Is the Colonial Penn 995 Plan Worth It? (Here’s What They Don’t Tell You)

Have you seen the Colonial Penn commercials promising life insurance for just $9.95 per month? It sounds like a deal—but what are you actually getting for that price? If you’re a senior or planning for a loved one, understanding the Colonial Penn $9.95 plan is essential before locking in a policy. This guide will explain the real cost, hidden limitations, and better alternatives.
What Is the Colonial Penn $9.95 Plan?
The Colonial Penn $9.95 plan is a guaranteed issue whole life insurance policy marketed by price per “unit.” One unit costs $9.95, but the actual amount of coverage you receive depends on your age and gender—not a flat dollar amount. There are no health questions and acceptance is guaranteed for ages 50 to 85.
Colonial Penn $9.95 Plan Pros and Cons
✅ Benefits:
- Guaranteed acceptance for seniors aged 50–85
- No medical exams or health questions
- Fixed monthly premium for life
- Builds limited cash value over time
❌ Drawbacks:
- Extremely low coverage per unit (as little as $418 for older seniors)
- Two-year graded death benefit (no payout for natural death in first 2 years)
- Can require 10+ units to equal $10,000 coverage
- Often more expensive than other final expense insurance with better benefits
*Ballpark Quote
How Much Coverage Does $9.95 Buy You?
This is where the plan can be misleading. One $9.95 unit does not equal $9,995 in coverage. The older you are, the less coverage you get per unit. Here’s a chart by age and gender:
💡 Most seniors need 5–10 units to reach even $10,000 in coverage.
See what you will pay with Colonial Penn 995 plan!

What is “MY” Price?
What’s the Catch with the Colonial Penn $9.95 Plan?
Many seniors don’t realize:
- Coverage is not level: you get less with age.
- The plan has a 2-year waiting period before the full benefit is paid for natural death.
- You’ll pay more per $1,000 in coverage than with other final expense policies.
*Ballpark Quote
People Also Ask About the Colonial Penn $9.95 Plan
❓Is the Colonial Penn $9.95 plan a good deal?
Not usually. While it offers guaranteed approval, the low coverage amounts and 2-year waiting period make it less valuable than other options.
❓Can I be denied coverage?
No. This plan offers guaranteed issue for anyone between ages 50–85.
❓What does each unit of coverage actually give me?
Depends on your age and gender. For example, a 75-year-old male may receive less than $600 per unit.
❓Are there better alternatives?
Absolutely. You can often get level benefit burial insurance with no waiting period for the same or lower cost—especially if you’re in decent health.
Colonial Penn $9.95 Plan vs. Other Burial Insurance
Unlike burial insurance without a waiting period, Colonial Penn’s plan always includes a 2-year graded benefit. It’s designed for consumers with significant health issues, but many healthy seniors are paying more than necessary.
Better Alternatives to Colonial Penn’s $9.95 Plan
Explore plans that offer:
- Level benefits (full coverage on day one)
- Higher face amounts per premium dollar
- No unit-based pricing confusion
Use our quick assessment to find the best no-waiting-period policy for your needs.
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FAQs
Typically up to 15 units ($149.25/month), but still offers limited coverage.
Final expense insurance with level benefits is often cheaper per $1,000 and comes with no waiting period. There are SO MANY better alternatives.
Yes, but most plans they offer are graded benefit and relatively low in value.
Not typically. Coverage drops significantly with age, and the monthly cost becomes inefficient.
Conclusion
Would it bring you peace of mind to know you could get more coverage, avoid waiting periods, and pay less? The Colonial Penn $9.95 Plan may look appealing on TV, but you deserve real value and protection. Let us help you compare your options today.
*Ballpark Quote
14 Comments
Dez R
They are a scam; after a year and a half of paying $40.80 per month for a $6,000. whole life policy, I received a letter that I owe over $700. for another policy that I supposedly signed up for. The reference/policy number was completely different from the one I had. I can never get a hold of someone there, it is very hard to connect to a person. When I finally got someone to answer, it was a guy in PhiIippines, who had no clue why I had another policy. I told him to cancel the policy and return my money. This was almost a year ago and I have not received any money back from them. I paid $40.80 for approximately 2 years, that's how long they scammed me. Please anyone who sees this, do not fall for this Colonial Penn CRAP!
Danny Ray
Dez, we agree 100%, give us a call and we will help you and answer any questions.
855-380-3300 ext 2
Patty Couch
Need burial insurance
Robert Stallter
I want to get insurance for my my wife Anna Stallter is all ready insured with you
Dolores E Ramirez
Would like burial and whole life insurance quote.
Dolores Ramirez
de***********@***il.com
Email me to connect with representative. Thank you
Karen James
Looking for information for life insurance whole life insurance
Ron Ostrowski
I would like a quote on $15K term life insurance for my self and my wife
Harold Edward Willett
I appreciate this write up. It's about time someone told the Truth about these scammers. I did one just appreciate it very much Colonial Penn Huge Scam
Harold Edward Willett
I appreciate this write up. It's about time someone told the Truth about these scammers. I did one just appreciate it very much Colonial Penn Huge Scam
Danny Ray
They are grossly over priced. You can find so much better elsewhere. You will either get 50% lower price, or double the coverage WITH OUT a waiting period.
Melody Lockhart
Great u just signed up with them i hope it isn't a scam
Danny Ray
No, not a scam, just so many better options. The $9.95 Plan is a waiting period policy and is 30-50% higher than the best rates. SO you can either save 50%, or get double the coverage for the same price. Reach out anytime at 855-380-3300 we would love to go over your options.
Brenda Snipes
Yrs ago my husband tried for insurance the lady real fast called a name out to leave the policy to that was doing it an he caught it it was herself this is where the scams come from
Judy Rhodes
Can you send me some information on life insurance 6916 Hwy 187 Anderson SC 29625