The truth about the Colonial Penn 995 Plan ($9.95 life insurance plan)

Last Updated June 12, 2024

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Colonial Penn $9.95 plan reviews
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WOW! Colonial Penn Life Insurance is just $9.95, that’s a no-brainer! That’s what you might be thinking, but there might be something misleading about the well-known “$9.95” policy from Colonial Penn 995 Plan…

You might be asking yourself, “What is the Colonial Penn life insurance $9.95 per month plan coverage amount?” or “Is the $9.95 Colonial Penn Life Insurance worth it?” Today we are going to share everything you need to know so you can make the right decision. Below is a complete Colonial Penn 995 plan review so you can determine if the Colonial Penn 9.95 is legit or a sham.

What is the Colonial Penn 995 Plan?

The Colonial Penn 995 Plan, it’s just that, a final expense insurance plan for $9.95. But what you might not know is, how much this plan provides 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?

Well, your monthly premium is obvious but how much coverage does Colonial Penn life insurance $9.95 per month get you? For example: if you are a 50-year-old male, only $1,786 of life insurance. Not a lot, right?? Wait until you hear what the policy provides if you are over 50. 

Truth About Colonial Penn 995 Plan 2024

What Is Colonial Penn Final Expense Insurance?

Colonial Penn Final Expense Insurance exists like a whole life insurance policy, although tailored specifically for funeral expenses. These policies offer no medical exam and generally accept all applicants regardless of status.

As a result of this acceptance rate, though, your rate may be adjusted based on how much of a risk you are assessed to be. Colonial Penn 995 Plan Final Expense Insurance funds are paid out as normal as long as premiums are paid, and contain no restriction on how the funds may be used. This is always a good idea because you don’t have to spend the payout on a funeral if this is unnecessary, making this a very versatile policy.

Jonathan Lawson Colonial Penn Life Insurance Commercial

Does this commercial look familiar? The actor, Jonathan Lawson telling you about “The three Ps of life insurance. Price, price and price.” What’s important here is that we focus on the fine print in the commercial and not the three Ps.

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, $9.95 per month. But how much does $9.95 get you? Well, Jonathan Lawson won’t tell you in the commercial, but we will! Below you will find the price for ages 50-80 years old and how much coverage $9.95 gets you.

Understanding Units for $9.95 with Colonial Penn

In the chart below, you will see the amount of coverage, by age for a single $9.95 unit. Remember, you can purchase a max of 15 units. 

What is a unit? A unit of the Colonial Penn 995 coverage corresponds to the life insurance benefit amount you receive for $9.95 per month. Your age and gender determine how much you pay each month. 

Most other life insurance companies will sell you a death benefit of a specific monetary amount for set premiums. Units, however, are specific sets of insurance rather than a monetary amount. Colonial Penn 9.95 plan units worth decreases as you age. Below our Colonial Penn Life Insurance Rate Chart by age shows this decrease in coverage for a singular unit. That means you need to spend more money on a Colonial Penn 995 plan in order to get adequate life insurance coverage. 

Colonial Penn Life Insurance Rate Chart

Age Units Coverage Per Unit Monthly Rate
50
1
$1,786
$9.95
55
1
$1,732
$9.95
60
1
$1,214
$9.95
65
1
$932
$9.95
66
1
$880
$9.95
67
1
$834
$9.95
68
1
$792
$9.95
69
1
$753
$9.95
70
1
$717
$9.95
71
1
$683
$9.95
72
1
$652
$9.95
73
1
$620
$9.95
74
1
$589
$9.95
75
1
$560
$9.95
77
1
$503
$9.95
78
1
$477
$9.95
79
1
$450
$9.95
80
1
$426
$9.95

These figures were obtained from the NFDA and are estimates only. For a detailed quote, please contact an agent. 

If you were to match Colonial Penn 995 Plan rates to the top insurance carriers, you will be shocked at the difference in money. To keep their premiums fixed, Colonial Penn has to drop the coverage amount as we age. Rates stay stable until 65 and after that, they fall by 75%.

To put this further into perspective, let’s say a 75 year old wanted to get the Colonial Penn 995 plan to pay for their final expenses. Their coverage amount for a single until would be $560. Colonial Penn ads are a bit misleading in thinking you get a lot more coverage for a single unit, or just $9.95 a month.

However, if this 75 year old wanted to have $15,000 in coverage they would not be able to. The most anyone can get in a Colonial Penn 995 plan unit is 15 as mentioned above. So our 75 year old will only be able to get $8,400 worth of coverage for $149.25 a month. That amount will barely cover any funeral expenses and leave nothing for a grieving family to pay for anything else. Still, thinking about purchasing the Colonial Penn 995 plan?

Is the 995 plan a Good Life Insurance?

It’s important to note that the Colonial Penn 995 plan is a guaranteed acceptance life insurance. Typically, we would use these life insurance plans for folks with severe health conditions like cancer, cardiovascular disease, or if you’re bound to a nursing home. If you are healthy, don’t be fooled by the price that is being offered.

Being that the Colonial Penn 995 plan is a guaranteed acceptance life insurance, this also comes with a waiting period before the death benefit would be paid out. Two years to be exact. If you were to die from an illness or pre-existing condition during the first two years, you don’t receive your full benefit amount.

Most seniors don’t know there are other plans available that they will qualify for day-1 coverage, and with lower pricing from other companies.

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.

Is the Colonial Penn 995 plan worth it?

The easiest way to determine if the $9.95 plan is worth it is to compare to it’s competition. Let’s compare Colonial Penn life insurance $9.95 per month plan coverage to the same amount but with Mutual of Omaha. 

Let’s say you are a 70-year-old male and in pretty good health. You want $10,000 of coverage to take care of your funeral expenses. 

With Colonial Penn, $9.95 a month would actually cost you about $138 per month. How did we get that price? Well, remember, if you are 70 years old, one unit costs $9.95. That unit is $717 of coverage. you would need about 14 of those units to add up to $10,000 of coverage. 

The same $10,000 of coverage for a male 70 years of age would be about $74 per month with Mutual of Omaha. Below is a chart that estimates the cost of $10,000 of coverage. We are comparing the Top A+ Rated Carriers vs Colonial Penn 995 Plan. 

In the next section of this article, you’ll be able to read and learn about Colonial Penn negative reviews, so you can determine for yourself if the insurance plan is worth it. 

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
$34
$27
$51
$40
$73
$58
$39
$34
$52
$41
$86
$65
$30
$24
$43
$32
$74
$53
$36
$30
$47
$37
$81
$60
$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. 

Colonial Penn Life Insurance Reviews BBB and Yelp

Over the years, Colonial Penn has focused on selling life insurance that is specifically designed for seniors and older customers. The bottom line is there is an incredibly large number of Colonial Penn 995 negative reviews and complaints for a company its size. We think Colonial Penn is unlikely to be the best option for you when it comes to senior life insurance.

But don’t only take it from us, just see what people have said about the Colonial Penn 995 plan coverage on Yelp. It’s also important to note the 223 complaints from the Better Business Bureau over the last three years. These complaints are mainly issues from beneficiaries that have not received death benefits or, waiting an extended amount of time to receive payments. The Colonial Penn life insurance reviews below are very telling. 

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 Colonial Penn 995 plan Payout?

Like any burial insurance for seniors or whole life insurance plan, once the insured passes away, the designated beneficiary of that plan would receive the coverage amount.

However, you need to keep in mind the terms and also the fine print associated with the Colonial Penn 995 plan. Since this plan is a 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, then your beneficiary would not receive the death benefit. 

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

Like Colonial Penn 995 Plan, these companies offer:

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

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 that aren’t aggressive or pushy

Alex Trebek Life Insurance Ad Fine Print

We are sure that a lot of Americans have seen the commercial, featuring popular TV host, Alex Trebek. But since his passing, the actor Jonathan Lawson took his spot on the well-known TV commercials for Colonial Penn. “Colonial Penn Coverage options start at $9.95 a month, less than 35 cents a day, and the rate is locked in for life!” Or maybe you saw “Guaranteed Acceptance with NO health questions.” Normally, when something is “too good to be true” chances are, it is.
Alex Trebek Colonial Penn $9.95 life insurance

Colonial Penn is a large, well-known company, but you need to read the fine print in these commercials. If you look at the picture above, do you notice the “Coverage options start at“? This is a good indication that the insurance is not just $9.95 per month. Colonial Penn doesn’t even mention how much insurance is provided at the $9.95 price. You’ll want to check the Colonial Penn 995 Plan rate chart that we created so you can see exactly what $9.95 gets you. 

Another example of what Colonial Penn hides in their fine print of the Alex Trebek commercial. Above you will see “Guaranteed Acceptance-with NO health questions.” This is one of the truths in this commercial. It is in fact guaranteed for you to be approved, regardless of any pre-existing conditions. This comes with a catch.

Do you see at the very bottom of the ad where it says “Limited benefit first 2 years“? This means that if you die within the first two years of having the Colonial Penn 995 Plan, your beneficiary WILL NOT receive the death benefit you have been paying for. Your beneficiary will receive a refund of your premiums and a little interest, but it won’t result in a lot of money.

The best thing you can do when looking at Colonial Penn or any other life insurance for seniors is to read the $9.95 plan reviews. This gives you real customer insight and experience. You can look at Colonial Penn life insurance reviews on BBB (Better Business Bureau) and many other sites.

Best Life Insurance For Seniors

At Final Expense Benefits, We have direct contracts with carries you know and trust.

These carriers offer:

  • Benefits that never decrease
  • Premiums that never increase
  • No Medical Exams
  • Payout in as little as 48 hours after death

If you purchase a final expense burial insurance through Final Expense Benefits, your beneficiary will be eligible to receive the payout, the next day if you were to pass away.

Our licensed professionals are available through the phone now, so you can get the coverage you need, without the wait. Unlike Colonial Penn which mostly wants to set you up through the mail, we can get your policy started in less than 30 minutes.

Call us at +1 (866) 311-4338 and let us assist with providing your family piece of mind and providing you with the lowest premiums available.

Frequently Asked Questions

How much is a unit of Colonial Penn Life insurance?

One unit of Colonial Penn Life Insurance is $9.95, regardless of your age and gender. The amount of coverage you get with that one unit depends on your age and gender. 

Does Colonial Penn life insurance have a waiting period?

Yes, the Colonial Penn $9.95 plan has a limited benefit clause that states your policy has to remain in effect for two years before it will pay the death benefit to your beneficiary. 

Is the Colonial Penn $9.95 plan real?

Yes, the Colonial Penn 995 life insurance is a real plan. It is Colonial Penn’s guaranteed acceptance plan. You won’t be denied for pre-existing conditions and everyone pays $9.95 per unit of coverage. How much coverage for a single unit is determined by your age and gender. it can range from $1,786 to just $418 of coverage per unit. Make sure you read the $9.95 plan reviews to determine if it’s the right choice for you. 

How does Colonial Penn work?

The Colonial Penn $9.95 plan is a guaranteed whole-life policy. There are no medical exams and every applicant pays the same rates regardless of age, gender, or pre-existing conditions. However, Colonial Penn’s $9.95 plan comes with a two-year waiting period. You must pay your premiums for two years before the death benefit is paid to the beneficiary. 

Is Colonial Penn 9.95 whole life insurance?

Yes, the Colonial Penn 9.95 life insurance plan is a whole life policy. The rate is the same until canceled or the insured passes away. 

Is Jonathan Lawson With Colonial Penn?

Yes, Jonathan Lawson worked at Colonial Penn, at one point. Based on his Linkedin, it seems like he moved on from his well-known acting career with Colonial Penn. 

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