Colonial Penn $9.95 Life Insurance Review From an Agent (Who Bought It)

I’m a licensed insurance agent, and I bought the Colonial Penn $9.95 plan to see what it’s like. Here’s my review as both a customer and agent.

What better way to review the Colonial Penn 9.95 plan than to buy it for myself – So that’s what I did.

I’ll tell you about my experience, how it compares to other companies, and how the Colonial Penn $9.95 plan stacks up against competitors.

While many websites review the Colonial Penn $9.95 plan, this is the first life insurance company review completed by a licensed insurance agent who bought a Colonial Penn policy.

The Colonial Penn $9.95 plan is the senior life insurance as seen on TV.

Colonial Penn is a marketing machine. If you turn on your TV around lunchtime, you will probably see Jonathan Lawson, the latest Colonial Penn spokesperson.

And Jonathan Lawson will tell you to remember the Three P’s of Colonial Penn:

It’s a simple message that resonates with consumers—so much so that Colonial Penn’s parent CNO reported almost $684 million in traditional life revenue in 2022!

Colonial Penn has a long history of using well-known celebrities to convey their message:

• Ed McMahon – Johnnie Carson’s long-time sidekick on the Tonight Show.
• Lou Rawls – Famous singer and actor.
• Meredith Vieira – television personality
• Mary Lou Retton – Olympic Gold Medalist
• Tom Bergeron – TV personality
• Joe Theismann – Super Bowl Champion
• Alex Trebek – Jeopardy Game Show Host

Celebrities are all great, but what do they know about life insurance??

That’s where we can help you compare Colonial Penn to other life insurance options that are available.

The Colonial Penn $9.95 plan is a Modified Benefit Whole Life Plan.

The policy offers a limited death benefit during the first two policy years for non-accidental deaths. Non-accidental deaths during the first two years will return paid premiums plus compounded interest.

Accidental deaths pay the total face amount of the policy.

The full face amount is paid if death occurs after two years.

Premiums are payable to age 100, and the policy matures at age 121.

We’ve helped clients find affordable day 1 coverage, even when they have a history of medical conditions such as:

As a comparison, many competitive companies available offer Day 1 coverage with age 121 guarantees, including:

• Protective Life
• Nationwide
• North American
• Pacific Life
• Corebridge
• Banner Life

There is no shortage of companies available for this type of coverage and you’ll find articles throughout our blog about the companies and coverage available.

Some companies offer long-term care insurance benefits that Colonial Penn does not.

Loans may be taken against the policy cash surrender value, but remember that if you take a loan you have to pay it back or Colonial Penn will offset it against your death benefit when you die.

Non-Forfeiture Benefits – If you stop paying premiums on the policy, non-forfeiture allows you to continue the policy as:

1. Extended-term life insurance
2. Paid-up life insurance
3. Surrender the policy for its cash surrender value

The policy data pages include a chart indicating the values of extended-term life, paid-up insurance, and cash surrender values.

Something else to consider is the amount of life insurance needed, as Colonial Penn is limited compared to other companies.

We have answers if you have questions about the Colonial Penn $9.95 plan!

With Colonial Penn, you can complete your application online or over the phone.

I chose the online process for my life insurance application.

Their system will ask you for your residence state to start the process – Florida, in my case. Colonial Penn asks for the following information.

1. My Name
2. My Address
3. Date of Birth
4. Phone Number
5. Gender
6. Email Address

Completing the above takes you to the next page, where you’ll be asked about your coverage amount.

In my case, for a 55-year-old male, coverage amount choices were 1 – 15 units of coverage (more on units later on). When you select, the system tells you how much life insurance coverage your unit gets you. Here’s what my coverage amount choices looked like:

Units Selected (monthly premium)	Base Plan Coverage	Coverage with Another Company for the same rate
1 Unit ($9.95)	$1,420	n/a
2 Units ($19.90)	$2,840	n/a
3 Units ($29.85)	$4,260	n/a
4 Units ($39.80)	$5,680	n/a
5 Units ($49.75)	$7,100	n/a
6 Units ($59.70)	$8,520	$25,000
7 Units ($69.65)	$9,940	$30,000
8 Units ($79.60)	$11,360	$50,000
10 Units ($99.50)	$14,200	$60,000
11 Units ($109.45)	$15,620	$70,000
12 Units ($119.40)	$17,040	$100,000
13 Units ($129.35)	$18,460	$105,000
14 Units ($139.30)	$19,880	$110,000
15 Units ($149.25)	$21,300	$125,000

I selected one unit ($1420 death benefit) for the Colonial Penn $9.95 plan and continued with my application.

When you reach this point, you are almost done. A few more questions to complete, such as:

1. Replacement – Are you replacing an existing policy?
2. Beneficiary Information – Name, relationship to you, and beneficiary %.
3. Payment Information – Bank/credit card info and the monthly payment date.

That’s all there is to it. It’s simple to complete and takes about 10 minutes.

I know from my own experience as an agent working with seniors that one of their biggest concerns is not to be a burden on their loved ones if they die.

Colonial Penn nails this better than 99% of the insurance companies out there!

If my Colonial Penn $9.95 life insurance review ended right now, I would tell you that it is a simple and easy-to-use process for seniors.

About a week later, I received my policy in the mail.

The real questions begin with the second half of my review – What are you getting for your money, and is Colonial Penn the best deal available?

If you ask yourself if Colonial Penn is a legitimate life insurance company, you’re not alone.

The company was founded by AARP founder Leonard Davis and is owned by CNO Financial Group.

CNO has $36 billion in assets and 3.2 million policyholders as a company.

Other companies owned by CNO include Bankers Life and Washington National.

Colonial Penn has its share of negative reviews with the Better Business Bureau.

However, there are also people who’ve had positive experiences with Colonial Penn.

If nothing else, the sheer volume of its advertising has raised awareness about the need for life insurance.

When you read through some reviews, the common theme seems to be the limited benefits during the first two years and the amount of life insurance that $9.95 buys you.

While everyone pays the same $9.95 per unit at Colonial Penn, the life insurance you receive varies based on your age, gender, and state of residence.

Colonial Penn is the only company we know of that charges by the unit rather than charging based on the amount of life insurance. It leads to lots of confusion.

If you complete a Google search asking if Colonial Penn uses deceptive or misleading advertisements, you’ll see plenty of articles about that topic.

Here’s the thing – All insurance companies, including Colonial Penn, are subject to insurance department regulations in every state.

As much as how they sell their products may seem confusing (and it is) compared to other companies, your state has approved this company to do business.

Bottom Line: The “unit” system of selling life insurance makes it difficult for consumers to compare Colonial Penn to other companies.

$9.95 a month gets you one life insurance unit with Colonial Penn. The problem is that life insurance units have ZERO meaning to your beneficiary, nursing home, funeral home, or anyone other than Colonial Penn.

Only Colonial Penn knows how much life insurance death benefit you get for your life insurance unit because it’s based on your age, gender, and state of residence.

The only way to accurately compare Colonial Penn prices to other companies is to convert Colonial Penn units to a rate per every $1,000 in coverage because that’s how other companies price their products.

The good news is that we did all the work for you, breaking down the amount of life insurance you get for one unit and calculating the cost per every $1,000 life insurance for you to compare to other companies.

The life insurance you receive varies by gender, age, and residence. The information below is based on the State of Florida as of 6/18/2024 and is subject to change.

Life Insurance Per Unit Purchased from Colonial Penn – As of 6/15/2024

Age	Female Life Insurance Per Unit	Male Life Insurance Per Unit
50	$2,000	$1,669
51	$1,942	$1,620
52	$1,890	$1,565
53	$1,845	$1,515
54	$1,802	$1,460
55	$1,761	$1,420
56	$1,719	$1,370
57	$1,669	$1,313
58	$1,620	$1,258
59	$1,565	$1,200
60	$1,515	$1,167
61	$1,460	$1,112
62	$1,420	$1,057
63	$1,370	$1,000
64	$1,313	$949
65	$1,258	$896
66	$1,200	$846
67	$1,167	$802
68	$1,112	$762
69	$1,057	$724
70	$1,000	$689
71	$949	$657
72	$896	$627
73	$846	$608
74	$802	$578
75	$762	$549
76	$724	$521
77	$689	$493
78	$657	$468
79	$627	$441
80	$608	$426
81	$578	$424
82	$549	$423
83	$521	$421
84	$493	$420
85	$468	$418

You may want to ask yourself what your beneficiaries will do with the limited amount of life insurance offered.

Most companies offer pricing based on a “rate per $1,000 life insurance,” which makes it easy to compare companies.

But not Colonial Penn – they provide pricing based on “units.”

The only way to compare Colonial Penn prices is to convert their units to a rate per $1,000. We did the work, so you don’t have to!

Colonial Penn “Rate Per $1,000 of Life Insurance”

Age	Female Rate Per $1,000 of Life Insurance	Male Rate Per $1,000 of Life Insurance
50	$4.98	$5.96
51	$5.12	$6.15
52	$5.26	$6.36
53	$5.39	$6.57
54	$5.52	$6.82
55	$5.65	$7.01
56	$5.79	$7.26
57	$5.96	$7.58
58	$6.14	$7.91
59	$6.36	$8.29
60	$6.57	$8.53
61	$6.82	$8.95
62	$7.01	$9.41
63	$7.26	$9.95
64	$7.58	$10.48
65	$7.91	$11.10
66	$8.29	$11.76
67	$8.53	$12.41
68	$8.95	$13.06
69	$9.41	$13.74
70	$9.95	$14.44
71	$10.48	$15.14
72	$11.10	$15.87
73	$11.76	$16.37
74	$12.41	$17.21
75	$13.06	$18.12
76	$13.74	$19.10
77	$14.44	$20.18
78	$15.14	$21.26
79	$15.87	$22.56
80	$16.37	$23.35
81	$17.21	$23.47
82	$18.12	$23.52
83	$19.10	$23.63
84	$20.18	$23.69
85	$21.26	$23.80

The rate per $1000 can now be compared to any other company’s pricing.

Now that we have the rate per $1,000 pricing above, it’s much easier to compare Colonial Penn to other companies.

Below is a comparison of graded benefit policies between Colonial Penn and Mutual of Omaha.

A graded benefit means that the death benefit payout during the first few years of the policy would be limited to the amount of premiums paid plus interest (usually 10%).

Age	Female Colonial Penn Cost Per $1,000 of Coverage	Female Mutual of Omaha Cost Per $1,000 of Coverage	Female Transamerica Cost Pet $1,000 of Coverage
50	$4.95	$3.23	$7.72
55	$5.65	$3.90	$8.71
60	$6.57	$4.38	$9.76
65	$7.91	$5.08	$11.63
70	$9.95	$6.38	$14.00
75	$13.06	$8.69	$17.03
80	$16.37	$12.17	$23.33

Age	Male Colonial Penn Cost Per $1,000 of Coverage	Male Mutual of Omaha Cost Per $1,000 of Coverage	Male Transamerica Cost Per $1,000 of Coverage
50	$5.96	$4.16	$9.03
55	$7.01	$4.65	$10.59
60	$8.53	$5.73	$12.14
65	$11.10	$6.81	$15.09
70	$14.44	$8.52	$19.16
75	$18.12	$11.00	$24.61
80	$23.35	$15.09	$34.91

From the above, Mutual of Omaha has much better pricing and Transamerica’s pricing is worse.

Another thing to remember about Colonial Penn’s whole life policy is that it’s a graded benefit policy. If you die before two years, your beneficiary may not receive the full death benefit.

If you listen to commercials or read the website, you’ll see and hear “your acceptance is guaranteed” throughout.

In our experience working with clients, there have been occasions when a client felt that a guaranteed acceptance policy was the only option.

Most people don’t realize that even if you have a high-risk health issue such as diabetes, cancer history, heart disease, etc. you may still qualify for a fully underwritten policy at a better price than guaranteed issue policies!

In addition, if you are in good health, you may qualify for a policy that provides immediate death benefits.

Mutual of Omaha offers level death benefits on day one if you qualify.

Level death benefit means that the full death benefit is paid starting on Day One.

Age	Female Colonial Penn Cost Per $1,000 of Coverage	Female Mutual of Omaha Cost Per $1,000 of Coverage	Female Transamerica Cost Per $1,000 of Coverage
50	$4.95	$3.48	$3.87
55	$5.65	$3.80	$4.21
60	$6.57	$4.28	$4.72
65	$7.91	$5.04	$5.52
70	$9.95	$6.19	$6.74
75	$13.06	$7.98	$8.54
80	$16.37	$10.42	$11.57

Age	Male Colonial Penn Cost Per $1,000 of Coverage	Male Mutual of Omaha Cost Per $1,000 of Coverage	Male Transamerica Cost Per $1,000 of Coverage
50	$5.96	$4.08	$4.50
55	$7.01	$4.57	$5.02
60	$8.53	$5.30	$5.80
65	$11.10	$6.49	$6.84
70	$14.44	$8.19	$8.43
75	$18.12	$10.57	$11.17
80	$23.35	$14.29	$15.08

As you can see from this above example, you can get day-one coverage for less money than a graded death benefit policy from Colonial Penn!

Important Note About Level Death Benefits – If you can qualify for a level death benefit final expense policy, you can probably qualify for fully underwritten too!

The advantage of fully underwritten life insurance is that you can get more coverage for less money than a level final expense policy.

We also have many other companies to compare, including AIG-Corebridge Financial, Great Western, Transamerica, and others.

Colonial Penn offers a convenient way to purchase small life insurance policies that do not require medical underwriting.

The pros are that coverage is easy and convenient to qualify for.

The cons are that the unit pricing setup is not common and may be confusing, and secondly, other companies may offer better coverage and rates.

But that is not an advantage, as every competitive life insurance company in the marketplace offers digital applications, e-signatures, quick approvals, and no medical exam requirement.

Take a few minutes to request your quote request today. There is never any pressure or obligation with our service.