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:
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.
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.
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.
Two-Year Waiting Period
Another crucial piece of information that they hide in their commercial is that your family will receive the full benefit of your policy only after a two-year waiting period. If you pass away before the two years, your beneficiaries are paid a graded / modified death benefit. This means they are paid a portion of the death benefit over the two-year waiting period. They are then paid the remainder when the waiting period ends. 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 |
$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 were obtained from the NFDA and are estimates only. For a detailed quote, please contact an agent.
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 $9.95 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 |
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 were obtained from the NFDA and are estimates only. For a detailed quote, please contact an agent.
Colonial Penn Life Insurance Reviews
Third-Party Reviews
1
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.
2
A.M. Best
A.M. 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.
3
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.
Colonial Penn Life Insurance Reviews
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.
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
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.
