Colonial Penn $9.95 Life Insurance Review: Good In 2022?

Colonial Penn Life Insurance Review

Kelly Maxwell

Colonial Penn Review
Editor’s Rating: 2/5 Stars

Summary

Colonial Penn offers guaranteed issue life insurance with a two-year waiting period. Their prices compared to other guaranteed issue companies are very high.

2
ProsCons
✅ Guaranteed an issued policy❌ Two year waiting period
❌ Much higher prices than other companies


Colonial Penn offers a range of life insurance products, specifically for seniors.

They are one of the most well known companies with one of the highest amounts of new business written every year, but are they a good company?

In this complete review of Colonial Penn, we will go over prices and how they compare, the different types of products they offer, and if they are a good fit for you to protect your family.

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Table Of Contents

Products By Type

Colonial Penn offers three life insurance products that all have small death benefits compares to other types of life insurance.

These products are all made to tailor to seniors and those looking for coverage just enough for final expenses like the funeral, burial, or cremation.

Term Life InsuranceUnderwritten Whole LifeGuaranteed Acceptance
Premium increases every yearFixed PremiumsFixed Premiums
$10-$50,000 Death Benefit$400-$17,000 Death Benefit$10-$50,000 Death Benefit
Health questions, but no medical examHealth questions, but no medical examNo health questions or medical exam
Ages 18-75Ages 40-75Ages 50-85

All of their life insurance products may be applied for online with no medical exam and you can get coverage in less than 30 minutes.

Term Life Insurance

Colonial Penn’s term life insurance increases in monthly premiums every 5 years. This policy can be renewed every 5 years until you are age 90, upon which the policy will expire, and you will have no coverage at all.

For seniors looking for final expense burial insurance, this can be very costly.

If you are looking for term insurance because it is cheap, there are better options than Colonial Penn.

Underwritten Whole Life

Colonial Penn’s underwritten whole life product offers up to $50,000 in death benefit and does require some basic health and prescription questions.

Most people do not qualify for this plan because they only accept the very healthy and most seniors have a few health problems or prescriptions.

This plan if you qualify is day one coverage with no waiting period, but if you qualify for this plan there are many other companies that will offer you no waiting period plans at a better price.

Guaranteed Acceptance

Colonial Penn’s guaranteed acceptance life insurance policy is their most aggressively marketed ($9.95). Everyone is guaranteed a policy but it will come with a two-year waiting period.

They do not require you to answer any health questions or require a medical exam.

The way they price their premiums is very unique to Colonial Penn. They sell insurance in “units” and each unit is $9.95, up to a max of 12 units. How much coverage this will pay out will depend on your age and gender.

Below are some sample death benefits for each unit of coverage at $9.95.

AgeMaleFemale
50$1,786$2,083
60$1,214$1,621
70$717$1,043
80$426$620

As you can see, the amount of coverage you get at each unit goes down considerably over time.

To keep it simple, if you add up the amount of units you need to get the desired coverage, the monthly premium would still be considerably more than similar companies that offer guaranteed acceptance policies, like Gerber and AIG.

You get very little coverage for $9.95/month, even at age 50.

Colonial Penn Life Insurance Rate Chart

Below is Colonial Penn’s rate chart per unit for $9.95. You can buy up to 12 units.

AgeMaleFemale
50$1,786$2,083
51$1,732$2,068
52$1,676$2,022
53$1,621$1,973
54$1,562$1,929
55$1,506$1,884
56$1,452$1,838
57$1,392$1,786
58$1,333$1,732
59$1,273$1,676
60$1,214$1,621
61$1,157$1,562
62$1,099$1,506
63$1,043$1,452
64$987$1,392
65$932$1,333
66$880$1,273
67$834$1,214
68$792$1,157
69$753$1,099
70$717$1,043
71$683$987
72$652$932
73$620$880
74$589$834
75$560$792
76$531$753
77$503$717
78$477$683
79$450$652
80$426$620
81$424$589
82$423$560
83$421$531
84$420$503
85$418$477


Jonathan Lawson Colonial Penn Spokeperson

Jonathan Lawson is a paid spokesperson on many Colonial Penn commercials. They used to have Alex Trebek until he died in 2020.

You should know that Jonathan Lawson is an employee of Colonial Penn and is paid to say the things he says on T.V. and in the mail.

Colonial Penn Customer Reviews And Complaints

Colonial Penn has an A- rating with A.M. best which is good. This basically means they have enough financial backing to pay out claims with no worries.

However, they have a significant number of complaints from current and potential customers for their aggressive marketing saying you can get thousands of life insurance coverage for only $9.95/month.

Read some of the reviews from current customers here on BBB.

They only have 1/5 stars. Yikes.

In addition, many customers say they thought they were getting more coverage for their unit and their family only got a fraction of what was offered.

Colonial Penn Alternatives & Competitors

Colonial Penn has many alternatives & competitors that offer much lower prices such as Mutual Of Omaha, Aetna, Prosperity, Foresters, and AIG just to name a few.

Below is a helpful chart comparing the pricing of Colonial Penn with some example companies for a female at $10k in coverage.

AgeColonial PennMutual Of OmahaAetnaAIG
50$49.75 ($10,415 coverage)$24$27$38
60$59.70 ($10,056 coverage)$32$40$54
70$89.55 ($9,387 coverage)$53$58$80
80$119.40 ($7,440 coverage)$98$101$189

As you can see, there are plenty of companies that offer the same amount of coverage for far less than Colonial Penn.

To get approved for coverage with one of these other companies fill out a quote form or give us a call.

Summary

The truth is, we don’t recommend going with Colonial Penn for any type of life insurance product for a few reasons.

The prices for all of their products are above average, and you can get the same coverage for hundreds less a year. There is no reason to pay more for your coverage than you need.

Colonial Penn is a captive agency. This means when you speak to someone at Colonial Penn all they can do is offer you Colonial Penn products. They cannot look around the market to see what works best for you.

If you want to find the best prices and products available on the market, you must work with an independent agency such as Seniors Mutual or another agency. It costs nothing extra to talk with an independent agent who will shop the market for you and find you the best deal.

Even if you are looking for a guaranteed acceptance policy with no health questions, there are cheaper options out there that give you the same or more death benefit to go to your family.

If you want to find the best deals and prices, give us a call, fill out our quote form, or chat with a live agent and we will assist you and find the best policy for you!

FAQs