Colonial Penn Life Insurance: Costs & Reviews Guide

Key Takeaways

• Colonial Penn sells life insurance in units for $9.95 each.
• Coverage amount per unit decreases with age.
• Popular among seniors due to no medical exam requirement.
• Expensive for larger policies like $25,000 or $50,000.
• Works best as a final expense policy rather than full financial protection

When people look for low-cost life insurance, they often find Colonial Penn Life Insurance. This company has been around for many years and it is well-known because of its TV ads with the late Alex Trebek. Colonial Penn is famous for its “$9.95 plan,” but many people wonder if it really gives good coverage. In this article, we will look at Colonial Penn Life Insurance reviews, prices, rate charts by age, and see if it’s a good choice for seniors and families.

What is Colonial Penn Life Insurance Co?

Colonial Penn Life Insurance Co. started in 1968 and this company is based in Philadelphia. The company main goal is to sell life insurance plans for seniors. Instead of using brokers, Colonial Penn sells directly to customers, which makes its plans simple and easy to understand.

The company is best known for its guaranteed acceptance whole life insurance. With this plan, you don’t have to give a medical exam to qualify. This is helpful for seniors who have health problems because it makes getting insurance much easier.

Colonial Penn Whole Life Insurance

The most common and popular plan from Colonial Penn is its whole life insurance colonial penn. This type of plan stays active for your entire life as long as you keep paying your premiums. It also builds a small cash value over time. This is best for the seniors who were not accepted by the insurance companies because of their health issues. Lets have a quick look at the main points;

Main points:

• Guaranteed acceptance for people ages 50 to 85
• No medical exam or health questions for the guaranteed plan
• Fixed premiums that never go up with age
• Lifetime coverage that never ends as long as you pay

Colonial Penn Life Insurance Reviews

Reviews about Colonial Penn are mixed. Some people like that the plans are easy to get, especially for seniors with health problems. But others complain that the coverage amounts are too low and the colonial penn life insurance prices are higher than many other insurance companies. Let’s have a look at the pros and cons so you will get a better idea if it’s good for you or not.

Colonial Penn Life Insurance Rate Chart

To understand Colonial Penn life insurance, you need to know how its rate chart by age works. This is not like the most insurance companies. Colonial Penn sells coverage in “units.”

• Each unit costs $9.95 per month.
• The coverage amount you get per unit depends on your age and gender.

For Example:

• A 50-year-old man may get about $1,600 of coverage for one unit.
• A 75-year-old woman may get only about $400 of coverage for one unit.

This means that as your age goes,you will get the less coverage from the same $9.5. So if you want a bigger amount like $25,000 or $50,000 you must buy many units, which makes it more expensive.

How Much is a $50,000 Life Insurance from Colonial Penn?

There is a common question that a lot of people ask: How much does a $50,000 life insurance policy cost from Colonial Penn?

Lets have a clear understanding, this is because Colonial Penn sells coverage in small units, getting $50,000 is very expensive. Most seniors would need about 20–25 units, which means paying over $200 each month. That makes it one of the costlier choices for large coverage amounts.

Other insurance companies often give $50,000 policies for less money, especially if you are in good health. But if you can’t qualify with other companies, Colonial Penn may still be an option.

How Much is a $25,000 Whole Life Insurance Policy?

The colonial penn life insurance cost of a $25,000 policy with Colonial Penn depends on your age and how many units you need. Usually, it takes about 10–12 units, which costs around $100–$120 each month.

But again remember It’s not the cheapest option out there, but the guaranteed acceptance can be helpful if other insurance companies have denied your application.

Colonial Penn Life Insurance for Seniors

Colonial Penn mainly offers plans for seniors ages 50 to 85. The biggest benefit is that you don’t need a medical exam. This is helpful for seniors with health issues like diabetes or heart problems, since many other insurance companies may reject them.

But there are some important things to know:

• For the first two years, if you die from natural causes, the plan usually pays back only the premiums you paid plus interest.
• Full coverage starts only after this waiting period.

Is Colonial Penn Good Life Insurance?

The answer depends on what you need:

• If you are a senior with health problems and can’t get approved anywhere else, Yes, it can be a good choice. 
• If you are younger, healthier, or need more coverage, No, other companies are cheaper and offer better plans.

In short, Colonial Penn is easy to get, but it’s not the best deal if you want larger or more affordable coverage.

Colonial Penn Life Insurance Rate Chart by Age

Here’s a simplified example of coverage per unit by age. This chart is just an example to give you the ideas, the actual prices can vary.

• Age 50 Male: ~$1,600 coverage per unit.
• Age 60 Male: ~$1,000 coverage per unit.
• Age 70 Male: ~$600 coverage per unit.
• Age 80 Male: ~$400 coverage per unit.

Final Thoughts 

Colonial Penn Life Insurance is mainly for seniors. It is very easy to get, but not the cheapest, and the coverage amount is small. Still, it gives peace of mind to people who may not qualify for other insurance.If you want a low-cost plan with big coverage, you should look at other companies.

But if you only need a small plan that is guaranteed and has no health questions, Colonial Penn can be a good choice.

Before you buy, always check and compare quotes, read reviews, and look at Colonial Penn’s rate chart. This will help you see how much coverage fits your budget.

Find out how much coverage you can get—check your quote now with Insure Guardian.

FAQs

1. What do you get for $9.95 a month from Colonial Penn?

For $9.95 a month, Colonial Penn gives you one “unit” of life insurance. The amount of coverage in each unit depends on your age and gender.

2. How much insurance do you get for $9.95 a month?

The coverage is small. For example, a 50-year-old may get around $1,600 of coverage per unit, but an 80-year-old may only get about $400. The older you are, the less coverage you get.

3. Is Colonial Penn real life insurance?

Yes, Colonial Penn offers real whole life insurance. It is a trusted company that has been selling life insurance for many years.

4. Does Colonial Penn ask health questions?

For their $9.95 guaranteed acceptance plan, they do not ask health questions. You can qualify no matter your health condition.

5. Is Colonial Penn good for everyone?

No, Colonial Penn is not the best choice if you need a big amount of coverage at a low cost. But it can be good for seniors who only want a small policy to help with final expenses.