Colonial Penn $9.95 Plan Reviews
Colonial Penn $9.95 plan reviews show that this plan only costs under ten dollars if you settle for a small amount of coverage. If you want more, you’ll need to buy several units of life insurance, each costing $9.95. If you’re not interested in buying units of insurance, Colonial Penn has other options available.
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UPDATED: Feb 11, 2022
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- Colonial Penn’s $9.95 life insurance plan is a legitimate policy, but coverage comes in units
- Each unit costs $9.95 and gives you around $1,000 of coverage, so you’ll need multiple units if you want more coverage
- Colonial Penn also sells traditional term and whole life policies
- The National Association of Insurance Commissioners reports a higher rate of complaints against the company
- The majority of customer complaints center around the claims process and how difficult it can be to resolve issues
Maybe you’ve seen the commercials selling Colonial Penn’s $9.95 plan for whole life insurance and felt the urge to buy a policy. After all, life insurance is a great asset to financially protect your loved ones after your death, and ten dollars a month is very affordable.
Colonial Penn started selling life insurance products in 1939. While it isn’t the most prominent life insurance provider in the country, it has remained a semi-popular choice for people looking for no-exam insurance for years, especially because of the commercials.
However, the Colonial Penn plan for $9.95 is a little misleading. There’s a lot of fine print that can drastically alter the price of your insurance.
Before buying a policy, you should consider Colonial Penn $9.95 plan reviews, then compare quotes with other companies. Enter your ZIP code into our free tool to see what rates might look like for you.
What is the Colonial Penn life insurance plan for $9.95?
Colonial Penn has several life insurance options, but its most famous is the $9.95 plan.
Colonial Penn life insurance for seniors at the low price of $9.95 might sound too good to be true, and that’s because it is — for the most part.
This life insurance plan is sold in units, a sales technique unique to Colonial Penn. Most life insurance companies sell a death benefit, meaning you can buy $50,000 in coverage, and you’ll pay for it each month.
With the Colonial Penn $9.95 plan, you buy units instead of selecting your death benefit. Colonial Penn takes your essential information (age, location, and gender) then tells you how much coverage each unit will give you.
To get an idea of how much coverage you can buy, check the Colonial Penn life insurance rate chart for 55-year-olds below.
Number of units 55 year-old female 55 year-old male
1 $1,802 $1460
2 $3,640 $2,920
3 $5,406 $4,380
4 $7,206 $5,840
5 $9,010 $7,300
6 $10,812 $8,760
7 $12,614 $10,220
8 $14,416 $11,680
9 $16,218 $13,140
10 $18,020 $14,600
11 $19,822 $16,060
12 $21,624 $17,520
13 $23,426 $18,980
14 $25,228 $20,440
15 $27,030 $21,900
This is a guaranteed issue policy, meaning you don’t need to get a medical exam before approval. However, you must be between the ages of 50 and 85 to qualify.
So, Colonial Penn does offer life insurance for $9.95 a month. It’s just not very much. If you want additional coverage, you’ll need to pay much more. Colonial Penn $9.95 plan rates are always just below ten dollars, but you’ll need to stack them to get ample coverage.
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Does Colonial Penn sell other types of life insurance?
If buying by the unit doesn’t sound appealing to you, Colonial Penn offers more traditional life insurance with whole and term plans. However, these plans have strict age requirements and might not be the best value.
Read below to explore Colonial Penn’s options, then decide if going elsewhere might be best for you.
Colonial Penn Term Life
The most common type of life insurance sold is term life. That’s because it’s generally affordable, has large death benefits, and is easy to understand. If you’re trying to decide between whole and term life, you’ll probably be fine with term.
Whole life is much more expensive and the most significant difference between the two policies is that term has no cash accumulation.
Colonial Penn’s term life is renewable, which means you can renew your policy when the term ends. Your policy is guaranteed renewable until you reach 90 years old.
If you’re interested in Colonial renewable term, you need to be between 18 and 40. People ages 18 to 75 can buy regular term. Like whole life, the maximum amount of term coverage you can buy is $50,000.
Colonial Penn Whole Life
Whole life insurance is a plan that covers you for the rest of your life, as long as you keep up on your payments. It also builds cash value as you make payments, which you can borrow against for whatever you want.
Unlike most whole life insurance plans, Colonial Penn doesn’t require a medical exam. However, you will still need to answer questions about your health in an interview with your agent. They don’t give whole life policies to everyone, but you’ll probably qualify.
Colonial Penn offers permanent life insurance for people between the ages of 40 and 75, for up to $50,000.
Additional Add-ons for Colonial Penn Insurance
Life insurance companies usually offer add-ons that will increase the value of your policy. Colonial Penn has one add-on you can purchase, which doesn’t compare to other companies.
Colonial Penn’s add-on is called living insurance and can be purchased for a whole or renewable term policy.
If you buy living insurance, you can collect part of your death benefit to pay for medical expenses if you become seriously ill. You can claim 50% of your benefit for heart attacks or specific chronic illnesses, or 25% if you’re diagnosed with cancer.
This add-on can help you pay for medical bills if you become ill, but only people under 65 are eligible to purchase it.
Colonial Penn Life Insurance Reviews
Unfortunately, Colonial Penn has a high number of complaints from its customers. Most complaints revolve around the payout process. Many customers have complained about Colonial Penn refusing to make payments after a death.
The National Association of Insurance Commissioners (NAIC) compiles information about customer complaints. It does so for every insurance company and publishes the data as a ratio compared to its size.
The average complaint ratio with the NAIC is 1.0. Companies with a ratio over 1.0 have above average complaints, while under 1.0 fall below the average. Colonial Penn’s ratio is 2.12, meaning they receive more than double the complaints compared to the average insurance company.
Colonial Penn’s complaint ratio is also on the rise. The company had a ratio of 1.16 in 2019, but a 2.12 as of 2020.
The Better Business Bureau (BBB) gives Colonial Penn an A+, but there are numerous complaints on the site. By exploring complaints and praise filed with the BBB, the pros and cons of Colonial Penn insurance are easy to see.
A.M. Best reports the financial strength of insurance companies, which lets you know the chance that any claims you make will get paid. Colonial Penn is owned by the CNO Financial Group, which receives an A- (excellent).
Is Colonial Penn right for you?
The Colonial Penn $9.95 insurance plan is a legitimate policy, but it’s not quite as good as commercials make it seem. If you want more than $1,000 in coverage, you’ll have to buy multiple units at $9.95 each.
Now that you’ve read Colonial Penn $9.95 plan reviews, you probably have an idea if the plan will work for you. If it doesn’t sound right, you should compare companies to get the best rates. Enter your ZIP code into our free tool to see what quotes might look like for you.