Colonial Penn 995 Plan, is it good? Misleading? You decide!
Written by Daniel Ray, Life Insurance Expert |
✅
Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
In this review, we dive into the Colonial Penn 995 plan, which, despite its widespread advertising, garners a 1 out of 5-star rating from us due to misleading claims and its failure to rank among the top 50 insurance products.
While not a scam, potential buyers should approach with caution. The plan’s extensive promotion, featuring spokesperson Jonathan Lawson, may not fully disclose the limitations and conditions of the policy.
Our analysis will compare the 995 plan, particularly its final expense policy, against other insurance options to highlight its shortcomings.
Before committing to the Colonial Penn 995 plan for your life insurance or final expenses needs, this review is essential reading.
Founded: 1968
Additionally, we’ll touch upon the rumors of legal action surrounding the plan, providing you with a comprehensive overview to make an informed decision.
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!
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.
- No medical exams required.
- Ages 50-85
- $9.95 Plan: Per Unit
- Coverage: $9.95/unit, Max 15 Units
- 2-Year waiting period
- 30-50% higher in price
- To many complaints
1.0
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 |
BEWARE!!
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 Application | Colonial 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 |
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 | |
|---|---|
| Type of Policy | Simplified Whole Life |
| Duration of Policy | Lifetime |
| Premiums Fixed | Yes |
| Policy Rate Class | Guaranteed Issue Life Insurance |
| Underwriting Health Questions | No |
| Any Medical Exam | No |
| Waiting Period | Yes, two years |
| State Availability | All 50 |
| Age at Application | 50-85 |
| Coverage Amount | Works 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
| AGE | (Male) 1 UNIT ($9.95) | (Female) 1 UNIT ($9.95) |
|---|---|---|
| 50 | $1,669 | $2,000 |
| 51 | 1,620 | 1,942 |
| 52 | 1,565 | 1,890 |
| 53 | 1,515 | 1,845 |
| 54 | 1,460 | 1,802 |
| 55 | 1,420 | 1,761 |
| 56 | 1,370 | 1,719 |
| 57 | 1,313 | 1,669 |
| 58 | 1,258 | 1,620 |
| 59 | 1,200 | 1,565 |
| 60 | 1,167 | 1,515 |
| 61 | 1,112 | 1,460 |
| 62 | 1,057 | 1,420 |
| 63 | 1,000 | 1,370 |
| 64 | 949 | 1,313 |
| 65 | 896 | 1,258 |
| 66 | 846 | 1,200 |
| 67 | 802 | 1,167 |
| 68 | 762 | 1,112 |
| 69 | 724 | 1,057 |
| 70 | 689 | 1,000 |
| 71 | 657 | 949 |
| 72 | 627 | 896 |
| 73 | 608 | 846 |
| 74 | 578 | 802 |
| 75 | 549 | 762 |
| 76 | 521 | 724 |
| 77 | 493 | 689 |
| 78 | 468 | 657 |
| 79 | 441 | 627 |
| 80 | 426 | 608 |
| 81 | 424 | 578 |
| 82 | 423 | 549 |
| 83 | 421 | 521 |
| 84 | 420 | 493 |
| 85 | 418 | 468 |
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.
Click on Your State to Find The Best Burial Insurance Rates in That State
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
| PROS | CONS |
|---|---|
| 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.
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.
FOOD FOR THOUGHT
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.
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.
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.
Do not waste your time with this company. They are complete garbage.
Date of experience: September 15, 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
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
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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Frequently Asked Questions
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.
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.
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.
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!
More Burial Insurance Resources
12 Comments
Ferne Clements
I am 72 and looking for end of life insurance
Danny Ray
Hi Ferne, I can assist you with that. Your rate class will determine the carrier and price.
Click here, https://insuranceforburial.com/burial-insurance-quote/ to view rates and put your contact information and I will contact you.
GERALD LYNCH
71.3 AGE GENERAL HEALTH VERY GOOD/REAR HEART CORONARY STENT 010 additional SUPPLEMENTAL SUPPORT STENT COUPLED TO FIRST STENT TO SUPPORT SAME CORONARY STENT FLOW IN 012;AT PRESENT BEING TREATED FOR LEAKING DIC L-4 LEFT HIP AN LEG PELVIC NERVE DIC LEAK PELVIC NERVE PINCH WITH PAIN MEDS :OPERATION RECOMMENDED TO SNIP DIC GEL LEAK TONGUE PINCHING LEFT HIP BONE NERVE TO LEFT LEG AN PELVIC AREA .ABLE AT THIS TIME TO DO REGULAR PERSONAL SURVIVAL TASKS IN AN OUT OF HOUSE WITH PAIN MEDS HUNT FISH DRIVE LIMITED DAYLIGHT HRS!
Danny Ray
Gerald, we can help you, fill this out, https://insuranceforburial.com/pre-qualification-for-rate-class/
Penny
What happens when your monthly payments succeed the amount of the policy? Do you have to keep sending monthly payments?
Danny Ray
Penny, these are simplified issue whole life policies that are level for life and builds cash value. All carriers are different, some will endow at age 100 (Get a check equal to the face amount), some carriers are paid up in your 80's. Again, its hard to give you a accurate answer not knowing what you qualify for and who the best carrier is.
To find out what you qualify for, call us, 855-380-3300 ext 2
But, you might want to ask yourself, have you paid for auto insurance your whole life? If you got into an accident, do you think you have paid more for car insurance than what the cost of it is to fix?
Insurance is for if something happens, not when.
Lynne
This commercial is fraudulent. It makes you think you pay $9.95 a month will give you enough coverage for a burial. You can't have a $1600 burial anywhere. Disgusted what they are doing to the elderly.
Danny Ray
I agree, we have the best options for the elderly. But we believe in awareness for seniors. Reach out anytime, 855-380-3300 ext 5, my wife’s name is Lisamarie.
Brian Raudibaugh
Just checking out the policy
Danny Ray
Let me know if you have any questions. My name is Danny, I am the owner.
Brian v Morrison
Looking into getting life insurance for a 34 yr girl, whole or term what's the payment rate going to be, iam 62 with a fixed income..thanks for your response..
Danny Ray
We can help you, call 855-380-3300 for assistance.