The Truth About Colonial Penn 995 Plan [Review]

This article will take a look at Colonial Penn 995 plan and give you an idea about what this kind of life insurance coverage can do for you in case something unfortunate happens.

Do you need life insurance? The answer is probably yes. Life insurance is one of those things that we hope will never be used, but if it ever comes up, it’s going to be a complete disaster for your family and loved ones if you have nothing in place.

Pay close attention, your family depends on it.

Who is Colonial Penn Life Insurance

The company’s main target audience has always been the retired and senior market, thanks to Leonard Davis who founded Colonial Penn in 1968. It was purchased by Conseco, now known as CNO Financial Group, in 1997.

The most notable change for consumers is that its name changed from “Conseco Direct Life” back to “Colonial Penn.” Some of their celebrity endorsements have included Ed McMahon and Joe Theismann while Alex Trebek recently joined the list when his contract with Jeopardy in 2018.

Colonial Penn is NOT one of our top-rated life insurance companies. In fact, we replace them often as the coverage decreases every year you own it putting your family in an awful position. This article will go over Colonial Penn Life Insurance 995 plan.

-Danny Ray, Founder

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

Above all, yes, but this is the “HOOK” and this price is a bit misleading. Colonial Penn specializes in life insurance products with limited underwriting and smaller death benefits that are only adequate for those who need to have very small coverage in place quickly.

You may want to consider other options more suitable for your situation. In fact, 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 be able to get better coverage at lower premiums as well!

But overall, coverage will be level unlike the 995 plan whereas the coverage decreases every year.

The 995 plan is a Guaranteed Acceptance Policy

When you choose Colonial Penn’s Guaranteed Acceptance Program, all you need to provide is your age, gender, and location. At this point, Colonial Penn will assign you a “unit” of coverage that can be purchased for $9.95.

If you would like to purchase more units (you can buy up to eight units of coverage), each unit price will remain fixed at $9.95.

But again, you should check out other alternatives, call us at InsuranceForBurial.com, because you may be able to get better coverage at other companies for the same price. To find the most adequate coverage for your need it’s important to talk to an independent life insurance agent.

What is a Unit of Coverage with the 995 plan

Life insurance is a plan that provides financial protection for you and your family in the event of death. In order to determine which type, or mix-and-match combination, will suit best with different stages of life there are many types available: term-, whole-, universal-, renewable,- variable,- indexed-.

But one unique form we don’t see much nowadays would be selling it by units; only likely as a misleading marketing strategy.

Talk about how a person’s life expectancy determines the price of their insurance. Life insurers want to make sure they can provide for as many people in need as possible, so death benefit and risk are two big things that factor into pricing units.

The cost of an insured increase with age–to keep premiums fixed, Colonial Penn must lower its $9.95 per unit death-benefit amount 50% from ages 50-80 years old on average for males only; females’ rates stay stable until 65 after which point it also falls 75%.

What they shy away from is each year you get older you will pay the same, but the coverage decreases EVERY YEAR for as long as you live. This is could be an AWFUL outcome for family memebers thinking they are getting one thing rather than the other.

How much life insurance can you get for $9.95 a month

Funeral insurance was not traditionally a popular product among men in their 50s, but it does offer some benefits. If you purchase the 995 plan for your family and die before reaching age 65, the Colonial Penn pays $1,676 to cover cremation costs (that’s usually about 4% more than what they would have paid if those same funds were invested elsewhere).

However at ages 75 or 80 death occurs – which is when most people retire- they only pay out an amount even lower: $426 by 85 years old.

To be frank, if you buy this plan hope you don’t live a long time because the less your family will have.

Guaranteed Issue Life Insurance should be the last resort

Guaranteed issue life insurance policies are for customers 50 and over. They offer full coverage, without any health questions asked or medical history checks. These types of plans can be in force within 10 minutes after purchase, with the wait time being only 2 years (or more).

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 if that doesn’t work out for them, they can also talk to us and go through a short assessment of their general health without any medical exams needed!

Above all, these types of policies we offer our extremely ill patients with dementia, cancer, or have HIV.

Colonial Penn 995 Plan Customer Complaints

The Pennsylvania-based company, Colonial Penn has received a vast amount of complaints from customers over the past three years that have been recorded by the National Association of Insurance Commissioners.

The data showed an astonishingly disproportionate number in relation to their size and customer base.

Colonial Penn earned 2 stars out of 5 for overall performance. Another company we consider a hybrid product is one that is offered by AARP which is a marketing company.

Know Your Alternatives By Talking To an Independent Agent

Are there better alternatives? YES!

The 995 life insurance plan from Colonial Penn may not fit all of your needs, so we encourage you to shop around for options at other companies.

If the coverage doesn’t meet what you need or include specific features that are important to you, then check out some other affordable plans!

Conclusion

Are you looking for a robust life insurance policy to provide for your family after you’re gone? If so, Colonial Penn isn’t the best fit. With their maximum benefit of $50,000, it’s unlikely that they’ll offer coverage more than just your final expenses.

But if you’ve struggled to get life insurance because of health or age and are looking for a guaranteed acceptance policy to pay for burial costs, then Colonial Penn can be an option worth considering. However, we have other products like this with much better features.

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