Colonial Penn 995 Plan: Understanding the Coverage, Costs, and Common Pitfalls
Written by Daniel Ray, Life Insurance Expert | ✅ Fact Checked by 
Lisamarie Monaco | Editorial Disclosure Have you heard about the Colonial Penn 995 plan and wondered if it’s worth it?
Promoted heavily through commercials, the Colonial Penn 995 plan seems to offer affordable life insurance to seniors. However, the plan’s structure and coverage are often misunderstood, leading to frustrations among policyholders.
In this guide, we’ll break down how the plan works, what coverage you actually get, the cost comparison with other options, and the common customer complaints that you should be aware of before making a decision.
What is the Colonial Penn 995 Plan?
The Colonial Penn 995 plan is a guaranteed acceptance life insurance policy, which means it doesn’t require medical exams, and almost anyone qualifies. This setup appeals to seniors who might struggle to find traditional life insurance due to age or health concerns.
However, the $9.95 per month rate applies to a single “unit” of coverage, not the entire policy.
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 |
*Ball Park Quote
What is a Unit?
A unit in Colonial Penn’s $9.95 plan refers to a small amount of life insurance coverage. The amount of coverage provided by each unit depends on your age and gender, with older applicants generally receiving less coverage per unit.
This means that the low monthly cost doesn’t necessarily translate to high coverage, especially for seniors in their 70s or 80s.
Age-Based 1 UNIT ($9.95) Rates
| 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 |
Colonial Penn Life Insurance Rate Chart Calculator
How Much Coverage Do You Get?
Understanding how much coverage you actually receive for the $9.95 premium can be tricky. Colonial Penn offers a rate chart calculator to show potential buyers the coverage amount each unit provides, but it’s important to know that:
- Coverage per unit decreases with age, so an 80-year-old will get significantly less coverage for one unit than a 60-year-old.
- Many seniors end up purchasing multiple units to reach a meaningful coverage level, which increases their monthly premium considerably.
For example:
- A 60-year-old male might receive around $1,167 of coverage for one unit.
- An 80-year-old female might receive only about $608 of coverage for the same one unit.
Colonial Penn’s rate chart calculator is helpful, but it’s essential to remember that the coverage amount is often lower than what many expect.
If you’re considering this plan, use the calculator to see how many units would be necessary to reach your desired coverage level, and calculate the monthly premium accordingly.
**Colonial Penn only offers a Maximum of 15 units**
What is “MY” Price?
SAVE 50% OR GET TWICE THE COVERAGE
*Ballpark Quote
Colonial Penn Insurance Prices Compared to Competitors
When comparing Colonial Penn’s $9.95 plan to other life insurance options, it’s clear that this plan often costs more for less coverage than traditional whole life or final expense policies. Here’s a general comparison:
- Colonial Penn $9.95 Plan: Provides minimal coverage per unit, which varies based on age, with a two-year waiting period before full benefits are paid.
- Traditional Whole Life Policies: Often offer larger coverage amounts for slightly higher premiums and may have shorter or no waiting periods.
- Final Expense Insurance: Typically aimed at covering funeral costs, these policies offer more straightforward pricing with clearer coverage limits.
Seniors who need a reliable coverage amount to help cover final expenses, like funeral costs, may find other life insurance options provide better value for the money.
Male, $10,000 in Whole Life
| Age |  |  |
|---|---|---|
| 50 | $59.70 | $27.35 |
| 55 | $69.65 | $32.78 |
| 60 | $89.55 | $41.74 |
| 65 | $109.45 | $53.75 |
| 70 | $149.25 | $69.23 |
| 75 | $149.25 ($8,235) | $96.58 |
| 80 | $149.25 ($6,390) | $134.16 |
| 85 | $149.25 ($6,270) | $192.49 |
| 90 | N/A | $354.11 |
Female, $10,000 in Whole Life
| Age |  |  |
|---|---|---|
| 50 | $49.75 | $21.78 |
| 55 | $59.70 | $26.26 |
| 60 | $69.65 | $32.60 |
| 65 | $79.60 | $41.01 |
| 70 | $99.50 | $52.03 |
| 75 | $129.35 | $71.64 |
| 80 | $149.25 ($9,120) | $97.50 |
| 85 | $149.25 ($7,020) | $131.66 |
| 90 | N/A | $299.77 |
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.
Colonial Penn $9.95 Plan and Negative Reviews
Colonial Penn’s $9.95 plan has generated many negative reviews from customers. Here are some of the most common complaints:
- Misleading Advertising: The commercials and advertisements often make it seem as though $9.95 will provide significant coverage. However, many seniors feel misled once they realize that this amount only buys one small unit of coverage.
- Two-Year Waiting Period: Like many guaranteed issue life insurance policies, Colonial Penn’s $9.95 plan has a two-year waiting period. If the policyholder dies from non-accidental causes within the first two years, their beneficiaries only receive a refund of premiums paid, plus a small amount of interest. This waiting period can be problematic for seniors with serious health concerns.
- High Overall Cost for Low Coverage: While $9.95 per unit sounds affordable, many seniors find they need multiple units to meet their coverage needs. This raises the monthly premium, sometimes making it more expensive than alternatives that offer higher coverage amounts without the unit system.
Customer reviews highlight these issues, with policyholders describing frustration over low payouts and a lack of clarity in the advertising. Many reviews advise potential buyers to carefully evaluate how much coverage they need before assuming that this plan will meet those needs.
This misleading advertising has hurt many senior consumers and their families. Some say they should be called the bury ripoff report!
*Ball Park Quote
Is the Colonial Penn $9.95 Plan Right for You?
Colonial Penn’s $9.95 plan may appeal to those who need guaranteed acceptance life insurance, but it’s essential to weigh the pros and cons before committing.
Pros and Cons of Colonial Penn’s $9.95 Plan
| Pros | Cons |
|---|---|
| Guaranteed Acceptance: No medical exam required, making it accessible for individuals with health issues. | Limited Coverage per Unit: The amount of coverage per unit decreases with age, providing less benefit for older policyholders. |
| Simple Pricing Structure: Fixed cost per unit ($9.95), which simplifies budgeting and planning. | Higher Cost for Lower Coverage: Compared to other providers, may offer less coverage for a higher premium, especially as you age. |
| Easy Application Process: Straightforward and quick without extensive paperwork. | Simplistic Policy Options: Lack of customization in policy options might not meet all individual needs. |
| Financial Stability: Colonial Penn has a stable financial reputation, providing peace of mind. | Possible Hidden Fees: There could be administrative or additional fees not immediately apparent. |
| Availability for Seniors: Specifically designed products for seniors, catering to those aged 50 and above. | Misleading Advertising: Some advertising can be misleading, making it seem like $9.95 buys significant coverage. |
| Fixed Rates: Rates are generally fixed, meaning premiums should not increase over time. | Exclusions and Limitations: Policies may have exclusions or limitations that affect coverage. |
| Customer Service Variability: Mixed experiences with customer service can be a concern. | |
| No Cash Value: Policies generally do not build cash value, unlike some whole life insurance policies. | |
| Limited Benefits for Beneficiaries: The death benefit may not be sufficient for substantial financial needs. | |
| Cancellation Penalties: Cancelling the policy might involve penalties or limited refund options. |
If you’re considering this plan, calculate the exact number of units you would need to achieve your desired coverage, and be prepared for the monthly premium to increase accordingly.
For seniors who don’t mind minimal coverage or who only need a small policy, this plan might work, but there are generally more straightforward and affordable options available.
“Get a Free Quote to See How Much Coverage You Need!”
*Ball Park Quote
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. of MASS.)
- 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?
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.
*Ballpark Quote
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
Coverage per unit varies based on age and gender. Younger applicants receive more coverage per unit, while older seniors receive less.
No, there is a two-year waiting period. If the policyholder dies of natural causes within the first two years, only a refund of premiums paid is provided.
Many customers feel the plan’s advertising is misleading, as it implies $9.95 will provide significant coverage. In reality, multiple units may be required, and the coverage amount per unit can be low.
For some seniors with no other options, it may provide a solution. However, many find better value in other life insurance plans that offer higher coverage with clearer pricing.
Yes, Colonial Penn offers a rate chart calculator to show coverage based on age and units purchased. This can help you determine how much coverage each $9.95 unit would provide.
Conclusion
Colonial Penn’s $9.95 plan might sound appealing, but it’s important to understand the coverage limitations, pricing structure, and common customer complaints.
While it offers guaranteed acceptance and no medical exams, the low coverage amounts and two-year waiting period may make it less attractive for many seniors.
Before choosing the $9.95 plan, consider other life insurance options that could offer better value and clearer terms.
*Ballpark Quote
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.