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Colonial Penn Life Insurance Reviews | The Truth Behind The 995 Plan

Last Updated December 20, 2024

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Colonial Penn $9.95 plan reviews
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WOW! Colonial Penn Life Insurance is just $9.95! Sounds like a no-brainer. That’s what you might be thinking, but the well-known Colonial 995 Plan holds some secrets that might make you think twice about purchasing a policy. 

We will tell you all the hidden truths about a Colonial Penn Life Insurance policy and even show you exactly how much you’ll pay for a $10,000 policy. Colonial Penn is not a provider that Final Expense Benefits works with because we only work with the top providers in the country. If you’re looking for final expense insurance, call our talented agents at (866) 786-0725, and we will help you find the best life insurance for you and your family. 

Here is our official Colonial Penn Life Insurance Review: 

What Is The Colonial Penn 995 Plan?

The Colonial Penn 995 Plan is a final expense insurance plan for as little as $9.95 monthly. But what does that get you and your family? What they aren’t sharing with you is what’s in the fine print. 

So, what exactly is the Colonial Penn 995 Plan? 

While your monthly premium is obvious, the amount of coverage is more ambiguous. Your coverage will heavily depend on your age and gender. The older you are, the less coverage you’ll get. For example, if you’re a 50-year-old male, $9.95 will only get you $1,669 of life insurance, but if you’re a 70-year-old male, you’ll get $689 for the same price.

A chart depicting the different highlights from Colonial Penn. It features the title "The Truth About the Colonial Penn 995" with information on how much the plan is compared to other plans. It also gives reviews of each of thep lan.
The good news? Colonial Penn’s Whole Life Insurance requires no medical exam or questionnaire, which means that you’re almost guaranteed to get a policy if you apply. As a result of the acceptance rate, your rate may be adjusted based on how much risk you’re assessed.  Like most final expense insurance, Colonial Penn Life Insurance funds are paid as normal when premiums are paid and contain no restriction on how funds may be used. 

Jonathan Lawson’s Colonial Penn Life Insurance Commercial Explained

Does this commercial look familiar? Previously done by Alex Trebek, Jonathan Lawson, an actor for Colonial Penn, tells us about “the three Ps of life insurance. Price, price, and price.” However, what’s important in the commercial is not the three Ps, it’s the fine print.  colonial penn 995 cost When they state that everybody gets coverage at $9.95, pay attention to where it says “coverage options start at.” Yes, you can get coverage under Colonial Penn Life Insurance for $9.95 monthly, but the coverage amount you get is not explicitly stated in the commercial. While Jonathan Lawson won’t tell you, we will! Keep reading to find out how much coverage you’ll get for $9.95 for those ages 50 to 80. 

Two-Year Waiting Period

Another crucial piece of information that they hide in their commercial is that your family will not receive the full benefit of your policy after a two-year waiting period. If you pass away before the two years, your beneficiaries will only get a graded death benefit, which will get them whatever you paid for your premiums plus a small amount of interest.  If you need coverage now, we have a secret guide on burial insurance with no waiting period. 

Understanding Units For The Colonial Penn 995 Plan

In our Colonial Penn Life Insurance Rate Chart, you’ll see the coverage amount by age for a single $9.95 unit. You’ll need to purchase more units if you want more coverage under your Colonial Penn 995 Plan. However, you can only buy a total of 15 units. 

Most other life insurance companies will sell you a death benefit of a specific monetary amount for set premiums. However, units are a set of insurance rather than a monetary amount. 

Colonial Penn units’ worth decreases as you age, so you must spend more to get (relatively) adequate life insurance coverage. 

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
$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

These figures were obtained from the NFDA and are estimates only. For a detailed quote, please contact an agent. Rates are based on one $9.95/month unit. 

If you were to match the Colonial Penn Life Insurance plan rates to the top insurance carriers, you would be shocked at the difference in money. Premiums stay fixed because Colonial Penn drops the coverage amount as we age. Typically, rates will remain stable until 65 and depreciate by around 75%. 

To put this further into perspective, let’s say a 75-year-old man wanted to get a Colonial Penn Life Insurance Plan to pay for their final expenses. Their coverage amount for a single unit would be $549. Colonial Penn ads mislead you into thinking you’ll get more coverage for a single unit or just $9.95 monthly. 

If this 75-year-old wanted to have $15,000 in coverage they would not be able to through Colonial Penn. The most anyone can get in a Colonial Penn 995 Plan unit is 15, so our 75-year-old will only get $8,235 worth of coverage for $149.25 a month. That amount will barely cover the cost of a funeral and will leave nothing for a grieving family to pay for anything else. 

Are you still thinking about getting a Colonial Penn 995 plan for yourself?

Is the 995 Plan a Good Life Insurance?

The Colonial Penn 995 Plan is a guaranteed acceptance life insurance, and we would only recommend these life insurance plans for those with severe health conditions like cancer, cardiovascular disease, or if you’re bound to a nursing home. If you’re healthy, don’t be fooled by the $9.95 price tag. 

Most seniors don’t know other companies offer more affordable, immediate coverage. At Final Expense Benefits, we work with the top insurance carriers and can usually find you a plan with a cheaper monthly rate that pays a larger death benefit. 

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 Colonial Penn Life Insurance to the same amount but with Mutual of Omaha. 

If you’re a healthy, 70-year-old male, you should get around $10,000 of coverage to cover your funeral expenses. With Colonial Penn, $9.95 a month would cost you around $149.25 monthly. That’s because you’ll need to purchase 15 units at $689 each which adds up to $10,335 of coverage. 

The same $10,000 coverage would be a monthly charge of $74 with Mutual of Omaha. We’ve crafted a chart that estimates the cost of $10,000 coverage between the A+ Rated Carriers we work with vs the Colonial Penn 995 Plan.

Colonial Penn Life Insurance Rate Chart $10,000 coverage

Company 50 y/o Male 50 y/o Female 60 y/o Male 60 y/o Female 70 y/o Male 70 y/o Female
Aetna (CVS Health)
$34
$27
$51
$40
$73
$58
Americo
$39
$34
$52
$41
$86
$65
Mutual of Omaha
$30
$24
$43
$32
$74
$53
Prosperity
$36
$30
$47
$37
$81
$60
Corebridge
$55
$38
$68
$53
$106
$80
Colonial Penn $9.95
$59 (6 Units)
$49 (5 Units)
$89 (9 Units)
$69 (7 Units)
$149 (15 Units)
$100 (10 Units)

These figures were obtained from the NFDA and are estimates only. For a detailed quote, please contact an agent. Rates are based on one $9.95/month unit. 

Colonial Penn Life Insurance Reviews

Over the years, Colonial Penn has focused on selling life insurance designed for seniors and older customers. The bottom line is that there are so many Colonial Penn negative reviews and complaints for a company its size. Colonial Penn is unlikely to be the best option for you with burial insurance.  Here’s how different third-party reviewers and customers have rated Colonial Penn Life Insurance:

Third-Party reviews

BBB

The Better Business Bureau, or the BBB, is a nonprofit organization dedicated to helping people find legitimate businesses. The rating system goes from A+ to F and even lets you know some complaints people have filed against the company. 

According to the BBB, Colonial Penn Life Insurance has received a rating of A, which is the second-highest grade you can receive. However, it also has a customer review score of 1.16/5 — an abnormally high number of complaints for a business.

AM Best

AM Best rates insurance companies based on their creditworthiness. They grade companies on a scale from A+ to F based on multiple factors including their ability to pay claims, review, financial data, and more.  AM Best has given Colonial Penn an A on their scale which indicates an “excellent” rating.

NAIC

The National Association of Insurance Commissioners (NAIC) keeps track of the customer complaints that an insurance company receives and rates them on a Company Complaint Index. Most companies will hit an average of 1.00 on the index, which means they receive an average number of customer complaints. 

According to the NAIC, Colonial Penn received 2.68 times more complaints than the national average in 2023. That’s an improvement from the 7.57 rating they received in 2022, but that’s still an abnormally high number of customer complaints.

Customer Reviews

If you love your family and are concerned about having them deal with a hassle free insurance payout, DON't use Colonial Penn!
happy older woman standing inside home
Tara S. ✓
Philadelphia, PA ⭐
Colonial Penn, advertised on tv, is a bad life insurance policy. It caters to people who don't know that they aren't covered in the first two years
Portrait of young Asian man
Joe A. ✓
Cardiff, CA ⭐
There are many other companies that are better and cheaper to use. Avoid Colonial Penn
Portrait of confident mature man smiling Male portrait
Jeff G. ✓
Madison, TN ⭐

Does The Colonial Penn Life Insurance Payout?

Like any burial insurance for seniors or whole life insurance plan, once the insured passes away, the designated beneficiary would receive the coverage amount.  However, you need to remember the fine print associated with the Colonial Penn Life Insurance plan. Because it is guaranteed issue life insurance, there is a two-year waiting period. If you were to die within the first two years of your policy being in force, your beneficiary would not receive the death benefit. 

How Can I Find Better Final Expense Insurance?

The good news is that here at Final Expense Benefits, we work with companies that offer burial insurance with no waiting period and no medical exam. 

Like the Colonial Penn 995 Plan, these companies offer: 

  • Premiums that never increase
  • Benefits that never decrease
  • No medical exam

Unlike Colonial Penn 995 Plan, these companies also offer: 

  • The best and cheapest prices on burial insurance for seniors
  • No two-year waiting periods
  • Insurance agents who aren’t aggressive or pushy

Conclusion

Should I get Colonial Penn Life Insurance? Here at Final Expense Benefits, we do not recommend the Colonial Penn 995 Plan. Many insurance companies offer more coverage at a cheaper price, and we would love 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 your passing. You can also use our free quoting tool to find an accurate estimate of life insurance that fits your budget. 

Frequently Asked Questions

Does Colonial Penn Life Insurance Have a Waiting Period?
Yes, you need to wait two years for the full benefit of the Colonial Penn 995 Plan. If you cannot wait for two years, we know all the burial insurance with no waiting period. 
How Much Life Insurance Can I Get From Colonial Penn?

Your life insurance coverage will depend on your age and gender and will depreciate over time based on your age. Check out our chart above to see exactly how much you can get from Colonial Penn. 

Is Colonial Penn a Good Life Insurance Company?
No, Colonial Penn is not a good life insurance company. There are so many other options for you to consider that will be cheaper and offer you more coverage. Call us at (866) 786-0725 for every final expense insurance available to you.