995 Plan from Colonial Penn: A 2024 Review

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Colonial Penn Life Insurance

2.0
The Verdict: Listen, Colonial Penn is not an evil company. They are not trying to scam you. Yes, their prices are high for most people. But for others, the Colonial Penn $9.95 Plan is the best deal out there. Read on and we'll prove it to you.
$9.95 Plan Pros
  • Permanent coverage: your coverage never expires and cannot be canceled
  • Flat rates: unlike players like Globe and AARP, Colonial Penn's rates are fixed
  • Guaranteed acceptance: no medical exams or health questions
$9.95 Plan Cons
  • Price: the $9.95 plan can be one of the most expensive options on the market
  • Waiting period: the full death benefit is only available after 2 years

  • 93 Companies reviewed
  • 50 Features considered
  • 4,650 Data points analyzed

We collected 4,650 data points from 93 life insurance companies to measure financial stability, customer satisfaction, product and feature variety, and the overall buying experience. We then evaluated each company based on 50 metrics to develop unbiased, comprehensive reviews.

Colonial Penn’s TV commercials are pretty slick. Whether they feature Alex Trebek or their newest spokesperson, Jonathan Lawson, pitching guaranteed life insurance starting at $9.95 per month, it’s hard not to find them compelling.

But is there substance behind their appealing marketing? That’s where we can help.

The “$9.95 Plan” (or “995 Plan”) is a whole life insurance product from Colonial Penn.

The plan offers lifetime coverage, guaranteed acceptance, and a quick online application. However, it has major drawbacks, including a 2-year waiting period and BBB complaints about claims and payout difficulties. Worst of all, it’s a ripoff.

Choose kindness.

You never know what battles people may be fighting.

How Much Coverage Is The 995 Plan?

Before deciding on a policy to help cover future funeral expenses, it’s important to read Colonial Penn reviews to gauge whether their offerings align with your financial needs and expectations.

First, we’ll look at the key question most people want answered: “How much coverage is the $9.95 plan?”

You know the premium rate ($9.95), and this cost is small enough to fit any consumer budget, but what cash payout will you get?

Table: The Coverage You Get For $9.95

Age Coverage For $9.95 (Men) Coverage For $9.95 (Women)
Age 50 $1,669 $2,000
Age 55 $1,420 $1,759
Age 60 $1,167 $1,515
Age 65 $896 $1,258
Age 70 $689 $1,000
Age 75 $549 $762
Age 80 $426 $608
Age 85 $418 $468

As you can see, the life insurance benefit amount you can purchase varies widely, depending on your age and gender.

The cost ranges from as much as $2,000 for a 50-year-old woman to as little as $418 for an 85-year-old man.

Buying Multiple Units Of Coverage

As you can see, one “unit” does NOT provide much coverage.  So what if you need more coverage?

Colonial Penn allows you to purchase up to 15 units of coverage, with each unit costing $9.95.

This is how Colonial Penn can get expensive: You have to buy many units to get reasonably covered.

You can purchase two coverage units if you can afford twice that amount ($20). You can purchase three coverage units if you can afford three times that amount ($30). And so on, up to ~$150 per month for 15 coverage units.

Colonial Penn vs. Other Life Insurance For Seniors

Below is a comparison of burial insurance plans like the Colonial Penn 995 Plan and its three major competitors: AARP, Globe Life, and Mutual of Omaha.

995 Plan Mutual
of Omaha
Globe
Life
AARP
Ages 50-85 45-85 18-80 50-80
Coverage Varies $2K-
$40K
$5K-
$100K
$5K-
$25K
Medical Exam No No No No
Waiting Period Yes No No Yes
Rates $5K (65, F) $40 $22 $30 $25

The takeaway?  You can buy just as much coverage from Mutual of Omaha for ~half the price of the 9.95 insurance plan!

Choose kindness.

You never know what battles people may be fighting.

Colonial Penn 995 Plan Ratings & Reviews

Enough from us, right?  Let’s dive into some third-party opinions on Colonial Penn.

Financial Strength Ratings

Colonial Penn has strong financial strength ratings. This means it has the resources to pay out life insurance claims regardless of the economic environment.

Colonial Life Insurance currently holds the following ratings:

  • A.M. Best:  A-
  • S&P:  A-
  • Moody’s:  A3
  • Fitch:  A-

Colonial Penn 995 Plan Better Business Bureau (BBB) Reviews

However, the Company’s Better Business Bureau page paints a much different picture of Colonial Penn.

Over the past three years, Colonial Penn has had 183 customer complaints filed with the BBB, with 124 closed in the last 12 months.

Colonial Penn Customer Complaint Summary

An equally revealing part of their BBB profile is the customer complaints section. (See the linked article for a more detailed overview of Colonial Penn’s complaint and negative review history.)

Our Recommendation

Colonial Penn is a well-known insurance company with a smooth application process and a strong history of paying out on claims.

However, remember that their $9.95 whole life insurance offer is a gimmick.  The price is low simply because they give you such little coverage in return ($500 – $1,500)!

Is Colonial Penn’s $9.95 Per Month Whole Life Insurance Worth It For You?

Colonial Pennl has a legitimate competitive advantage in one area: the size of its policies. While most burial insurance companies start coverage at $2,000, Colonial also sells policies in the $500 to $2,000 range.

Colonial Penn’s burial insurance product may be suitable if you intend to have a direct cremation (roughly $1,500).

While these policies will still be expensive per dollar, you will likely save money by not paying for coverage you do not need.

However, those who want a traditional burial and funeral service (or a cremation with a memorial service) will need a larger payout.  Why?

While there are ways to reduce the funeral service’s extravagance, you cannot buy half a casket or half a headstone. In other words, these final arrangements require a minimum expenditure of approximately $5,000.

Colonial Penn’s $9.95 Plan is not the most affordable option for policies of this size.  You can likely save 40%-60% by going with a traditional insurance company, such as Aetna, Transamerica, or Mutual of Omaha.

If you’re still unsure, check out our summary of the benefits and drawbacks of Colonial Penn.

Finally, if you have any questions we haven’t answered, don’t hesitate to comment or email us.

Warm Regards,
The GetSure Team

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