Colonial Penn’s TV ads promise life insurance for $9.95 a month with no health questions. That sounds simple, but what you actually get for that $9.95 depends heavily on your age and gender, and the coverage you can buy is often smaller than people expect.
Quick answer: Colonial Penn’s $9.95 plan is a guaranteed acceptance whole life policy sold in units. Each unit costs $9.95 a month, but the coverage per unit drops with age, from $2,000 for a 50-year-old woman to about $426 for an 80-year-old man. Full benefits aren’t paid for natural-cause deaths in the first two years. It can make sense for seniors who can’t qualify elsewhere, but healthy seniors can usually get more coverage for less.
Review verdict: is Colonial Penn worth it?
Colonial Penn is a financially strong, legitimate insurer, rated A (Excellent) by AM Best, and it does pay claims. But its signature $9.95 guaranteed acceptance plan is expensive for the coverage it provides and has a two-year waiting period. It’s worth it mainly for seniors with serious health conditions who can’t qualify for a policy with health questions.
The truth about the $9.95 commercials
Colonial Penn’s ads, long featuring spokesperson Jonathan Lawson, focus on the $9.95 price and guaranteed acceptance. What the ads don’t emphasize:
• $9.95 buys one unit, not a set amount of coverage. The coverage per unit shrinks as you get older.
• Most people need several units to get meaningful coverage, so the real monthly cost is often 50–150 or more.
• There’s a two-year waiting period before the full death benefit is paid for natural-cause deaths.
Pros, cons, and overall rating
| Pros | Cons |
| Guaranteed acceptance, ages 50–85 in most states | Coverage per unit drops sharply with age |
| No medical exam or health questions | Two-year waiting period for full benefit |
| Premiums don’t increase; coverage is permanent | Costs more per $1,000 than policies with health questions |
| AM Best financial strength rating of A (Excellent) | NAIC complaints well above expected for its size |
| Owned by CNO Financial Group (also parent of Bankers Life) | Maximum coverage is low, especially at older ages |
Our view: NerdWallet rates Colonial Penn 3.0 out of 5. That’s a fair score: reliable and easy to get, but rarely the best value for anyone who can answer a few health questions.
How the Colonial Penn $9.95 plan works
Colonial Penn sells its guaranteed acceptance coverage in “units.” Every unit costs $9.95 a month, no matter your age, but the death benefit each unit buys is set by your age and gender when you apply. The older you are, the less coverage one unit buys.
What is a “unit” of life insurance?
A unit is a block of coverage priced at $9.95 a month. Instead of choosing $10,000 of coverage and getting a price, you choose a number of units and get whatever death benefit those units buy at your age. Your premium and coverage stay the same for life once the policy is issued.
Fixed price, shrinking coverage
Because the price per unit never changes, Colonial Penn adjusts the coverage instead. A 50-year-old woman gets $2,000 per unit; an 80-year-old man gets $426. That’s almost five times less coverage for the same $9.95.
Maximum units
According to Choice Mutual and NerdWallet, you can buy 1 to 25 units (12 in New York), with new applicants accepted from ages 50 to 85 (50 to 75 in New York). At age 50, 25 units buy about $41,725 for a man and $50,000 for a woman; at 85, about $10,450 and $11,700.
2026 coverage per $9.95 unit by age and gender
| Age | Men (per unit) | Women (per unit) | Units for ~$5,000 (men) | Monthly cost for ~$5,000 (men) |
| 50 | $1,669 | $2,000 | 3 ($5,007) | $29.85 |
| 60 | $1,167 | $1,515 | 5 ($5,835) | $49.75 |
| 65 | $896 | $1,258 | 6 ($5,376) | $59.70 |
| 70 | $689 | $1,000 | 8 ($5,512) | $79.60 |
| 75 | $549 | $762 | 10 ($5,490) | $99.50 |
| 80 | $426 | $608 | 12 ($5,112) | $119.40 |
| 85 | $418 | $468 | 12 ($5,016) | $119.40 |
Note: Coverage per unit comes from Choice Mutual’s Colonial Penn rate chart (data retrieved March 9, 2026). Colonial Penn sets the actual amounts, which can change; confirm with the company before buying.
See Insure Omni’s guide to the Colonial Penn $9.95 plan for more on the unit math.
Colonial Penn products: guaranteed acceptance, whole life, and term
Colonial Penn’s main product is Guaranteed Acceptance Whole Life, the $9.95-per-unit plan. In New York it also sells a whole life policy with health questions. Most current reviews say it no longer sells term life to new customers.
Guaranteed Acceptance Whole Life
• Ages: 50–85 in most states (50–75 in New York)
• Underwriting: No medical exam and no health questions; acceptance is guaranteed
• Coverage: 1–25 units at $9.95 each (12 in New York); death benefit depends on age and gender
• Premiums: Fixed for life; coverage never expires as long as premiums are paid
• Waiting period: Two years before the full death benefit is paid for natural-cause deaths
• Rider: An accidental death benefit rider is available in most states for applicants 50–80, for an extra fee
Colonial Penn guaranteed acceptance life insurance reviews generally praise the easy approval and criticize the low coverage for the price.
Whole life with health questions (New York)
In New York, Colonial Penn sells a whole life policy (LifeChoice) with health questions but no medical exam. Coverage runs from $5,000 to $25,000, capped at $15,000 for applicants 66 and older; ages are 50–73 for men and 50–75 for women, per Choice Mutual and NerdWallet.
Colonial Penn term life insurance
Colonial Penn term life insurance reviews are confusing, because sources disagree. ValuePenguin describes a one-year renewable term policy with up to $50,000 of coverage, renewable to age 90. NerdWallet (whose representatives confirmed this on two calls), Ethos, and Choice Mutual all say Colonial Penn doesn’t currently offer term life. If you’re shopping for term, ask Colonial Penn directly, and compare with other term carriers.
Product lineup comparison
| Feature | Guaranteed Acceptance Whole Life | NY whole life (LifeChoice) | Typical simplified issue final expense (other carriers) |
| Health questions | None | Yes | Yes |
| Medical exam | No | No | No |
| Coverage | Units; up to ~11,700–50,000 depending on age | 5,000–25,000 | Varies by carrier, usually set in dollar amounts |
| Full benefit from day one | No (2-year wait) | Yes | Yes, if you qualify for a level plan |
| Premiums | Fixed | Fixed | Fixed |
| Best for | Serious health issues | Healthy NY residents | Most seniors in average health |
See Insure Omni’s guaranteed issue whole life insurance guide.
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Fine print and disadvantages
The biggest drawbacks of Colonial Penn are the two-year waiting period, the high cost per dollar of coverage, and a complaint record well above average for a company its size. Its financial strength, by contrast, is solid.
The 2-year graded death benefit
If the insured dies of natural causes in the first two years, Colonial Penn doesn’t pay the full face amount. Instead, beneficiaries receive the premiums paid plus interest. Sources differ on the rate: ValuePenguin reports 7% interest compounded annually, and Ethos says premiums plus 10% interest. Accidental deaths are generally covered for the full amount from the start. After two years, the full death benefit is paid for any covered cause.
Note: Check the exact graded benefit terms in the policy for your state before you buy. If you’re healthy enough to answer health questions, a level-benefit policy from another carrier avoids this waiting period entirely.
Why healthy seniors often overpay
Guaranteed acceptance pricing assumes some buyers are in poor health. If you’re healthy, you’re paying for that risk. Consider a 70-year-old man buying 8 units ($5,512 of coverage) for $79.60 a month:
• Yearly premium: $955.20
• Years until total premiums exceed the death benefit: about 5.8
• Total paid over 10 years: $9,552 for $5,512 of coverage
A healthy 70-year-old man could get $10,000 of level-benefit final expense coverage for about $70 a month, based on published 2026 sample rates, with no waiting period.
Customer complaints, BBB ratings, and NAIC data
| Measure | Colonial Penn | What it means |
| AM Best financial strength | A (Excellent), stable outlook | Strong ability to pay claims (affirmed 2026) |
| Parent company | CNO Financial Group | Also owns Bankers Life |
| BBB rating | A+, accredited since 2020 | Rates how the business handles complaints |
| BBB complaints | 179 in the last 3 years; 52 in the last 12 months | Volume of formal complaints |
| BBB customer reviews | About 1.1 out of 5 (per Choice Mutual) | Individual customer reviews are mostly negative |
| NAIC complaints | Far more than expected for its size | NerdWallet’s 3-year NAIC analysis; Choice Mutual scores it at an index of 3.01+ |
Colonial Penn life insurance reviews and complaints most often mention the small coverage amounts, the waiting period, price, sales calls, and confusion about how units work. ValuePenguin also notes complaints about aggressive sales tactics aimed at older adults.
Note: An NAIC complaint index above 1.0 means more complaints than expected for a company’s size. An index of 3.0 means about three times the expected number.
Colonial Penn vs. top competitors
For most seniors who can answer basic health questions, a level-benefit final expense policy costs less than Colonial Penn and pays the full benefit from day one. Even among guaranteed acceptance policies, Mutual of Omaha is cheaper than Colonial Penn for $10,000 of coverage at age 70.
Day-one coverage with simplified issue
Simplified issue final expense policies, offered by carriers such as Mutual of Omaha, Transamerica, and Aetna, ask a short set of health questions instead of requiring an exam. If you qualify for a level-benefit plan, your family gets the full death benefit from the first day the policy is in force, with no two-year waiting period. Many people with managed conditions like high blood pressure or controlled diabetes still qualify.
Value comparison: $10,000 of coverage at age 70
| Policy | Full benefit from day one? | Health questions? | Monthly cost, women | Monthly cost, men |
| Colonial Penn Guaranteed Acceptance | No (2-year wait) | No | $99.50 (10 units = $10,000) | $149.25 (15 units = $10,335) |
| Mutual of Omaha Guaranteed Whole Life | No (2-year wait) | No | $64 | $87 |
| Level-benefit final expense (simplified issue, sample rates) | Yes | Yes | $53 | $70 |
A 70-year-old man paying $149.25 a month at Colonial Penn would spend $1,791 a year. The same man qualifying for level-benefit coverage would pay about $840 a year for $10,000, less than half the cost.
Note: Colonial Penn costs are calculated from its per-unit coverage chart. Mutual of Omaha and level-benefit figures are published 2026 sample rates for non-tobacco applicants from Choice Mutual. Your price depends on your health, state, and carrier.
See Insure Omni’s best final expense insurance for seniors and guaranteed issue life insurance guides.
Conclusion:
Colonial Penn is a legitimate, financially strong insurer that pays claims, and its guaranteed acceptance policy fills a real need for seniors who can’t qualify elsewhere. But the $9.95 price buys less coverage every year you age, the full benefit is delayed for two years, and healthy seniors can usually get more coverage for less money.
| Your situation | Best option |
| Healthy or managed conditions, age 50–85 | Level-benefit simplified issue final expense |
| Serious health issues, declined elsewhere | Guaranteed acceptance; compare Colonial Penn with Mutual of Omaha |
| Need $10,000+ at age 75 or older | Simplified issue; Colonial Penn unit costs climb quickly |
| Want a small policy with no questions at age 50–60 | Colonial Penn can be reasonable; still compare |
| Already own a Colonial Penn policy past year 2 | Usually keep it; full benefits now apply |
Compare senior burial insurance on Insure Omni
Insure Omni helps seniors and adult children across the United States compare final expense and burial insurance from multiple carriers, so you can see how much coverage your budget really buys before choosing a unit-based plan. Insure Omni senior specialists can check whether you qualify for day-one coverage.
Explore final expense insurance at Insure Omni or call 855-994-4151 to get instant final expense quotes at Insure Omni.
Secure Your Family's Future with Confidence
Don’t leave your loved ones' financial security to chance. Use our expert tools and free resources to find the perfect coverage today.
FAQS
Yes. Colonial Penn is a licensed insurer with an AM Best financial strength rating of A (Excellent), and it pays valid claims. For natural-cause deaths in the first two years, it pays back premiums plus interest instead of the full face amount; after two years, it pays the full death benefit.
It's a reasonable choice for seniors with serious health problems who can't pass health questions, because acceptance is guaranteed. For most healthy seniors, it isn't the best value: policies with a few health questions usually cost less and pay the full benefit from day one.
One unit of guaranteed acceptance whole life coverage. The amount depends on your age and gender: about $1,669 for a 50-year-old man and $2,000 for a 50-year-old woman, falling to $689 and $1,000 at 70 and $426 and $608 at 80.
The main disadvantages are low coverage per dollar, especially at older ages; a two-year waiting period for the full benefit; a cap of 25 units (12 in New York); and a complaint volume well above expected for its size. Healthy seniors often pay much more than they would elsewhere.
Most recent reviews, including NerdWallet, Ethos, and Choice Mutual, say Colonial Penn doesn't currently sell term life insurance. ValuePenguin describes a one-year renewable term policy, so ask Colonial Penn directly what's available in your state.
Colonial Penn is owned by CNO Financial Group, which also owns Bankers Life.
Sources and 2026 Verification
- Choice Mutual: Colonial Penn life insurance rate chart (data retrieved Mar. 9, 2026)
- Choice Mutual: Colonial Penn pros and cons (updated June 8, 2026)
- NerdWallet: Colonial Penn life insurance review (Feb. 24, 2026)
- ValuePenguin: Colonial Penn review (updated Feb. 12, 2026)
- Ethos: Colonial Penn life insurance review (updated Oct. 4, 2026)
- AM Best affirms CNO Financial subsidiaries’ ratings (Business Wire, Apr. 2026)
- BBB: Colonial Penn Life Insurance Company profile
- Choice Mutual: Final expense insurance rates (valid Mar. 9, 2026)
- Choice Mutual: Guaranteed acceptance life insurance (valid Apr. 6, 2026)
Note: All sources opened October 20, 2026, except Choice Mutual rate pages checked earlier this month. Coverage amounts and prices are published figures and can change; confirm with the insurer.
