Would it surprise you to learn that a single $9.95 Colonial Penn unit would give a 50-year old male only $1,786 of life insurance?

And if you’re older than 50, a unit will give you even less coverage than that! decorative image asking if Colonial Penn 995 units are worth buying

Here’s another example.

A 75-year-old female will get only $792 of life insurance coverage from a single $9.95/month unit.

Oh, and their units all have a 2-year waiting period before you’re insured.

The bottom line is that Colonial Penn’s $9.95 units are a ripoff.

You can get way more coverage for the dollar spent from other life insurance companies. Not to mention, multiple other companies offer coverage that has no waiting period.

 

How The $9.95 Colonial Penn Insurance Plan Works

The Colonial Penn life insurance plan for $9.95 per month is a guaranteed acceptance whole life policy with a 2-year waiting period. There are no health questions or exams. They guarantee your approval.

Strangely, they sell this coverage using a unit system (max of 12 units per person) where each unit provides a particular amount of life insurance.

Literally, everyone pays only $9.95 per unit of coverage, and how much coverage you get from each unit varies based on your age and gender.

You have to decide how many units you want. For example, if you bought 5 units, your monthly premium would be $49.75, and 12 units would cost $119.40 per month.

But the million-dollar question is…

How much life insurance coverage do you get for $9.95?

The short answer is not much.

In the next paragraph below, you can see precisely how much coverage a unit provides for all ages.

$9.95 Plan Product Details
Policy TypeWhole Life Insurance
Policy DurationLifetime
Fixed PremiumsYes
2-Year Waiting PeriodYes
States AvailableAll States
New Applicant Age Range50-85
Coverage Amount Range1-12 Units
Cost$9.95 Per Unit
(regardless of age or gender)

 

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 the exact amount of insurance coverage a single unit provides.

Below is a table that clearly illustrates how much Colonial Penn life insurance you get using their unit system.

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

 

What Is The Colonial Penn Rate Lock?

The Colonial Penn rate lock is not unique. In fact, every single life insurance company that sells whole life insurance offers this same benefit.

They’re referring to the fact that their coverage is 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.

 

Alternate Colonial Penn Whole Life Insurance Option

They don’t advertise it, but Colonial Penn does offer another whole life policy outside of their $9.95 plan.

As you can see here, this whole life policy is much different.

In short, this whole life policy isn’t sold by the unit, and it has an underwriting component to it. You must medically qualify, which means you have to answer health questions (you can see them here).

The underwriting on this plan is rather strict, so unless you’re in picture-perfect health, don’t expect to qualify.

Even if you do qualify, the prices aren’t very competitive. For example, A 66-year-old male would pay $70.15 per month for $10,000 in coverage with this Colonial Penn whole life plan. In comparison, Mutual of Omaha would charge only $59.85 per month.

Below is a table that compares both of their whole life options.

FeaturesGuaranteed Acceptance
Whole Life ($9.95/Unit)
Whole Life
With Health Questions
New Applicant
Age Range
50-8540-75
Coverage Options1-12 Units$10,000 - $50,000
Has Health QuestionsNoYes
2-Year Waiting PeriodYesNo
Medical Exam RequiredNoNo

 

Company History, Financials & Complaints

Colonial Penn life insurance company 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 elsewhere.

In addition, you can very likely get coverage that has no waiting period.

The biggest issue with Alex Trebek 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 show you another insurance company that could potentially 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, an independent agency such as Choice Mutual will shop the market for you to determine which insurance carrier has the best price and coverage based on your unique situation.

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

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. Final expense life insurance is our specialty. It’s all we do.

Below are real reviews from past customers who gave us the opportunity to serve them.

 

Frequently Asked Questions

 

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

Does Colonial Penn offer burial insurance?

Colonial Penn burial insurance is generally their guaranteed acceptance 995 plan. You cannot be denied due to pre-existing conditions and everyone pays just $9.95 per unit. How much coverage you get for a single unit depends on your gender and age.