Colonial Penn is one of the most popular senior burial insurance providers, heavily advertising their main policy for just $9.95 per month. Sounds like a no-brainer! It appears to offer huge savings, but under the surface, there’s unfortunately a lot wrong with the Colonial Penn 995 plan.
The Colonial Penn 995 plan does start at $9.95 per month, but its main problem is in the wording: starts at $9.95. You may think that you’re getting a $10,000 policy comparable to other burial insurance providers, but Colonial Penn sells the 995 plan in units with set values that decrease as you age. Senior applicants often get less coverage for a higher premium than they could with similar policies from other providers.
We’ll show you the rest of what Colonial Penn hides about the 995 plan and why we think a policy from one of our top-rated insurers is a better choice. As experts in the burial insurance market, Final Expense Benefits is here to help you make an informed decision to get the policy that works best for you at a much cheaper rate than the Colonial Penn 995 plan.
If you’re interested in final expense insurance, call us at (866) 786-0725 to learn more. Be sure to check our free online quoting tool for personalized pricing estimates.
Jonathan Lawson’s Colonial Penn 995 Plan Commercial Explained
Does this commercial look familiar? Jonathan Lawson repeats Alex Trebek, who was the Colonial Penn 995 Plan’s previous spokesperson, telling us about “the three P’s of life insurance: Price, price, and price.” However, what’s important in the commercial is not the three P’s, it’s the fine print.
While Jonathan Lawson states that everybody gets coverage at $9.95 per month, the commercial actually says “coverage options start at $9.95”. While Colonial Penn tries to hide how much coverage you actually get for $9.95, we won’t. Below is more information about Colonial Penn’s rates for the 995 plan, how it works, and a chart for seniors to check how much coverage they’ll get.
What Is The Colonial Penn 995 Plan?
The Colonial Penn 995 plan is a burial insurance policy that starts as little as $9.95 per month. Also known as final expense insurance, burial insurance plans are whole life insurance policies with relaxed health requirements that seniors often use to cover funeral costs and other end-of-life expenses. Coverage continues for the rest of your life if premiums are paid, the policy grows in cash value, and the death benefit payout will never decrease.
Additionally, the 995 plan is a guaranteed-acceptance policy, which means applicants are never denied due to health reasons, and applications don’t require a medical exam or questionnaire. Sounds like a pretty good deal. So what’s wrong with the Colonial Penn 995 plan?
Colonial Penn 995 Plan Waiting Period
Unfortunately, because it’s a guaranteed policy, the 995 plan always has a two-year waiting period. This means that if the policyholder dies in the policy’s first two years, the full benefit isn’t paid and is instead replaced with a return of all paid premiums. This means that your beneficiaries might not get the full payment you agreed to at the policy’s start.
You may have noticed that coverage for the Colonial Penn 995 plan starts at $9.95 per month. This is the price of each 995 unit. Unlike other burial insurance providers, who sell policies as a single unit at a price agreed to at the policy’s start, the 995 plan is sold as units. Here’s an overview of how the 995 plan’s units work:
What Is A Unit of Life Insurance with Colonial Penn?
The Colonial Penn 995 plan is sold in units, each priced at $9.95 monthly. Policyholders can purchase a 15 unit maximum. However, as applicants age, the units’ value decreases. Value also varies by gender.
For example, if you’re a 50-year-old male, $9.95 will cover $1,669 and only $689 for 70-year-olds. 50-year-old females enjoy $2,000 of coverage for $9.95, but coverage similarly dips to $1,000 for a 70-year-old.
To be clear, unit coverage is based on how old the applicant is. Rates and coverage are locked in when the policy starts and won’t decrease, unless the policy lapses. But the limited unit coverage means that if you want $10,000 of coverage like the benchmark final expense plan, you’re going to have to purchase several units, and will likely end up paying more than other final expense providers charge.
Below is a chart depicting how much a unit covers by age on the Colonial Penn 995 plan.
Colonial Penn Life Insurance Rate Chart
| Age | Coverage Per Unit (Male) | Coverage Per Unit (Female) |
|---|---|---|
|
50 |
$1,669 |
$2,000 |
|
55 |
$1,420 |
$1,761 |
|
60 |
$1,167 |
$1,515 |
|
65 |
$846 |
$1,200 |
|
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 |
These figures are estimates based on Colonial Penn’s quotes.
Coverage drops quickly as applicants age and may make it impossible for them to get the coverage they want. For example, if a 75-year-old man wanted to get covered for $10,000, he wouldn’t be able to do so with Colonial Penn. Because single-unit coverage for 75-year-old males is just $549 and policyholders can only purchase 15 units, he could only purchase $8,325 of coverage.
This is a major issue with Colonial Penn’s 995 plan. Most seniors purchase burial insurance to cover funeral costs and other end-of-life expenses, and the average cost of a funeral is about $10,000. Plus, this 75-year-old applicant would be paying $149.25 per month. That same 75-year-old senior would pay about $100 for a $10,000 policy with our top-rated providers.
Are you still thinking about getting a Colonial Penn 995 plan for yourself?
Is The Colonial Penn 995 Plan Good Life Insurance?
Prices for the Colonial Penn 995 plan are higher than comparable policies mostly because it’s guaranteed life insurance. We typically only recommend seniors with preexisting health concerns like cancer, dementia, COPD, or bound to a nursing home get guaranteed plans. We usually don’t recommend guaranteed life insurance to healthy applicants because rates usually cost around 40% more than comparable level-benefit policies and these policies always have a waiting period.
Healthy applicants have plenty of options for no-wait burial insurance at much lower rates than what Colonial Penn offers. Final Expense Benefits can help connect you to a great plan from one of our top-rated providers at an inexpensive price.
Call us at (866) 786-0725 or use our free quoting tool to find the best plan for you and your family.
Is The Colonial Penn 995 Plan Worth It?
The easiest way to determine if the 995 plan is worth it is to compare it to its competitors. Let’s compare a $10,000 policy from Mutual of Omaha, one of our top providers, to a comparable Colonial Penn 995 policy.
Let’s base this comparison on a 70-year-old male looking to cover funeral expenses. About $10,000 is plenty to cover them. That much coverage would cost about $74 monthly with Mutual of Omaha. Colonial Penn Life Insurance units each only cover $689 for 70-year-old male applicants, so that same senior would have to buy 15 units. His coverage would total $10,335, but would cost $149.25 monthly.
Below is a chart with sample rates for $10,000 policies from our top-rated providers for non-smoking applicants with no preexisting health conditions:
Top-Rated Burial Insurance Rates
| Company |
Male 50y/o |
Female 50y/o |
Male 60y/o |
Female 60y/o |
Male 70y/o |
Female 70y/o |
|---|---|---|---|---|---|---|
|
$34 |
$27 |
$50 |
$40 |
$70 |
$56 |
|
|
$31 |
$26 |
$43 |
$35 |
$71 |
$53 |
|
|
$31 |
$24 |
$44 |
$33 |
$75 |
$53 |
|
|
$34 |
$29 |
$45 |
$35 |
$79 |
$59 |
|
|
$33 |
$26 |
$48 |
$36 |
$82 |
$58 |
These figures are estimates only, based on a $10,000 final expense insurance policy with no applicant pre-existing conditions.
If you’re interested in these or any of our other life insurance options, call us at (866) 786-0725 to learn more.
Colonial Penn Life Insurance Reviews
Colonial Penn Life Insurance is one of the most popular burial insurance providers, so it’s disappointing to see how limited their policies are. Customer reviews and third-party ratings reflect this disappointment:
Colonial Penn Life Insurance Reviews: Third-Party Rating Services
1
Colonial Penn Life Insurance BBB Rating
The Better Business Bureau (BBB) helps customers find trustworthy businesses, tracks customer complaints, and offers complaint resolution services for customers and businesses. Their rating scale ranges from F to A+.
Colonial Penn is BBB-accredited and has an A+ rating, indicating the BBB believes Colonial Penn is a trustworthy company. However, Colonial Penn has just a 1.17/5 customer rating, with plenty of customer complaints.
2
Colonial Penn Life Insurance AM Best Rating
AM Best assesses insurance providers’ credit and ability to fulfill financial obligations. Companies with better credit can generally be more reliable with paying claims.
AM Best currently rates Colonial Penn A, indicating a strong, trustworthy financial basis.
3
Colonial Penn Life Insurance NAIC Rating
The National Association of Insurance Commissioners (NAIC) tracks customer complaints on their yearly Complaint Index. Their scale ranges from 0 to 10, with 1 set as the average score. Insurers should aim to be rated below 1.
Colonial Penn’s current NAIC rating is 3.05, over three times the national average and represents an abnormally high amount of customer complaints.
Colonial Penn Life Insurance Reviews: Customer Ratings
Kimberly Cummings
1/5
My aunt recently passed away. The family called Colonial Penn to notify the company of death. The family was told that the policy does not exist. However, we had bank statements and policy number showing that my aunt was paying for the insurance for 6 years straight. This COMPANY IS FRAUDULENT AND A SCAM. PLEASE DO NOT WASTE YOUR MONEY. FIND ANOTHER LEGITIMATE INSURANCE COMPANY NOT THIS ONE!!!!
Gloria March
1/5
Rip Off, BUYER BEWARE PERIOD!!!! Company has major complaints against them based on all of their practices and the commercials don’t disclose the entire truth. Don’t do business with this company would be my advice and recommendation.
Debra Dunn
1/5
Charged me 3 times on one week for the policy then gave me a hard time about canceling and getting my money back. funny, they could charge the account via a phone call, but say you have to send a paper form to get refund. Never ever use this company. They will lie and then gaslight you about their incompetence.
Final Thoughts
Should I get Colonial Penn Life Insurance? Unfortunately, despite the promises of inexpensive coverage, we do not recommend the Colonial Penn 995 Plan. We recommend seniors avoid life insurance companies who are cagey about prices, plus Colonial Penn’s customer service track record is rough.
Many insurance companies offer more coverage and better service at cheaper prices, and Final Expense Benefits is here to help you find the insurance that is perfect for you and your family.
Call us at (866) 786-0725 to talk to one of our knowledgeable agents. We only work with the top insurance companies to ensure peace of mind for an affordable price. You can also use our free quoting tool for a personalized quote and find a plan that fits your budget.
FAQ
Does Colonial Penn Life Insurance have a waiting period?
Yes, because the Colonial Penn 995 Plan is guaranteed life insurance, all policies have a mandatory two-year waiting period. If you don’t want to have to wait, we can help connect you to a great plan without a waiting period.
How much coverage can I get from Colonial Penn Life Insurance?
Coverage depends on age and gender, as it decreases over time based on age. Consult our Colonial Penn 995 plan age chart to see how much you could get, but remember that all Colonial Penn 995 policies have a 15-unit maximum.
Is Colonial Penn a good life insurance company?
In our opinion, Colonial Penn is not a good life insurance company. Their lack of transparency on rates, cagey claims processes, and poor flexibility make them a weak choice in the crowded burial insurance market.
Is Colonial Penn legit?
Colonial Penn Life Insurance is a legitimate provider, but, in our opinion, offers a substandard product at a noncompetitive price. You have much better options on the market; call Final Expense Benefits for more information about your life insurance options.
Is Colonial Penn a ripoff?
Colonial Penn rates are about 30% to 50% higher than those of comparable policies from our top-rated providers and offer very little customizability. You can find much better options on the life insurance market for a much better price.
Where is Colonial Penn Life Insurance located?
Colonial Penn is headquartered in Philadelphia, offering insurance for nearly 60 years.
Who is Colonial Penn’s spokesperson?
Colonial Penn’s current spokesperson is Jonathan Lawson. Famed game-show host and TV icon Alex Trebek served as Colonial Penn’s spokesperson prior to his death in 2020.
