Colonial Penn $9.95 Plan Review (2026)
Colonial Penn's $9.95 plan is a guaranteed acceptance whole life policy that uses a "unit" system. Each unit costs $9.95/month. The problem: each unit only buys about $420 to $2,000 of coverage depending on your age and gender. To reach a meaningful $10,000 death benefit, most seniors need 5 to 15 units, costing about $50 to $149 per month. At that price point, standard simplified-issue carriers offer the same coverage with no waiting period and often for about half the cost. The $9.95 price is real, but one unit is not enough to pay for a funeral.
The Unit System
How the $9.95 Unit System Actually Works
Colonial Penn does not sell coverage in dollar amounts like most insurers. Instead, you buy "units" at $9.95 each. Each unit provides a fixed amount of coverage based on your age and gender at the time of purchase.
Coverage Per Unit (from Colonial Penn's published per-unit rates)
| Age | Female (per unit) | Male (per unit) | Units needed for $10,000 |
|---|---|---|---|
| 50 | $2,000 | $1,669 | 5 units ($49.75/mo) |
| 55 | $1,761 | $1,420 | 6 units ($59.70/mo) |
| 60 | $1,515 | $1,167 | 7 units ($69.65/mo) |
| 65 | $1,258 | $896 | 8 units ($79.60/mo) |
| 70 | $1,000 | $689 | 10 units ($99.50/mo) |
| 75 | $762 | $549 | 14 units ($139.30/mo) |
| 80 | $608 | $426 | 15-unit max ($149.25/mo, ~$9,120) |
The math: A 70-year-old male buying $10,000 of coverage through Colonial Penn hits the 15-unit maximum at $9.95 each = $149.25/month for about $10,335 of coverage. The same $10,000 from Mutual of Omaha (simplified issue, Level day-one): $75/month. That is about 50% less, and no 2-year waiting period. For the full breakdown, see our Mutual of Omaha vs Colonial Penn comparison.
The Waiting Period
The Two-Year Waiting Period Problem
Colonial Penn's plan is guaranteed issue, no health questions asked. The trade-off: a mandatory 2-year waiting period for natural-cause death.
What this means:
- If the policyholder passes from natural causes during the first two years, beneficiaries receive only premiums paid back + interest (no death benefit)
- Accidental death pays the full benefit from day one
- After 24 months, the full death benefit is in effect
Why this matters: Many seniors who buy Colonial Penn because of the TV commercials do not realize they could qualify for simplified issue coverage with no waiting period at standard carriers. Simplified issue requires a short health questionnaire but no medical exam. If you can answer the health questions favorably, you get day-one coverage, full benefit immediately, at a lower price than Colonial Penn's multi-unit cost.
The guaranteed-issue waiting period only makes sense for applicants who genuinely cannot pass ANY simplified-issue health questionnaire at ANY carrier.
Most seniors qualify for day-one coverage
A licensed Asurgo specialist will check if you qualify for simplified issue before any application goes in. No obligation.
At a Glance
Colonial Penn at a Glance
| Colonial Penn | |
|---|---|
| AM Best Rating | A- (Excellent) |
| BBB Rating | Accredited |
| NAIC Complaint Index | Approximately 4x industry average |
| Product | Guaranteed acceptance whole life (unit-based) |
| Coverage amounts | Varies by units purchased ($400-$50,000+) |
| Medical exam required? | No |
| Health questions? | No (guaranteed issue) |
| Age range | 50-85 |
| Waiting period | Yes, 2 years for natural-cause death |
| Best for | Applicants who cannot qualify for simplified issue at any carrier |
| Not ideal for | Anyone who can answer a short health questionnaire (most seniors) |
Strengths
What Colonial Penn Does Well
True Guaranteed Acceptance
No health questions, no exam, no prescription check. If you are 50-85, you are approved. Period. For seniors with severe health complications who cannot qualify for ANY simplified-issue plan, this is genuinely the fallback.
Simple Premium Structure
$9.95 per unit, same price regardless of health. No confusing health-based pricing tiers.
Rates Never Increase
Once locked in, the per-unit price stays the same for life.
Awareness and Accessibility
Colonial Penn's TV advertising means many seniors are already aware of the product. Jonathan Lawson's commercials reach an audience that might not otherwise think about final expense coverage.
Drawbacks
Where Colonial Penn Falls Short
The Unit System Obscures Real Cost
$9.95 sounds affordable until you realize one unit buys $400-$1,800 of coverage. The national median funeral cost is approximately $8,000. One unit does not come close. Use our burial cost calculator to see the cost in your state.
Dramatically More Expensive Per Dollar of Coverage
For $10,000 of coverage at age 70, Colonial Penn costs about $99.50/month for a woman (10 units), up to its 15-unit maximum of $149.25/month for a man. The same coverage from Mutual of Omaha (simplified issue): $53 to $75/month. That is roughly twice the price.
Mandatory Waiting Period
Every Colonial Penn policy has a 2-year waiting period for natural-cause death. Standard simplified-issue carriers offer day-one coverage with no waiting period for qualifying applicants.
Complaint Rate
Colonial Penn's NAIC complaint index runs approximately 4x the industry average for companies its size.
No Health-Based Pricing Advantage
Because Colonial Penn is guaranteed issue, everyone pays the guaranteed-issue premium, even applicants who are healthy enough to qualify for simplified issue at other carriers. Healthy seniors are overpaying significantly.
Rate Comparison
Colonial Penn vs. Standard Carriers: Side-by-Side
$10,000 Coverage, Monthly Cost Comparison (Non-Tobacco)
| Age | Colonial Penn (est.) | Mutual of Omaha | Transamerica | Savings |
|---|---|---|---|---|
| 60 | $69.65 (7 units) | $33 (F) / $44 (M) | $35 (F) / $45 (M) | ~53% less |
| 65 | $79.60 (8 units) | $41 (F) / $56 (M) | $44 (F) / $58 (M) | ~48% less |
| 70 | $99.50 (10 units) | $53 (F) / $75 (M) | $56 (F) / $77 (M) | ~47% less |
| 75 | $139.30 (14 units) | $72 (F) / $100 (M) | $72 (F) / $98 (M) | ~48% less |
Plus the coverage difference:
| Colonial Penn | Standard Carriers (via Asurgo) | |
|---|---|---|
| Waiting period | 2 years (mandatory) | None (Level day-one) |
| Full benefit starts | Month 25 | Day 1 |
| Health questions | None | 8-12 yes/no questions |
| Medical exam | No | No |
See what you would actually pay
We compare top carriers to find your lowest qualifying rate, often 50-65% less than Colonial Penn.
Is It Right for You?
Who Should Consider Colonial Penn
Colonial Penn may be appropriate if:
- You have been declined by multiple simplified-issue carriers
- You have active cancer treatment, dialysis, or other conditions that disqualify you from all simplified-issue plans
- You specifically want guaranteed acceptance with no health questions of any kind
- You are comfortable with the 2-year waiting period
Colonial Penn is likely NOT the right choice if:
- You are in reasonably stable health (most seniors are)
- You can answer basic health questions (most people can)
- You want day-one coverage with no waiting period
- You want the lowest rate for your coverage amount
The test: If you can answer "no" to questions like "Are you currently receiving treatment for cancer?" and "Are you on dialysis?", you likely qualify for simplified-issue coverage that is cheaper and has no waiting period.
Side by Side
How Asurgo's Carriers Compare
| Colonial Penn | Asurgo (Multiple Top Carriers) | |
|---|---|---|
| Type | Guaranteed issue only | Simplified issue + guaranteed issue |
| Health questions | None | 8-12 (for simplified issue) |
| Waiting period | 2 years (all policies) | None (Level day-one for qualifying applicants) |
| $10K coverage at 70 | $99.50-$149.25/mo | $53-$77/mo (Level) |
| Coverage max | Depends on units | $50,000 |
| Carriers | 1 (themselves) | Multiple top carriers compared |
Most seniors qualify for day-one coverage
See your rate from top carriers, free, no obligation.
The Long-Term Math
The 10-Year Cost: Colonial Penn vs. Alternatives
The monthly gap between guaranteed acceptance and simplified issue looks modest at first. Over a decade it adds up. Here is what a 60-year-old woman pays over time for $10,000 of coverage, comparing Colonial Penn's unit pricing against a simplified issue Level policy from Mutual of Omaha.
| Colonial Penn (7 units) | Mutual of Omaha (SI Level) | |
|---|---|---|
| Monthly premium | $69.65 | $33.00 |
| Annual cost | $835.80 | $396 |
| 5-year total paid | $4,179 | $1,980 |
| 10-year total paid | $8,358 | $3,960 |
| Coverage amount | $10,605 | $10,000 |
| Waiting period | 2 years | None |
| Day-one benefit (natural death) | Return of premiums + interest | Full $10,000 |
Over 10 years, a 60-year-old woman would pay about $8,358 to Colonial Penn for roughly $10,600 in coverage, compared to about $3,960 to Mutual of Omaha for $10,000 with no waiting period. The difference is roughly $4,400 over a decade. This is the core trade-off: Colonial Penn guarantees acceptance regardless of health, but the cost of that guarantee is substantial for seniors who could qualify for simplified issue coverage elsewhere. If you are unsure whether you qualify, our burial insurance with no waiting period guide explains day-one options, and you can compare your options across 25+ carriers.
Common Questions
Frequently Asked Questions
Is Colonial Penn worth it?
For most seniors, no. Colonial Penn's guaranteed-issue pricing makes sense only if you cannot qualify for simplified-issue coverage at any other carrier. Most seniors can qualify, meaning they would get more coverage, lower rates, and no waiting period elsewhere. The $9.95 advertised price is misleading because one unit provides very little coverage.
How much is Colonial Penn really per month?
The $9.95/month buys one unit of coverage, typically $420 to $2,000 depending on age and gender. To get $10,000 in coverage (enough for a basic funeral), most seniors need 5 to 15 units, costing $50 to $149 per month. At age 70, a woman needs about 10 units, or $99.50 per month, for $10,000 of coverage.
Is there a Colonial Penn alternative with no waiting period?
Yes. Simplified-issue final expense carriers like Mutual of Omaha, Transamerica, Aflac, and others offer day-one coverage (no waiting period) with no medical exam. You answer 8-12 health questions over the phone. If you qualify, full coverage starts immediately at 20-65% less than Colonial Penn's equivalent cost.
Can I cancel Colonial Penn and switch?
Yes. You can purchase a new policy from another carrier at any time. Once your new policy is in force, you can stop paying Colonial Penn premiums. There is no cancellation penalty. Your new rate will be based on your current age.
Why is Colonial Penn so expensive?
Because it is guaranteed issue, no health questions means the carrier assumes higher risk and prices accordingly. Every policyholder pays the guaranteed-issue premium, even those healthy enough to qualify for simplified issue at standard rates. Healthy seniors are subsidizing the cost for the sickest applicants.
Does Colonial Penn require a medical exam?
No. Colonial Penn has no medical exam and no health questions. This is the one genuine advantage, true guaranteed acceptance. The trade-off is the 2-year waiting period and higher per-dollar cost compared to carriers that do ask health questions.
How much coverage does $9.95 actually buy?
One unit at $9.95/month provides approximately $420 to $2,000 of death benefit depending on age and gender. A 70-year-old male gets roughly $689 per unit. The average funeral costs approximately $8,000, meaning a 70-year-old man would need about 12 units ($119.40/month) to cover the funeral.
How many units can you buy from Colonial Penn?
Colonial Penn lets you buy a maximum of 15 units. At $9.95 per unit, that caps the monthly premium at $149.25. How much coverage 15 units provides depends on your age and gender. Using the company's published per-unit rates, a 65-year-old woman would receive about $18,870 in coverage at the 15-unit maximum, and the amount is lower at older ages. At age 80, 15 units provides roughly $9,120 for a woman.
Related Pages
Ready to compare?
Most seniors qualify for day-one coverage with no waiting period, and at 50-65% less than Colonial Penn charges. Asurgo compares top-rated carriers to find you the lowest rate for your health profile.
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Nicholas Norminton, Licensed Insurance Specialist
Specialties: final expense, carrier comparison, independent broker placement, simplified-issue underwriting.
Nicholas is a nationally licensed insurance specialist with extensive experience across the industry. He has personally helped thousands of clients secure life insurance coverage and built Asurgo into a trusted, tech-forward brokerage serving clients in 48 states.