Quick Answer: Colonial Penn is a legitimate, A-rated company, but its $9.95 guaranteed acceptance plan is one of the most expensive ways to buy final expense coverage. In our October 2026 Texas quotes, a 60-year-old woman could get $10,000 of coverage elsewhere for about half the price. It mainly makes sense if other insurers have turned you down.
You’ve probably seen Colonial Penn’s TV ads. Jonathan Lawson promises coverage for $9.95 a month, no medical exam, and no health questions. It sounds simple, and for some people it’s exactly what they need.
But here’s the question we hear all the time: is Colonial Penn actually a good deal? We’ve been helping families buy life insurance since 1995, and the honest answer is that it depends on your health. Let’s walk through what Colonial Penn sells, what $9.95 really buys, and when you have better options.
NOTE: We are not Colonial Penn. This is an independent review. To reach Colonial Penn directly, visit colonialpenn.com.
Affordable Senior Life Insurance—Peace of Mind for You & Your Loved Ones
No Medical Exam. Guaranteed Coverage. Easy Approval.
Protect your family from unexpected expenses with a simple, affordable final expense plan. Get the coverage you need to ensure funeral costs don’t burden your loved ones.
🔹 Guaranteed Approval (Ages 50-85)
🔹 Fixed, Affordable Monthly Rates
🔹 Covers Funeral, Medical, & Other Final Expenses
Is Colonial Penn Legit?
Yes. Colonial Penn is a real, long-standing insurer owned by CNO Financial Group, a publicly traded company that also owns Bankers Life. In April 2026, A.M. Best affirmed CNO’s insurance companies at an A (Excellent) rating for financial strength.
That rating means Colonial Penn can pay its claims. The issue with Colonial Penn isn’t safety. It’s price and value.
What Does Colonial Penn Sell?
Colonial Penn is best known for one product, but it sells two main whole life policies:
- Guaranteed Acceptance Whole Life. For ages 50 to 85 in most states. No medical exam and no health questions, so you can’t be turned down. This is the $9.95 plan from the TV ads.
- Permanent Whole Life. For ages 40 to 75 in most states, with coverage up to $50,000. It asks health questions but doesn’t require an exam.
Both are whole life policies. Your premium is locked in for life, your coverage can’t be canceled as long as you pay, and the policy builds a small cash value over time.
How the $9.95 Unit Pricing Works
Here’s where Colonial Penn gets confusing. Instead of selling a set amount of coverage, it sells “units” at $9.95 a month each. You can buy up to 15 units through Colonial Penn’s quote tool.
The catch is that a unit doesn’t buy the same coverage for everyone. How much each unit is worth depends on your age and gender. The older you are, the less coverage each $9.95 buys. Women get more coverage per unit than men of the same age.
Let’s look at an illustration. A 60-year-old woman gets about $1,515 of coverage per unit. If she buys 7 units, she pays $69.65 a month for about $10,605 of coverage. A 60-year-old man paying the same $69.65 would get only about $8,169.
Colonial Penn Life Insurance Rate Chart
Colonial Penn doesn’t publish its unit values, which is why it’s so hard to compare. The chart below shows estimated coverage for one $9.95 unit, based on figures published in NerdWallet’s February 2026 review.
| Age | Coverage per unit (men) | Coverage per unit (women) |
|---|---|---|
| 50 | $1,669 | $2,000 |
| 55 | $1,420 | $1,761 |
| 60 | $1,167 | $1,515 |
| 65 | $896 | $1,258 |
| 70 | $689 | $1,000 |
| 75 | $549 | $762 |
| 80 | $426 | $608 |
| 85 | $418 | $468 |
These are estimates. Unit values can vary by state and can change, so confirm your amount with a Colonial Penn quote before you buy.
The Two-Year Waiting Period
This is the part the TV ads move past quickly. If you die from natural causes in the first two years, Colonial Penn doesn’t pay the full death benefit. Your family gets back the premiums you paid, plus 7% interest.
Many other guaranteed issue policies return premiums plus 10% during the same period, so Colonial Penn’s payout is on the low end. Accidental deaths are covered in full from day one.
How Colonial Penn’s Price Compares
To see what Colonial Penn costs in real dollars, we ran quotes in Texas in October 2026 for a 60-year-old woman wanting about $10,000 of coverage:
| Policy | Monthly cost | Waiting period |
|---|---|---|
| Colonial Penn guaranteed acceptance (7 units, about $10,605) | $69.65 | 2 years |
| Another carrier’s guaranteed issue ($10,000) | $51.06 | 2 years |
| Level benefit policy with health questions ($10,000) | $32.87 | None |
Even among guaranteed issue policies, Colonial Penn costs about 36% more here. And if she can answer a few health questions, a level benefit policy costs less than half as much and pays the full benefit from day one.
That’s what we see over and over. People assume they need guaranteed acceptance when they’d actually qualify for something better.
Who Should Consider Colonial Penn?
Colonial Penn’s guaranteed acceptance plan can make sense if:
- You’ve been declined by other insurers because of serious health conditions
- You only need a small policy to cover funeral costs and final bills
- You want coverage without answering any health questions at all
If you’re in average health, even with conditions like controlled diabetes or high blood pressure, you’ll likely qualify for life insurance with no waiting period. Shop that first.
Better Alternatives to Consider
We work with dozens of insurance companies. If you’re considering Colonial Penn, these are worth comparing:
- Mutual of Omaha. Level benefit policies for people in average health, from a well-known, highly rated company.
- Royal Neighbors of America. Competitive guaranteed acceptance coverage, with extra benefits for members.
- United Home Life. Simplified issue policies with a few health questions and no waiting period.
- American Amicable. Good middle-ground options between guaranteed acceptance and full underwriting.
A good independent agent will try to place you in a level benefit policy first, and only offer guaranteed acceptance if you can’t qualify for anything better.
What Customers Say About Colonial Penn
Colonial Penn reviews online are mixed. Most praise is about the easy application, and most complaints are about the waiting period and how little coverage each unit buys at older ages.
Colonial Penn holds an A+ rating from the Better Business Bureau and has been accredited since 2020. As of October 2026, its BBB profile also shows 181 complaints in the last three years, along with the company’s responses.
Colonial Penn Pros and Cons
What works:
- Guaranteed acceptance. No exam and no health questions for ages 50 to 85.
- Strong company. Owned by CNO Financial, rated A (Excellent) by A.M. Best.
- Locked-in premiums. Your rate never goes up.
- Can’t be canceled. Coverage lasts as long as you pay.
What doesn’t:
- High cost. You pay more per dollar of coverage than most alternatives.
- Two-year waiting period. Natural deaths in the first two years only return premiums plus 7%.
- Confusing pricing. Unit values make it hard to compare.
- Small coverage at older ages. At 80, even 15 units buys less than $10,000.
Frequently Asked Questions
Is Colonial Penn a legitimate company?
Yes. Colonial Penn is owned by CNO Financial Group and rated A (Excellent) by A.M. Best, so it can pay its claims. The concern is that its guaranteed acceptance coverage costs more than most alternatives.
What does the Colonial Penn $9.95 plan get you?
Each $9.95 monthly unit buys a set amount of coverage based on your age and gender. A 60-year-old woman gets about $1,515 per unit, while an 80-year-old man gets about $426.
Can I be turned down by Colonial Penn?
Not for the guaranteed acceptance plan. If you’re between 50 and 85 in most states, you can’t be declined. Its Permanent Whole Life policy does ask health questions.
Does Colonial Penn have a waiting period?
Yes. The guaranteed acceptance plan has a two-year waiting period for natural causes. If you pass away during that time, your family gets back your premiums plus 7%. Accidental deaths are covered right away.
Is Colonial Penn a good deal for seniors?
Usually not, if you’re in average health. In our October 2026 Texas quotes, a level benefit policy cost less than half as much for a 60-year-old woman. Many seniors qualify for no medical exam life insurance with no waiting period. Colonial Penn makes the most sense if other insurers have turned you down.
Key Takeaways
- Colonial Penn is legitimate. It’s owned by CNO Financial and rated A (Excellent) by A.M. Best.
- It’s expensive. For a 60-year-old woman, it cost about 36% more than another guaranteed issue policy, and more than double a level benefit policy.
- The unit pricing hides the real cost. Each $9.95 unit buys less coverage as you get older.
- There’s a two-year waiting period. Natural deaths in that time only return premiums plus 7%.
- Shop health-question policies first. Most people in average health qualify for better coverage at a lower price.
Want to see what you actually qualify for? Most people are surprised to find better coverage at a lower price than Colonial Penn. Use the quoter on this page, or let’s talk through your situation with no pressure.
