Is Colonial Penn’s $9.95 Plan Worth It?
Colonial Penn’s $9.95 life insurance plan is famous for its low monthly premium — but don’t be fooled. Each $9.95 “unit” often buys less than $1000 in actual death benefit for older applicants, and there’s a 2-year waiting period before full benefits are paid on natural causes.
If you’re shopping for final expense insurance, this could leave your loved ones under protected when they need it most. With over 20 years helping seniors in Michigan and most other states, we’ve seen firsthand how many people overestimate what $9.95 really buys. Remember, guaranteed issue policies like this are often not necessary — most seniors qualify for first-day coverage with an experienced broker.
Want the fastest way to compare your real options?
📞 Call 269-230-3464 or get your free personalized quote online now.
How Colonial Penn Life Insurance Works
Colonial Penn offers a guaranteed acceptance whole life policy for ages 50–85. No exams, no health questions — acceptance is guaranteed.
Key Features
- Permanent coverage that never expires
- Level premiums that won’t increase with age
- No cash value buildup for the first 3 years
- 2-year graded death benefit: If you die within 2 years (except accidental), beneficiaries get a refund of premiums plus interest
- Coverage sold in $9.95 “units,” with a maximum of 25 units per policy in 2025
What does that mean?
One unit at $9.95 per month might only provide $400–$1,200 of coverage depending on age and gender. Even with 25 units, your total coverage may max out under $10,000, often below typical funeral costs. An expert life insurance broker can often find better coverage for a similar or lower monthly premium — coverage that starts on day one.
Check instantly what coverage you qualify for: [Instant Quote Tool]
$9.95 Units — The Fine Print
The “$9.95” price is per unit. The older the applicant, the lower the coverage per unit.
- 1 unit ≈ minimal coverage for someone 75–85
- Younger applicants (50–60) get more coverage per unit
- Maximum 25 units — still often insufficient for full final expense needs
Many consumers assume $9.95 buys $10,000 in coverage, but to reach that amount, you may need to pay $100+ per month and still wait 2 years for full benefits. With proper guidance from an experienced broker, most seniors can secure better coverage for less, often without waiting periods.
Pros & Cons of Colonial Penn
✅ Pros
- Guaranteed acceptance (no medical exams)
- Fixed monthly premiums
- Permanent coverage
- Works for seniors with serious health issues
❌ Cons
- 2-year waiting period for natural death benefits
- Extremely low coverage per unit
- Complex “unit” pricing can confuse consumers
- Consumer complaints higher than industry average
- No policy customization options
Consumer Complaints
Colonial Penn has a NAIC complaint ratio of ~4.13, over four times the industry average. Common complaints include:
- Misleading advertising around the $9.95 price
- Confusion about the 2-year waiting period
- Delays in claim payouts
- Inability to customize coverage
Who Should (and Shouldn’t) Buy Colonial Penn
Best Candidates
- Seniors 75–85 with serious health conditions
- People who cannot qualify elsewhere
Who Should Look Elsewhere
- Anyone under 75 with moderate or good health
- Those wanting larger coverage without waiting periods
- Seniors who want transparent pricing and flexible options
- If you think you need guaranteed issue life insurance, consult a broker first — you may qualify for first-day coverage policies that cost less and provide more protection.
Compare alternatives for better value:
- Gerber Life — Competitive guaranteed issue, better rates
- Other no-exam policies via independent agents — First-day full coverage for most
📞 Call us at 269-230-3464 or get a free quote to see your real options.
Better Burial Insurance Alternatives
| Feature | Colonial Penn | Gerber Life | Independent Agent Option |
|---|---|---|---|
| Health Questions? | ❌ None | ❌ None | ✅ Lenient |
| 2-Year Waiting? | ✅ Yes | ✅ Yes | ❌ No (if approved) |
| Coverage Amount | Depends Upon Age | Up to $25,000 | $2,000–$50,000+ |
| Monthly Premiums | Fixed per unit $9.95/ea | Custom quotes | Custom quotes |
| Underwriting Flexibility | Guaranteed Issue | Guaranteed Issue | High (can approve higher risks) |
| Death Benefit Payout | Delayed 2 yrs | Delayed 2 yrs | Immediate |
Example: A 74-year-old woman paying $39.80/month for $3,208 in coverage with Colonial Penn switched to Mutual of Omaha for $36.91/month — got full, first-day whole life coverage of $5,500+ of protection. Imagine if that same woman needed enough for a full funeral and burial, not just a cremation. $15,000 with Colonial Penn requires roughly 19 units at $9.95/unit. This is roughly $189/month while Mutual of Omaha offers $29,000 of coverage for the same 74-year-old woman for and nearly identical monthly premium.
Instantly check your coverage options: [Get Free Quote]
Is Colonial Penn Life Insurance Legit?
Yes, Colonial Penn is legit and financially sound, but the $9.95 plan is often overpriced and underwhelming. Being legit doesn’t necessarily mean it’s the best option for your needs.
Most of our clients can qualify for no-exam, first-day full coverage policies, even with some health issues. Guaranteed issue is rarely necessary unless someone is high-risk and can’t qualify elsewhere. Talking to an expert broker ensures you aren’t paying more than you need for minimal coverage.
Expert Verdict
Colonial Penn’s $9.95 plan is not a scam, but for most seniors, it’s one of the least cost-effective options. Unless your health absolutely prevents other coverage, better options exist: larger coverage, first-day payout, transparent pricing. Consulting a skilled broker ensures you get the right policy without overpaying.
📞 Call 269-230-3464 or request a free personalized quote today — don’t settle for marketing hype.
Final Thoughts
- $9.95 unit pricing is variable and confusing
- Waiting period leaves your family at risk for 2 years
- Independent agents can offer better coverage and rates
- Most seniors qualify for full first-day coverage through other carriers
- Talk to a knowledgeable broker before assuming guaranteed issue is necessary
Taking the time to compare options and talk to a knowledgeable agent ensures you get the right policy.
Is Colonial Penn Life Insurance Legit?
Yes, Colonial Penn is legitimate, but the $9.95 plan is often overpriced and underwhelming. Most clients can qualify for no-exam, first-day full coverage policies, even with some health issues.
Guaranteed issue is rarely necessary unless someone is high-risk and can’t qualify elsewhere.
📞 Call 269-230-3464 or request a free personalized quote today — get the right policy for you.
What is the $9.95 plan really worth?
The $9.95 “unit” often buys less than $500 in coverage for older applicants, and there’s a 2-year waiting period before full natural death benefits. Many seniors overestimate what this plan actually provides.
Use our personal quote tool to see what coverage you truly qualify for.
Are there better options than Colonial Penn?
Yes. Independent agents can help you get full coverage from day one with transparent pricing, often at lower premiums. Carriers like Gerber Life and others provide more coverage for a similar cost.
📞 Call 269-230-3464 or request a free quote to see your real options.
Next Steps
- Use our instant quote tool
- Call 269-230-3464 for personalized guidance
- Compare multiple carriers for full coverage at better rates
Don’t let advertising gimmicks dictate your choice — your family deserves better than a $9.95 unit. Talk to an expert broker before making a decision.
Michael is a veteran independent life and health insurance agent who specializes in guiding people with even high risk health conditions thru the insurance process. He is passionate about helping individuals and families get their unique financial protection needs met, providing his experienced based advise and delivering affordable, dependable coverage you can count on.