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Buying life insurance can be confusing. There are a lot of companies out there, all promising peace of mind, affordable rates, and guaranteed acceptance. But is the Colonial Penn $9.95 plan everything it claims to be?

Let’s cut through their marketing noise. Below is our expert review based on years of working with real clients age 50 to 90. You’ll find honest answers, detailed comparisons, and straight-up facts about what this policy can (and can’t) do for your family.

What Is the Colonial Penn $9.95 Plan?

Colonial Penn’s $9.95 per month life insurance plan is a rebranded Guaranteed Acceptance Whole Life policy. You’ve probably seen the commercials. It’s marketed to folks between the ages of 50–85. But here’s what they don’t tell you up front:

• You’re buying “units,” not a fixed dollar amount of coverage.
• Each $9.95 unit buys less coverage as you get older.
• The policy has a 2-year waiting period for natural causes of death.

Guaranteed acceptance sounds good — but that peace of mind comes with serious trade-offs.

Jonathan Lawson and the Rebrand

The newest face of Colonial Penn is Jonathan Lawson, an actual employee of the company. This is a shift from past paid celebrity endorsers like Ed McMahon or Alex Trebek.

Why the change? Likely to make the marketing seem more genuine and trustworthy. But the truth is, the policy hasn’t changed much. The $9.95 price point is still the bait and hook. The coverage amount remains underwhelming for most seniors.

Guaranteed Acceptance Explained

Colonial Penn says, “No health questions. Guaranteed acceptance.” Sounds great, right?

Here’s the reality of policy ownership:

• Because they don’t ask about your health, the policy is automatically priced for very high risks.
• To protect themselves, they include a 2-year limited benefit period right upfront — meaning if you die from natural causes in the first two years, your family gets a refund plus fixed interest (currently 7%), but not the full death benefit.

⚠️ Quick Tip: Most people between 50–85 can qualify for immediate coverage with better pricing — simply by answering a few health history questions to obtain instant approval with the right insurer and policy. Find a life insurance broker who knows the senior insurance market thoroughly.

⚠️ Don’t Be Fooled by $9.95!

Colonial Penn’s commercials make it sound like $9.95/month buys you full coverage. Reality check: not unless you need a very, very small policy. There’s also a 2-year waiting period before your family gets the full payout if you pass away unexpectedly except in the case of an accident.

Most seniors, about 85% can get better coverage immediately for a lower price by answering a few health questions. Protect your family without the smoke and mirrors.📞 Talk to a Life Insurance Expert, 269-244-3420.

How the Unit Pricing Works

Colonial Penn’s $9.95 plan sells coverage in “units” — not dollars. In 2026, the maximum number of units you can purchase is 25. Each unit always costs $9.95/month, but the death benefit you get per unit shrinks with age until you purchase the policy and lock in your lifetime value.

For example:

✅ Premiums stay level once purchased — notice that the value of each unit is lower each year until you purchase coverage.

Pros and Cons of the Plan

👍 Pros:

• No medical exams
• Acceptance guaranteed (ages 50–85)
• Premiums never increase

👎 Cons:

• Very low death benefits
• High cost per dollar of coverage
• 2-year waiting period for natural death causes
• High complaint ratio per NAIC

Colonial Penn vs. Other Companies

Let’s compare the Colonial Penn $9.95 plan with a few top-rated insurers.

Male, age 64:
Colonial Penn: 10 units = $99.50/month = $9,490 of coverage
Gerber Life: $10,000 of coverage = $81.22/month

Female, age 64:
Colonial Penn: 7 units = $69.65/month = $9,191 of coverage
Gerber Life: $10,000 of coverage = $61.05/month

Not only is Gerber cheaper and offering $1000.00 more insurance, but they also offer better 2-year graded benefits in this example.

Not sure and want to get some competitors pricing, use our instant quoting tool on this page and see for yourself. Most seniors about 85% qualify for “Excellent Health” for final expense whole life insurance. Just compare yourself to other seniors, not to your 18 year old self.

Why So Many Complaints?

According to the NAIC, Colonial Penn had over 4x the complaint rate of similar-sized insurers in 2022.

Most complaints stem from:

• Misleading advertising
• Confusion about the 2-year waiting period
• Dissatisfaction with how little coverage was purchased

Consumer Tip: Always review the Colonial Penn policy. Understand the limitations and how it will affect your loved ones if you pass away unexpectedly during the 1st couple of years. The policy will define what your loved ones will receive. Don’t rely on the commercial or name of the company. It lacks a lot of clarity. If you have purchased, you may use the free look period (20–30 days) by state law to cancel if the policy isn’t right for you. You will, in that case, receive a full return of premium paid.

Better Burial Insurance Options

While I don’t believe that Colonial Penn $9.95 life insurance is useless…let’s be frank. Suggesting burial expenses for a senior will be covered for $9.95 a month is a little outrageous or very misleading. One or the other. If you are over 80 and have active internal cancer, in most cases, guaranteed issue whole life is your only solution. Colonial Penn accepts applicants as old as 85. Bear in mind, guaranteed acceptance insurance is very, very expensive for $10,000 of coverage in this age bracket. Your premiums will be closer to hundreds per month, not “$9.95.”

The average cost of a funeral around the US is $10,000 and rising. $9.95 a month with this policy will put a very small dent in your final expenses. Of course, this is all after you have paid into the company for 2 full years for full benefits. If your in your 70’s or 80’s when buying this policy, well, it won’t even fund a simple cremation and basic urn after doling our $10 a month for 1 “unit” of this life insurance plan.

This is not an affordable policy compared to the competition at all. Don’t let Colonial Penn or Jonathan Lawson tell you otherwise.

Most seniors qualify for better final expense policies — even with health conditions like:

• COPD
• Congestive Heart Failure
• Diabetes with complications
• Kidney disease (under a doctor’s care)

When you work with a reputable and seasoned independent agent, they will compare policies from dozens of top-rated carriers — often with first-day coverage and better rates. They don’t play word games either. You are quoted a rate for the amount of insurance protection you’d like have. No sneaky “unit pricing” or $9.95 bait and switch tactics.

💡 Don’t settle. Protect your family with the right policy. One that is right for your budget and two, a policy which offers your family better benefits upon your passing. Let us help you shop policies that offer:

• Full immediate coverage
• Lower premiums
• No exams and just a few health questions (important tip – this is how you get better rates)

Don’t Want to Talk About Your Health? You Still Have Better Options

A lot of people choose guaranteed issue life insurance for one simple reason: they don’t want to talk to anyone about their health.

That’s understandable. Medical conversations can feel invasive, uncomfortable, or just exhausting.

But here’s the part most commercials don’t explain: guaranteed issue is always more expensive and always comes with a waiting period. There’s no way around it.

Ethos Life offers a private, automated alternative.

You don’t have to talk to an agent. You don’t explain your health to a person. You simply answer questions on an automated platform — no one listening, no one judging, no pressure.

Ethos is going to do the heavy lifting for you by examining a number of the top life insurance companies for the right product for your needs, not pigeon hole you. Just keep in mind, term life insurance is for people who are not retired and are in good health looking to protect an income stream from employment or their business till retirement. Other use such as a mortgage are rather common. It is considerably harder to qualify for term life insurance. It is never for final expense planning – period. Note: Ethos term insurance is not for anyone over age 70.

How does it work then?

• First, Ethos attempts to qualify you for a whole life policy with full first-day coverage designed for final expense needs and senior health.
• If you don’t qualify, Ethos then offers a guaranteed issue whole life policy similiar to Colonial Penn — available for applicants ages 45–80.

Most of the permanent life options are offered with TruStage Financial formerly CUNA Mutual Insurance Company. TruStage is very well known for their senior final expense products.

Their guaranteed issue option is typically more affordable than Colonial Penn and offers an instant decision.

The difference is that Ethos doesn’t force you into the most expensive, least flexible option first. It lets technology check for something better — with guaranteed issue as the fallback.

If you’re already willing to accept a waiting period and higher costs, it makes sense to see if you can qualify for immediate coverage, better protection and lower cost without ever having a health conversation.

Quick Reality Check 👀

Not talking about your health doesn’t get you a better policy.

It gets you higher prices and a 2-year waiting period.

The smarter move is using an automated system that checks — privately — whether you qualify for full first-day coverage first.

If not? Guaranteed issue is still there. You can’t be turned down.

Which is better for you and your loved ones: full immediate coverage, or higher-cost guaranteed issue with a two-year limited benefit period?

Final Verdict

Colonial Penn proudly broadcasts how they never ask you about your health. That is not doing you any favors. It is not a courtesy. It always works against you. The less an insurance company knows about you, the more overall risk they know they are assuming. You could have good health for your age by senior standards and Colonial Penn is going to penalize you for taking their offer.

Is the Colonial Penn $9.95 plan a scam? No, but this very expensive life insurance policy puts your loved ones at risk of not receiving the full payout of the policy…all for not asking any health questions.

For 90% of consumers, it’s not a smart purchase. Your trading no health questions for a:

• Very high lifetime price, low value policy
• 2-year wait for full coverage

Ladies and Gentleman, there are:

• Much better, more affordable, no exam whole life policies — period.

If you’re age 50–85 and even have some rocky health, you likely still qualify for a better plan. Talk to a life insurance broker who works with a good dozen carriers or more. Someone who has been around the block and not stuck in some high volume call center. Let them help you find the right whole life policy. You and your family deserve more affordable life insurance with full 1st day coverage if possible. Find out what you prequalify for first. The most important part of any life insurance policy is the “black and white” on the policy pages combined with affordability. Especially for those seniors on a fixed income.

The name of the insurance company whether it be Colonial Penn, AARP/New York Life, Globe Life or other familiar names does not necessarily “equal” a good policy. Brand name companies often sell lower tier life insurance or no health question policies like Colonial Penn’s $9.95 life insurance policy.

Conclusion

Reading Colonial Penn reviews is definitely a good thing to do. You’re not blindly accepting what Jonathan Lawson is pitching. The current TV commericals are a lot of puff and fluff while they market a “Plan C” policy to you. And no, it’s not $9.95/month for a $10,000 policy with CP at any age. You may be surprised to learn some of this today. CP is spinning a very high priced and limited plan to you as though it is in your best interest. I’d like to add a recommendation to not limit yourself to one insurance company particularly with only 1 product. There are many good life insurance companies out there but there is no best life insurance company. For most people, the top suggestion to finding a good and affordable final expense policy…take a few minutes and talk to an independent life insurance agent/broker like Maple Valley Insurance Group. It stops days of work of searching for the right policy. Working with a seasoned professional advisor gives you access to all the top companies in one place. Get real insight and clarity on what is right for you and your family, not the “hot air” of a television commercial.