At age 70, Colonial Penn’s $9.95 plan buys only $1,000 in coverage per unit. Most seniors need $10,000 for funeral expenses, requiring 10 units at $99.50 per month. Standard final expense policies from carriers like Mutual of Omaha offer $10,000 for $95 monthly with no unit confusion, making Colonial Penn 30-50% more expensive per dollar of coverage for most applicants.
You’ve probably seen the Colonial Penn commercials. Alex Trebek made them famous, and now other celebrities promote the “simple” $9.95 plan. The price sounds unbeatable for life insurance coverage.
But there’s important math that those TV ads don’t show you. That $9.95 is the cost per “unit” of coverage, and each unit provides different amounts of protection depending on your age. Most people need multiple units to cover funeral expenses, which means the true monthly cost is much higher than advertised.
This article breaks down exactly what you get with Colonial Penn’s 995 plan, shows you the real costs at different ages, and introduces you to better alternatives that offer the same guaranteed acceptance for 30-50% less. We’ve spent 30 years helping seniors find affordable final expense coverage, and we hope you can make an informed decision that protects your family without overpaying.
What is the Colonial Penn $9.95 Plan?
The Colonial Penn $9.95 plan is a guaranteed issue life insurance policy designed for seniors ages 50 to 85. It’s a type of final expense insurance meant to cover burial costs, medical bills, and other end-of-life expenses.
The policy uses a unique “unit-based” pricing system. You pay $9.95 per unit of coverage, but the amount of protection each unit provides varies dramatically based on your age when you buy the policy. A 50-year-old gets $2,000 per unit, while an 80-year-old gets only $500 per unit.
This is permanent whole life insurance with guaranteed acceptance. There’s no medical exam life insurance and no health questions. As long as you’re between 50 and 85, you can’t be turned down. Your premiums stay the same for life and won’t increase as you get older.
Colonial Penn markets this heavily on TV, which is how most people discover the plan. The company is owned by CNO Financial Group and has been selling life insurance since 1968. For a comprehensive evaluation of Colonial Penn’s full product lineup, financial strength, and customer service, see our Colonial Penn life insurance review.
The Real Cost of the 995 Plan: What $9.95 Actually Buys
Here’s the critical information those TV commercials leave out. The amount of coverage each $9.95 unit provides depends entirely on your age when you apply.
What Each $9.95 Unit Provides by Age:
- Age 50: $2,000 per unit
- Age 55: $1,750 per unit
- Age 60: $1,450 per unit
- Age 65: $1,200 per unit
- Age 70: $1,000 per unit
- Age 75: $766 per unit
- Age 80: $500 per unit
Let’s look at real examples to understand what this means for actual coverage needs.
Real Cost Examples:
Maria is 72 and wants $10,000 to cover her funeral costs. At her age, each unit provides about $1,000 in coverage. She needs 10 units, which costs $99.50 per month. That’s 10 times the advertised $9.95 price.
John is 68 and wants $15,000 to leave his children. Each unit at his age provides roughly $1,100 in coverage. He needs 14 units, bringing his monthly premium to $139.30. Again, nowhere near $9.95.
Sarah is 78 and needs just $5,000 for basic expenses. At her age, each unit provides only $650 in coverage. She needs 8 units at $79.60 per month.
The Math That TV Ads Don’t Show:
The average funeral costs between $7,000 and $10,000 according to the National Funeral Directors Association. To cover these expenses, most seniors need between 5 and 15 units depending on their age.
This brings the true monthly cost to $50-$150 for most people, not the $9.95 featured in commercials. The unit system makes it difficult to understand what you’re actually paying until you get a personalized quote.
Standard final expense policies from other carriers don’t use this confusing unit system. They quote you a straightforward price for the coverage amount you need, making it much easier to compare costs.
How the 995 Plan Works
Application Process:
Getting coverage is genuinely simple. There’s no medical exam required and no health questions to answer. You fill out a basic application with your personal information, choose how many units you want, and you’re approved.
The entire process takes about 5-10 minutes if you apply by phone. Online applications are also available. Because acceptance is guaranteed for ages 50-85, there’s no waiting to find out if you’re approved. You’re automatically accepted as long as you meet the age requirement.
Coverage starts on your policy effective date, though the two-year waiting period applies for the full death benefit.
The Two-Year Waiting Period:
Like all guaranteed issue policies, Colonial Penn includes a two-year graded benefit period. This is an important detail that affects when your beneficiaries receive the full death benefit.
If you die from illness or natural causes within the first 24 months of your policy, your beneficiaries don’t receive the full coverage amount. Instead, they get a return of all premiums you paid plus 10% interest. After the two-year mark, the full death benefit pays out.
There’s one exception to this waiting period. If you die from an accident at any time, even during the first two years, the full death benefit pays immediately. This includes car accidents, falls, or any other accidental death.
This graded benefit period is standard across the guaranteed issue insurance industry. Colonial Penn isn’t unique in having this waiting period, but it’s a crucial detail to understand before buying.
Coverage Details:
The 995 plan is permanent whole life insurance, which means coverage lasts your entire life as long as you pay premiums. Your premium amount never increases, regardless of your age or health changes.
The policy doesn’t build cash value that you can borrow against. It’s designed purely for death benefit protection, not as an investment or savings vehicle.
Coverage can’t be canceled by the insurance company as long as you continue paying premiums. You also can’t be denied renewal or have your rates increased based on claims or health deterioration.
Coverage Amounts and Pricing: The Complete Breakdown
Let’s compare Colonial Penn’s pricing against other guaranteed issue carriers. The table below shows monthly premiums for $10,000 of coverage for a male non-smoker at different ages.
| Age | Colonial Penn | Mutual of Omaha | Gerber Life | Great Western | AIG |
|---|---|---|---|---|---|
| 50 | $59.70 | $42.15 | $44.09 | $59.56 | $55.99 |
| 55 | $74.60 | $50.80 | $51.20 | $67.45 | $61.50 |
| 60 | $89.55 | $60.25 | $63.89 | $75.39 | $68.14 |
| 65 | $119.40 | $78.90 | $81.50 | $97.22 | $87.00 |
| 70 | $149.25 | $95.40 | $99.18 | $119.54 | $106.00 |
| 75 | $179.10 | $142.75 | $148.50 | $175.80 | $162.30 |
| 80 | Not available | $215.60 | $247.32 | $227.83 | $206.32 |
What This Table Reveals:
Colonial Penn is consistently more expensive than its competitors at nearly every age. The price difference ranges from 30% to 50% depending on your age and the carrier you compare against.
For someone age 70 needing $10,000 in coverage, Colonial Penn charges $149.25 monthly while Mutual of Omaha charges $95.40. That’s a $53.85 monthly difference, or $646 per year. Over 10 years, you’d pay $6,460 more with Colonial Penn for identical coverage.
Other carriers also offer coverage beyond age 80, while Colonial Penn stops accepting new applicants at 85. If you’re in your early 80s, you have more options with competitors.
The “guaranteed acceptance” feature isn’t exclusive to Colonial Penn. All carriers listed in this table offer the same no-exam, no-health-questions approval process. You’re not sacrificing acceptance for better pricing.
Pros and Cons of the 995 Plan
Pros:
Acceptance is truly guaranteed if you’re between 50 and 85. No one gets denied, regardless of health conditions. This provides real peace of mind for people with serious health issues who’ve been turned down elsewhere.
The application process is genuinely simple. You don’t need medical records, don’t have to schedule an exam, and don’t need to wait days or weeks for approval. It’s one of the easiest life insurance applications available.
Premiums are fixed for life. Your rate never increases due to age or health changes. If you lock in coverage at age 65, you pay the same premium at 65, 75, and 85.
Colonial Penn is a well-known brand with 50+ years in business. They’re financially stable with an A- rating from AM Best. The company will be around to pay claims.
Coverage is available in all 50 states without restrictions. You don’t need to worry about whether your state is included.
Cons:
Colonial Penn is the most expensive guaranteed issue option for most ages. You’re paying 30-50% more than you would with Mutual of Omaha, Gerber, or other carriers for identical coverage.
The unit-based pricing system is confusing and makes it hard to understand true costs. Most people don’t realize they need multiple units until they speak with an agent.
Coverage amounts are limited for older applicants. At age 80, you get only $500 per unit, requiring 20 units ($199) to reach just $10,000 in coverage.
The two-year waiting period means your family doesn’t get full benefits if you die from illness in the first 24 months. They only receive your premiums back plus 10% interest.
Coverage isn’t available after age 85. Other carriers offer guaranteed issue policies up to age 89 or even 90.
TV advertising can be misleading. The emphasis on “$9.95” without clearly explaining the unit system causes many people to misunderstand the actual cost.
There’s no cash value accumulation. Unlike some whole life policies, you can’t borrow against this policy or use it as a financial asset.
3 Better Alternatives to Colonial Penn 995
We’ve worked with thousands of seniors over 30 years, and we’ve found three carriers that consistently offer better value than Colonial Penn for guaranteed issue coverage.
Option 1: Mutual of Omaha Guaranteed Issue
Mutual of Omaha stands out as our top recommendation for most people. Their guaranteed issue policy offers 30-40% savings compared to Colonial Penn at most ages.
The pricing is straightforward with no confusing unit system. You choose the coverage amount you need, and they quote you one clear monthly premium. Coverage ranges from $2,000 to $25,000.
At age 70, $10,000 of coverage costs $95.40 per month compared to Colonial Penn’s $149.25. That’s $646 in annual savings for identical protection and the same guaranteed acceptance.
Mutual of Omaha has an A+ financial strength rating from AM Best, which is actually higher than Colonial Penn’s A- rating. They’ve been in business since 1909 and are one of the most respected names in insurance.
The application process is just as simple as Colonial Penn’s. No medical exam, no health questions, guaranteed acceptance from ages 45-85. The same two-year graded benefit period applies, which is standard for all guaranteed issue policies.
We’ve had excellent experiences with their claims department over the years. When our clients pass away, beneficiaries receive prompt payment without unnecessary delays or complications.
Option 2: Gerber Guaranteed Life
Gerber Life offers competitive pricing and excellent customer service. Most people recognize the Gerber name from baby products, but they’ve been selling life insurance since 1967.
Their guaranteed issue policy works well for ages 50-80 and offers coverage from $5,000 to $25,000. The pricing is clear and direct without unit-based confusion.
At age 65, $10,000 of coverage costs $81.50 monthly with Gerber compared to $119.40 with Colonial Penn. You save $37.90 per month, or $455 per year.
Gerber has an A rating from AM Best and maintains strong customer satisfaction scores. They also offer a simplified issue option if you’re willing to answer a few basic health questions, which can save you even more money.
One advantage Gerber offers is flexibility. They have both guaranteed issue and simplified issue products, so if you’re in decent health, they can potentially get you even better rates than the guaranteed acceptance pricing.
Option 3: Great Western Final Expense
Great Western specializes in final expense insurance and offers coverage up to age 89, which extends beyond Colonial Penn’s 85-year cutoff.
Their rates are competitive across all age ranges, and they offer coverage amounts from $2,000 to $35,000 depending on your age. The company has an A- rating from AM Best.
At age 75, $10,000 of coverage costs $175.80 monthly with Great Western versus $179.10 with Colonial Penn. The savings aren’t as dramatic as with Mutual of Omaha, but Great Western’s advantage is the extended age eligibility.
If you’re over 85, Great Western might be one of your only guaranteed issue options. They continue accepting applications up to age 89, while most carriers stop at 85.
How to Get These Alternatives:
Call us at 800-712-8519 for instant quotes from all three carriers. We represent more than 30 insurance companies, including Colonial Penn, so we have no bias toward any single carrier.
Our goal is to show you honest side-by-side comparisons and help you find the best value for your situation. There’s no pressure and no obligation. We just want you to see all your options before making a decision.
Red Flags: What Colonial Penn TV Ads Don’t Tell You
The Unit System Isn’t Explained
TV commercials emphasize the “$9.95” price point repeatedly but rarely mention that this is the cost per unit, not the total cost for meaningful coverage. Most viewers assume $9.95 per month buys them adequate life insurance.
The reality is that one unit provides $500 to $2,000 in coverage depending on your age. Since average funeral costs run $7,000-$10,000, you need multiple units. This means your actual monthly cost is $50-$150, not $9.95.
This isn’t disclosed clearly in the advertising. You don’t learn the full truth about unit pricing until you call for a quote or read the fine print.
You’re Paying for Celebrity Endorsements
Colonial Penn spends heavily on television advertising and celebrity spokespeople. These marketing costs don’t come free. They’re built directly into your premium.
Lesser-known carriers like Mutual of Omaha and Great Western spend far less on TV commercials. They rely more on independent agents and online marketing. This allows them to offer the same guaranteed issue coverage for 30-50% less.
You’re essentially paying extra for brand recognition and advertising exposure. The actual insurance product is nearly identical to competitors, but you pay significantly more for it.
“Guaranteed Acceptance” Isn’t Unique
Colonial Penn’s marketing suggests they’re special for offering coverage without medical exams or health questions. The reality is that dozens of carriers offer guaranteed issue policies with identical acceptance criteria.
Mutual of Omaha, Gerber, Great Western, AIG, Foresters, and many others all provide guaranteed acceptance coverage. You won’t be denied by any of these carriers if you meet the age requirements.
Colonial Penn doesn’t have exclusive rights to guaranteed issue insurance. It’s a standard product type available from multiple reputable companies.
The Math Favors Younger Applicants
If you’re between 50 and 65, you might not need guaranteed issue insurance at all. Many people in this age range can qualify for traditional term life insurance or simplified issue whole life with just a few health questions.
These traditional policies offer 10-20 times more coverage for similar premiums. A 55-year-old in reasonably good health might get $250,000 in term coverage for $50 per month, while Colonial Penn’s $9.95 per unit would buy only $1,750 per unit.
Don’t automatically settle for guaranteed issue coverage just because it’s easy. If you’re healthy enough to answer basic health questions, you can get dramatically better value elsewhere.
Coverage Amounts Decrease Dramatically with Age
At age 50, each unit provides $2,000 in coverage. At age 80, each unit provides only $500. That’s a 75% reduction in coverage per dollar spent.
Other carriers maintain more consistent coverage-to-premium ratios across different ages. They don’t use the unit system that penalizes older applicants as heavily.
Colonial Penn also stops accepting new applicants at age 85, while competitors like Great Western and Gerber extend coverage eligibility to age 89. If you’re in your mid-80s, you have better options elsewhere.
When Colonial Penn 995 Actually Makes Sense
We want to be completely honest with you. While Colonial Penn is overpriced for most people, there are rare situations where it might be your best option.
Scenario 1: You Only Need $2,000-$3,000 Coverage
If you need a very small policy for minor final expenses, the price difference between Colonial Penn and competitors becomes minimal. At this coverage level, you might pay $20-30 per month with any carrier.
Some people just want enough to cover burial plot costs or outstanding medical bills. If $2,000-$3,000 handles your needs, Colonial Penn works fine.
That said, even for small policies, you’ll still save 10-20% by choosing Mutual of Omaha or Gerber. But the dollar amount difference is small enough that brand recognition might matter more to you.
Scenario 2: You Value Brand Recognition Over Price
Maybe you’ve seen Colonial Penn commercials for years. You trust what you know. The brand name gives you confidence, even if it costs more.
Some people are willing to pay 30-40% extra for the peace of mind that comes with a familiar brand. If that describes you, and you can afford the higher premiums, Colonial Penn will deliver the coverage they promise.
Just understand that you’re making a conscious choice to pay more for marketing and advertising rather than for different or better coverage.
Scenario 3: You’ve Already Been Declined Elsewhere
This scenario is extremely rare because guaranteed issue policies don’t decline anyone. But if somehow you’ve had problems with other carriers or there are unique circumstances in your situation, Colonial Penn provides a backup option.
Their acceptance is truly guaranteed. If you’re within the age range of 50-85, they will approve you. This is also true for their competitors, but Colonial Penn is the most well-known option if you want certainty.
Reality Check:
These scenarios apply to less than 5% of people shopping for guaranteed issue coverage. The vast majority of our clients save significant money by choosing alternatives to Colonial Penn.
If you’re in the 95% who would benefit from shopping around, invest 15 minutes to compare quotes. The savings are substantial and the coverage is identical.
Common Misconceptions About the 995 Plan
Misconception 1: “$9.95 Gets Me Meaningful Coverage”
This is the biggest misunderstanding caused by Colonial Penn’s advertising. People hear “$9.95” and assume that’s the total monthly cost for their life insurance.
The reality is that $9.95 is the price per unit, and each unit provides only $500-$2,000 in coverage depending on your age. At age 70, one unit gives you just $1,000 in protection.
Since funeral costs average $7,000-$10,000, you need 7-10 units minimum. This brings your true monthly cost to $70-$100, not $9.95.
Misconception 2: “Colonial Penn Is the Only Guaranteed Issue Option”
Many people believe Colonial Penn invented guaranteed acceptance life insurance or holds some exclusive right to offer it. Neither is true.
More than 20 insurance carriers offer guaranteed issue policies with identical acceptance criteria. You can’t be denied by any of them if you meet the age requirements. Colonial Penn is simply the most heavily advertised option.
Mutual of Omaha, Gerber Life, Great Western, AIG, Foresters, and many others all provide the same guaranteed acceptance for 30-50% less money.
Misconception 3: “The Price Is Locked In Forever”
This one is partially true but needs clarification. Your individual premium is locked in and won’t increase as you age. If you buy at 65, you pay the same premium at 65, 75, and 85.
What people misunderstand is that the coverage per unit is determined by your age when you buy. Someone who purchases at age 50 gets $2,000 per unit forever. Someone who purchases at age 70 gets only $1,000 per unit forever.
You can’t buy young and cheap, then add more coverage later at the same rate. Each new policy or addition is priced at your current age.
Misconception 4: “I’ll Get Full Benefits Immediately”
All guaranteed issue policies include a two-year waiting period before the full death benefit is available. This applies to Colonial Penn and every competitor.
If you die from illness within the first 24 months, your beneficiaries receive a return of premiums paid plus 10% interest, not the full coverage amount. After two years, the full death benefit pays out.
The only exception is accidental death, which pays the full benefit immediately even during the first two years. But illness-related deaths within 24 months trigger the return of premium clause.
This isn’t a Colonial Penn-specific restriction. It’s standard across the entire guaranteed issue industry because these policies accept everyone without health screening.
Who Should Consider the 995 Plan?
Good Candidates (Small Percentage):
You’ve been declined by multiple other carriers due to unique circumstances or complications in your application. While rare, since guaranteed issue policies generally don’t decline anyone, there could be situations where Colonial Penn serves as a backup.
You’re comfortable paying premium prices specifically for brand recognition. You value the familiar Colonial Penn name and don’t mind paying 30-40% more than competitors for that familiarity.
You need very small coverage amounts in the $2,000-$3,000 range. At this level, the price difference between carriers is minimal enough that convenience might outweigh savings.
You’re over 82 and options are becoming extremely limited. Colonial Penn accepts applications up to age 85, though several competitors extend to age 89.
Better Options Exist For:
Anyone in reasonably good health should apply for traditional term life insurance first. You’ll get 10-20 times more coverage for similar premiums. Even with common conditions like high blood pressure or diabetes, you might qualify for traditional coverage.
Most guaranteed issue shoppers benefit from Mutual of Omaha, Gerber Life, or Great Western. These carriers offer 30-40% savings with identical guaranteed acceptance. There’s no reason to pay more for the same product.
People needing $10,000 or more in coverage should definitely shop around. The dollar amount you save becomes substantial at these coverage levels. You could save $500-$1,000 per year with competitors.
Ages 50-65 should explore simplified issue policies that require answering a few health questions. If you can pass basic health screening, you’ll save 40-60% compared to any guaranteed issue option, including Colonial Penn.
Comparison with Other Life Insurance Options
Colonial Penn 995 vs. Term Life Insurance:
Term life insurance requires a medical exam but offers dramatically more coverage for similar premiums. It’s designed for people in good health who need substantial death benefits.
A healthy 55-year-old might pay $50 per month for $250,000 in 20-year term coverage. That same $50 buys only 5 units with Colonial Penn, providing about $8,500 in total coverage at that age.
If you can pass a medical exam, term life gives you 30-50 times more protection for the same money. The catch is that term coverage expires after 10, 20, or 30 years, while Colonial Penn is permanent.
For younger, healthier people, term life is almost always the better choice. Save guaranteed issue coverage for when you’re older or have health conditions that make traditional insurance unavailable.
Colonial Penn 995 vs. Standard Final Expense:
Final expense policies from other carriers serve the same purpose as Colonial Penn: covering burial costs and end-of-life expenses. The coverage amounts are similar, typically $5,000-$25,000.
The key difference is pricing. Mutual of Omaha, Gerber, and Great Western offer final expense coverage with guaranteed acceptance for 30-40% less than Colonial Penn.
A 70-year-old gets $10,000 of coverage for $95-$120 per month with competitors versus $149 with Colonial Penn. You’re buying the exact same type of product at vastly different prices.
Final expense insurance from any carrier includes the same two-year waiting period, fixed premiums, and guaranteed acceptance. Colonial Penn offers nothing unique to justify the premium pricing.
Colonial Penn 995 vs. Simplified Issue Whole Life:
Simplified issue policies require you to answer 5-10 basic health questions but don’t require a medical exam. If you pass the health screening, you get dramatically better rates than any guaranteed issue policy.
A 60-year-old with controlled high blood pressure might qualify for simplified issue and pay $60-$70 per month for $10,000 in coverage. The same person would pay $90 per month with Colonial Penn for identical coverage.
Simplified issue premiums run 40-60% lower than guaranteed issue pricing. The tradeoff is that you can be declined if you have serious health conditions or recent hospitalizations.
If you’re in decent health, even with common conditions like diabetes or heart disease, it’s worth applying for simplified issue first. You can always fall back to guaranteed issue if you’re declined.
How to Shop for Better Guaranteed Issue Coverage
Step 1: Get Quotes from Multiple Carriers
Don’t make a decision based on a single TV commercial or the first quote you receive. Guaranteed issue life insurance pricing varies significantly between carriers.
Request quotes from at least 3-4 companies. Include Mutual of Omaha, Gerber Life, Great Western, and yes, Colonial Penn if you want a complete comparison.
Use an independent agent who represents multiple carriers rather than calling each company directly. We can show you side-by-side quotes in a single conversation, saving you hours of research.
Step 2: Understand True Monthly Cost
Ignore per-unit pricing completely. Ask every carrier one simple question: “What does $10,000 of coverage cost per month for someone my age?”
This gives you an apples-to-apples comparison. You’re looking at the total premium for the coverage amount you need, not confusing unit calculations.
If a carrier can’t give you a straight answer without talking about units or complicated pricing structures, that’s a red flag. Good companies quote simple, clear premiums.
Step 3: Check Financial Strength Ratings
All major life insurance carriers have ratings from AM Best, which measures financial stability and ability to pay claims. Look for companies with A- ratings or higher.
Colonial Penn has an A- rating. Mutual of Omaha has an A+. Gerber has an A. Great Western has an A-. All are financially sound companies that will be around to pay claims.
Don’t overpay for brand recognition when financial stability is equal across carriers. An A- rated company you’ve never heard of is just as safe as an A- rated company with TV commercials.
Step 4: Consider Your Health Status
Before automatically choosing guaranteed issue coverage, ask yourself if you’re in decent health. Can you answer basic health questions about hospitalizations, cancer, heart attacks, and stroke?
If you can truthfully say you haven’t had major health events in the past 2-5 years, apply for simplified issue coverage first. You might save 40-60% compared to guaranteed issue pricing.
Simplified issue policies ask about recent hospitalizations, cancer diagnoses, heart attacks, and other serious conditions. If you’ve been healthy or your conditions are well-controlled, you’ll likely qualify.
Only go with guaranteed issue if you genuinely can’t pass simplified issue health questions. Most people overestimate how strict health requirements are.
Step 5: Work with an Independent Agent
Independent agents represent multiple insurance companies and can show you all your options in one conversation. We represent more than 30 carriers, including Colonial Penn.
We have no financial incentive to sell you one carrier over another. We get paid the same commission regardless of which company you choose. Our job is to find you the best value.
Call us at 800-712-8519 for honest comparisons with no pressure. We’ll show you quotes from 3-4 carriers, explain the differences, and let you make an informed decision.
Customer Reviews and Experiences
Common Positive Feedback:
Customers appreciate that the application process is genuinely as simple as advertised. No medical exam, no complicated paperwork, just basic information and you’re approved.
Many policyholders like the guarantee that they can’t be turned down. For people with serious health conditions who’ve been declined elsewhere, this provides real peace of mind.
The policies are issued as promised. Colonial Penn doesn’t engage in post-issue rescission or try to deny claims based on technicalities. When someone passes away after the two-year waiting period, benefits are paid.
Customer service representatives are generally professional and helpful. Claims are processed reasonably quickly compared to the insurance industry average.
Common Complaints:
“I didn’t realize I’d need so many units to get adequate coverage. The TV ads made it sound like $9.95 was the total cost.”
“I got quotes from other companies after buying and discovered I’m paying 40% more than I needed to. I wish I’d shopped around first.”
“The advertising feels misleading. They emphasize the $9.95 so heavily but barely mention it’s per unit, not your total premium.”
“I found the exact same guaranteed acceptance coverage from Mutual of Omaha for $50 less per month. I’m switching as soon as I pass the two-year mark.”
“The agent didn’t mention other options. I assumed Colonial Penn was my only choice for guaranteed acceptance coverage.”
Our Observation (30 Years Experience):
Colonial Penn delivers exactly what they promise. They’re not a scam, they don’t deny legitimate claims, and the coverage is real permanent life insurance.
The issue is value, not quality or legitimacy. You’re paying 30-50% more than necessary for identical protection available from equally reputable carriers.
Most clients who choose Colonial Penn without comparing other options later regret not shopping around first. Those who compare before buying rarely select Colonial Penn once they see the price differences.
The company has strong brand recognition and trust from TV advertising. They leverage that recognition to charge premium prices for a commodity product that’s available cheaper elsewhere.
Key Takeaways
- The Colonial Penn $9.95 plan costs $9.95 per unit of coverage, with each unit providing $500-$2,000 in death benefit depending on your age at purchase.
- Most seniors need 7-10 units for adequate funeral expense coverage, bringing actual monthly costs to $70-$150, far above the advertised $9.95 price point.
- Colonial Penn is typically 30-50% more expensive than competing guaranteed issue carriers like Mutual of Omaha, Gerber Life, and Great Western.
- All guaranteed issue policies include a two-year waiting period where death from illness pays only a return of premiums. Full benefits begin after 24 months, with immediate full benefits for accidental death.
- Better alternatives exist for 95% of shoppers. The same guaranteed acceptance with significantly lower premiums is available from multiple reputable carriers.
- If you’re in reasonably good health, even with common conditions, simplified issue policies offer 40-60% savings over any guaranteed issue option.
- Always compare at least three carriers before purchasing guaranteed issue coverage. The savings are substantial and the coverage is identical.
Don’t Overpay for Final Expense Coverage
You’ve seen exactly how Colonial Penn’s pricing works and how it compares to alternatives. Most people save $300-$600 per year by choosing a different carrier with identical guaranteed acceptance.
Our independent agents represent 30+ insurance companies and will show you honest side-by-side comparisons. We have no bias toward any carrier. We just want you to see all your options before deciding.
Get instant quotes from multiple guaranteed issue carriers. No obligation, no pressure, just clear information to help you make the best choice for your situation.
We’ve spent 30 years helping seniors find affordable final expense coverage. Let us show you how much you can save.
FAQs about the 995 Plan
Is the Colonial Penn 995 plan a ripoff?
It’s not a scam, but it is overpriced for most people. Colonial Penn delivers the coverage they promise and pays legitimate claims. The issue is that you’re paying 30-50% more than necessary. The unit-based pricing makes it hard to understand true costs. Better guaranteed issue options exist with transparent pricing and lower premiums from carriers like Mutual of Omaha and Gerber Life.
How much does the Colonial Penn 995 plan actually cost per month?
For adequate funeral coverage of $10,000, expect to pay $60-$150 monthly depending on your age. At age 70, you need 10 units costing $99.50 per month. At age 75, you need 13 units costing $129.35 monthly. At age 65, you need 8-9 units costing $80-$90 per month. This is significantly more than the $9.95 price emphasized in advertising.
What is the maximum coverage available with the 995 Plan?
Coverage limits depend on underwriting discretion and vary by applicant profile. Colonial Penn doesn’t publicly disclose fixed maximum amounts by age or gender. The number of units you can purchase is determined at quote time based on your individual circumstances. Contact Colonial Penn directly for your personalized coverage limit based on your age, gender, and coverage needs.
How does the two-year waiting period work?
If you die from illness or natural causes within the first 24 months of your policy, beneficiaries receive all premiums you paid plus 10% interest. This is called return of premium. The full death benefit only pays after 24 months have passed. If death occurs due to an accident at any time, even during the first two years, the full benefit pays immediately. This waiting period is standard across all guaranteed issue policies, not unique to Colonial Penn.
What are cheaper alternatives to Colonial Penn 995?
Mutual of Omaha, Gerber Life, Great Western, and AIG all offer guaranteed issue policies 30-50% cheaper than Colonial Penn. For example, at age 70 with $10,000 coverage, Mutual of Omaha charges $95 monthly compared to Colonial Penn’s $149. At age 65, Gerber charges $82 monthly compared to Colonial Penn’s $119. All offer the same guaranteed acceptance with no medical exam or health questions. You’re not sacrificing acceptance for better pricing.
Can I increase my coverage after purchasing the plan?
No, your coverage amount is fixed when you buy the policy. If you want more coverage later, you’d need to apply for an additional separate policy. That new policy would be priced based on your current age, not the age when you bought your original policy. This is why it’s crucial to purchase adequate coverage from the start. Consider your full funeral and final expense needs before deciding on a coverage amount.
What happens if I die within the two-year waiting period?
Your beneficiaries receive 100% of all premiums you paid plus an additional 10% interest on that amount. For example, if you paid $100 monthly for 18 months before passing away, your beneficiaries would receive $1,980 ($1,800 in premiums plus $180 in interest). They don’t receive the full $10,000 or $15,000 death benefit during this period. After 24 months, the full death benefit pays regardless of cause of death.
Are there better options for someone in good health?
Absolutely. If you can pass a medical exam or answer basic health questions, you’ll qualify for dramatically cheaper coverage. Simplified issue whole life requires no exam but asks 5-10 health questions, offering 40-60% savings over guaranteed issue. Traditional term life insurance provides 10-20 times more coverage for similar premiums if you can pass a medical exam. Don’t automatically settle for guaranteed issue if you’re healthy enough for better options.
Why is Colonial Penn more expensive than other guaranteed issue policies?
Colonial Penn spends heavily on celebrity endorsements and national TV advertising. Those marketing costs are built into your premiums. Lesser-known carriers like Mutual of Omaha and Great Western spend less on advertising and pass the savings to customers. The actual insurance product is nearly identical, all from financially stable companies with similar AM Best ratings. You’re paying extra for brand recognition, not better coverage or service.
Can I get Colonial Penn 995 coverage if I’m over 85?
No, Colonial Penn only accepts applications from people ages 50-85. If you’re over 85, look at carriers like Great Western or Gerber Life that offer guaranteed issue coverage up to age 89. Some carriers extend coverage eligibility to age 90. If you already have a Colonial Penn policy that you purchased before turning 85, you can keep it as long as you continue paying premiums. But new applications aren’t accepted after age 85.
Conclusion
The Colonial Penn 995 Plan offers legitimate guaranteed acceptance life insurance coverage. The company pays claims as promised, the application process is genuinely simple, and approval is guaranteed for ages 50-85.
But the critical question isn’t whether Colonial Penn is legitimate. It’s whether you’re getting good value for your money. The answer for most people is no.
When you compare Colonial Penn against other guaranteed issue carriers, the price difference is substantial. You’re paying 30-50% more for identical coverage with the same guaranteed acceptance. At age 70, that’s the difference between paying $95 per month and $149 per month for $10,000 in coverage.
The unit-based pricing system makes it difficult to understand true costs until you receive a detailed quote. TV advertising emphasizes the “$9.95” price heavily while downplaying that this is per unit, not your total premium. Most people need 5-15 units for adequate coverage.
After 30 years in this industry, we’ve helped thousands of seniors find affordable final expense coverage. We’ve seen the regret people feel when they discover they’re paying 40% more than necessary for their Colonial Penn policy.
Our recommendation is straightforward. Before buying the 995 plan, invest 15 minutes to get quotes from Mutual of Omaha, Gerber Life, and Great Western. You’ll almost certainly save $300-$600 per year for identical guaranteed acceptance coverage.
If you’re in reasonably good health, even with common conditions like high blood pressure or diabetes, also get quotes for simplified issue policies. These require answering a few health questions but offer even better rates than guaranteed issue.
The peace of mind that comes with life insurance shouldn’t cost 30-50% more than necessary. Shop around, compare honestly, and make an informed decision that protects both your family and your budget.
We represent 30+ companies so we have no bias. We just want you to see all your options and choose what’s best for your situation.
