Colonial Penn Life Insurance Review Only 1 Product in 2024

First and foremost, We are not going to hold back in this review of colonial penn burial insurance. We are here to tell you bluntly that they have a lot of gimmicks such as their famous “Colonial Penn Life Insurance $9.95 plan“.

The truth is their TV advertising is misleading to consumers. This is no surprise considering what we have mentioned in our previous blogs about burial insurance plans being advertised on TV.

To make it simple you should be very skeptical of life insurance companies being advertised on TV.

In fact, TV advertising can be so misleading at times that there is advertiser disclosure’s involved.

The Colonial Penn 995 plan is much more expensive than other life insurance coverage you can find out there and it also has a 2-year waiting period before it pays out to your beneficiary.

It is a Colonial Penn Guaranteed Acceptance policy also known as Guaranteed Issue Whole Life Insurance.

Now if you are healthy or have even some moderate health conditions you should not have to settle for a waiting period in fact we help 90% of our clients qualify for day one level coverage even if they have some health issues. This is one of the highlights of our Colonial Penn burial insurance review.

You can also learn more about their new paid spokesman Jonathon Lawson here.

In this article, we will go over everything you need to know and review about Colonial Penn Burial Insurance and their famous Colonial Penn 995 plan.

Also why it is a terrible option for protecting your loved ones from your final expenses.

Related: Pros and Cons of Colonial Penn Insurance, Colonial Penn TV Commercial

Does Colonial Penn offer Burial Insurance?

Yes, Colonial Penn offer’s 2 different types of burial insurance. One is a guaranteed issue policy with a waiting period and the other is a simplified issue policy with no waiting period. These are both whole life final expense insurance.

Does Colonial Penn have Whole Life Insurance?

Yes, they do, they have their Guaranteed Issue Whole Life policy, and a Whole Life Policy with day one coverage that is only available now in New York. Colonial Penn does not sell term life insurance of any kind. If you reference the Colonial Penn products page there is no term life products mentioned anywhere.

Now here’s the problem, both of their whole life insurance products are much more expensive than most other life insurance policies on the market. Their policies are not actually $9.95 a month.

The Colonial Penn 995 plan is actually per unit of insurance. Now, these rates vary by age and gender but we have seen units between $450 to $1,000.

So what this really means is that if a unit of insurance for you equals $1,000 then you will be paying $99.5 a month for only $10,000 worth of coverage and have a 2-year waiting period!

Sounds expensive right?

Furthermore, qualifying for their whole life day one coverage policy is extremely difficult.

The pricing may be better than their Colonial Penn 995 plan which is a Guaranteed Issue policy but it is still more expensive than what you can find in other places.

This is just 1 of the many reasons why colonial penn whole life insurance reviews are so poor. When you search colonial penn life insurance review they are all negative across the board.

We talk extensively with our clients about colonial penn life insurance company offering this guaranteed acceptance life insurance option.

They make it sound like not answering health questions is a good thing when in fact it is not especially if you are healthy. Guaranteed issue policies are always more expensive on their life insurance quotes and coverage amounts.

There are no exceptions to this rule this is why here at our agency we specialize in day one level coverage with living insurance benefits.

What this means is that if you get chronically ill and you have one of our carriers like American Amicable you can use the coverage to pay for things while you are alive.

Qualifying for Colonial Penn Day One Level Coverage(Only Available in New York)

They do not send anyone to your home to perform any kind of medical exams or tests. However, considering the medical history and prescription check it seems few people can actually get the policy to begin with. This may be why their Colonial Penn 995 plan is promoted so heavily.

The policy is nothing special it functions just like any other policy. It’s just more expensive and stricter underwriting than most.

It has the following features:

• Level Premiums
• Level Death Benefit
• No waiting period
• Amount of coverage 10,000 – 50,000
• Accidental Death Rider

Quick Comparison

Example:

A 72-year old male can get Greek Catholic Union coverage for $10,000 for $75.52 a month.

A 72-year old male for Colonial Penn’s $10,000 would be $99 depending on the units.

That is a significant difference and qualifying for Colonial is twice as hards as Greek Catholic Union.

Analysis of The Features of Colonial Penn’s $9.95 Life Insurance

Colonial Penn has 2 different plans available. They have a permanent whole life insurance plan and guaranteed acceptance life insurance. Both plans have different facts and features between each other that we are going to dive into.

Permanent Whole Life Insurance Features

The age availability for Colonial Penn’s whole life insurance is 40 – 75 years old. This means if you are a senior over 75 or senior over 80 you cannot get this plan.

Benefit amounts for this policy are between $10,000 – $50,000. That is a good benefit amount but like we mentioned you would need to pass their difficult underwriting to be approved.

Colonial Penn’s Simplified issue whole life policy was offered in all states at one point but as of 2023 is only offered in the state of New York. The name of Colonial Penn’s whole life policy with no waiting period is LifeChoice Whole Life Insurance.

Coverage never expires which is normal on any whole life policy.

No medical exams but there are health questions.

Policy will build cash value after the first year of coverage. You can borrow against this cash value after the first year. This is also a standard feature in all final expense life insurance.

Suicide Clause – If suicide is committed within the first 2 years of having this policy the beneficiary will receive the premiums paid in plus interest. The policy will not pay the full death benefit unless suicide is committed after 2 years of having this policy.

Reference: Colonial Penn Whole Life

Guaranteed Acceptance Life Insurance ($9.95 Plan) Features

The age availability for Colonial Penn’s guaranteed acceptance life insurance plan is 50 – 85 years old in most states. Now if you are under the age of 40 or a senior over 85 you will not be able to apply for this plan.

There are no medical exams or health questions to purchase the plan. Again this is the standard for all guaranteed issue life insurance policies.

The policy has a two year limited benefit period for non accidental death. That is your 2 year waiting period before the policy will pay the death benefit to your beneficiary.

Reference: Colonial Penn Guaranteed Acceptance

Feature	Description
Insurance Plan	Guaranteed Acceptance Life Insurance
Health Requirements	No Medical Exam or Health Questions Approval is Guaranteed
Limited Benefit Period(Waiting Period)	Two Year Waiting Period
Coverage Type	Permanent Whole Life Insurance
Level Premium	Premiums Never Increase
Age Availability	50-85 & 50-75 in State of New York
Price Per Unit	Fixed Amount
Units & Coverage Amounts Determining Factors	Age Gender State of Residence
Level Death Benefit	Death Benefit Never Decreases
Maximum & Minimum Amount of Coverage	Min – 1 Unit Max – 15 Units
Price	$9.95 for Each Unit
Payment Frequency	Monthly, Quarterly, Semi-Annually & Annually
Cash Value	Policy builds cash value after year 1, Cash Value Can be Borrowed Against

The $9.95 plan is designed to cover end of life expenses such as funeral, burial and cremation expenses. In addition to this it covers unpaid credit card, home and car loans depending on how much coverage you have.

Colonial Penn Life Insurance Rate Chart

Below you will see rates based on their per unit of insurance rate’s these rates are much higher than other life insurance company rates.

Age	Male 1 Unit Coverage Amount	Female 1 Unit Coverage Amount
50	$1,669	$2,000
51	$1,620	$1,942
52	$1,565	$1,890
53	$1,515	$1,845
54	$1,460	$1,802
55	$1,420	$1,761
56	$1,370	$1,719
57	$1,313	$1,669
58	$1,258	$1,620
59	$1,200	$1,565
60	$1,167	$1,515
61	$1,112	$1,460
62	$1,057	$1,420
63	$1,000	$1,370
64	$949	$1,313
65	$896	$1,258
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
81	$424	$578
82	$423	$549
83	$421	$521
84	$420	$493
85	$418	$468

As you can see from the chart above Colonial Penn’s $9.95 plan is worth a fixed amount of coverage per unit according to your age.

What is The Colonial Penn 995 Plan?

The colonial penn $9.95 plan is guaranteed acceptance whole life insurance products. It builds cash value as the policy owner pays into it over time. It also has premiums that never increase and a death benefit that never decreases.

In addition to this it is more expensive than other guaranteed issue life insurance products. The truth about the Colonial Penn $9.95 plan is that it has an automatic two year waiting period before the policy will payout and seniors will not be paying only $9.95 a month for their policies.

What is the catch on Colonial Penn 995 plan?

The catch on the Colonial Penn 995 plan is that there is a two year waiting period before the policy will payout the full death benefit to your beneficiary.

This is standard with all guaranteed issue life insurance policies which is what the Colonial Penn 995 plan is. In addition to this Colonial Penn’s $9.95 is overpriced compared to other life insurance products.

Colonial Penn life insurance is not actually $9.95 a month it is priced depending on how much actual insurance you decide to take out. This means if you take out $10,000 worth of Colonial Penn life insurance it will be much more expensive than $9.95 a month.

What is The Waiting Period for Colonial Penn 995 Plan?

The Colonial Penn 995 plan has a two year waiting period before it will pay out any death benefits. This is because the Colonial Penn $9.95 per month life insurance plan is a guaranteed issue whole life insurance policy.

That means there are no health questions or medical underwriting approval is guaranteed. In addition to this the 995 plan is overpriced compared to other life insurance companies

How Much is a Unit of Coverage With Colonial Penn

This can vary based on age so for example a 68-year-old male will pay $9.95 for 1 unit of Colonial Penn life insurance and that unit at that age is $762 worth of coverage based on our chart.

Now the maximum amount of units for a 68 year old is 12 which means $792 multiplied by 12 will be $9,144 in coverage and that is the maximum amount of funeral insurance you can get with Colonial Penn.

The monthly premium for $9,144 at a rate of $9.95 per unit equals $119.40 a month. With Colonial Penn burial insurance you are over paying at these rates.

Compare that with the rates from Mutual of Omaha, Aetna Accendo, Prosperity Life and Royal Neighbors of America below for a 68 year old.

Pros and Cons of Colonial Penn Insurance

We do not see any pros in our review with having Colonial Penn burial insurance or any of their policies for that matter.

Their underwritten policies are hard to qualify for and much more expensive compared to other companies. They use misleading TV ads that make consumers think that they are very affordable when they are not.

Their 9.95 policy is a guaranteed issue policy with a 2-year waiting period that a consumer may not need if they are in decent health.

Their term policy has a price that increases over time until it becomes unaffordable for the insured and they are ultimately forced to drop it.

The only pro we can see is that Colonial Penn’s Financial Strength Rating is good.

They have an A- Outlook: Positive from A.M. Best

That being said all that score really means is that they have the finances to pay their client’s insurance claims. Given how much more expensive their policies are we would at least hope they can pay their client’s claims.

Colonial Penn Contact Information

• Website: https://colonialpenn.com/
• Address: 399 Market Street, Philadelphia, PA 19181
• Customer Support: 1-800-523-9100
• Other Phone Number: 1-877-877-8052
• New York Residents Phone Number: 1-800-323-4542

Colonial Penn Third Party Financial Ratings

• Colonial Penn AM Best Rating – A-(Excellent Rating)
• Colonial Penn Standard & Poor’s Rating – A3 Rating
• Colonial Penn Moody’s Rating – A3 Rating
• Colonial Penn Fitch Rating – A3 Rating
• Colonial Penn BBB Rating – A+ Rating

Colonial Penn Life Insurance Reviews on Trust Pilot

The reviews for Colonial Penn life insurance on Trust Pilot are not very good. Colonial Penn scored 2.3 out of 5.0 stars as of 5/4/2023 on Trust Pilot from customers. There is a full thread of negative customer reviews from Trust Pilot.

These customers are not happy with Colonial Penn life insurance.

Colonial Penn Negative Reviews from Customers

There are a lot of unhappy customers with the Colonial Penn burial insurance $9.95 plan. You can read all of the 1 star reviews they have accumulated with the Better Business Bureau because Colonial Penn burial insurance is just not a good product.

Based on the ratings from the BBB the Colonial Penn negative reviews are extremely high. They are currently at a 1.23 out of 5.0 for their Colonial Penn negative reviews.

The most recent review is from 4/13/2023 with a customer complain about the 995 plan advertising. It’s evident that a lot of consumers believe that the Colonial Penn 995 life insurance plan is only $9.95 per month for any amount of coverage when it is not.

This contributes to the Colonial Penn negative reviews.

You can read the Colonial Penn negative reviews.

Is Colonial Penn Insurance Worth it?

No, absolutely not, from a consumer standpoint why would someone want to pay higher premiums for a policy when there are much more affordable options out there?

Furthermore, you get put into a 2-year waiting period when even if your health is moderate you have a good shot at getting approved for day one coverage with a more affordable and overall better carrier like Mutual of Omaha?

With all of these factors considered in this review do yourself a favor and run for the hills from Colonial Penn burial insurance.

Is Colonial Penn Good Insurance?

No Colonial Penn is not good insurance it is probably one of the worst life insurance products consumers can get. There are much better alternative companies and plans that are more affordable and are higher value final expense insurance.

FAQ’s

Does Colonial Penn pay after age 85 & Does it Expire?

Yes, Colonial Penn will pay out a death benefit after age 85 if you have made it through the 2 year waiting period. Colonial Penn’s $9.95 plan is a whole life policy which means it does not expire. If you die while having this policy in place after the age of 85 with no missed premium payments it will pay your beneficiary.

does colonial penn cover funeral expenses?

Their whole life policies can be used for final expenses but there are much more affordable options.

what do you get for $9.95 a month from colonial penn?

It depends on age and gender for example you could get $1,000 for $9.95.

how much coverage is a colonial penn unit?

It depends on a few factors but the amount of coverage can be between 450 – 1,000.

is colonial penn life insurance legitimate?

Yes, they are a legitimate life insurance company however they are also much more expensive than others and have misleading advertising for their plans.

does colonial penn life insurance have cash value?

Yes, their whole life policies will build cash value like most traditional whole life insurance policies.

how much is a unit of colonial penn life insurance worth?

It depends but in most cases a unit can be worth between 450 – 1,000

Colonial Penn Life Insurance Burial Marketing

We believe the reason why so many seniors wind up getting this type of coverage is due to their marketing.

They run commercials that have made consumers we have spoken with in the past believe that their plans were only $9.95 a month.

Also that it was a good thing to not have health questions even though this means the consumer ends up with a guaranteed issue policy with a 2-year waiting period for the maximum death benefit.

You see when you call in from one of their commercials for Colonial Penn life insurance you are getting a captive agent on the phone that can only offer you their products and that’s it.

This is how most seniors wind up in a gimmicky life insurance plan that does not serve them properly.

Be vigilant when it comes to marketing and ads for these captive companies. They all like to advertise “no medical exam!” for example. We’ll most life insurance companies in today’s age offer products with non-medical exams.

They’ve even had Alex Trebek be part of their advertisements but just because a celebrity endorses Colonial Penn life insurance it does not mean it is the best thing since sliced bread.

When it comes to life insurance coverage to protect your family from the funeral cost’s when you die you need to work with an independent agency like us.

If they were an independent national broker then what Colonial Penn offers would be great because they would have multiple products and companies but they don’t. Guaranteed acceptance plans are not for everyone.

Colonial Penn Final Expense Riders Compared to Other Companies

Colonial Penn life insurance riders are not unique or special.

They only have 2 riders for their plans.

• Accidental Death Rider
• Living Benefit Rider

Both of these riders are pretty standard with most other final expense insurance. This is why Colonial Penn’s final expense riders are not worth it because you are still overpaying for their policy.

The carriers that we represent have the following different riders depending on what company you choose:

• Nursing Home Waiver of Premium Rider
• Accidental Death Rider
• Accelerated Living Benefits Rider
• Grand Child Rider
• Children Rider

These riders vary depending on which company you choose but they offer far more additional benefits than the only 2 Colonial Penn final expense riders offered.

Work with ParamountQuote

We are a national independent agency with access to the top major life insurance carriers nationwide.

There are no gimmicks with the policies and carriers we represent. We pride ourselves on holding our client’s hands every step of the way to help you find the best policy at the best rate for your needs and budget.

The agent you speak with will become your personal service agent for life and will serve you in any way possible when it comes to any questions you may have.

If you decide not to work with us please make sure whoever you decide to go with is a non-captive agency with access to 10 life insurance companies or more so you are guaranteed the best rate and coverage.

To work with us fill out the form to your right.