Discover The Truth About Colonial Penn’s $9.95 Life Insurance Plan

What Is Colonial Penn Life Insurance:

Colonial Penn is a well-known life insurance company based in Philadelphia. 

It mainly offers life insurance to people ages 50 to 85, focusing on helping families pay for final expenses, like funeral costs.

How The $9.95 Plan Works: 

Colonial Penn’s most famous offer is its $9.95 per month plan. This plan is called “guaranteed acceptance whole life insurance.” 

It means you don’t have to take a medical exam or answer health questions to qualify, making it easier for seniors or people with health issues to get coverage. 

Understanding Coverage Amounts: 

Unlike most life insurance, Colonial Penn sells coverage in “units.” Each unit costs $9.95 per month, but the amount of coverage you get per unit depends on your age and gender. 

For example, a 60-year-old man gets about $1,167 in coverage for one unit, while a woman of the same age gets about $1,515. If you want more coverage, you have to buy more units, up to a limit (usually 15 or 25 units). 

What The Policy Covers:

Colonial Penn’s plans are designed to help cover end-of-life costs, not to replace income or pay off large debts. 

The maximum coverage is usually around $25,000, which may be enough for a funeral but not much more. The policy builds some cash value over time, which you can borrow against if needed. 

Important Details To Know:

- There is a two-year waiting period for full benefits. If you pass away from natural causes during the first two years, your family will not get the full payout, just a partial benefit.  

- The price per unit stays the same as you get older, but the coverage amount per unit goes down as you age.  

- Colonial Penn gets more complaints than some larger companies, mostly about customer service and claims.  

- The company is rated “A” for financial strength, meaning it is financially stable.  

Who Should Consider Colonial Penn: 

Colonial Penn is best for people who have trouble getting life insurance because of age or health issues. 

If you are healthy and younger, you can probably find more coverage for less money with another company. 

Smart Tips Before You Buy:

- Always check how much coverage you need before buying.  

- Compare prices and coverage with other companies.  

- Read the policy carefully, especially about the waiting period and coverage limits.  

- Talk to a trusted agent if you have questions.  

What To Remember About Colonial Penn:

Colonial Penn’s $9.95 plan is easy to get, but coverage is limited and costs can add up if you need more than one unit. 

It’s a good option for people who can’t get life insurance elsewhere, but not the best deal for everyone.