Colonial Penn $9.95 Plan Review

You may have seen a Colonial Penn Guaranteed Acceptance Life Insurance commercial and thought it might be right for you. Maybe you are thinking of adding more life insurance to help your loved ones.

We understand considering life insurance options can be stressful, and understanding all of the insurance jargon can also be confusing.

We have thoroughly reviewed Colonial Penn’s $9.95 plan rates to help you understand how it works. This type of life insurance is called guaranteed acceptance life insurance, which differs from traditional or term life insurance.

How is Colonial Penn Guaranteed Acceptance Life Insurance different from traditional life insurance?

With the Colonial Penn $9.95 plan, you can get life insurance coverage regardless of your current health and lifestyle choices. This plan can give you peace of mind knowing your final costs or outstanding debt gets covered.

Lifestyle and Health Issues that may keep you from getting other types of life insurance.

Some lifestyle and health issues that could keep you from getting other types of life insurance include:

• High BMI
• Smoking or vaping
• Dangerous or high-risk hobbies

The Colonial Penn Guaranteed Acceptance Life Insurance policy can help add coverage while you kick a bad habit or take proactive steps to a healthier life. Most other types of life insurance ask health and lifestyle questions. 

For instance, a whole term life insurance policy may want to know if you smoked cigarettes in the last three years. Adding the Colonial Penn Guaranteed Acceptance Life Insurance can give you coverage until you adjust your lifestyle or move to a better health space.

Another benefit of a Guaranteed Acceptance Life Insurance policy is adding needed coverage quickly. You can quickly add a policy if you have a new expense you don’t want to leave to your loved ones.

The Colonial Penn $9.95 Guaranteed Acceptance Life Insurance process can be quicker than updating your term or whole life insurance. 

We want to explain a few insurance terms you will see when adding a Colonial Penn Guaranteed Acceptance Life Insurance policy.

Colonial Penn Insurance Terms

Unit of Coverage

With Colonial Penn, the unit cost will always be $9.95. However, the monthly cost and payout amount will change depending on your age, gender, and location. 

Our chart below shows the coverage of a 51-year-old woman. Her unit cost is $9.95 a month, and one unit equals a policy payout of $1,942 for her.

Rider

A rider in insurance coverage is a policy you can’t buy alone, but you can add to the main policy. Colonial Penn offers an accidental death rider. The monthly charge is very low for this insurance rider, but it is essential to remember that your policy will only pay out in the event of accidental death.

Exclusions

Exclusions are items or events not covered in your policy, even though they may fall into the terms of your policy.  

An example of this is having surgery that causes death. The insurance company could consider the outcome of this surgery an accident. Still, they do not cover death during or after surgery in the accidental life insurance policy rider.

Underwriters

Underwriters can compile information for insurance companies or hold a policy in partnership with a company.

For people living in New York, Bankers Conseco Life Insurance Company in New York underwrites for Colonial Penn. Both companies share a parent company, but Bankers Conseco Life Insurance is the representative in New York.

The Colonial Penn $9.95 plan has guaranteed acceptance and doesn’t require a health exam or questionnaire. This type of coverage can help you provide for your family if you don’t qualify for other life insurance plans.  

Colonial Penn Life Insurance for Seniors

A life insurance policy with Colonial Penn can help out seniors who want coverage without a medical exam or those who other companies turned down. Seniors looking for life insurance coverage can pick the monthly costs to fit their budgets.

As you may have heard in the Colonial Penn commercials, they won’t turn you down for health issues, and your monthly rates will never increase. This plan can help seniors on a fixed income budget their monthly expenses.

When adding a monthly expense, it is good to have as many facts as possible. Below you will find helpful information to help you decide if the Colonial Penn plan is right for you. 

What are the advantages and disadvantages of Colonial Penn’s $9.95 Guaranteed Acceptance Life Insurance Plan?

Advantages:

• The sign-up process is easy.
• Your coverage will not change as you age.
• Your life insurance rates will always stay the same.
• There are no medical exams to get life insurance coverage.
• You can add an accidental death benefit rider to your policy.
• You will get a full refund if you cancel your policy within the first 30 days.

Disadvantages:

• There are maximum age limits.
• You can’t collect on your policy in the first two years.
• The way “units” work in setting your rate can be confusing.
• The policy cost can be high vs. the coverage amount.

There are options you can use for each of our disadvantages to increase your usage or benefits.

Policy coverage over age 75 may depend on your state or the current policy age limit. If you are 75 or older, you may qualify for a whole life insurance policy instead. 

You can reduce your monthly charge to the minimum amount of payout coverage, lowering your cost. You can also add an accidental death rider to your policy that you pay for in the first two years. Each unit of Colonial Penn Guaranteed Acceptance Life Insurance will cost $9.95. Only the monthly cost and the coverage amount change.

Our chart below shows the coverage of a 51-year-old woman. Her unit cost is $9.95 a month, and one unit equals a policy payout of $1,942 for her.

Colonial Penn Age Comparison Chart

Our Colonial Penn Guaranteed Acceptance Life Insurance rate charts compare coverage levels for a 51-year-old woman and a 70-year-old man living in the Midwest. This type of insurance is often purchased to help with final expenses.

The National Funeral Directors Association’s current statistics show the national average for a traditional funeral is $7,848. We set our comparison rates to see how much we would need to spend each month to cover the national final expense average. 

                                                                  51-Year-Old Female Living in Missouri

                                                               70-Year-Old Male Living in Missouri

For our chart example, a 51-year-old woman would pay $149.25 a month for 15 units of coverage, with a life insurance payout of $29,130.

The 70-year-old man would need to purchase 15 units of coverage at $149.25 a month to get $10,335. To cover the national average price of a funeral, he would need 12 units, at $109.45 for a death benefit of $8,268.

The rates were the same for our male and female quotes, whether they lived in Missouri or New York City. If you were to purchase a policy at age 51, your monthly rate would never change whether you are male or female. However, your payout amounts would be higher than someone older purchasing a new policy.

Our chart is only a guide to show rates and payout amounts. Your rate may differ, and Colonial Penn could later change their offer.

Does Colonial Penn offer other affordable plans? 

Yes, Colonial Penn’s whole life insurance plan offers low monthly rates with coverage starting at $10,000. 

Like the Colonial Penn $9.95 plan, there is no health exam to qualify for their whole life insurance plan. They ask health and lifestyle questions, which could increase your monthly rate. 

Colonial Penn also offers a renewable term insurance plan. This plan doesn’t include a health exam but does ask the same question types as the whole life plan. The renewable term plan provides a higher payout policy with coverage amounts up to $50,000. This plan lasts for five years, and you can renew it if you still qualify.

Is the Colonial Penn accidental death benefit rider worth the cost?

This policy pays a benefit in the first two years, and the cost is low.

This plan starts at 20 cents a month. The monthly cost of adding an accidental death benefit for our example man and woman are $2 a month for $10,000 of coverage and $10 a month for $50,000 of coverage. Your monthly cost will never change once you add this to your policy.

It is crucial to remember that this is an additional policy that will only pay out if there is an accidental death. Be sure to check the exclusions to this policy. There is a particular time consideration for Missouri residents if someone causes their own death.

These events are also not considered accidental deaths:

• War
• Disease
• Surgery

Colonial Penn automatically generates life insurance quotes based on your age, gender, and state information. No one can change or raise your rates by hand since it is built into the Colonial Penn Guaranteed Acceptance Life Insurance plan formula.

Is Colonial Penn a trustworthy company?

When purchasing life insurance, you want to know that you are dealing with a legitimate company.

We can report that Colonial Penn is a financially sound company. They have an A.M. Best rating of A-, or “excellent.” They are financially sound and in good standing across the nation.

Colonial Penn has been in business since 1958. They are an American company with headquarters in Philadelphia, Pennsylvania. They are part of a large family of insurance providers belonging to the parent company CNO Financial Group. CNO Financial Group was founded in 1979 and is headquartered in Carmel, Indiana.

How does Colonial Penn’s Guaranteed Acceptance Life Insurance hold up in BBB reviews?

As a general rule, people seek the help of the Better Business Bureau when they feel like they can’t get help from a company. Rarely do customers go to the BBB to leave a glowing review, so often, you find negative ones more than positive ones.

There are many reviews from unhappy customers on Colonial Penn’s BBB page. At the same time, they carry an A+ rating from the Better Business Bureau because they do a follow-up on information submitted to their site.

This follow-up doesn’t mean the problem is taken care of, but they actively engage customers who use the Better Business Bureau platform.

Many customer complaints share the same concerns, including double billing, not paying out quickly, and problems canceling a policy. Colonial Penn has many customers across the nation, and their negative reviews are comparable to other large insurance companies.

There are steps you can take if you have problems similar to those who have sought out BBB’s help:

• Billing after insured has passed away. Block the payment with the bank.
• Double billing.  Ask for a refund from a Colonial Penn supervisor.
• Policy not matching sales ad. Read through your policy carefully and upgrade if needed.

Many concerns on the BBB’s website involved getting a policy payout for a deceased loved one’s services. Most funeral homes will help you with insurance policies. They can also, with your approval, direct a payment to them from the policy to cover expenses.

Of course, the laws of both insurance and funeral homes differ across the U.S., so you’ll need to check if this is an option. If they can’t directly help you, they may still be able to give you advice on the next step.

Other things to consider in recent BBB reviews for Colonial Penn Guaranteed Life Insurance include:

• Insured customers who don’t fully understand their policy parameters
• In-person office closings with companies switching quickly to remote work
• Paperwork mistakes made by the insured person who has passed away

Paperwork mistakes can include a beneficiary who changed their last name after a marriage or whose address was wrong when the payment was sent. It is always a good idea to check your life insurance policy once a year, or every six months, to check that all information is correct.

You also should check your life insurance rates often to ensure you are getting maximum coverage for your monthly cost.