I Bought The Colonial Penn $9.95 Plan

(The Only Review Completed by an Insurance Agent and Colonial Penn Customer)

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

This 2024 Colonial Penn review is based on my experience as a policyholder and my experience as a licensed insurance agent.

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.

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.

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

I’ll give credit where credit is due – Colonial Penn is a television 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:

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!

And 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

All the above people are widely recognized by mature men and women who spent years listening to and watching these celebrities.

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.

After the first two policy years, the full face amount is paid.

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

Loans may be taken against the policy cash surrender value.

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.

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.

It starts with a quote.

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
1 Unit ($9.95)	$1,420
2 Units ($19.90)	$2,840
3 Units ($29.85)	$4,260
4 Units ($39.80)	$5,680
5 Units ($49.75)	$7,100
6 Units ($59.70)	$8,520
7 Units ($69.65)	$9,940
8 Units ($79.60)	$11,360
10 Units ($99.50)	$14,200
11 Units ($109.45)	$15,620
12 Units ($119.40)	$17,040
13 Units ($129.35)	$18,460
14 Units ($139.30)	$19,880
15 Units ($149.25)	$21,300

I selected one unit 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 – Their name, relationship to you, and beneficiary percentage.
3. Payment Information – Bank or credit card info and the monthly payment date.

That’s all there is to it. It’s very simple to complete and took 10 minutes at the most.

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 life 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 a lot of negative reviews with the Better Business Bureau.

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.

$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 3/10/2024 and is subject to change.

Life Insurance Per Unit Purchased from Colonial Penn – As of 3/10/2024

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

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.

Female Graded Benefit Monthly Rates:

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

Male Graded Benefit Monthly Rates:

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

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.

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.

Female Level Benefit Monthly Rates:

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

Male Level Benefit Monthly Rates:

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.

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.