How The $995 Colonial Penn Life Insurance Plan Works
The Colonial Penn life insurance plan for $9.95 per month is a guaranteed acceptance whole life policy with a waiting period of two years.
It offers permanent lifelong coverage with a premium that will never increase and builds cash value.
There are no health questions or exams to determine your eligibility.
They guarantee your approval regardless of what health conditions you may have.
Strangely, they sell this coverage using a unit system. Each unit provides a particular amount of life insurance.
Twelve units are the maximum amount of death benefit coverage you can buy.
Everyone pays only $9.95 as the monthly premium per insurance unit.
How much coverage amount you get from each unit varies based on your age and gender.
Before you sign on the dotted line, consider this very critical question:
How much life insurance coverage do you get for $9.95?
The short answer is not much.
The following paragraph shows precisely how much coverage a unit provides for all ages.
How Much Coverage Can You Get For $995
With no further ado, see below the rate chart for the Colonial Penn 995 guaranteed acceptance life insurance plan.
The table below shows you how much coverage Colonial Penn will sell you for $9.95, broken down by age and gender.
This amount is referred to as one unit of coverage for you. You can buy up to 15 units of coverage, and each one costs the same $9.95 price.
There is no price difference for smokers and non-smokers.
Table: COVERAGE Available for $9.95
Is Colonial Penn Life Insurance A Scam
We will also admit that the company does an extremely high volume of business, which could likely lead to higher than average customer complaints. And to give them credit, from what we can see, they have resolved most, if not all, complaints listed with the Better Business Bureau.
In addition, their whole life insurance plans do what they intend to: provide financial protection in the form of a lump-sum death benefit payment paid to your named beneficiaries at the time of your passing.
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Is Colonial Penn Burial Insurance Worth It For You
The one area Colonial Penn has a legitimate competitive advantage is in the size of its policies. While most burial insurance companies start coverage at $2,000, Colonial sells policies in the $500 to $2,000 range as well.
If you intend to have a direct cremation , Colonial Penns burial insurance product may work for you.
While these policies will still be expensive on a per-dollar basis, you will likely save money by not paying for coverage that you do not need.
However, those who want a traditional burial and funeral service will need a larger payout. Why? Because while there are some things you can do to scale down the extravagance of the funeral service, you cannot buy half a casket or half a headstone. In other words, these types of final arrangements require a minimum amount of spend that is in the vicinity of $5,000.
For policies of this size, Colonial Penn is definitely not the most affordable option. You can likely save 40%-60% by going with a traditional insurance company, such as Aetna, AIG, or United of Omaha.
No matter what you decide, keep in mind that you can cancel your Colonial Penn policy at any time without a penalty. And if you cancel within the first 30 days , you will even get a refund of your first premium payment.
If youre still unsure, check out our more summarized version of the benefits and drawbacks of Colonial Penn life insurance.
How Much Are Colonial Penn Rates
The unit premium never changes, and they sell between one and eight units. One unit costs $9.95, two cost $19.90, three cost $29.85, and so on up to eight units, which cost $79.60.
Here is the issue: while the price per unit never changes, the unit max benefit is set by your age and what Colonial Penn Life decides is appropriate.
So one unit costs the same $9.95 for a 77-year-old and a 50-year-old, but the 77-year-olds benefit amount is $503 while the 50-year-olds is $1,786.
Both of these coverages are inadequate for a life insurance policy, and luring clients with the $9.95 slogan and units is not entirely forthcoming. Start looking for the right coverage for your needs by entering your ZIP code for more information.
Life insurance is baffling already why make it worse for those who are unfamiliar with the business? Keep reading for more.
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What Is The Colonial Penn 995 Plan
995 plan from Colonial Penn, its just that, a final expense insurance plan for $9.95. But what you might not know is, how much this plan provides your family. What they arent sharing with you is whats in the fine print.
So what exactly is the 9.95 Colonial Penn life insurance?
Well, your monthly premium is obvious but how much coverage does $9.95 give you? For example: if you are a 50-year-old male, only $1,786 of life insurance. Not a lot, right?? Wait until you hear what the policy provides if you are over 50.
How To Find Better Options Than Colonial Penn Final Expense Insurance
If you are looking for life insurance for final expenses or anything else, you can 100% get a much lower price elsewhere.
In addition, you can likely get coverage with no waiting period.
When you speak to a Colonial Penn agent, they cannot shop around and show you another insurance company that could potentially give you a better deal.
The trick to finding the best and most affordable final expense life insurance is to work with an independent insurance agency. Only an independent agency can compare offers from multiple providers.
An independent broker such as Choice Mutual will shop the market for you to determine which insurance carrier has the best price and coverage based on your unique situation.
Believe it or not, it does not cost you a fee to work with an independent agency, and the insurance itself isnt more expensive.
Working with an independent agency can save you as much as 70% on your life insurance .
You can call us at 1-800-644-2926, and we can assist you. Were independent and have over 15 different A rating companies that we will shop for you. Final expense life insurance is our specialty. Its all we do.
Below are genuine reviews from past customers who allowed us to serve them.
One unit of Colonial Penn Life insurance costs $9.95 per month regardless of your age or gender.
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Available Riders Under Colonial Penn
In addition to your standard coverage, you can also purchase riders or additions to your policies that can enhance or modify your coverage. For instance, you can add living insurance to a renewable life insurance policy or the permanent whole life insurance policy. This add-on allows someone that has become sick from cancer, a chronic illness, or a heart attack to redeem early a maximum of 50% of their coverage to help pay for their care.
Do not wait any longer and delay this crucial financial investment. If you are looking for the best life insurance policy for you and your family, we invite you to compare rates by clicking on the button below. After entering your zip code, the form will take you directly to BestInsurer, where the price-comparison service will show you a list of insurers in your area with the best rates.
Units Of Life Insurance Coverage
How does Colonial Penn sell life insurance to everyone for the same price?
Most life insurance companies let you choose the amount of coverage you want. Then, they quote you a price for that amount of coverage.
Colonial Penn does it in reverse. You choose your price. And then they tell you how much coverage you can buy for that price.
How do they refer to what they sell for $9.95? Well, they cant say they sell $1,000 of coverage or $2,000 of coverage because its different for every person. So instead, they call this a unit of coverage.
A unit of life insurance coverage = the amount of coverage a specific person can buy for $9.95.
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Colonial Penn Life Has Mixed Reviews
Colonial Penn is accredited with the Better Business Bureau, and holds an A+ rating for the way it interacts with customers. The BBB has recorded 116 complaints over the last three years, a fairly average number for a life insurance company. Customers award the insurer 1.08 out of 5 stars, noting pushy salespeople, lost policies after years of payments and denials for the guaranteed acceptance policies.
Over on TrustPilot, Colonial Penn has 3.2 out of 5 stars, though this is based on just one review.
|AM Best financial rating|
|2.9/5 out of 1 customer reviews|
|Customer reviews verified as of||04 November 2021|
Is Colonial Penns Life Insurance Good
For seniors wanting a little bit of coverage for funeral expenses and other end-of-life expenditures rather than complete coverage, Colonial Penn is a viable option. In addition, if you have trouble obtaining insurance elsewhere due to advanced age or complicated medical history, Colonial Penns limited underwriting criteria will be particularly beneficial.
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Jonathan Lawson Colonial Penn Life Insurance Commercial
Does this commercial look familiar? The actor, Jonathan Lawson telling you about The three Ps of life insurance. Price, price and price. Whats important here is that we focus on the fine print in the commercial and not the three Ps.
When they state that everybody gets coverage at $9.95, pay attention to where it says coverage options start at. Yes, you can get life insurance for $9.95 from Colonial Penn. But how much does $9.95 get you? Well, Jonathan Lawson wont tell you in the commercial, but we will! Below you will find the price for ages 50-80 years old and how much coverage $9.95 gets you.
Find More Life Insurance Companies Like Colonial Penn
Wondering how Colonial Penn fares against other companies? Tick the Compare box to see features for up to four companies side by side.
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What Happens After You Are Approved For Coverage
Colonial Penn will send you a notification if you are approved for coverage. In addition, a physical copy of the policy is mailed to the address you included on the application form.
You can manage your policy by logging into your account online. The customer dashboard includes access to coverage amounts, cash value, payment history, and other details of your policy.
How Do You Get A Colonial Penn Life Insurance Quote
To receive a quote for Colonial Penn life insurance plans, you must contact them by telephone or visit the website. Online, you can get an instant quote using the quote form located on the website. Colonial Penn gives you instant rates after filling out a few basic details, such as your age, gender, and coverage amount. You can then decide whether you want to continue the application.
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Cons Of Purchasing Your Life Insurance With Colonial Penn
Colonial Penn offers quite a few advantages. However, depending on your specific needs, you may also find that Colonial Penn has the following disadvantages:
- Relatively low coverage amounts
- Sketchy customer complaint record
Much of the negatives to Colonial Penn stem from the $9.95 plan and the marketing behind it. The company pushes the life insurance plan as an affordable option for people on a fixed budget. Unfortunately, while $9.95 is a relatively low price for life insurance, the death benefit amount is meager and, in most cases, will not provide enough coverage to cover the total cost of a funeral.
We can honestly say you will find better life insurance by taking the time and working with an independent life insurance agent that can shop coverage between multiple companies.
In addition to the lackluster coverage, the companys customer complaint records are a factor that should be considered when choosing Colonial Penn or any life insurance provider. As mentioned, several complaints stem from beneficiaries having a bad experience with the death claims process.
Who Needs Burial Insurance
Consumers buy this product to cover their final expenses and ensure that they do not burden their loved ones. These expenses can include burial or cremation costs, funeral service costs, and even outstanding medical bills.
Burial insurance policies do NOT restrict how you use the funds.
If your beneficiary wants to use the funds on vacation for her family, nothing stops her from doing so.
How many units should you buy? That depends greatly on your state, as average funeral expenses vary by geography. Check out our full article on funeral costs to hear more on this topic.
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We Have Better Life Insurance Options
If youre looking for the best final expense insurance, PinnacleQuote has what you are searching for. With our low rates and benefits that never decrease, we offer a product unlike any other life insurance provider out there today!
We work directly with some of the most trusted carriers in order to provide this service which makes it easy as pie no medical exam required!
With the PinnacleQuote burial program, you can secure a death benefit from day 1!
We know you care about getting the best rate so we want to make sure that the company we choose is a good fit for you.
Thats why before submitting our application, there will be some questions to isolate your proper rate class like asking if have any pre-existing conditions or not-so-great habits .
We think youre worth more for far less cost each month.
While Colonial Penn mostly wants to deal with customers through the mail, we are available on-phone the right now and our eagerness will do nothing but make your experience easier!
You dont have hoops jump through when calling us either just pick up that phone and dial 1855-380-3300 and you get through right away to one of the owners Danny Ray or Lisamarie Monaco-Ray.
Which Colonial Penn Life Insurance Plan Is Best
Colonial Penns individual whole life insurance plan will offer the best coverage. The life insurance plan can offer a better selection in coverage amounts and lower premiums. Plus, there is no waiting period on the death benefit payout.
However, suppose you have a complicated medical history with significant health issues like heart disease or cancer. In that case, youre not likely to qualify for an individual whole life insurance plan and will have to consider choosing a guaranteed acceptance plan where you cannot be turned down for coverage.
With the median cost of a funeral with burial and a viewing costing about $7,900, either of the two plans should offer enough coverage to deal with funeral costs and other expenses.
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What Is The Colonial Penn Rate Lock
The Colonial Penn rate lock promises that your life insurance rates will never increase, which is an outstanding feature.
However, its not a unique benefit exclusive to Colonial Penn.
Theyre referring to the fact that their coverage is a whole life insurance policy with a fixed monthly price.
There is no such thing as whole life insurance with an adjustable premium.
Is The 995 Plan A Good Life Insurance
Its important to note that the Colonial Penn 995 plan is a guaranteed acceptance life insurance. Typically, we would use these life insurance plans for folks with severe health conditions like cancer, cardiovascular disease, or if youre bound to a nursing home. If you are healthy, dont be fooled by the price that is being offered.
Being that the 995 plan is a guaranteed acceptance life insurance, this also comes with a waiting period before the death benefit would be paid out. Two years to be exact. If you were to die from an illness or pre-existing condition during the first two years, you dont receive your full benefit amount.
Most seniors dont know there are other plans available that they will qualify for day-1 coverage, and with lower pricing from other companies.
At Final Expense Benefits, we work with the top insurance carriers and can usually find you a plan with a cheaper monthly rate that pays a larger death benefit.
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How Is Colonial Penn Life Insurance For Seniors Rated
Colonial Penn Life, as a subsidiary of CNO Financial Group, Inc., has an A- rating with A.M. Best.
A good rating like this from A.M. Best means that the company is financially solvent and can pay claims to its policyholders. This is an important point to consider before you buy a policy, but you should never stop there.
This rating indicates nothing about the quality of service or whether it will be good for your specific needs. Types of offered policies, underwriting process, benefit amount, and your current health should be your foundation when looking for a life insurance policy.
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Our Methodology: How We Review Life Insurance Carriers
We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost.
In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each we then weighted category scores to determine how companies performed overall.
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