Thanks to the popular Jonathan Lawson Colonial Penn commercials, the life insurance company is recognized throughout the US, but how are their policies really?
The Colonial Penn commercials have cycled through many spokespeople—from the likes of Jeopardy! host Alex Trebek to the previously mentioned Jonathan Lawson—proudly showcasing the 995 Plan. Despite their claims that it offers seniors significant savings, data says the opposite.
So, if you’re looking for quality coverage at reasonable prices, get in touch with Final Expense Benefits. Get familiar with burial insurance through one of our many agents, and get connected to a plan that meets your and your loved one’s needs—all at a fraction of the cost of Colonial Penn’s available options.
Learn more today by calling us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET, or check our free online quoting tool for personalized rates and estimates.
Key takeaways
The Jonathan Lawson Colonial Penn commercials claim the 995 Plan offers low prices and quality coverage. However, the product only offers poor coverage and high rates.
Alex Trebek was Colonial Penn’s spokesperson for 25 years before being replaced by Jonathan Lawson, who is currently the face of Colonial Penn.
The Colonial Penn 995 Plan is sold in units at $9.95 per month and provides less insurance coverage over time.
Colonial Penn has a poor reputation based on several years of customer feedback.
Jonathan Lawson Colonial Penn Commercials: Biggest Spokespersons
With their advertising, Colonial Penn has hired many actors—two of the most notable names being the late game show host Alex Trebek and the current commercial spokesperson Jonathan Lawson.
Alex Trebek, the beloved host of Jeopardy! from 1984 to 2020, was Colonial Penn’s spokesperson for nearly 25 years and helped spread the word about the provider’s 995 plan.
Following Trebek’s passing in 2020, Jonathan Lawson, a Marine Corps veteran and sales manager for Colonial Penn, has inherited the responsibility of being the public face of the company. Since then, seniors who’ve come across the commercials over the years now associate Lawson with the 995 plan. However, despite being associated with welcoming personalities, they aren’t offering the great deal that they’ve advertised for many years.
Colonial Penn’s “Three P’s of Life Insurance”
The Colonial Penn commercials make everything seem like a no-brainer: life insurance for less than $10 per month? Needless to say, the commercials’ catchphrase of the “Three P’s of Life Insurance” has long emphasized what seniors should look for when shopping for coverage: “Price, price… And price”. More specifically, they advertise the 995 plan as a “price you can afford”, a “price that can’t increase”, and a “price that fits your budget”.
In the commercials, the company claims that the 995 plan can offer a “price you can afford”: $9.95 per month. However, this is misleading as actual coverage only starts at $9.95 thanks to their unique but costly unit system.
The commercial goes on to say that the 995 plan can offer a “price that can’t increase” as well as a “price that fits your budget”. Both claims are misleading.
Colonial Penn 995 Plan Units Explained
Colonial Penn’s 995 units are blocks of coverage that decrease in cash value as you grow older. Each unit costs $9.95 per month, and applicants are limited to a purchasing maximum of 15 units. The 995 plan is available to applicants ages 50 through 85, with coverage amounts per unit being higher for younger applicants.
However, even if you apply to Colonial Penn at a younger age, you’re not getting a discount on insurance rates.
As for the final claim in the ad, the monthly $9.95-per-unit cost of the policy goes towards coverage that decreases based on age. For example, units for a 75-year-old male applicant are worth $549 each, and with a maximum of 15 units for $149.25 per month, that senior’s death benefit is only $8,325. An average funeral costs roughly around $10,000, so the death benefit isn’t enough. This means that even though prices don’t increase with the 995 plan, the insured are still losing value over time while paying around 30% more than some of the leading life insurance providers.
Pricing is important to consider when seeking insurance—but so is quality. And the truth behind the claims regarding both price and quality by the Jonathan Lawson Colonial Penn commercials is simply misleading.
Guaranteed Acceptance Life Insurance Explained
The Colonial Penn 995 plan is a guaranteed acceptance life insurance policy, which means you can get coverage without medical underwriting or a health questionnaire. However, it requires a waiting period of two years, meaning that if a policyholder dies during the waiting period, beneficiaries will only receive the sum of premiums paid plus interest.
Guaranteed acceptance policies are also usually reserved for seniors in hospice care, nursing homes, or those with serious pre-existing health conditions. Unfortunately, this means guaranteed acceptance policies have high rates, insufficient benefit payouts, and limited flexibility for applicants.
Colonial Penn’s “Lifetime Rate Lock” and Level-Premium Insurance
In the Jonathan Lawson Colonial Penn commercials, the company advertises their “lifetime rate lock” as a special feature of the plan. The “lifetime rate lock” guarantees that policyholders’ rates can never increase at any time is actually a standard feature for whole life insurance.
Most whole life plans are level-premium policies, meaning that rates are locked permanently. However, unlike most whole life policies, the 995 plan does not provide cash value growth that adds to the death benefit amount.
Burial Insurance: The Best Choice for Seniors
Burial insurance, also known as final expense insurance or funeral insurance, is a type of whole life coverage designed with seniors in mind. Much like the 995 Plan, burial insurance rates and payouts are locked at the policy’s starting date. However, unlike Colonial Penn’s coverage, these types of policies grow in cash value and offer substantial payouts to meet and accommodate policyholders’ needs.
Most senior applicants will probably qualify for no-wait burial insurance, even with pre-existing medical conditions like diabetes, obesity, and high blood pressure. Guaranteed policies are available for seniors with more serious health issues, and our partners offer policies that aren’t as limited as the 995 plan.
How Much Does Burial Insurance Cost?
One of the strongest benefits of burial insurance is its affordability. Burial policies across the insurance market offer substantial coverage at bargain prices, ranging from around $30 to $150 for a $10,000 policy.
Best Burial Insurance Companies
Unlike limited insurers like Colonial Penn, top-rated providers can offer high-quality, affordable coverage. Take a look at some of our top picks for seniors seeking burial insurance:
- Aetna Accendo
Backed by CVS Health, Aetna Accendo boasts reliable burial insurance with relaxed medical underwriting. Seniors with pre-existing health conditions could qualify for cheaper rates. Additionally, this provider’s policies also come with access to a wide catalog of Aetna Senior Products. - American Amicable
American Amicable’s insurance policies are highly praised for their customizability through the selection of life insurance riders. If you’re a senior looking to customize your coverage, look no further here. - Foresters Financial
Foresters Financial can offer many options for burial insurance, additional insurance riders for customization, and bonus packages for Foresters Insurance membership holders—all at competitive rates.
- Mutual of Omaha
Mutual of Omaha combines some of the most affordable and consistent rates on the insurance market today with acclaimed customer service. Seniors with a wide range of medical conditions and budget constraints can find an insurance plan that best suits their needs here.
Final Thoughts
Despite commercials saying that the 995 Plan is a great insurance policy for seniors, the policy in question instead offers seniors poor value, flexibility, and rates. Colonial Penn’s unit system limits the needed benefits, and despite starting at a monthly rate of $9.95, the coverage value decreases quickly over time.
For better options to cover you or your loved ones’ memorial costs, contact Final Expense Benefits today.
Get in touch with one of our expert agents and learn how to find the policy just for you, without limited payouts or rising rates for $10,000 coverage plans.
Call us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET, or check our free online quoting tool for a no-pressure, personalized pricing estimate.
FAQ
Who did the Colonial Penn commercial?
There have been many spokespeople who’ve appeared in Colonial Penn’s commercials. Some of the most notable names include Alex Trebek and Jonathan Lawson.
Is the Colonial Penn 995 Plan whole life insurance?
Yes, Colonial Penn’s 995 Plan is whole life insurance—but this policy has many drawbacks that make it unusual and a generally poor choice for seniors seeking coverage.
What is burial insurance?
Also known as final expense insurance or funeral insurance, burial insurance is a cost-accessible form of whole life plan designed to offer senior applicants with high-quality, affordable coverage.
How much does a funeral cost?
The average funeral cost in the US varies depending on several factors, such as which state you’re in and the type of burial you’re requesting. Check out our free funeral cost calculator for more information on how much coverage you really need.