Last Updated: February 3rd, 2026
Great Western discontinued its final expense life insurance in June 2024. Colonial Penn still offers guaranteed acceptance coverage for ages 50-85, but most seniors pay 30-50% more than they would with other carriers. If you were considering Great Western, companies like Mutual of Omaha, Gerber Life, or AIG offer similar final expense coverage with competitive rates.
If you’ve been researching Colonial Penn vs Great Western for final expense coverage, you need to know something important. Great Western stopped selling final expense life insurance in 2024. This leaves Colonial Penn as the only option between these two companies, though it’s not necessarily your best choice.
This article explains what happened to Great Western, what Colonial Penn actually offers, and which alternatives might save you money while providing better coverage.
What Happened to Great Western Life Insurance?
Great Western Insurance Company was founded in 1983 and built a solid reputation in the final expense market. The company offered both simplified issue and guaranteed acceptance policies with coverage up to $40,000.
In 2018, Wellabe Insurance Group acquired Great Western. Then in June 2024, Wellabe made a strategic decision to exit the final expense market entirely. Great Western stopped accepting new applications for final expense and burial insurance.
Today, Great Western only offers pre-need funeral insurance. These policies are sold through funeral homes, not directly to consumers. If you want Great Western coverage now, you’d need to work with a participating funeral home to purchase a pre-need plan.
For existing Great Western policyholders, your coverage remains in force. The company continues to administer existing policies and pay claims. Your benefits won’t change.
Colonial Penn: What You’re Actually Getting
Colonial Penn has been selling life insurance since 1957 and currently holds an A (Excellent) rating from AM Best. The company specializes in guaranteed acceptance whole life insurance marketed primarily through TV commercials.
How the $9.95 Plan Works
Colonial Penn’s famous $9.95 plan uses a “unit” pricing system that confuses many buyers. Each unit costs $9.95 per month, but the death benefit per unit varies based on your age and gender.
Based on recent quotes, approximate coverage per unit:
- A 50-year-old woman: $1,500-$1,700 per unit
- A 65-year-old man: $800-$900 per unit
- An 85-year-old woman: $400-$500 per unit
Your exact unit value depends on your state of residence, and amounts may change over time.
You can purchase up to 25 units, but the maximum coverage typically caps around $16,000-$25,000 depending on your age. To get $10,000 in coverage, a 65-year-old man might need 11-13 units, costing roughly $110-$130 per month depending on his state.
Colonial Penn Coverage Details
| Feature | Details |
|---|---|
| Age Range | 50-85 (varies by state) |
| Medical Exam | None required |
| Health Questions | None for guaranteed acceptance |
| Maximum Coverage | Approximately $16,000-$25,000 |
| Waiting Period | 2 years for natural death |
| AM Best Rating | A (Excellent) |
| Accidental Death | Full benefit from day one |
The Two-Year Waiting Period
Colonial Penn’s guaranteed acceptance policy includes a graded death benefit. If you die from natural causes within the first two years, your beneficiaries receive only the premiums paid plus interest, not the full death benefit. Accidental deaths are covered at full value from day one.
Why Most Seniors Pay Too Much with Colonial Penn
Colonial Penn’s convenience comes at a cost. Because they accept everyone without health questions, they charge higher premiums to cover increased risk. Independent studies show Colonial Penn rates typically run 30-50% higher than competitors offering similar guaranteed issue coverage.
The company also spends heavily on television advertising featuring celebrity spokespersons. These marketing costs get built into your premium. Companies like Mutual of Omaha and Gerber Life spend less on TV ads and pass those savings to policyholders.
Common Complaints About Colonial Penn
Consumer complaint data from the National Association of Insurance Commissioners (NAIC) shows Colonial Penn receives more regulatory complaints than expected for a company its size. Common issues include:
- Confusion about the unit pricing system
- Lower-than-expected death benefits
- Slower claims processing
- Limited coverage amounts
Better Alternatives to Consider
If you were looking at Great Western, or if Colonial Penn’s pricing concerns you, several carriers offer comparable final expense coverage at lower rates.
Mutual of Omaha offers guaranteed issue coverage for ages 45-85 with death benefits up to $25,000. Their rates are typically 30-40% lower than Colonial Penn for the same coverage amount.
Gerber Life provides both guaranteed issue and simplified issue options. If you can answer “no” to a few basic health questions, their simplified issue rates are significantly lower than guaranteed acceptance pricing.
AIG (through their American General brand) offers final expense coverage with competitive rates and higher coverage limits for healthier applicants.
Who Should Still Consider Colonial Penn?
You may benefit from Colonial Penn if:
- You have serious health conditions that disqualify you from other coverage
- You only need a small policy ($5,000 or less)
- You value the convenience of calling a number you saw on TV
- You’ve been declined everywhere else
You should compare other options if:
- You’re in average or better health
- You need more than $15,000 in coverage
- You want the best value for your premium dollars
- You’re comfortable working with an independent agent
What About Pre-Need Funeral Insurance?
If you’re still interested in Great Western, their pre-need funeral plans work differently than traditional life insurance. You purchase coverage through a funeral home, and the policy specifically funds the services you’ve selected.
Pre-need insurance locks in today’s funeral prices, which can protect against inflation. The funeral home holds the policy and receives payment directly upon your death.
The downside is flexibility. Pre-need funds typically can only be used at the funeral home where you purchased the policy. If you move or change your mind about arrangements, transferring coverage can be complicated.
For most people, a traditional final expense policy offers more flexibility. Your beneficiaries receive cash and can choose any funeral provider they prefer.
Frequently Asked Questions
Can I still buy Great Western final expense insurance?
No. Great Western discontinued final expense life insurance in June 2024. The company now only offers pre-need funeral plans through participating funeral homes. Existing policyholders keep their coverage, but new applications are no longer accepted.
Is Colonial Penn worth it for seniors?
Colonial Penn works best for seniors who can’t qualify for coverage elsewhere due to serious health conditions. If you’re in average health, you’ll likely find better rates with companies like Mutual of Omaha, Gerber Life, or AIG. Always compare quotes before buying.
What’s the maximum coverage from Colonial Penn?
Colonial Penn’s maximum coverage depends on your age and gender, typically ranging from $16,000 to $25,000. The company uses a unit system where each $9.95 unit provides a different death benefit amount based on your risk profile.
Does Colonial Penn require a medical exam?
No. Colonial Penn’s guaranteed acceptance policy requires no medical exam and no health questions. This makes approval easy but results in higher premiums and a two-year waiting period before full benefits apply.
What are the best alternatives to Colonial Penn and Great Western?
Top alternatives include Mutual of Omaha, Gerber Life, and AIG. These companies offer similar guaranteed issue products at lower rates, plus simplified issue options for applicants in better health. An independent agent can compare quotes from multiple carriers to find your best option.
Key Takeaways
- Great Western discontinued final expense insurance in June 2024 and now only offers pre-need plans through funeral homes
- Colonial Penn remains available but typically costs 30-50% more than competitors
- Colonial Penn’s $9.95 plan uses a confusing unit system that limits coverage to around $16,000-$25,000
- Alternatives like Mutual of Omaha, Gerber Life, and AIG offer better value for most seniors
- If you have serious health conditions, Colonial Penn’s guaranteed acceptance may be your best option
- Existing Great Western policyholders keep their coverage unchanged
Ready to compare your options? Use the life insurance quoter on this page for free quotes from over 30 final expense carriers. We’ll help you find the right coverage at the best price, with no pressure and no obligation.
