Colonial Penn Life Insurance Review 2025

Colonial Penn Burial Insurance Review: $9.95 Plan Breakdown

You’ve seen the commercials. “Just $9.95 per unit!” Sounds cheap, right? But what they don’t tell you is how little coverage that “unit” buys — sometimes as little as $165 in total death benefit.

In this review, I’ll walk you through Colonial Penn’s real rates, the fine print behind the $9.95 unit plan, and why so many people are shocked when their loved ones receive far less death benefit than expected.

My name is Randy, and I’ll also show you better options that cost the same or less — without waiting periods or gimmicks.

---

What Is Colonial Penn Burial Insurance?

Colonial Penn is a well-known name in TV advertising — especially among seniors aged 50 to 85. They offer guaranteed issue whole life policies that promise no health questions, no exams, and no hassles.

But here’s the catch: Colonial Penn’s popular $9.95 plan isn’t what most people think it is.

---

Does Colonial Penn Have A 2-Year Waiting Period?

Colonial Penn offers:

• “Guaranteed acceptance life insurance.”
• “No medical exam and no health questions required.”
• “Guaranteed acceptance coverage options start at just $9.95 a month.”
• “Your acceptance is guaranteed.”

If you die in the first two years for health or medical reasons, the Colonial plan won’t pay your loved ones a single penny of life insurance.

If you die in the first two years, their “limited benefit period,” your beneficiary will only receive your premiums paid plus 7% interest in the first two years.

---

Understanding Colonial Penn’s $9.95 Per Unit Pricing Gimmick

Colonial Penn’s commercials promote insurance “units” for $9.95 each. But they never explain how much coverage one unit buys.

Here’s the truth:

• Each person is offered a different death benefit per unit based on their age and gender
• One unit at age 50 buys more coverage than one unit at age 75
• You can buy up to 15 units max — but the coverage still caps out very low

Age	$9.95 Unit	Real Monthly Cost	Actual Death Benefit
50	1 Unit	$9.95	$1,788
60	1 Unit	$9.95	$1,000
70	1 Unit	$9.95	$522
75	1 Unit	$9.95	$336
80	1 Unit	$9.95	$194

Let’s be honest: $194 won’t even cover a cremation, let alone a burial.

That’s a terrible value compared to other companies that offer level benefit plans (no waiting period) for much more coverage.

And again, the plan has a two-year waiting period.

---

Colonial Penn Life Insurance “SCAM” Pricing

Colonial Penn isn’t a scam. They’re a real insurance company, and they do pay claims. But their marketing is misleading. The $9.95 pricing tactic tricks people into thinking they’re getting way more coverage than they are.

Most people are shocked when they find out they’re paying $50–$100/month for barely a few thousand dollars in coverage — after a two-year wait.

Colonial Penn Overcharges: 10-Year Cost Comparison for $10,000 in Coverage for a 65-year-old male

Male Age	Company	Monthly Premium (for $10,000)	10-Year Total Cost	Waiting Period
70	Colonial Penn	$149.25 (15 units)	$17,910.00	2 Years
70	Trinity Life (Level Benefit)	$66.23	$7,947.60	None
70	AETNA CVS Health	$73.15	$8,778.00	None
70	American Amicable	$78.79	$9,454.80	None
70	Lincoln Heritgage	$88.13	$10,575.60	None

Colonial Penn Overcharges: 10-Year Cost Comparison for $10,000 in Coverage for a 65-year-old female

Female Age	Company	Monthly Premium (for $10,000)	10-Year Total Cost	Waiting Period
70	Colonial Penn	$99.50 (10 units)	$11,940.00	2 Years
70	Trinity Life (Level Benefit)	$52.03	$6,243.60	None
70	AETNA CVS Health	$58.19	$6982.80	None
70	American Amicable	$60.38	$7,245.60	None
70	Lincoln Heritgage	$76.81	$9,21.7.20	None

---

Colonial Penn $9.95 Life Insurance Pros & Cons

PROS of Colonial Penn $9.95 Plan

• Cash Value
• Lifetime Coverage
• Guaranteed Acceptance

CONS of Colonial Penn $9.95 Plan

• Per-Unit Price
• Expensive Rate
• Low Death Benefit
• 2-Year Waiting Period
• $9.95 Pricing Gimmick
• Many Consumer Complaints
• The Won’t Price Shop For You
• Only sell Their Insurance Products

---

Better Alternatives to Colonial Penn Burial Insurance

If you’re between the ages of 50 and 80, and you’re relatively healthy, you can likely qualify for:

• Level benefit final expense insurance (pays out from day one)
• More coverage for the same price — or less
• Policies that explain exactly what you’re getting, with no unit gimmicks

These plans pay fast and don’t leave your loved ones guessing.

---

How Do I Get Approved By Colonial Penn Life Insurance?

This plan accepts everyone with no health questions asked. The only reason to consider the Colonial Penn 2-year limited benefit period is if your health is so bad that you don’t qualify for first-day coverage.

Even if your health is so bad that you don’t qualify for a better first-day coverage plan, this 995 plan insurance is not one you should purchase.

---

Does My Agent Still Work For Colonial Penn Life Insurance?

92% of life insurance agents are out of the insurance profession within three years.

If you’re searching for the best life insurance option, remember that consulting a Colonial Penn “life insurance expert” might not always lead to the most unbiased advice. These experts may have affiliations, incentives, or product restrictions that could sway their recommendations. 

It’s worth mentioning that Colonial Penn’s limited range of life insurance products should be met with a degree of caution, as it may not necessarily translate to the most suitable option for individuals exploring different types of life insurance to safeguard their financial future. It’s essential to conduct thorough research and seek out independent advice when making decisions about your life coverage.

If your Colonial Penn agent has abandoned you, Final Expense Guy can help you get a new policy or add additional coverage to your Colonial Penn policy.

---

Colonial Penn Consumer Reviews And Complaints

Consumers would be wise to ask themselves, is the 995 plan any good?

The Better Business Bureau gives Colonial Penn 1.18 stars out of 5, citing many consumer complaints.

Investopedia states, “Some 90% of the companies we reviewed received a higher grade than Colonial Penn from AM Best.” They rate Colonial Penn as 2.4 out of 5 stars.

The National Association of Insurance Commissioners (NAIC) states that the national median of complaints is 1.00, while Colonial Penn’s complaint ratio is 3.06.

Colonial Penn has 300+% more complaints than other insurance companies, according to the NAIC.

Some NAIC-reported complaints filed against Colonial Penn:

• Lack of death benefit
• Exclusions and riders that significantly reduce death benefit payouts
• High premiums
• Pressure to buy other products
• Bait and switch tactics

The Colonial Penn $9.95 life insurance advertising creates a lot of interest, phone calls, and possibly thousands of negative consumer reviews and complaints annually.

It would be wise to research Colonial Penn life insurance complaints to see if this is the company you want to buy insurance from.

---

Who Are Colonial Penn’s Whole Life Insurance Agents?

Colonial Penn agents can only sell Colonial Penn products. “Captive Carrier” is the term used to describe insurance companies that only sell their products.

If other companies offer lower pricing (and I can assure you, there are many), Colonial Penn agents will NEVER tell you about those other low rates.

Almost all other life insurance companies offer better coverage and rates, and most come with no waiting period.

---

How Can I Get Pricing Help Today?

When considering life insurance options, examining how coverage corresponds to your budget and the life you envision is important.

Colonial Penn Life Insurance, like many others, offers a variety of life insurance products with limited underwriting, promising accessibility even to those who may have faced challenges obtaining life insurance because of health concerns in the past. However, it’s worth noting that such convenience often comes at a cost.

If you need burial, cremation, final expense, or funeral insurance coverage and want to ensure you get the lowest premium possible. In that case, Final Expense Guy can help you shop and compare companies, policies, and prices.

---

CONCLUSION

Choosing the right insurance can be tricky, and Colonial Penn Life Insurance is never the best fit.

The most significant concern with Colonial Penn’s life insurance policies is that you’re dealing with a company that focuses heavily on its 2-year waiting period guaranteed issue whole life policy, which is often the worst type of life insurance plan for individuals. 

For those seeking better rates and more comprehensive coverage options, exploring alternatives like Final Expense Guy is advisable. We provide various insurance products and work diligently to match clients’ life insurance needs, offering more flexibility and potentially better value.