Colonial Penn Life Insurance Company Review

About Colonial Penn Life Insurance Company

Colonial Penn Life Insurance Company has been the leader in the Guaranteed Acceptance life insurance in the US market for half a century. Leonard Davis co-founded the company in 1968, and it now has its headquarters in Philadelphia as a subsidiary of CNO Financial Group Inc. They offer a multitude of affordable life insurance plans to people of all ages. Hence, you should consider learning more about Colonial Penn insurance products.

About Colonial Penn 995 plan on TV Commercials

The Colonial Penn burial insurance plan is constantly promoted through extensive Television marketing campaigns. For many yers, Alex Trebek was the spokesperson for Colonial Penn on theit TV advertising,until he passed away in 2020. As for the present, sales manager Jonathan Lawson has taken on the role of spokesperson for Colonial Penn, appearing in their commercials.

Mainly, the commercial portrays a persistent message about obtaining burial insurance coverage for “just $9.95 a month”. Additionally, the commercial states that Colonial Penn insurance guarantees your acceptance, and NO health questions are required. Furthermore, it explains that with the “Colonial Penn 995 Plan (guaranteed acceptance)”, You cannot be turned down for any reason, and your rates are guaranteed not go up because of age or health. In simpler terms, it is a “rate lock”. However, these policies have limitations and exclusions, and the prices are calculated based on units of coverage.

As you will see on the colonial penn life insurance rate chart below, depending on your age, this type of insurance can be substantially more expensive than other regular level final expense plans.Therefore, if you have average health, you may be able to obtain a more affordable life insurance plan with better benefits.

What are Colonial Penn’s financial strength ratings with various rating agencies?

Colonial Penn has received positive financial strength ratings from several reputable rating agencies. They have an A- (Excellent) rating from AM Best, Standard & Poor’s, and Fitch Ratings, indicating a strong financial situation. Moody’s has assigned them a rating of A3, further confirming their stability. It is worth noting that despite the presence of a relatively high number of consumer complaints, Colonial Penn still maintains an impressive A+ rating with the Better Business Bureau, showcasing their commitment to addressing customer concerns and maintaining an excellent overall track record.

What are the customer complaints and ratings for Colonial Penn?

Based on the data available as of 09/21/2023, Colonial Penn has received negative ratings and complaints from various sources:
1. Better Business Bureau (BBB): Colonial Penn has a rating of 1.19 stars out of 5 based on 171 reviews and 301 complaints within the last 36 months.
2. National Association of Insurance Commissioners (NAIC): The NAIC complaint index for Colonial Penn is 19.70, which indicates that they have received negative reviews from consumers about 20 times more than the average life insurance company.
3. Yelp: The rating for Colonial Penn on Yelp is 1.1 out of 5. This low rating is primarily due to the fact that 99% of the reviews given by customers are 1-star.
4. Trustpilot: On Trustpilot, Colonial Penn has a rating of 2.2 out of 5.

These various sources indicate that there are significant customer negative reviews and low ratings associated with Colonial Penn. Many customers express their dissatisfaction after realizing that the company misrepresented coverage options, promising $10,000 in life insurance coverage for just $9.95 per month.

How can one find better options than Colonial Penn for final expense insurance?

To find better options than Colonial Penn for final expense insurance, it’s important to consider working with an independent insurance agency. Unlike dealing with a captive insurance company like Colonial Penn, an independent agency can offer you a wide range of choices from multiple providers. This means they can compare offers and determine which life insurance company offers the best price and coverage based on your specific needs and situation.Use or burial insurance calculator today, and compare quotes with top-rated competitors. You will be surprised.

Compare Colonial Penn Burial Insurance!


Is Colonial Penn Life Insurance a Good option?

Colonial Penn life insurance may not be the best option for everyone due to several factors. One of the main concerns is the cost versus the amount of coverage it provides. Customers often find the premiums to be quite high in comparison to the relatively small coverage they receive. This means that policyholders may end up paying more for a lower level of protection compared to what other life insurance companies offer.

Therefore, The main reasons why you would want to obtain a colonial Penn burial insurance policy is because of their well-known name, or because of bad health. If you are undergoing dialysis, chemotherapy, cardiac problems, COPD, organ transplant, or other chronic illness, you can qualify for coverage.
However, if you do not suffer from any of these ailments, you have many options for senior life insurance in the market today. Our agency can help you compare burial insurance rates with many highly rated life insurance companies. Let’s take a more detailed look at the Colonial Penn Life insurance products.

Colonial Penn Life Insurance Plans

The company offers 3 life insurance plans for prospective clients:

  • Guaranteed Acceptance Life Insurance
  • Term Life Insurance
  • Whole Life Insurance

Guaranteed Acceptance Life Insurance

The colonial Penn 995 plan (Guaranteed Acceptance)is the company’s star product designed for US citizens aged 50-85 years and provides lifetime coverage. However, they guarantee acceptance because of the two-year limited benefit period for non-accidental reasons. In other words, if the insured passes away naturally within the first two years of the coverage, the beneficiary will receive the premiums paid, plus interest compounded yearly*. However, after the first two years, they pay the full face amount to the beneficiaries for any cause of death.

*Example: Let’s say you are 65 years old, and you purchased $7,456 of burial insurance coverage (8 units x $9.95= $79.60/month), and you passed away after 14 months of purchasing it. Once the claim is processed, your beneficiary(s) will receive only $1,263.48 ($79.60 x 14 +7% compounded annually). Shocking, right?

How Much Life Insurance Do You Get For $9.95 A Month?

When comparing the coverage and cost of Colonial Penn life insurance to other providers for seniors, it becomes apparent that Colonial Penn offers relatively low coverage per unit which may not justify its cost. For instance, let’s consider a 68-year-old female. With Colonial Penn, she would have to pay $89.55 monthly for a policy that provides $10,008 in coverage.Let’s take a look at the colonial penn life insurance rate chart below and see how much burial insurance you can get for $9.95 a month.


Colonial Penn Guaranteed Life Insurance Rate Chart

(Your total monthly cost= [$9.95] x [Number of units you wish to buy)

Important: This colonial penn life insurance rate chart is updated periodically, but we do not guarantee its accuracy. Contact Colonial Penn insurance by phone to verify.

Term Life Insurance

This type of life insurance policy is offered to US citizens aged 18-75 years living in selected states (all locations except MA, ME, NY, and VT). You will not undergo a medical examination when you sign up for this policy. Hence, this policy remains active until the policyholder reaches 90 years, after which it needs to be renewed.
It is significant to mention that this type of Term life insurance does not have a “rate lock” and your monthly rates will increase as you enter a new age band, or every 5 years. (See  Colonial Penn life insurance rate chart) Furthermore, term life insurance is not a product we recommend for final expense coverage purposes, because it terminates. And once you get to a certain age, it will be so expensive, that you will most likely cancel it at the time you need it the most.

Whole Life Insurance

A whole life insurance policy is precisely for US citizens aged 45 – 75. This policy also offers a lifetime coverage period with a maximum insurance benefit of $50,000. Although this policy entails no medical examination, the applicant needs to answer a few medical questions for eligibility. The policy also builds cash value after the first year of coverage, which you can use to cover missed payments or emergency loans.

Is the simplified issue whole life insurance policy stilll available?

Unfortunatley, The simplified issue whole life insurance policy that was previously available through Colonial Penn has been discontinued. However, if you are a resident of New York, there is an alternative option called LifeChoice™ Whole Life Insurance offered by Colonial Penn. This policy is underwritten by Bankers Conseco Life Insurance Company and provides permanent life insurance coverage. Unlike the previous policy, no medical examination is required to qualify for LifeChoice™. Instead, potential policyholders will need to answer health-related questions. Once approved, there is no waiting period, and coverage begins immediately. To learn more about this specific policy, you can visit the Colonial Penn website and click on the designated link for New York residents.


In summary, Colonial Penn should not be your first choice when looking for the best rates and shopping for the best benefits.Our recommendation to work with an independent insurance agency like us when searching for the best life insurance stems from their ability to compare offers from multiple providers, resulting in potentially significant cost savings without any additional fees. Our personalized approach ensures that you receive the most suitable coverage based on your unique circumstances. By collaborating with an independent agency life: Final Expense Rate, you can confidently navigate the complex world of life insurance, ultimately securing the best possible policy to safeguard your future. Utilize our FREE Whole Life Calculator today, and Compare Whole Life Insurance rates with Top-rated Life insurance companies. You may be able to save up to 30% on your monthly premiums.

Compare Colonial Penn Whole Life!


Frequently Asked Questions

* We do not represent Colonial Penn Insurance or its affiliates. This blog post is for information and comparison purposes only.

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