 2-year waiting period that could have been avoided elsewhere. That aside, their prices are much higher than many other companies.

 

How much is Colonial Penn life insurance?

Everyone, regardless of their age and gender, pays just $9.95 for their guaranteed acceptance coverage. The most you can buy is 12 units. The amount of life insurance provided by a single unit depends on your exact age and gender.

 

Is there a Colonial Penn life insurance rate chart?

AGE1 Male Unit ($9.95)1 Female Unit ($9.95)
50$1,786 in coverage$2,083 in coverage
55$1,506 in coverage$1,884 in coverage
60$1,214 in coverage$1,621 in coverage
65$932 in coverage$1,333 in coverage
70$717 in coverage$1,043 in coverage
75$560 in coverage$792 in coverage
80$426 in coverage$620 in coverage
85$418 in coverage$477 in coverage