Written by Anthony Martin Fact Checked by Jeff Root & David Duford
Anthony Martin
Anthony Martin is a nationally licensed insurance expert with over ten years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
Jeff Root
Jeff Root is a nationally licensed life insurance expert with over 15 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
David Duford
David Duford is a nationally licensed insurance expert with over ten years of experience. He has personally helped more than 1500 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
Fact Checked
This article has been thoroughly reviewed by the author and third-party life insurance experts to ensure it adheres to our quality standards for accurate and honest advice.
Learn more about our editorial standards.
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As a licensed insurance agency, Choice Mutual is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.
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Our mission is to provide credible content written and fact-checked by verifiable experts to educate consumers like yourself. All content is regularly updated and reviewed to ensure the highest degree of accuracy. We do earn a commission from the sale of insurance products seen on this website. That said, our evaluations, commentary, opinions, and recommendations are not influenced by monetary gain. We always suggest what’s best for each customer rather than what makes us the most money.
Learn more about our editorial standards.
Compensation Disclosure
As an independent insurance agency, Choice Mutual gets paid a commission from our insurance partners every time we sell a policy. Without us, the insurance companies would not have a customer. Your policy does not cost more because we helped you, and our advisory services cost you nothing. The exact amount we get paid for each sale varies depending on the applicant’s age, health, and the specific product applied for. We never recommend products based on which one pays us the most. We suggest products based on the needs and desires of the applicant. It’s also worth noting that we pay our sales agents a salary rather than on a commission-only basis. Choice Mutual does not earn money via selling sales leads or data to third parties, referring users to other websites, displaying ads on our website, or other means.
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Licensing Disclosure
Choice Mutual is a licensed insurance agency authorized to sell insurance in all 50 U.S. states, including D.C. You can verify our license and lines of authority on our licenses page.
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Overall Score
Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:
| Factor | Score Value |
| Price of Coverage | 40% |
| No-Waiting-Period CoverageNo Waiting Period | 20% |
| Financial Strength | 20% |
| NAIC Complaint Index | 20% |
| Overall Maximum | 100% |
Our ratings are tested with scoring model 1.1, a review formula that ensures consistency and accuracy in our assessments.
0.75 out of 5
Rating methodology
1.0
Price of Coverage
Price of Coverage
40% of overall score
Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:
- 50-5% more expensive
- 46-10% more expensive
- 311-20% more expensive
- 221-30% more expensive
- 1≥ 40% more expensive
Download price audit
1.0
No-Waiting-Period CoverageNo Waiting Period
No-Waiting-Period Coverage
20% of overall score
This scoring factor assesses whether an insurer offers coverage with no waiting period and, if so, how difficult it is to qualify for it. If an insurer does not provide coverage with no waiting period, it gets an automatic 1. A score from 2 to 5 indicates that immediate coverage is possible, and the higher the rating, the easier it is for the average applicant to qualify for it.
- 5Most applicants qualify
- 4Fairly easy qualification
- 3Somewhat difficult qualification
- 2Very difficult qualification
- 1No-waiting-period coverage unavailable
4.0
Financial Strength
Financial Strength
20% of overall score
Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:
- 5Superior (A+ or A++)
- 4Excellent (A- to A)
- 3Fair/Good (B- to B++)
- 2Weak/Marginal (C- to C++)
- 1Poor (D or Not Rated)
1.0
NAIC Complaint Index
NAIC Complaint Index
20% of overall score
The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:
- 50.0 - 1.0 (avg or below avg complaints)
- 41.01 - 1.5 (slightly above avg complaints)
- 31.51 - 2.0 (up to 2x avg complaints)
- 22.01 - 3.0 (up to 3x avg complaints)
- 1≥ 3.01 (more than 3x avg complaints)
Rating methodology
It’s true that the Colonial Penn 995 plan costs everyone just $9.95 per month. However, $9.95 only buys one unit of coverage, which often provides a death benefit of $1,000 or less.
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Pros
- Acceptance is guaranteed
- Seniors as old as 85 can apply
- Financially strong insurance company
Cons
- $9.95 buys a tiny amount of life insurance coverage
- Two-year waiting period for natural causes of death
- A confusing unit system that makes it hard to understand what you actually get for $9.95
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).
S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).
Customer Review Ratings
Consumer Protection Organization Scores
7.82
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
A+
Not Accredited
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
Policy Type
Whole Life
New Applicant Age Range
50-85 (50-75 in NY)
Death Benefit Options
1-15 Units
States Where Available
All
Builds Cash Value
Yes
Has Health Questions
No
2-Year Waiting Period
Yes
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Colonial Penn was started in 1968 by Leonard Davis, one of AARP’s co-founders. CNO Financial Group owns Colonial Penn and many other insurance companies, such as Bankers Life.
Alex Trebek was their former spokesman in television advertisem*nts until he died in 2020. Now, Jonathan Lawson is the primary actor in their commercials. Colonial Penn’s home office is in downtown Philadelphia, Pennsylvania, where most of their insurance agents work.
Founding Year
1957
Official Website
www.colonialpenn.com
Headquarters
399 Market Street Philadelphia, PA 19181
Phone Number
800-523-9100
How Does The Colonial Penn 9.95 Plan Work?
The 9.95 plan is a guaranteed acceptance life insurance policy that does not require you to take a medical exam or answer health questions. Colonial Penn sells the $9.95 plan using a unit system.
Everyone, regardless of age or gender, pays just $9.95 monthly for one unit. Your age and gender determine the net death benefit per unit.
For example, a 57-year-old male gets $1,313 of coverage per unit, whereas a 77-year-old male gets only $493 in coverage. If a 57-year-old male wanted at least $10,000 in coverage, he would need to buy eight units (1,313 x 8= $10,504 in net coverage), costing him $79.60 monthly.
It’s important to remember that the 9.95 plan has a two-year waiting period. If you die during the first two years, Colonial Penn will refund your beneficiaries the money you paid plus roughly 10% interest.
It’s permanent whole life insurance, so the premiums will never increase, the death benefit will never decrease in value, and it will build cash value.
Colonial Penn Life Insurance $9.95 Per Month Rate Chart
Refer to the Colonial Penn life insurance rate chart below to see the total monthly premium based on your desired units.
| Number Of Units | Total Monthly Cost |
|---|---|
| 1 | $9.95 |
| 2 | $19.90 |
| 3 | $29.85 |
| 4 | $39.80 |
| 5 | $49.75 |
| 6 | $59.70 |
| 7 | $69.65 |
| 8 | $79.60 |
| 9 | $89.55 |
| 10 | $99.50 |
| 11 | $109.45 |
| 12 | $119.40 |
| 13 | $129.35 |
| 14 | $139.30 |
| 15 | $149.25 |
| **15 units is the most you can buy** | |
$9.95 Plan Coverage Calculator
Use the calculator or table below to see the amount of coverage you’d get per unit of Colonial Penn coverage.
| AGE | 1 Male Unit ($9.95) | 1 Female Unit ($9.95) |
|---|---|---|
| 50 | $1,669 in coverage | $2,000 in coverage |
| 51 | $1,620 in coverage | $1,942 in coverage |
| 52 | $1,565 in coverage | $1,890 in coverage |
| 53 | $1,515 in coverage | $1,845 in coverage |
| 54 | $1,460 in coverage | $1,802 in coverage |
| 55 | $1,420 in coverage | $1,761 in coverage |
| 56 | $1,370 in coverage | $1,719 in coverage |
| 57 | $1,313 in coverage | $1,669 in coverage |
| 58 | $1,258 in coverage | $1,620 in coverage |
| 59 | $1,200 in coverage | $1,565 in coverage |
| 60 | $1,167 in coverage | $1,515 in coverage |
| 61 | $1,112 in coverage | $1,460 in coverage |
| 62 | $1,057 in coverage | $1,420 in coverage |
| 63 | $1,000 in coverage | $1,370 in coverage |
| 64 | $949 in coverage | $1,313 in coverage |
| 65 | $896 in coverage | $1,258 in coverage |
| 66 | $846 in coverage | $1,200 in coverage |
| 67 | $802 in coverage | $1,167 in coverage |
| 68 | $762 in coverage | $1,112 in coverage |
| 69 | $724 in coverage | $1,057 in coverage |
| 70 | $689 in coverage | $1,000 in coverage |
| 71 | $657 in coverage | $949 in coverage |
| 72 | $627 in coverage | $896 in coverage |
| 73 | $608 in coverage | $846 in coverage |
| 74 | $578 in coverage | $802 in coverage |
| 75 | $549 in coverage | $762 in coverage |
| 76 | $521 in coverage | $724 in coverage |
| 77 | $493 in coverage | $689 in coverage |
| 78 | $468 in coverage | $657 in coverage |
| 79 | $441 in coverage | $627 in coverage |
| 80 | $426 in coverage | $608 in coverage |
| 81 | $424 in coverage | $578 in coverage |
| 82 | $423 in coverage | $549 in coverage |
| 83 | $421 in coverage | $521 in coverage |
| 84 | $420 in coverage | $493 in coverage |
| 85 | $418 in coverage | $468 in coverage |
| Source: www.colonialpenn.com. Data retrieved on 9/12/2024. | ||
Should You Buy The Colonial Penn 995 Plan?
If you need insurance to cover your funeral expenses or for any other reason, the Colonial Penn $9.95 plan is the last policy you should consider.
Many other burial insurance companies offer cheaper final expense life insurance with no waiting period.
For example, a 54-year-old female would spend $119.40 monthly with Colonial Penn to get at least $20,000 in coverage (with a 2-year waiting period). On the other hand, Aflac would only charge $53.71, and Living Promise from Mutual of Omaha would cost $50.96. In addition to having a substantially lower cost, both Aflac and Mutual of Omaha offer coverage with no waiting period.
Working with an independent insurance agency that represents multiple providers is the most surefire way to find the best policy at the lowest rate.
Independent agents sell insurance for many companies, allowing them to compare and contrast each provider to find you the best deal.
Plus, nearly all final expense policies with no waiting period are only sold through agencies. They cannot be bought online or through the mail.
Frequently Asked Questions
The coverage you get per 995 unit varies based on your age and gender. For example, at age 68, one $9.95 unit buys a male $762 in life insurance coverage and $1,112 for a female. An 80-year-old male gets $426 in coverage per unit, whereas an 80-year-old female would get $608 in coverage.
The 995 plan has a two-year waiting period because there are no health questions. Colonial Penn has a whole life policy with no waiting period, but it’s only available in New York.
The Colonial Penn 9.95 plan has no additional fees or surcharges. The monthly premium is $9.95 times the number of units you want (15 units is the maximum). Depending on your insurance needs, you might need to buy more than one unit to secure the total coverage you want.
The 995 plan costs $9.95 monthly per unit. Multiply 9.95 times the number of units you want for the total monthly cost.
Colonial Penn no longer sells term life insurance. They did in the past, and some websites still erroneously claim they do. According to the Colonial Penn website, permanent life insurance is the only type of coverage they offer.
The death benefit payout from the Colonial Penn $9.95 plan depends on your age and gender and how many units of coverage you have. For example, a 50-year-old female would get a $2,000 death benefit per 995 unit. If she bought five units at $49.75 monthly (9.95 x 5), the total payout would be $10,000. Also, remember that the 9.95 plan has a two-year waiting period. Colonial Penn will only refund your premiums plus approximately 10% interest if you die during the waiting period.
Article Sources
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
- 9.95 plan. https://colonialpenn.com/products/guaranteedacceptance
- CNO Financial Group. https://www.cnoinc.com/what-we-do
- Colonial Penn website. https://colonialpenn.com/products/insurance
- A.M. Best. https://ratings.ambest.com/DisclosurePDF.aspx?AMBNum=6240
- Moody's. https://ir.cnoinc.com/financials/financial-ratings/
- S&P Global. https://ir.cnoinc.com/financials/financial-ratings/
- BBB. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
- Trustpilot. https://www.trustpilot.com/review/www.colonialpenn.com
- Google. https://www.google.com/maps/place/Colonial+Penn+Life+Insurance+Company/@39.9506348,-75.1516416,16z/data=!3m1!5s0x89c6c88446e79631:0xedc6cdcc6712c19c!4m8!3m7!1s0x89c6c8844712c7c7:0x36df3df4d2e9e0b5!8m2!3d39.9506308!4d-75.1467707!9m1!1b1!16s%2Fg%2F1tgw5_2_?entry=ttu
- Yelp. https://www.yelp.com/biz/colonial-penn-insurance-philadelphia
- Facebook. https://www.facebook.com/ColonialPennLifeInsuranceCompany/
- NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=62065&REALM=PROD&COCODE=62065&REALM=PROD
- BBB Score & Accreditation. https://www.bbb.org/us/pa/philadelphia/profile/insurance-companies/colonial-penn-life-insurance-company-0241-80001800
- www.colonialpenn.com. https://colonialpenn.com/quote
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