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

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
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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:

Colonial Penn $9.95 Plan Rate Chart
Colonial Penn $9.95 Plan Rate Chart
Age 1 Male Unit ($9.95) 1 Female Unit ($9.95)
50$1,669$2,000
51$1,620$1,942
52$1,565$1,890
53$1,515$1,845
54$1,460$1,802
55$1,420$1,761
56$1,370$1,719
57$1,313$1,669
58$1,258$1,620
59$1,200$1,565
60$1,167$1,515
61$1,112$1,460
62$1,057$1,420
63$1,000$1,370
64$949$1,313
65$896$1,258
66$846$1,200
67$802$1,167
68$762$1,112
69$724$1,057
70$689$1,000
71$657$949
72$627$896
73$608$846
74$578$802
75$549$762
76$521$724
77$493$689
78$468$657
79$441$627
80$426$608
81$424$578
82$423$549
83$421$521
84$420$493
85$418$468

💡 Most seniors need 5–10 units to reach even $10,000 in coverage.

See what you will pay with Colonial Penn 995 plan!

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Source: ColonialPenn.com

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.
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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

What is the maximum number of units you can buy?

Typically up to 15 units ($149.25/month), but still offers limited coverage.

What is a better alternative to Colonial Penn’s 995 plan?

Final expense insurance with level benefits is often cheaper per $1,000 and comes with no waiting period. There are SO MANY better alternatives.

Does Colonial Penn have other life insurance plans?

Yes, but most plans they offer are graded benefit and relatively low in value.

Is the 995 plan worth it for someone over 75?

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.


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