Colonial Penn $9.95 Plan, is it good? Misleading? You decide!

I am sure you have seen the Colonial Penn 995 plan ads promising life insurance at just $9.95 a month, it sounds tempting, right? But, let’s dive deeper.

For example:

A 67-year-old man, this plan only offers $802 in coverage, and for a 74-year-old, just $578. For a 72-year-old female you only get $892 in coverage, you think that is enough? And don’t forget the 2-year waiting period!


Rating for InsuranceForBurial.com
Colonial Penn Logo
InsuranceForBurial.com gives a 1.0/5.0 star rating.
Read on to find out why..

You might be wondering:

  • Why the flood of negative Colonial Penn reviews?
  • Is the $9.95 plan too good to be true?

This Colonial Penn 995 plan review article will dig into those questions. While it’s not a scam, there are things you need to know. You’ve likely seen their TV ads featuring Jonathan Lawson, but is what you hear and see the full story?

We’re going to compare the Colonial Penn 995 plan to other insurance offers out there, with a spotlight on their most-advertised product: the final expense policy.

Spoiler: it has its drawbacks and might not be the best option for everyone.

If you’re thinking of securing life insurance, especially for final expenses, this is a must-read before deciding on the Colonial Penn 995 plan.

And for those hearing whispers of a lawsuit? Stay tuned. We’re breaking it all down.

What is the Colonial Penn 995 Life Insurance Plan

Colonial Penn $9.95 plan Is a Guaranteed Acceptance Life Insurance with a two-year waiting period. What that means is, if death occurs in the first two years, they will only refund premiums to your beneficiary.

In addition, you are paying 30%+ more in price than if an independent agent shopped you.

Feel free to look at our rates with multiple carriers superior to the Colonial 995 Plan.

But, is the Colonial Penn life insurance $9.95 per month plan worth it?

If you are looking for burial insurance the 995 Colonial Penn plan probably is not the one!

We will show you how the Colonial Penn 995 plan gimmick is not the way to go. Below you will see Colonial Penn life insurance rate chart.

Responsive Tabs
Overview
Policy
Our Take
A.M. Best Rating
A (Excellent)
Year Est.
1968
NAIC Complaints
🚫19 times Industry Average
Policies Offered
Term, Whole Life
Details
  • No medical exams required.
  • Ages 50-85
  • $9.95 Plan: Per Unit
  • Coverage: $9.95/unit, Max 15 Units
Policy Negatives
  • 2-Year waiting period
  • 30-50% higher in price
  • To many complaints
The Colonial Penn 995 Plan is known for easy enrollment but is criticized for being overpriced, receiving numerous negative customer reviews, and not ranking among the top 20 in terms of quality.
COMPARE QUOTES
On InsuranceForBurial.com

1.0

InsuranceForBurial.com Rating
Bottom line: Above all, Colonial Penn 995 Plan is not an option if you are looking for quality, price, and immediate coverage. Its a 2-year waiting period, and has one of the worst track records of complaints in the industry.

First, here is what you pay between 1 and 15 units without knowing the coverage amount. Keep on reading and find out how much coverage you will get. Prepare to be dissappointed.

**Colonial Penn only offers a Maximum of 15 units**

Amount Of Units Cost Monthly
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

Extremely limited coverage, especially as you get older! $9.95 is the bait!


995 Plan VS. Best Rates Comparison

If you are a senior on a fixed income, you want to get the most for your money. In other words, you want to get the most coverage for the dollar you spend.

Below is a wake-up call on how much more coverage you can get if you are properly shopped.

On average, you will get double the coverage for the exact cost of looking elsewhere than BUYING the Colonial Penn 995 plan.

In addition, it’s immediate coverage versus waiting 2 years with the 995 plan.

Numbers don’t lie!

Below is a coverage comparison for 10 units of Colonial Penn 995 plan. The cost of 10 units would be $9.95 multiplied by ten.

The total premium in this example is $99.50 per month. S0 what you get for 10 units, versus the most coverage if you called us.

Colonial Penn 995 Plan Rate Comparison VS. Best Rates ($99.50/month)

Age of ApplicationColonial Penn 995 Plan (Male/Female)Best Rates Available (Male/Female)
50$17,860/$20,830$35,213/$41,000
55$15,060/$18,840$29,409/$39,301
60$12,140/$16,210$24,752/$32,462
65$9,320/$13,330$18,940/$25,470
70$7,170/$10,430$14,541/$19,599
75$5,600/$7,920$10,310/$14,034
80$4,260/$6,200$7,053/$10,111
85$4,180/$4,770$5,103/$7,256
As you can see, with the example above, The Colonial Penn 995 Plan is double the price for both Men and Women with a 2yr waiting period. In addition, you can get double the coverage for both Men and Women for the same price without a waiting period. This example works with any coverage options. There is no circumstance that Colonial Penn 995 Plan comes ahead of ANY of their competitors!

There you have it. If you want to get the best options available, reach out to us or click on compare quotes anywhere on this page, and Danny or Lisamarie, the owners, will reach out.

Details of the 995 Plan

Life insurance companies offer many whole life insurance policies that are just superior. ALWAYS make sure you purchase the most adequate coverage.

Pay close attention; your family depends on it as they file the life insurance claim and get paid the full death benefit.

You will learn everything you need about Colonial Penn Life Insurance $9.95 per month plan and life insurance benefit amount.

Colonial Penn 995 Plan Policy Details
Colonial Penn 995 Plan Policy Details
Type of PolicySimplified Whole Life
Duration of PolicyLifetime
Premiums FixedYes
Policy Rate ClassGuaranteed Issue Life Insurance
Underwriting Health QuestionsNo
Any Medical ExamNo
Waiting PeriodYes, two years
State AvailabilityAll 50
Age at Application50-85
Coverage AmountWorks on Unit System (1-15 units)
Cost of Insurance$9.95 per unit, based on age

Below are the 9.95 plan details:

After two years of coverage, your beneficiaries will receive a full death benefit if you pass away. But before then, you will get a return of premiums only.

Colonial Penn $9.95 Plan Rate Chart

Below we will show you the impact that this “price per unit” has and why it puts seniors in a position to pay significantly more than they have to.

Below are the rColonial Penn life insurance rate chart for the 995 plan. This rate chart will be per unit for a male and females ages 50-85.

Colonial Penn 995 Plan Coverage Per Unit

Sample Table
AGE (Male) 1 UNIT ($9.95) (Female) 1 UNIT ($9.95)
50$1,669$2,000
511,6201,942
521,5651,890
531,5151,845
541,4601,802
551,4201,761
561,3701,719
571,3131,669
581,2581,620
591,2001,565
601,1671,515
611,1121,460
621,0571,420
631,0001,370
649491,313
658961,258
668461,200
678021,167
687621,112
697241,057
706891,000
71657949
72627896
73608846
74578802
75549762
76521724
77493689
78468657
79441627
80426608
81424578
82423549
83421521
84420493
85418468

The cost for insured increases with age–to keep premiums fixed, Colonial Penn must lower its $9.95 per unit death-benefit amount by 50% from ages 50-80 on average for males only.

Females’ rates stay stable until 65, after which it also falls 75%.

Considering Better Insurance Options than Colonial Penn

If you’re a senior individual looking for insurance coverage to manage your funeral expenses or for other purposes, it’s important to make informed decisions.

While Colonial Penn is a recognizable name in the insurance world, it might not be the best fit for everyone.

Here’s why considering alternative options might be beneficial for you:

Cost-Effective Alternatives: There are numerous insurance providers in the market that offer final expense life insurance at a more affordable rate than Colonial Penn.
Immediate Coverage: A significant advantage some providers offer is no waiting period for the insurance to become effective. This means you can get coverage right from day one without any delays.
Reliable Customer Service: It’s essential to consider an insurance company’s reputation for customer service. Many alternative providers have a strong track record of attending to their clients’ needs promptly and professionally.

It’s worth noting that many top-notch burial insurance companies provide no waiting period coverage primarily through licensed insurance agencies. The companies themselves might not directly offer life insurance quotes or sell policies.

A few such companies include:

  • SBLI (Savings Bank Mutual Life Insurance Co.)
  • Trinity/Family Benefit Life Insurance Company
  • American Amicable

While they depend on agencies to market and sell their products, these companies maintain a robust standard for the policies they provide.


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When you match Colonial Penn rates against the top in the industry and compare prices, you will leave yourself saying, ” Good lord, that’s a lot of money.

Now, is it worth it to purchase from this insurance company?

Pros And Cons Of Colonial Penn $9.95 Plan

Colonial Penn 995 Plan PROS and CONS

PROSCONS
Guaranteed coverage Anyone 50-85 is approved, with no health questions or medical exam Value Colonial Penn offers farless coverage per dollar than its competitors
Online process Application and policy management can be done online Waiting Period Two-year waiting period before your policy is eligible for o death benefit payout
Well-known issuer Colonial Penn has an A - financial strength rating from A.M. Best Customer Reviews TrustPilot and BBB reviews were highly negative, citing pushy sales tactics and payout delays
Requires no medical exam Not underwriting friendly for their whole life policy that has health questions that decline common health issues
Seniors up to age 85 can apply Highly misleading and deceptive ads
You can pay by credit card, auto draft, or mail in monthly payments Grossly overpriced coverage relative to competitors
Living benefit rider for cancer, heart attack, or stroke Unit system that makes it hard to understand how much coverage you are getting
Lots of negative reviews online from previous customers
No term or universal life insurance
15 units is most you can buy (Male $26,790/Female $31,245) at age 50
Price comparison to best rates, 48% higher at age 50

The 995 Plan What Is It and Is It $9.95?

Colonial 995 plan specializes in guaranteed acceptance life insurance products with limited underwriting and smaller death benefits that accumulate cash value. Unlike term life coverage.

Again, this is whole life insurance with a 2-year waiting period. Here at InsuranceForBurial.com, we use these policies for clients that have severe health concerns like active cancer, dementia, or nursing home confinement. SO IF YOU ARE HEALTHY, don’t compromise based on convenience. 😉

This is only adequate for those who need to have a very small amount of life insurance in place quickly, unlike a term life insurance policy.

You may want to consider other options more suitable for your situation instead of $9.95 for life insurance for your burial insurance needs.

We’ve found that by using our premium comparison service, which you can try out by filling out the form to the right, you’ll usually get better coverage at lower premiums than the Colonial 995 plan!

But overall, guaranteed coverage will be level with no medical exams, unlike the life insurance Colonial Penn offers, whereas the life insurance face amount decreases yearly.

Again, you will find so much better with another life insurance provider.

Who is Colonial Penn Life Insurance

Above all, Colonial Penn’s primary target audience has always been the retired and senior market.

This can be attributed to Leonard Davis, who founded Colonial Penn in 1968.

It was purchased by Conseco, now known as CNO Financial Group, in 1997.


Colonial Penn Life Insurance company products for seniors is NOT one of our top-rated life insurance companies. In fact, we replace them often. The reason why is the coverage decreases every year putting your family in an awful position. It is also 30-50% higher in price and with a 2yr waiting period!


Above all, be careful about the index cards you get in the mail or the senior life insurance, as seen on tv late at night from Colonial Penn. Most of these are no exam policies that have a catch.

They are a guaranteed acceptance policy.

Above all, yes, but this is the “HOOK,” and this price is a bit misleading.

These heavy advertising insurance companies are notorious for this. Promising convenient premium payments that are 30%+ higher than the best rate.



Guaranteed Issue Life Insurance should be the last resort

Guaranteed issue life insurance policies, otherwise known as guaranteed acceptance policies, are for customers 50 and over and are usually a policy you get when you are turned down everywhere else.

Colonial Penn will offer full coverage without health questions or medical history checks with a graded death benefit. That is what guaranteed acceptance is. In addition, a waiting period.

These plans can be in force within 10 minutes after purchase, with a wait time of only two years (or more).

A Colonial Penn guaranteed issue policy with a waiting period can only be purchased between 50 and 80, and the policy’s death benefit is limited for the first two years of coverage.

We have a life insurance company that has a GI that will go down to age 40.

In today’s fast-paced world, you need to be able to have your life insurance coverage start the moment you pay for it. But most importantly, having sufficient life insurance that is immediate.

Above all, we offer these policies to highly ill patients with dementia, cancer, or HIV. Even with these health impairments, getting a death benefit paid to loved ones is nice.

We are committed to you having affordable life insurance payments to relieve the family from financial burden.

Ever wondered how you could secure a lump sum payout upon a sudden major health crisis? FIND OUT HOW TO GET A LUMP SUM PAYOUT…CLICK HERE

995 Colonial Penn Plan Customer Complaints

What do Colonial Penn customer reviews & complaints say?

The Pennsylvania-based company has received many customer complaints over the past three years that the National Association of Insurance Commissioners has recorded.

COlonial Penn customer Compaints

The data showed an astonishingly disproportionate number about their size and customer base.

Colonial Penn customer review earned two stars out of 5 for overall performance. Colonial Penn customer complaints are not good.

Another company we consider a hybrid product is offered by AARP, which is a marketing company.

Another that makes our list that you should stay away from is Globe Life. They are notorious for the bait and switch. They offer term life insurance until age 80.

Unfortunately, seniors jump on it as it is cheaper only to outlive it and pay 3-400% more down the road.

Colonial Penn Negative Reviews

After doing a little research, you will know that the Colonial Penn 995 plan is for the birds. The complaints this company has are endless.

Here are just a few recent complaints from Trustpilot.

Colonial Penn Reviews
Rated 1 out of 5 stars Sep 21, 2023

Do not waste your time with this company. They are complete garbage.

Date of experience: September 15, 2023

Rated 1 out of 5 stars Aug 4, 2023

when I saw the TV ad, on the air like a million times lately, it took almost no intuition to see that this Jonathan dude, a paid actor, promoted COST, NOT BENEFIT. It is disingenuous to espouse one side of the story, when the other side stinks, and takes away from the overall appeal of the entire plan offering. EXAMPLE: I am 74 and plugged my info into their $9.95/mo calculator…. insurance face popped up as $590 next for 2 years…. this, to me, is seriously presenting an imbalanced, almost fraudulent profile, in NOT disclosing ALL sides of the offer… Jonathan is a paid robot

Date of experience: July 15, 2023

Rated 1 out of 5 stars Jul 13, 2023

I am so sick of seeing the Colonial Penn tv adds….you need to shut that guy up…9.95 a month…who gives a crap……we are sick of colonial penn….I would never, ever buy from them if just for being annoying to us…..

Date of experience: July 13, 2023

Rated 1 out of 5 stars Feb 2, 2023

This is a complete SCAM.how can the FTC allow this to go on. 9.95 gets you maybe a 1000.00 in life insurance. The TV commercials try to make people believe for 9.95 will take care of all their families needs when you buy. Major lie.

Date of experience: February 01, 2023

This misleading advertising has hurt many senior consumers and their families. Some say they should be called the bury ripoff report!

995 Colonial Penn Plan is NOT The Best Life Insurance For Seniors

With these Hybrid products, make sure you read the fine print because you are getting so much more than just cheap life insurance quotes, as these policies are not there when you need them.

Some of these companies will portray themselves as day one coverage when they are a guaranteed issue whole life policy with a waiting period.

In addition, another carrier that is a gimmick is Lincoln Heritage; they have a funeral program that tells seniors that they will handle their funeral for free! 🤣

However, life insurance rates are 30-150% higher than best. The funeral program is to gimmick to justify their higher rate.

Let your family handle the arrangement, get the best carrier by talking to us, and keep that money in your pocket!

Check here for yourself by clicking here.

That’s a lot of complaints Colonial Penn has. There is much better quality for a life insurance company out there. Don’t settle for guaranteed acceptance plan coverage when purchasing life insurance unless it’s your last resort.

There are so many other better companies. One insurance company is Mutual of Omaha.

They have soft or limited underwriting with a few health questions on medical history, a prescription history check, and a MIB pull.

In addition, flexible payment options. So again, contact us, or fill out the quote form to the right, and you will see multiple other companies with better options.

Colonial Penn Financial Strength Rating

Even though Colonial Penn has a horrible customer complaint ratio index, they have a life insurance rating of A- (Excellent) with AM Best. They are unranked with JD Power’s Price Rank.

Colonial Penn Customer Service

If you ever have a complaint about Colonial life insurance plan final expense insurance product and want to cancel, contact us, or the phone number for Colonial Penn Life Insurance is (877) 877-8052.

Know Your Alternatives By Talking To an Independent Agent

Are there better alternatives? YES! Especially if you want peace of mind!

The 995 plan Colonial Penn life insurance plan may not fit your needs, so we encourage you to shop for life insurance options at other companies like American Amicable or Mutual of Omaha.

This will ensure you get coverage for your entire life with a quality final expense insurance product.

If the coverage doesn’t meet what you need or include specific features important to you, check out some other affordable coverage plans! Look at the top burial carriers that we offer.

In addition, there are so many better options for a guaranteed issue policy, such as Gerber, AIG, or Great Western.

Contact us and find out why our clients L❤VE US! We are life insurance experts. We will show you what tunnel vision quotes mean.

Just check out our reviews, and you will find that we are the senior’s choice for burial insurance.

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FAQ: Colonial Penn $9.95 Plan

What does $9.95 a month get you with Colonial Penn?

Not much! You are limited to 15 units, in addition the price per unit decreases as you age if you dont have it locked in. You get much more value with competitors.

What’s the catch with Colonial Penn 995 plan?

Saturated marketing. They are 30-50% more expenseive than the best rates. If you like to overpay for convenience, then the 995 plan is right for you.

How much is a $50000 policy with Colonial Penn?

The maximum amount of units for the 995 plan is 15 units. The most coverage you can get with this plan is $30,000 in coverage. You would have to be age 50 and female. We have carriers that do and price will depend on age and health.

How much does a 500k life insurance policy cost?

Colonial Penn does not offer that much coverage with their 995 plan. Call us and we will help you find the right price and product that is best.

Conclusion

Are you looking for a robust final expense insurance policy to provide for your family after you’re gone?

If so, they aren’t the best fit. They are Gimmicks like Lincoln Heritage, GLOBE, and AARP.

With their limited benefit period of $50,000, it’s unlikely that they’ll offer coverage more than just your final expenses.

But suppose you’ve struggled to get life insurance because of health or age and are looking for a guaranteed acceptance life insurance policy to pay for burial costs.

In that case, Colonial Penn’s life insurance company for seniors can be worth considering.

But again, the 995 plan Colonial Penn offers is a guaranteed issue plan. If you are healthy, you can get a much better life insurance plan from better life insurance companies that are DAY ONE with no waiting period!

To protect your family with a free quote for final expense insurance and get advisory services.

Contact us at 855-380-3300, or Get a Quote today by filling out the form to the right!

I hope you enjoyed our Colonial Penn life insurance review by us. Remember, ALWAYS compare quotes before buying a final expense policy!


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