You have probably seen a Colonial Penn commercial advertising life insurance for just $9.95 per month. While this sounds like a fantastic offer, it is important to read the fine print because the Colonial Penn 995 plan is not as enticing as it may seem on paper.
The Colonial Penn 995 plan, not to be confused with Colonial Life, does start at $9.95 per month, but very few will qualify for a plan starting at that price. You may think you’re getting a $50,000 life insurance policy from Colonial Penn that is comparable to other burial insurance providers. However, Colonial Penn sells its 995 plan in units with set values that will decrease as you age. Senior applicants will typically get less coverage for a higher premium than they could with similar policies from other providers.
We will not only share Colonial Penn reviews, but we will also show you everything Colonial Penn hides and why we recommend purchasing a plan from one of our top-rated carriers. 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 the best rate possible.
If you’re interested in final expense insurance, call us at (866) 786-0725 to learn more. Check our free online quoting tool for personalized pricing estimates.
Key takeaways
The Colonial Penn 995 Plan is well-known because of commercials, but it isn’t as big a discount as they claim.
The 995 plan is sold in units starting at $9.95 per month with a strict limit of 15 units per customer.
The amount of coverage each unit offers is locked to certain values that decrease as applicants age.
Coverage is guaranteed regardless of health conditions, but the Colonial Penn 995 plan offers poor value to seniors in good health.
Jonathan Lawson’s Colonial Penn 995 Plan Commercial Explained
Does this commercial look familiar? Jonathan Lawson recreates the commercial that originally featured Alex Trebek, 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 states that “coverage options start at $9.95.” While Colonial Penn tries to cover up how much coverage you actually get for $9.95, Final Expense Benefits won’t. Below is a chart with 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. Burial insurance, also known as final expense insurance, is a whole life insurance policy 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
The Colonial Penn 995 plan is a guaranteed policy, meaning it will always have a two-year waiting period. This means that if the policyholder passes away within 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 start of the policy.
Coverage for the Colonial Penn 995 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 at the beginning of the policy, the Colonial Penn 995 plan is sold in units. Here is 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 value of the units decreases. Value also varies by gender.
For example, if you are a 50-year-old male, $9.95 will cover $1,669 of coverage, and only $689 of coverage for 70-year-olds. A 50-year-old woman can receive $2,000 of coverage for $9.95, but similarly, coverage dips to $1,000 for a 70-year-old.
Unit coverage is based on the applicant’s age. Rates and coverage are locked in when the policy starts and won’t decrease, unless the policy lapses. The limited unit coverage means that if you want $10,000 of coverage, you must purchase several units, and you will likely end up paying more than other final expense providers charge.
Below is a Colonial Penn Life Insurance rate chart by age and gender.
Colonial Penn Life Insurance Rate Chart By Age and Gender
| 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 decreases rapidly as applicants age, making it harder for them to obtain the coverage they need. 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. Since single-unit coverage for 75-year-old males is just $549, and policyholders can only purchase 15 units, he could only buy $8,325 of coverage.
This is a significant issue with the Colonial Penn 995 plan. Most seniors purchase burial insurance to cover funeral costs and end-of-life expenses. The average cost of a funeral in 2025 is about $10,000. Additionally, the 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 one of our top-rated providers.
Are you still considering purchasing 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 that seniors with preexisting health conditions, such as cancer, dementia, COPD, or those living in a nursing home, purchase guaranteed plans. We usually don’t recommend guaranteed life insurance to healthy applicants because rates are typically 40% higher 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 the Colonial Penn 995 plan offers. Final Expense Benefits can help connect you to a great plan from one of our top-rated providers at an affordable rate.
Call us at (866) 786-0725 or use our free quoting tool, and one of our talented agents will 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 a real life insurance quote at a great rate from any of our great providers, contact Final Expense Benefits at (866) 786-0725.
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. Additionally, their policies become extremely expensive once you consider the number of units of coverage you would need to purchase. Customer reviews of the Colonial Penn 995 plan are overwhelmingly negative and reflect the disappointment consumers feel:
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 with an A+ rating, indicating the BBB believes Colonial Penn is a trustworthy company. However, Colonial Penn has a 1.17/5 customer rating, with many 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 in 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 C
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 M
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 D
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
Customer reviews for the Colonial Penn Life Insurance are poor. Many customer reviews have difficulty receiving their money and a general lack of transparency. Despite the promises of inexpensive coverage, we do not recommend the Colonial Penn 995 Plan. We recommend seniors avoid life insurance companies that trick customers with the expectation of low prices, only to discover that the price is much higher than advertised.
Many insurance companies offer more coverage and better services at cheaper costs, 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 life insurance can you get from Colonial Penn?
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.
Where can I find a legitimate life insurance quote?
For a quote for affordable, reliable life insurance, contact Final Expense Benefits. Our expert agents are available Monday through Friday, 9 a.m. to 5 p.m., and our free online quoting tool is available 24/7 for personalized pricing estimates.
How are Colonial Penn reviews?
Colonial Penn reviews are overwhelmingly negative. While the Colonial Penn 995 plan seems like an amazing deal, you must read the fine print. Only some applicants will qualify for insurance at that price, while most others will face much higher prices.
Call us at (866) 786-0725 to talk to one of our knowledgeable agents who will help you choose an affordable plan with the coverage you need.