Colonial Penn 995 Plan: Full Review

Published On - February 5, 2023

Joyce Espinoza Life Insurance
Colonial Penn 995 Plan

Colonial Penn 995 Plan is a guaranteed acceptance whole-life policy with a 2-year waiting period for $9.95 a month. Everyone pays $9.95 for each unit (max of 12 units). The amount of coverage you get for $9.95 is determined by your age and gender. There are no health concerns. They ensure your acceptance.

Because it is Whole Life Insurance, the procedure is simple:

  • Rates cannot rise in the long run.
  • The insurance cannot be terminated.
  • Coverage will never be reduced.
  • It increases the monetary worth.

Therefore, it never changes and will always be there if you pay your premiums on time. Colonial Penn Life Insurance is marketed as a low-cost alternative. The commercial may be recognizable due to its sponsor, Jeopardy’s late Alex Trebek life insurance.

Colonial Penn provides three types of life insurance policies:

  1. Guaranteed acceptance the whole life
  2. Term life.
  • Colonial Penn sells coverage in units; the unit premium never varies, and they sell one to eight teams. A single item costs $9.95.
  • Colonial Penn offers a maximum term life benefit of $50,000 for $45.12 per month.

What is a unit?

A unit of Colonial Penn coverage is equal to the amount of life insurance benefit you receive for $9.95 each month. Your age and gender determine the amount of insurance coverage provided by a single unit. A 75-year-old guy, for example, receives $560 in insurance coverage per unit. You may only purchase a total of twelve items. The chart below clearly shows how much a Colonial Penn life insurance unit gives at each age.

Is Colonial Penn a genuine firm?

Discover if Colonial Penn is a good insurance company at a low cost by purchasing life insurance units. Prices for the Colonial Penn will vary depending on the number of units purchased. This company is genuine.

How much do Colonial Penn 995 Plan policies cost?

The unit premium is constant, and they sell one to eight units. One item cost $9.95. Two units cost $19.90, three units cost $29.85, and so on, and up to eight units cost $79.60.

Colonial Penn Life determines the unit maximum benefit (or face amount, as we call it in insurance language) based on your age and what they deem suitable, while the price per unit remains constant.

So, while one unit costs the same $9.95 for a 77-year-old and a 50-year-old, the benefit amount for the 77-year-old is $503, while the benefit amount for the 50-year-old is $1,786.

Colonial Penn 995 Plan $9.95 per month

This Colonial Penn Life advertisement differs from other life insurance quotations in terms of how affordable the life insurance payments are. However, they don’t tell us how much a $9.95 monthly life insurance payment can get you.

The chart below shows the cost of life insurance for a 50-year-old and a 70-year-old, but coverage is available to individuals above 70. When acquired at 50, the range is highest, with a benefit value of $1,786, decreasing with age.

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Colonial Penn Life Insurance $9.95 Per Month Rate Chart

Here is a table explaining how the rate chart might look for the $9.95 per month whole life insurance plan based on age and gender:

Age

How Much Does Life Isurance Cost?

0$
0$

Note:

Powered by insurance_logo M-Life Insurance

Gender

Coverage Amount per Unit

50 years

Female

$1,500 – $2,000

50 years

Male

$1,400 – $1,800

60 years

Female

$1,100 – $1,400

60 years

Male

$1,000 – $1,200

70 years

Female

$800 – $1,000

70 years

Male

$700 – $900

80 years

Female

$600 – $800

80 years

Male

$500 – $700

However, remember that the coverage amounts per unit at $9.95 per month will likely differ based on the insured person’s age, gender, and the current rates offered by the insurance company. Always consult with Colonial Penn or their official documentation for the most accurate and current rate chart for their life insurance policies.

Colonial Penn life insurance $9.95 per month reviews

Colonial Penn is a renowned life insurance provider that directly offers customers a range of insurance plans, including assured insurance, term life insurance, and whole life insurance. We guarantee acceptance, so you won’t be turned away even if other life insurance policies have rejected you due to your medical history or pre-existing conditions, and no medical exam is required to enroll with Colonial Penn. They offer a limited number of plans, making them a great option for those who have been denied elsewhere.

The Colonial Penn 995 Plan.

Yes, however, this pricing is a little deceptive. Colonial Penn specializes in life insurance policies with local underwriting and lowers death benefits, making them only suitable for people who want extremely little coverage immediately.

Pros and Cons of Colonial Penn 995 Plan

Let’s explore the pros and cons of Colonial Penn Life Insurance:

Pros:

  • Guaranteed Acceptance: Colonial Penn offers guaranteed acceptance life insurance, meaning individuals won’t be turned down due to health conditions or medical history.

  • No Medical Exams: Policyholders are not required to undergo medical exams or answer health questions for enrollment, making it accessible for those with health concerns.

  • Fixed Premiums: The premiums remain constant throughout the policy’s lifetime, offering predictability in payments.

  • Whole Life Insurance: Offers permanent coverage that doesn’t expire as long as premiums are paid, with a cash value component that grows over time.

  • Simple Application Process: The application process is relatively straightforward, often requiring minimal information (age, gender, and location) for enrollment.

Cons:

  • Limited Coverage Options: Colonial Penn’s coverage options might be limited compared to other insurers, with maximum benefit amounts typically not exceeding $25,000 or determined in units rather than specific cash values.

  • Two-Year Waiting Period: Some policies come with a waiting period, usually two years, during which the full death benefit might not be payable if the insured passes away due to non-accidental causes.

  • Graded Benefits: The policy might have graded benefits where full coverage might not be payable within the initial years of the policy, depending on the circumstances of the insured’s death.

  • Limited Age Range: The coverage may be available for a specific age range (e.g., 50 to 85), potentially limiting eligibility for younger or older individuals.

  • Possibly Lower Death Benefits: Policies might have lower death benefits compared to other life insurance options, potentially not providing sufficient coverage for some individuals’ needs.

The Program of Guaranteed Acceptance

When you pick Colonial Penn’s Guaranteed Acceptance Program, all you need to supply is your age, gender, and location. Colonial Penn will now assign you a “unit” of coverage that you may purchase for $9.95. If you want to buy more units (you may buy up to eight coverage teams), the price per unit will stay set at $9.95.

Guaranteed-issue life insurance policies usually do not provide coverage above $25,000. They also have the provision of a graded benefit, which implies that if you die within two years of purchasing the insurance, the carrier will not pay the full benefits. Depending on the firm, you may also be eligible for 10-15% interest.

The guaranteed policy at Colonial Penn Life is a little different. The firm does not provide benefits up to $25,000, as the others do; instead, it gives the “units of coverage” that we previously described. Thus, when looking for a life insurance policy, we are all aware of the face value or benefit amount. This is permanent life insurance with a cash-saving component that does not necessitate any health inquiries or tests. In most states, the issue ages range from 50 to 85.

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How Good Is Colonial Penn 995 Plan For Seniors?

Colonial Penn 995 plan can be an option for seniors due to its guaranteed acceptance policy, which means individuals won’t be turned down due to health issues or medical history. Here’s an overview of how Colonial Penn 995 plan might appeal to seniors:

benefits for seniors

Benefits for Seniors

  • Guaranteed Acceptance: Seniors who may have health concerns or pre-existing conditions can qualify for coverage without medical exams or health questions.

  • Fixed Premiums: The premiums remain consistent throughout the policy’s life, providing predictability in payments, which can be beneficial for seniors on a fixed income.

  • Whole Life Coverage: Seniors can secure permanent life insurance coverage that lasts their entire life and includes a cash value component that accumulates over time.

  • Simplicity in Application: The application process is straightforward and typically requires minimal information, making it easier for seniors to enroll.

  • No Termination of Coverage: As long as premiums are paid, the coverage remains intact, providing peace of mind to seniors and their families.

Considerations for Seniors

  • Limited Coverage Amounts: Policies often have a maximum coverage limit, which may not be sufficient for seniors with larger insurance needs.

  • Waiting Period and Graded Benefits: Some policies come with a waiting period or graded benefits, meaning full coverage might not be payable if the insured passes away within the initial years.

  • Cost-Efficiency: While the $9.95 per month option might seem affordable, the coverage might not align with the actual needs of some seniors, leading to potentially lower death benefits compared to other options.

Is There a Better Option?

Yes, we urge all of our readers to shop around for other providers’ programs. It doesn’t take long to complete. Purchasing life insurance coverage is a significant financial investment. Take it seriously. If the Colonial Penn 995 life insurance plan does not meet your specific needs, look into other companies, such as Sprout, or fill out the form at the top of this article to see a list of other affordable options that can provide you with the coverage you require, specifically plans that can cover your final expense.

Final Verdict

Colonial Penn’s 995 Plan offers guaranteed acceptance whole life insurance with fixed premiums and coverage determined by units based on age and gender. While it provides a straightforward application process and a low-cost option, it might not suit everyone’s coverage needs. Therefore, it’s advisable to explore other insurance providers and policies to ensure adequate coverage tailored to individual requirements.