Colonial Penn Life Insurance Review: What Does $9.95 Get You? (2026)

How Does Colonial Penn’s $9.95 Plan Work?

Colonial Penn sells its guaranteed acceptance whole life insurance in units that cost $9.95 a month each. The amount of coverage one unit buys depends on your age and sex, and you can buy up to 25 units. There are no health questions, but deaths from natural causes in the first two years only return the premiums paid.

What Does One $9.95 Unit Buy?

Coverage per unit drops quickly with age.

Source: Colonial Penn unit values as published by Choice Mutual (data retrieved Mar 9, 2026). Confirm current values with Colonial Penn.

Is Colonial Penn More Expensive Than Other Options?

For the same coverage, often yes. Here is what about $10,000 of coverage costs a 70-year-old man.

Mutual of Omaha: carrier rate chart effective Aug 1, 2026. Simplified issue: Choice Mutual sample, non-tobacco (valid Mar 9, 2026). Sample rates, not quotes.

At 70, the maximum 25 units buys about $17,225 of coverage for a man, at $248.75 a month.

What Are Colonial Penn’s Pros and Cons?

In short, Colonial Penn life insurance trades a higher cost per dollar of coverage for guaranteed acceptance with no health questions.

Who Should Consider Colonial Penn?

Colonial Penn can make sense if you cannot qualify for simplified issue coverage and want a well-known name. If you can answer basic health questions, a simplified issue final expense policy usually costs less and pays the full benefit from day one. If you need guaranteed acceptance, compare it with other guaranteed issue policies first.

Who owns Colonial Penn life insurance, and how is it rated?

Colonial Penn is part of CNO Financial Group. CNO lists Colonial Penn on its website among its family of brands, next to Bankers Life and Washington National. Colonial Penn says on its home page that it has been in business since 1957.

For financial strength, Colonial Penn’s home page says it is “Rated A (Excellent) by AM Best.” On the AM Best scale, as published by Securian Financial, A and A- are both “Excellent,” one tier below A++ and A+ (“Superior”).

One detail to check: the guaranteed acceptance page we reviewed doesn’t name the legal company that issues the policy. Look for the issuing company on your application and policy, and check that company’s rating and complaint record. A rating tells you about the company’s ability to pay claims, not whether the policy is a good value for you. To see how a company handles customers, the NAIC lets you look up complaint data by state, company and insurance type for the past three years.

What does Colonial Penn pay if you die in the first two years?

Colonial Penn’s guaranteed acceptance page says acceptance is guaranteed “because of a two-year limited benefit period,” but doesn’t spell out the refund formula. The fine print was quoted in 2021 by Truth in Advertising: if death from non-accidental causes happens in the first two years, the beneficiary receives the premiums paid plus 7% interest compounded annually. After two years, the full face amount is paid for death from any cause.

The same review noted that the policy’s definition of accidental death excluded deaths from illness, disease, suicide, certain medical treatments, controlled substance use and acts of war. Terms can change and can vary by state, so ask Colonial Penn for the current wording in your state.

Here is a hypothetical example. A 65-year-old woman buys 10 units for $99.50 a month. Per Colonial Penn data published by Choice Mutual, 10 units at 65 equals $12,580 of coverage. If she dies of an illness after 18 months, she has paid $1,791 in premiums, and her family would get that back plus interest, not $12,580. If she dies after two full years, they get the full $12,580.

How does Colonial Penn compare for women and at other ages?

The value of each $9.95 unit changes a lot by age and sex. The fairest way to compare is cost per $1,000 of coverage per month:

Monthly cost per $1,000 of coverage, our arithmetic from published figures: Colonial Penn’s $9.95 divided by the per-unit coverage from Choice Mutual (data retrieved March 9, 2026); Mutual of Omaha’s rate chart effective August 1, 2026; simplified issue Choice Mutual non-tobacco samples, valid March 9, 2026. Samples, not a quote.

Why compare per $1,000? Colonial Penn sets the price and lets the coverage change, while most carriers set the coverage and let the price change. Two patterns stand out: Colonial Penn costs more per $1,000 than the Mutual of Omaha guaranteed plan at every age shown, for both sexes, and the simplified issue samples cost the least, though you must answer health questions to qualify. The gap grows with age: about $1.73 per $1,000 a month for a 50-year-old woman, but about $6.71 for an 80-year-old man. On $10,000 of coverage, that’s roughly $17 versus $67 more each month.

How many units would you need to cover a funeral?

Most people buy Colonial Penn to pay for a funeral. The 2023 national median for a funeral with viewing and burial was $8,300, according to the NFDA study reported by Tribute Technology, before the cemetery plot, vault and headstone. Here is how many $9.95 units it takes to reach at least $8,300, using the per-unit values published by Choice Mutual (our arithmetic, not a quote):

An 80-year-old man would need 20 of the 25 units allowed in most states just to reach the median, at about $2,388 a year. For a cremation (NFDA median $6,280), a man at 80 would need 15 units: $6,390 of coverage for $149.25 a month. Remember that all of these amounts are limited to a refund plus interest for illness deaths in the first two years.

Does Colonial Penn sell other kinds of life insurance?

The $9.95 guaranteed acceptance plan is the one most people see on TV. Colonial Penn’s products page also names “Permanent Whole Life.” According to Choice Mutual’s review (updated June 8, 2026):

• LifeChoice whole life is sold in New York only. It asks health questions, has no medical exam and no waiting period. Issue ages are 50 to 73 for men and 50 to 75 for women, with coverage from $5,000 to $25,000 ($15,000 maximum at 66 and older).
• Term life is not offered; Colonial Penn sells only permanent whole life.
• Unit limits on the guaranteed plan are 1 to 25 units in most states and 12 in New York.

For New York residents who can answer health questions, the price difference can be large: Choice Mutual lists LifeChoice at $28.20 a month for $10,000 for a 50-year-old woman, versus about $49.75 for the guaranteed plan, and $74.30 for a 65-year-old man versus $119.40 for 12 guaranteed units. Samples, not a quote; ask for a New York quote on both plans. If you need term coverage for a mortgage or income, see our term life insurance guide.

How do Colonial Penn’s cash value and loans work?

The guaranteed acceptance plan is whole life, so it builds a small cash value. Colonial Penn’s product page says cash value begins to build after the first year, you can borrow against it at a guaranteed rate (“The interest rate is 8% compounded annually”), and any loan and interest not repaid at death is subtracted from the death benefit.

Here is a hypothetical example. You borrow $500 from your cash value and never repay it. At 8% compounded yearly, the debt grows to about $540 after one year, $583 after two and $630 after three. If you die after three years, your family’s benefit is cut by about $630. On a policy that may be worth a few thousand dollars, an 8% loan can eat into what your family gets. Treat the cash value as a last-resort emergency fund.

Can you cancel a Colonial Penn policy?

Yes. Colonial Penn’s home page describes a “30-Day Try-It-On Period” where you can cancel for a full refund. That’s longer than the 10-day minimum the NC Department of Insurance sets for new policies in North Carolina. After that, the plan stays in force as long as you pay; if you miss a payment, North Carolina rules give at least a 31-day grace period, and your state may differ.

If you’re thinking of dropping Colonial Penn for another policy, wait until the new one is approved and in force. A new policy starts its own two-year periods. If you’re already past your second year with Colonial Penn, your family now gets the full face amount for any cause, and a new guaranteed plan would restart that clock. In that case, keeping the Colonial Penn life insurance policy, even if it costs more per $1,000, may protect your family better.

What should you ask before buying Colonial Penn life insurance?

1. How much coverage does one unit buy at your exact age, sex and state? Ask for the dollar amount, not just the $9.95 price.
2. What is paid if you die of illness in the first two years? Ask for the current formula in your state.
3. How many units do you need to reach your goal? Multiply the units by $9.95 to see the true monthly cost.
4. Could you qualify for a plan with health questions? If yes, you may get more coverage per dollar and no waiting period.
5. What is the unit limit in your state? It’s 25 in most states and 12 in New York, which caps how much coverage you can buy.
6. Who is the issuing company, and what is its AM Best rating today?
7. Do premiums ever stop? The rate is locked, but make sure it still fits a fixed income at 85 or 90.

Colonial Penn life insurance can make sense if you can’t qualify elsewhere and want a known brand. Compare it with other guaranteed issue and final expense options before you decide.

Buying direct from a TV ad vs. working with an independent agent

When you call the number in a TV ad, you can only buy that one company’s plans. That’s convenient, but you won’t see how the same amount of coverage would cost with other carriers, or whether you’d qualify for a plan with health questions that pays in full from day one.

An independent agent works with several carriers at once. In one conversation, you can compare a guaranteed acceptance plan with simplified issue and other guaranteed issue options at the same face amount, side by side. You pay the same premium either way, because carriers set the price, not the agent.

Whichever route you choose, get the coverage amount in dollars, the waiting period rules and the issuing company’s name in writing before you pay. A few minutes of comparison can mean thousands of dollars more for your family, and it costs you nothing to ask.

Colonial Penn Review FAQ

How much life insurance does $9.95 buy from Colonial Penn?

It depends on your age and sex. One unit buys about $2,000 for a 50-year-old woman and about $689 for a 70-year-old man, based on published 2026 unit values.

Does Colonial Penn have a waiting period?

Yes. If death is from natural causes in the first two years, beneficiaries receive a refund of premiums rather than the full benefit.

Is Colonial Penn a good deal?

It is simple and accepts everyone in its age range, but it often costs more per dollar of coverage than simplified issue final expense or other guaranteed issue policies.

Related Coverage and Guides

• Best final expense insurance companies
• Guaranteed issue life insurance
• $10,000 life insurance policy costs

Sources: Choice Mutual: Colonial Penn rate chart; Colonial Penn FAQ: $9.95 plan; NerdWallet Colonial Penn review.

Important: Octans Insurance agents are licensed in the states in which they operate. Coverage availability and rates may vary by state. Premium examples, when provided, are illustrative samples from published sources, not quotes. Final rates are determined by the insurance carrier based on underwriting and applicable policy criteria. Policy terms, exclusions, limitations, riders, and availability vary by carrier and state.

Ready to Compare Your Options?

Start with a free, no-obligation quote review with a licensed Octans agent.

GET YOUR FREE QUOTE

(617) 935-9220 | life@octansinsurance.com