- Acceptance is guaranteed
- Seniors as old as 85 can apply
- Financially strong insurance company
- $9.95 buys a tiny amount of life insurance coverage
- Two-year waiting period for natural causes of death
- A confusing unit system that makes it hard to understand what you actually get for $9.95
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).
S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
Alex Trebek was their former spokesman in television advertisements until he died in 2020. Now, Jonathan Lawson is the primary actor in their commercials. Colonial Penn’s home office is in downtown Philadelphia, Pennsylvania, where most of their insurance agents work.
How Does The Colonial Penn 9.95 Plan Work?
The 9.95 plan is a guaranteed acceptance life insurance policy that does not require you to take a medical exam or answer health questions. Colonial Penn sells the $9.95 plan using a unit system.
Everyone, regardless of age or gender, pays just $9.95 monthly for one unit. Your age and gender determine the net death benefit per unit.
For example, a 57-year-old male gets $1,313 of coverage per unit, whereas a 77-year-old male gets only $493 in coverage. If a 57-year-old male wanted at least $10,000 in coverage, he would need to buy eight units (1,313 x 8= $10,504 in net coverage), costing him $79.60 monthly.
It’s important to remember that the 9.95 plan has a two-year waiting period. If you die during the first two years, Colonial Penn will refund your beneficiaries the money you paid plus roughly 10% interest.
It’s permanent whole life insurance, so the premiums will never increase, the death benefit will never decrease in value, and it will build cash value.
Colonial Penn Life Insurance $9.95 Per Month Rate Chart
Refer to the Colonial Penn life insurance rate chart below to see the total monthly premium based on your desired units.
| Number Of Units | Total Monthly Cost |
|---|---|
| 1 | $9.95 |
| 2 | $19.90 |
| 3 | $29.85 |
| 4 | $39.80 |
| 5 | $49.75 |
| 6 | $59.70 |
| 7 | $69.65 |
| 8 | $79.60 |
| 9 | $89.55 |
| 10 | $99.50 |
| 11 | $109.45 |
| 12 | $119.40 |
| 13 | $129.35 |
| 14 | $139.30 |
| 15 | $149.25 |
| **15 units is the most you can buy** | |
$9.95 Plan Coverage Calculator
Use the calculator or table below to see the amount of coverage you’d get per unit of Colonial Penn coverage.
| AGE | 1 Male Unit ($9.95) | 1 Female Unit ($9.95) |
|---|---|---|
| 50 | $1,669 in coverage | $2,000 in coverage |
| 51 | $1,620 in coverage | $1,942 in coverage |
| 52 | $1,565 in coverage | $1,890 in coverage |
| 53 | $1,515 in coverage | $1,845 in coverage |
| 54 | $1,460 in coverage | $1,802 in coverage |
| 55 | $1,420 in coverage | $1,761 in coverage |
| 56 | $1,370 in coverage | $1,719 in coverage |
| 57 | $1,313 in coverage | $1,669 in coverage |
| 58 | $1,258 in coverage | $1,620 in coverage |
| 59 | $1,200 in coverage | $1,565 in coverage |
| 60 | $1,167 in coverage | $1,515 in coverage |
| 61 | $1,112 in coverage | $1,460 in coverage |
| 62 | $1,057 in coverage | $1,420 in coverage |
| 63 | $1,000 in coverage | $1,370 in coverage |
| 64 | $949 in coverage | $1,313 in coverage |
| 65 | $896 in coverage | $1,258 in coverage |
| 66 | $846 in coverage | $1,200 in coverage |
| 67 | $802 in coverage | $1,167 in coverage |
| 68 | $762 in coverage | $1,112 in coverage |
| 69 | $724 in coverage | $1,057 in coverage |
| 70 | $689 in coverage | $1,000 in coverage |
| 71 | $657 in coverage | $949 in coverage |
| 72 | $627 in coverage | $896 in coverage |
| 73 | $608 in coverage | $846 in coverage |
| 74 | $578 in coverage | $802 in coverage |
| 75 | $549 in coverage | $762 in coverage |
| 76 | $521 in coverage | $724 in coverage |
| 77 | $493 in coverage | $689 in coverage |
| 78 | $468 in coverage | $657 in coverage |
| 79 | $441 in coverage | $627 in coverage |
| 80 | $426 in coverage | $608 in coverage |
| 81 | $424 in coverage | $578 in coverage |
| 82 | $423 in coverage | $549 in coverage |
| 83 | $421 in coverage | $521 in coverage |
| 84 | $420 in coverage | $493 in coverage |
| 85 | $418 in coverage | $468 in coverage |
| Source: www.colonialpenn.com. Data retrieved on 5/27/2024. | ||
Should You Buy The Colonial Penn 995 Plan?
If you need insurance to cover your funeral expenses or for any other reason, the Colonial Penn $9.95 plan is the last policy you should consider.
Many other burial insurance companies offer cheaper final expense life insurance with no waiting period.
For example, a 54-year-old female would spend $119.40 monthly with Colonial Penn to get at least $20,000 in coverage (with a 2-year waiting period). On the other hand, Aflac would only charge $53.71, and Living Promise from Mutual of Omaha would cost $50.96. In addition to having a substantially lower cost, both Aflac and Mutual of Omaha offer coverage with no waiting period.
Working with an independent insurance agency that represents multiple providers is the most surefire way to find the best policy at the lowest rate.
Independent agents sell insurance for many companies, allowing them to compare and contrast each provider to find you the best deal.
Plus, nearly all final expense policies with no waiting period are only sold through agencies. They cannot be bought online or through the mail.
Frequently Asked Questions
The coverage you get per 995 unit varies based on your age and gender. For example, at age 68, one $9.95 unit buys a male $762 in life insurance coverage and $1,112 for a female. An 80-year-old male gets $426 in coverage per unit, whereas an 80-year-old female would get $608 in coverage.
The 995 plan has a two-year waiting period because there are no health questions. Colonial Penn has a whole life policy with no waiting period, but it’s only available in New York.
The Colonial Penn 9.95 plan has no additional fees or surcharges. The monthly premium is $9.95 times the number of units you want (15 units is the maximum). Depending on your insurance needs, you might need to buy more than one unit to secure the total coverage you want.
The 995 plan costs $9.95 monthly per unit. Multiply 9.95 times the number of units you want for the total monthly cost.
Colonial Penn no longer sells term life insurance. They did in the past, and some websites still erroneously claim they do. According to the Colonial Penn website, permanent life insurance is the only type of coverage they offer.
The death benefit payout from the Colonial Penn $9.95 plan depends on your age and gender and how many units of coverage you have. For example, a 50-year-old female would get a $2,000 death benefit per 995 unit. If she bought five units at $49.75 monthly (9.95 x 5), the total payout would be $10,000. Also, remember that the 9.95 plan has a two-year waiting period. Colonial Penn will only refund your premiums plus approximately 10% interest if you die during the waiting period.
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
- 9.95 plan. https://colonialpenn.com/products/guaranteedacceptance
- CNO Financial Group. https://www.cnoinc.com/what-we-do
- Colonial Penn website. https://colonialpenn.com/products/insurance
- A.M. Best. https://ratings.ambest.com/DisclosurePDF.aspx?AMBNum=6240
- Moody's. https://ir.cnoinc.com/financials/financial-ratings/
- S&P Global. https://ir.cnoinc.com/financials/financial-ratings/
- BBB. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
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- BBB Score & Accreditation. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
- www.colonialpenn.com. https://colonialpenn.com/quote
