Colonial Penn Life Insurance Review (2026): The $9.95 Plan, Coverage and What to Check

Short answer: Colonial Penn Life Insurance Company is best known for its $9.95-a-month guaranteed acceptance whole life plan. Anyone aged 50 to 85 in most states can get it, with no medical exam or health questions. The trade-offs are that coverage is sold in units whose value shrinks as you age, and the plan has a limited death benefit for the first two years. It can suit people who can’t qualify elsewhere. People in reasonable health should compare it with policies that ask health questions.

RestAssured is an independent insurance agency. We are not affiliated with Colonial Penn, and our agents are not appointed to sell its policies. To buy a Colonial Penn policy, contact Colonial Penn directly through colonialpenn.com. This review uses Colonial Penn’s own published materials and independent ratings.

Colonial Penn at a glance

Sources: Colonial Penn website; AM Best via Business Wire. Details vary by state.

How the $9.95 plan works

Colonial Penn’s guaranteed acceptance plan is a unit-based policy:

• Each unit costs the same: starting at $9.95 a month.
• What a unit pays depends on you. Colonial Penn says the coverage amount per unit varies by age, gender (age only in Montana) and state. Older applicants get less coverage per unit.
• You can buy more than one unit. Colonial Penn quotes up to 15 units.
• The price is locked. Colonial Penn says the premium is “guaranteed to never increase” as long as the coverage lasts, and the benefit won’t decrease due to age.

That’s why “how much coverage does $9.95 buy?” has no single answer. Ask Colonial Penn for the dollar amount of one unit at your age, then multiply. Our guide to what “$9.95 a month” unit-based plans actually buy walks through the math, including how to work out the cost per $1,000 of coverage so you can compare fairly.

The two-year limited benefit

Colonial Penn says it can guarantee acceptance “because of a limited benefit for death during the first two years.” That’s standard for guaranteed acceptance policies. During that window, a death from natural causes typically doesn’t pay the full face amount. Guaranteed acceptance plans usually return premiums paid, often with interest, while accidental deaths are generally covered in full. The exact terms are in the policy, so read that section before you buy.

If you can answer a few health questions, some policies pay the full benefit from day one. See burial insurance with no waiting period.

Who Colonial Penn’s guaranteed plan may suit

It may be a reasonable fit if you:

• Have health conditions that rule out policies with health questions
• Want a small, simple policy with no exam and no questions
• Are between 50 and 85 (in most states) and understand the two-year limited benefit

You may want to compare other options if you:

• Are in fairly good health. A simplified-issue policy (health questions, no exam) may give you more coverage for the same monthly budget and pay in full from the first day.
• Need a specific coverage amount, such as enough for a funeral. NFDA’s latest median funeral costs are $8,300 with burial and $6,280 with cremation; see how much a funeral costs.
• Are older and would need many units to reach your target.

What to check before you buy any Colonial Penn policy

1. Dollar amount per unit at your age, and the total monthly cost for the coverage you need.
2. The limited benefit terms: what’s paid for a death in years one and two.
3. Your state’s age limits and rules. Colonial Penn lists different ages and terms for some states.
4. Complaint history. You can look up any insurer’s complaint data, including Colonial Penn’s, on the NAIC’s Consumer Insurance Search.
5. Cost per $1,000 of coverage compared with at least one other policy. The NAIC recommends comparing similar policies from different companies.
6. The 30-day period. Use it to read the policy and cancel for a full refund if it isn’t right.

How Colonial Penn compares with other options

Every insurance company prices differently, and we don’t rank companies. The fairest comparison is to get the same coverage amount quoted as:

• Colonial Penn’s guaranteed acceptance plan (from Colonial Penn), and
• a simplified-issue whole life policy, if you can answer the health questions (from an independent agent or another insurer).

Then compare the monthly cost, the cost per $1,000, and when each pays in full. For what drives prices after 70, see Cheapest Life Insurance for Seniors Over 70 and 75.

The bottom line

Colonial Penn’s group carries an A (Excellent) rating from AM Best. Its $9.95 guaranteed acceptance plan does what it promises: anyone aged 50 to 85 in most states can get it, with a locked price. But each unit buys less coverage the older you are, and the first two years carry a limited benefit. It’s worth a look if health problems rule out other policies. If they don’t, compare before you decide.

If you’d like to see how policies with health questions compare for your age and state, a licensed agent can walk you through options from the insurance companies they’re appointed with, with no obligation. Here’s how our free agent service works.

Frequently asked questions

How much coverage does Colonial Penn's $9.95 plan buy?

One unit. Colonial Penn says the amount of coverage per unit depends on your age, gender (age only in Montana) and state, so the older you are when you apply, the less coverage each unit buys. Ask Colonial Penn for the dollar amount per unit at your age.

Is Colonial Penn a good life insurance company?

Financially, Colonial Penn’s group carries an A (Excellent) rating from AM Best. Whether its guaranteed acceptance plan is a good fit depends on your health: it accepts everyone aged 50 to 85 in most states, but it has a two-year limited benefit, and people who can answer health questions may find more coverage for the same price elsewhere.

Does Colonial Penn have a waiting period?

Yes. Colonial Penn says it can guarantee acceptance because of a limited benefit for death during the first two years. The exact terms are in the policy, so read that section before you buy.

Can I get a $50,000 policy from Colonial Penn?

Colonial Penn’s guaranteed acceptance plan is sold in units, quoted up to 15 units, and the dollar amount depends on your age, sex and state. Ask Colonial Penn directly what maximum coverage is available to you. If you need larger coverage, policies with health questions often offer higher amounts.

Does the Colonial Penn premium go up with age?

No. Colonial Penn says the premium is locked in once you’re insured and won’t increase as long as you keep the coverage, and the benefit won’t decrease because of age.

Sources

• Colonial Penn: Guaranteed Acceptance Whole Life Insurance (product page)
• Colonial Penn: Life insurance home page (ages, state availability, 30-day period)
• AM Best affirms credit ratings of CNO Financial Group and its life/health subsidiaries (April 2026)
• NAIC Consumer Insurance Search (complaint data lookup)
• NAIC: A Consumer's Guide to Life Insurance

This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.