Many of us heard the Alex Trebek life insurance commercial more than a few times over the years. Is it really a good policy or not? We’ll help you decide.
As the host of Jeopardy for many years, plenty of consumers saw Mr. Trebek as someone who was very articulate and quite familiar.
While that all sounds nice, it is important to note that Mr. Trebek was not a life insurance expert, but a paid spokesman for Colonial Penn Life Insurance Company.
We’re going to review the $9.95 Alex Trebek life insurance Ad in this article so you know what you may be getting yourself into if you choose to purchase the Colonial Penn, Guaranteed Acceptance insurance plan.
“Your acceptance is guaranteed!”
Consumers need to proceed with caution with this particular type of life insurance product. It is not for the average consumer frankly.
The 995 Colonial Penn Guaranteed Acceptance insurance plan does have some big surprises in it.
Because it affects not only the policyowner but their loved ones…don’t be surprised if I bring the heat in this review!!
Before we get to far, I would like to make in known:
In no way do we wish to put down Mr. Trebek. He suffered with a terrible form of cancer and never quit. He also brought to life a fun, educating game show for years and it is sad to know he won’t be returning. Jeopardy has never been the same in my opinion.
With that said let’s continue…
FYI, I talk to numerous life insurance consumers age 50-85 5+ days a week. Most people are shocked when I explain why they don’t want to own a policy like this unless they have no better permanent life insurance alternatives.
What has been apparent, consumers do not realize the actual cost and the policy limitations.
The problem here… we have a sponsored celebrity endorsing a big name “end all be all” burial insurance product.
A key point to remember, Alex Trebek, who had the respect of many people, was also a well compensated endorser of the Colonial Penn Life Insurance Company. He was not carrying a life insurance license nor taking ongoing education requirements and training to advise people on life insurance. Simply put – He was not an expert.
We are not talking trivia when it comes to life insurance and this is a very important decision you need to make for those you care about the most.
Without having a background in life insurance, his judgement of companies, their products and what the average senior needs for life insurance protection is really limited. There are many different whole life insurance policies and companies available.
It is fair to suggest he probably has been well paid over the years so his resources and his financial situation is likely different than most people on a fixed and or limited income.
With that said, do you believe he knows that much more about your life insurance needs versus the person down the street? F
I’ll let you make your own assessment there. The Alex Trebek life insurance commerical for 9.95 insurance just puts a bow on a policy that has a lot of risk the first two years and a very high cost of lifetime ownership which we will reveal later in this article.
Before I get into the meat of this post, it is advised to use our free, instant quoting tool on this page. Keep in mind, all final expense whole life insurance is designed for people in less than ideal health. No medical exam is the norm. The tool on this page will help you know what the competition is charging for no medical exam, whole life insurance. Simply judge your health compared to your peers (Excellent, Decent, Poor) and less than a minute you will know what all the top life insurance companies will charge compared to the policy endorsed by the late Mr. Trebek. The vast majority of people 50-85 do not need “guaranteed acceptance” life insurance. With that said, select “poor health” only if you want to see who offers guaranteed acceptance policies like the 9.95 life insurance plan from Colonial Penn.
Colonial Penn, Alex Trebek Insurance Commerical
Colonial Penn is a life and health insurance company is located in Philadelphia, Pennsylvania. They offer life insurance and Medicare Supplement insurance for seniors.
The company has a long history of selecting celebrities to endorse their 995 life insurance. We all know Ed McMahon, Joe Theismann and even Jerry Lewis. They were all paid endorsers.
Television has been the common marketing avenue of Colonial Penn for years.
A lot of people, young to old have seen the Alex Trebek life insurance commercial.
The focus of these advertisements has been to promote a whole life insurance policy that offers guaranteed acceptance, a “rate lock,” premiums that will never go up and a death benefit which will never go down.
This particular product, titled “Colonial Penn Guaranteed Acceptance Whole Life” is nothing unique. It is simply a high risk life insurance policy. Several different life insurance companies offer it.
It does not ask any health questions for starters.
That sounds pretty good right? Nice and easy.
It could cost you, the consumer and your family dearly.
You must understand that life insurance companies cannot evaluate the risk level of a person accurately without asking health questions. Life insurance is all about the pricing the risk they have in insuring someone. What do you think they do in to offset the risk of not having a clear picture of whom is requesting life or burial insurance protection from them?
You got it. They jack those rates up for starters…
They also insert a veiled 2 year limited benefit period for natural death into the policy.
For those of you shocked by hearing
Here is what you need to understand about that.
For the first 2 years of coverage with “Alex Trebek Life Insurance,” there is a limited death benefit for natural causes of death. For example: cancer, stroke, heart attack. During this time period, your loved ones would receive your premiums plus interest as the benefit amount if you pass away due to natural causes. Interest on this policy as of 2023 is 7% which is lower than most other carriers who offer Guaranteed Accepantance whole life insurance.
If you perish due to an accident such as a car wreck or slip and fall, Colonial Penn would be obligated to pay the full policy amount.
Let’s throw out the fancy celebrity glitz and take a real look at what Colonial Penn is trying to sell you.
The Alex Trebek Colonial Penn $9.95 Per Month Plan
If you had not already made the connection, the trivia game show host has driven a lot of people to consider Colonial Penn. The life insurance policy promoted in the Alex Trebek life insurance ad is the $9.95 life insurance, a “Guaranteed Acceptance” insurance policy.
As we get into this article, I will explain the limited use of “Guaranteed Acceptance” life insurance and why it should be avoided if possible.
No, Alex Trebek did not influence the insurance company nor did he provide the insurance products to anyone. He also had nothing to do with paying death claims or handling customer service issues either.
I’d like to suggest that life insurance is more complicated than the TV makes it out to be. Ultimately, it is what is written in the contract, the policy itself that matters.
Take a paid endorser that does not have insurance expertise with a grain of salt.
How much was Alex Trebek actually paid?
I do not have an answer for that, but I can assure you, all the CP policyowners have paid for it. It was a huge Colonial Penn marketing expense. Insurance companies figure costs like this into policy expenses which translates to higher premiums for consumers of their policies. Use our free tool on this page, select “Poor” under the “Health Classification” and you will see the top pricing from life insurers who offer the same type of protection. We generally advise people to use Gerber or AIG IF they need high risk life insurance like the Alex Trebek Life Insurance product.
The $9.95 per unit life insurance product is a no medical question, life insurance product. Again, this type of whole life insurance is available from a number of life insurance companies and not proprietary to Colonial Penn.
It is a pure, high risk life insurance product for those who cannot qualify for better and more affordable life insurance coverage. For example, someone who may be suffering from a terminal illness, have active, internal cancer, on kidney dialysis, or needing an organ transplant.
These situations do require guaranteed issue life insurance. There is no way around it.
If your thinking…I didn’t know that, read on.
So What Is The Alex Trebek Life Insurance Commerical About?
Colonial Penn Life Insurance offers 2 different whole life policies. Both are marketed to senior citizens in general. The “Guaranteed Acceptance Life Insurance” is Alex Trebek’s endorsed product you’ve heard so much about.
Guaranteed Acceptance insurance is a whole life policy with critical caveats.
It is important you understand this clearly before ever purchasing any guaranteed issue life insurance. This could end poorly for your loved ones.
No medical exams, no health questions. Your acceptance: guaranteed.
The above quote was taken directly from colonialpenn.com in 2019.
However, the truth, this life insurance advertisment markets a particular type of whole life insurance with carefully, glossed over limitations and very high “real world” premiums.
While Colonial Penn offers one other life insurance product, the Alex Trebek, Colonial Penn insurance product is what most seniors are curious about.
Well, if you looking to cover the cost of funeral, you’re out of luck paying $9.95 a month. It’s good you are reading $9.95 life insurance reviews like this that show you the real monthly cost of a burial policy with this carrier.
If you are wondering if the price per month was not accurate, you were just not aware of how the insurance company was pricing the 995 life insurance program. We will get to that specifically later in the article.
If you watched the video above, you may have noticed that the cost per unit has increased nearly 50% in the last 20 years or so. Coverage was once $6.95 per unit. However, there are also additional expenses baked into unit based pricing.
Funerals have gone up in price over the years. I can tell you that in the late 90’s, the average, burial policy I sold was about $7000. Twenty years ago my licenses limited me to Michigan and Indiana, but that was pretty typical in the burial insurance business then. Nowadays, it is about $10,000 on average for a full funeral around the country. Cemetery costs are easily another $4000 or more. My average policy is closer to $15K in 2023 for funeral and burial costs.
Ed McMahon used to advertise $6.95 per unit for Colonial Penn’s Guaranteed Acceptance plan. The Alex Trebek commercial for life insurance comes in at $9.95 per unit. Same product folks.
If you want to leave a significant death benefit for your loved ones, $9.95 per month isn’t going to help out very much. That is a very, very small policy if you are planning for final expenses. Buy additional units unless you need a very small policy.
Remember, you are paying for permanent, lifelong coverage with the $9.95 life insurance product. This is not term life insurance which typically expires by age 75 or 80.
Alex Trebek Colonial Penn Whole Life Insurance
There are no shortage of reviews on whole life insurance products offered by Colonial Penn. Their most popular life insurance plan is the guaranteed acceptance whole life. This is for 2 reasons. Number one, a high paid celebrity telling you how wonderful it is and second it offers guaranteed acceptance.
For $9.95 a month, you can purchase one “unit” of the Colonial Penn Life Insurance Guaranteed Acceptance policy, the Alex Trebek insurance commerical.
How Much is a Unit of Colonial Penn Life Insurance Worth Anyway?
Aah, here is the problem with Colonial Penn “units.” $9.95 sounds quite enticing but…
One unit does not buy enough insurance to scratch the cost of a cremation let alone a full funeral.
Since you are buying units with Alex Trebek life insurance, the more units you purchase the larger the value of your policy.
However, you need to know the true value of the units. This is variable and VERY important to understand.
Stay with me here. I will elaborate on “units” in just a bit.
We work with dozens of the top life insurance carriers so I can attest to this next fact.
Units are not typical in the life insurance business. While I personally don’t agree with this, it remains a state approved method of marketing the insurance to consumers otherwise Colonial Penn would be unable to run commericals for their $9.95 life insurance.
How many can you buy?
As of January 2023 consumers age 50-85 are allowed to buy up to 15 units. Therefore, the maximum anyone would pay would be $149.25 per month.
Now some folks look at that and say, sounds like a good price.
Not really. There is a catch here with this 995 life insurance product.
If you have not already, run a quote on the final expense quote tool on this page. See what size policy that $149.25 per month will buy. Take a look at the competition out there. Be prepared to be shocked!! Yes, you will receive quotes for whole life insurance.
The Colonial Penn life insurance for seniors that Alex Trebek advertises will be best suited for those folks who are closer to 50 and in very poor health.
As mentioned earlier, you are buying a unit of insurance, not a death benefit amount. The actual death benefit is independent of the number of units you purchase. You will see this illustrated later in this article.
Again, selling life insurance in “units” is not common in the industry at all.
With the Alex Trebek, Guaranteed Acceptance insurance ad, the older you are, the less insurance you get for each $9.95 unit you buy.
So a 75 year old is going to be penalized regardless of good health versus a 65 year old who may have congestive heart failure and lung cancer. With the Colonial Penn Guaranteed Acceptance plan, the value of the “units” depends strictly on your age at purchase, not health. At 65, the policy value of each $9.95 unit is much higher which translates into more death benefits than the than the healthy individual. In fact, there is no way for a good health 75 year old to obtain the same amount of financial coverage if both purchased the maximum number of units with this particular policy.
The value of the units for you is determined at application. The death benefit for your loved is determined at this time and will be paid out according to the terms written into the guaranteed acceptance policy. The value determined will be locked. Just be sure to keep up your premium payments.
In real life, “units” can pose a major problem for families being underinsured thereby imposing major financial troubles for those they are trying to protect.
What to understand about Colonial Penn $9.95 Life Insurance units…
The minimum value of one “unit” is currently $418 while the maximum is $2000. That is why the maximum policy value is $30,000. Again, it depends on the value of each “unit” at application. If you are age 80 at purchase, the value of 1 unit is very low compared to age 50. Take a look at the Colonial Penn life insurance rates for this product in the tables below for specifics. We have provided rates by gender and age.
For many seniors, the guaranteed acceptance whole life insurance advertised by Alex Trebek will not provide enough funding for a simple funeral.
What you need to remember about the Guaranteed Acceptance program: it is for high risk life insurance applicants.
They don’t tell you that do they?
Just because you are a senior does not mean that you are one of these candidates. In fact, here at our agency, roughly 85-90% of seniors are not!
Yes, the other 10-15% of seniors life insurance policy holders have some very serious medical issues which impair their ability to medically qualify for immediate benefit, no exam whole life insurance. Medically underwritten, no exam whole life is superior protection for your family, is more affordable and does not have the limitations written into the whole life policy.
Keep in mind, people age 50-85 are the vast majority of our clientele at Maple Valley Insurance Group. We are often working with people in less than ideal health.
Guaranteed Acceptance coverage from any life insurance company that offers it, will take high risk life insurance individuals.
Because the insurance company does not ask any health history questions. Health questions will eliminate a select number… say 10-15% of applicants who are in poor health for their age and can’t qualify for no exam, level benefit whole life insurance (full, immediate protection).
Sorry, Alex Trebek life insurance is not demonstrating anything special.
The $9.95 life insurance advertisement is just a high risk, whole life insurance policy designed primarily for seniors who cannot qualify medically on a standard, no exam final expense insurance application.
Does Colonial Penn life insurance accept all seniors on this 995 plan?
Yes, as long they apply between age 50-85, the insured is legally competent and can consent to coverage. Power of attorney is acceptable.
Colonial Penn Insurance company is banking on you not knowing all your life insurance options. The insurance that Alex Trebek advertises is presented so you will be motivated to purchase Guaranteed Acceptance life insurance even if you can medically qualify for better coverage and a considerably lower price.
Quick question to ask yourself as you move forward.
Why do you think you need high risk life insurance? Do you assume you cannot qualify for a better policy because your health isn’t ideal? Insurance companies design the no exam final expense policies for people 50-85. You don’t have to be in A1 health any longer.
Make sure you speak with the right independent life insurance agent who works with people 50-85 daily.
Reviews Of Colonial Penn’s Guaranteed Acceptance Life Insurance Rates
While there is no short supply of Alex Trebek life insurance reviews out there, here is the straight scoop you need to be absolutely clear on when comparing any life insurance product to another. Understand any and all limitations built into the policy.
The Pro’s Of The 9.95 Life Insurance Program
- This is permanent, whole life insurance that will never go up in cost nor down in death benefits. Lifetime coverage.
- Better than having no life insurance protection at all.
- First day coverage for accidental death…such as a car accident.
The Con’s Of Alex Trebek, 9.95 Guaranteed Acceptance Life Insurance
Guaranteed Acceptance coverage hands you a three fold penalty.
- Much higher premiums than the competition and commonly, lower value
- Limited benefits the first 2 years of ownership for natural death
- Limited maximum death benefit (face amounts). May not be adequate for many seniors final expense needs
Did you know these 3 key points prior to doing your research here?
With ANY guaranteed acceptance/issue life insurance, the first 2-3 years, the insured person is not covered with full benefits for natural death.
Many people miss that major detail. This is the highest risk the average elderly person faces.
Colonial Penn has modified this in 2023. For new policy owners, they now pay 15% of the death benefit the first year, 30% the second year. In year 3 and for the remainder of your life, they will pay the full policy amount.
No life insurance company offers individual life insurance without health questions and no medical exam without a mandatory waiting/limited benefit period. They must charge higher premiums and have a limited benefit period to offset their risk of loss.
Understanding Alex Trebek Colonial Penn Guaranteed Acceptance Commercial: The Fine Print
So, insurance companies, including Colonial Penn, can’t approve applicants halfway in the casket with full life insurance benefits. They’d be unable to pay the claims real and why they insert a 2 year limited benefit period into the policy contract. This is also why the policy is has an elevated premium.
Life insurance is a giant money pool each policyholder pays into. Imagine several people paying one months premium for a $10,000 death benefit. Colonial Penn would be sunk real quick with a policy like that.
You see, life insurance is all about statistics. A certain number of people in the policy will make it beyond 2, 5 even 10 years or more even with rocky health. Colonial Penn knows by statistics what they must bill you for your policy when you buy. This allows them to make a profit with the risk profile they are willing to accept and pay out all claims.
If you have decent to excellent health as a senior, they really love you!! It helps them make a lot more money because you are lumped in with a large number individuals who are very high risk.
Understand this…all limitations are applied to anyone who buys this type of policy. Not just the folks in very high risk health situations. It is automatic with a guaranteed issue whole life policy. Remember, there are no health questions. They “don’t know you from Adam.”
The Colonial Penn commercials have had a certain “magic” about them that washes away the reality of their “guaranteed acceptance” 995 life insurance plan.
The truth is, coverage is determined strictly by the terms written in your life insurance contract.
Whether the Alex Trebek life insurance commercial was misinterpreted does not change what the legal, binding policy contains. You buy it, just remember, Colonial Penn will not be making any exceptions for you or your family.
Alex Trebek insurance may feel like it is designed for all seniors as it accepts the healthy with the very unhealthy. That might be true but is it the best choice for you and your love ones?
I’d say no.
The biggest problem… your family may never see the benefits you thought they would get.
Now, I’ve covered one of the problems with the Colonial Penn, Alex Trebek insurance commerical.
The next one really affects those seniors on a fixed income and/or are money conscious.
Have I got you curious?
Very Expensive Insurance Alex Trebek Was Promoting
In the charts below, note that the pricing per month is displayed on top next to the appropriate number of units you would need to purchase. Once you have purchased a guaranteed acceptance whole life policy, the price will not go up and the benefits will not decrease. With Colonial Penn, you are limited by your age at application time on how much coverage you can buy.
Colonial Penn Life Insurance Rates By Age – Alex Trebek Insurance Advertisement
Female Maximum Benefits For The Colonial Penn $9.95 Per Month Plan
|AGE||1 Unit/$9.95||2 Units/$19.90||4 Units/$39.80||6 Units/$59.70||8 Units/$79.60||15 Units/$149.25|
Male Maximum Benefits For The Colonial Penn $9.95 Per Month Plan
|AGE||1 unit/$9.95||2 Units/$19.90||4 Units/$39.80||6 Units/$59.70||8 Units/$79.60||15 Units/$149.25|
We have updated these pricing tables for 2023. Colonial Penn has raised their rates effectively by lowering the value of a unit with their $9.95 per unit life insurance.
You may have noticed…
unless your quite close to age 50 particularly for men, the protection is not cheap and the amount of coverage you get for your monthly premium is low. In fact, if you are 70 + and buy this product, you may not have enough to simply cover the cost of a funeral and burial in 2023.
Now why is this?
Mentioned earlier but Colonial Penn uses a non standard way of calculating their premiums. I don’t care for it and I think it is meant to confuse seniors into thinking this policy is very affordable regardless of your age at purchase. When I give you the competitors rate for the exact same kind of guaranteed acceptance life insurance, you will see CP Guaranteed Acceptance is not so “affordable” at all.
Regardless of age, the maximum number or units you can buy is 15. So, here is the problem. The older you are at the time of application with this Colonial Penn product, the lower the value of 1 unit is. That is why the rate charts above show diminishing amounts of insurance as you age. Men are hit considerably harder than women because women tend to live longer. That is a statistical fact.
Now, for those people that may need this type of insurance, I ran a quick quote of the top guaranteed acceptance companies across the country. For reference, this quote is January 2023. Take a look at an apples to apples comparison to the Alex Trebek $9.95 life insurance above in the appropriate chart.
The first quote below is a fictitious, 75 year old female applicant later followed by a fictitious 75 year old male applicant. Both are for $10,000 of no medical question, guaranteed issue whole life insurance with a 2 year waiting period for full benefits. Same policy as the $9.95, Alex Trebek life insurance w/Colonial Penn.
About 85% or more of you reading this article would more than likely be able to qualify for the full, level benefit life insurance with the right insurance company. We can help you determine who the best carrier is for you personally. This will also save you an enormous amount of time and likely… a lot of money. All by answering a few health questions. No doctors, nurses or needles in your arm. Just a few health history questions will also offer better benefits from day 1 of the coverage.
You may choose the Final Expense Life Insurance quoting tool on this page. Be sure to select “Excellent Health” if you believe your health is pretty average or better for someone your age.
Yes, all the plans quoted here are designed for those in less than perfect health and require no medical exam.
People age 50-85 are the typical buyers of burial insurance. Most folks are able to obtain much, much lower cost for whole life insurance with full protection from day 1. The 10-15% remaining still have more affordable options than Colonial Penn guaranteed acceptance insurance.
Do you have any objection to saving a lot of money and being able to obtain the best policy you qualify for?
Remember, this is better not only for you but your family who will be getting the full death benefit if you pass away in the next 2 years.
$9.95 Life Insurance Plan Quotes – Your Alex Trebek Insurance Alternative
Here is the first tip. Stop wasting your time calling insurance companies like Colonial Penn. They are not going to help you get the best insurance at the lowest price. They sell you what they are marketing. You will not be told that you can get a better policy and price elsewhere.
Be sure to have the help of an independent professional who can sort out the good plans from the poor ones. Let them evaluate what you can qualify for. They will shop the life insurance market for the right, no exam policy offering the best benefits and lowest price for that financial protection.
Misunderstanding life insurance policy limitations and features combined with the overall costs of ownership are the common mistakes of consumers. There is no reason not to utilize a professional independent agent. You don’t pay anything for their services, the insurance companies do that part.
“Life insurance” is not created equal. Having a real professional protects not only your interests but that of your family. They put you in front of the most benefit rich and affordable final expense plans you can buy. Make sure you have the right product ladies and gentleman.
You can spend weeks calling around different insurance companies and never find the best rates let alone one that you qualify for healthwise if you have a tough medical condition or two. With that said, a good professional agent can quickly give you the same rates you spent weeks or months on and identify which company and product would be best for your needs and health scenario.
Calling Colonial Penn or any other carrier directly versus an independent agent or broker works against you. Your cost does not change whether you have a independent agent or not. Rates are regulated by the state. Insurance companies negotiate premiums charged with your State’s Department of Insurance officials.
The middle man/advocate is saving you good money by recommending the right coverage for you and paid by the insurance company if you purchase coverage. Here are some typical health questions on a no exam application, for full, first day coverage. Either “yes” or “no.” Optionally, you can be more specific and use the instant quoting tool on this page. Enter your details and request an application for the company and plan you are interested in. From there, you will be automatically emailed a health questionaire asking you answer some basic health history questions and we will assess what plan and company would likely be best for you and your family.
Problems With the Alex Trebek Life Insurance
Something to be aware of…
While all insurance companies have a certain amount of complaints against them, Colonial Penn life insurance has a higher than average number complaints against it.
Lots of upset families that did not know or understand the Alex Trebek $9.95 life insurance offering has significant limitations built in. We’ve discussed those previously.
The limitations are disclosed if you take a close look at the commerical and website, but carefully placed to be casually overlooked by those who are focused on the celebrity endorser who’s selling you on the coverage.
I see no blatant dishonesty, but the responsibility is completely shifted onto a trusting senior who just wants affordable peace of mind for their family. It seems “slippery” from my perspective.
No Health Question $9.95 Life Insurance: The Alex Trebek Insurance Ad
Since the Alex Trebek advertisement focuses on the $9.95 “guaranteed acceptance” product with no health questions, we are presenting all the facts here so you understand the limitations of this product.
Something I didn’t address thoroughly was the use of the term “rate lock” promoted in all the commercials.
With all whole life insurance, rate locks for your lifetime are a standard feature. It is built into the policy. Ultimately, the rate lock Mr. Trebek mentions is a marketing term that is always a feature in any whole life insurance product.
The 30 day money back guarantee, well that comes from the department of insurance in each state. Most states require life insurance companies to have a free look, 20-30 day period to evaluate the policy to decide if they want a refund or not. All insurance companies must follow the free look provision laws.
Again, watch the marketing glitz. The Alex Trebek life insurance ad has lots of gimmicks that are easy to fall for. Weed it out.
With all that said…
Maple Valley Insurance Group Rating of Colonial Penn 995 Life Insurance = “D”
It is not responsible of a life insurance company to recommend products built for generally poor health applicants and market it like it is the affordable final expense solution for seniors. There simply are a lot of better options out there.
The fact is, any kind of guaranteed issue life insurance, regardless of the insurance carrier simply cannot claim this.
Guaranteed acceptance/guaranteed issue whole life is the life insurance product to select after all other no exam, simplified issue whole products have been evaluated with an experienced independent agent or broker. It should not be “plan A” or even “plan B” for that matter.
Every week I take phone calls from people calling to price out final expense life insurance. We frequently replace guaranteed acceptance policies with better benefits and lower cost policies. Alex Trebek coverage is not a better policy than any other guaranteed acceptance policy from another company. In fact it is inferior to the competition but that is beyond the scope of this article.
Buying life insurance in units?
This is not a good way to be transparent about the cost of buying a policy either. No one pays just $9.95 a month to protect their family.
Because it simply does not buy enough burial insurance to cover the costs of death.
This is not how life insurance is typically “priced.” Again, it appears to be a marketing tactic to distract you into thinking it is very affordable life insurance. Life insurance is priced based on your age at purchase/approval and how much protection your family needs.
The younger you are at purchase, the lower your lifetime price on whole life insurance with that company. Remember their is a “rate lock” on ALL whole life insurance.
We always recommend working with a independent professional to see if you qualify for better benefits and lower premiums than the Alex Trebek life insurance for $9.95 a unit.
Alex Trebek Life Insurance Commerical For Seniors
By now you probably realize I’m not impressed with the Alex Trebek life insurance ad nor the product itself. Coverage is marketed towards trusting seniors that are looking for dependable life insurance to meets the needs of their family. Most people just want the straight scoop without all the games and limitations.
Most people we work with desire the most benefits they can get for the dollar spent. In other words, value. This is what protects their family. This Colonial Penn product is not benefit rich nor priced well. Where’s the value in that?
While some people will only qualify for guaranteed acceptance life insurance, you need consult with a experienced independent agent or brokers before assuming you need it.
Your loved ones could end up in a financial mess because of the 2 year limitation on coverage for natural death. I’m sure you don’t want your loved ones in a mountain of debt by getting caught in limitations of coverage.
The unit system used in this Colonial Penn 995 plan penalizes seniors particularly in their 70’s and 80’s. This means that they may not be able to purchase a enough financial protection (death benefits) to ensure their goals are met.
Remember, the average cost of a full funeral is around $10,000 nationally. This does not even count the actual burial costs at the cemetery. Plenty of people have told me they just paid over 10k in funeral costs alone in this past year (2022). We recommend a goal of at least $15,000 to cover full funeral and burial costs for 2023. Inflation over time and if your budget allows, 20-25K would be better. If you in your early 50’s, you should be considering if you have a budget for a $30,000 policy.
As of 2021 we have seen crazy spike in prices haven’t we? Funeral and burial costs have been rising steadily for years but 2021 is a reminder that managing raging inflation should be part of the financial planning for our family. Could funeral and burial expenses double in the next 10-20 yrs…a distinct possibility! Be sure to review the rate chart above and see the maximum amount of financial protection that can be bought at your current age with CP.
Do you want to assume and pay more money for coverage because Alex Trebek was paid to endorse it?
Regardless of what the Alex Trebek insurance commerical said, Colonial Penn guaranteed acceptance is not particularly affordable when doing an apples to apples comparison with their competitors. Certainly not when it is compared to the best final expense, no exam whole life coverage we offer here.
Would you buy a policy that is probably not in your family’s best interest… because it has a paid, Alex Trebek paid endorsement on it?
Think about it.
Colonial Penn life insurance rates are just not very competitive nor offer the average senior and their family the full benefits of a no exam, medically underwritten (few health history question) whole life policy.
What is the value of overpaying for less benefits?
Weekly I find myself talking to new seniors who were duped into the wrong life insurance product. They bought a term policy that is/was about to expire or bought a “guaranteed acceptance” policy from one of the few life insurance companies that offer them.
Folks, take the time and call a professional. Find out what is really available to you. See if you can qualify based on your overall health for a simplified issue, no exam, medically underwritten plan first. Simplified issue, no exam life insurance is actually designed for people age 50-85 and may not been in “excellent health.”
Watch out for other high priced guaranteed issue whole life plans. Take a look at our article on Metlife guaranteed acceptance coverage.
Is Alex Trebek insurance a scam? Absolutely not. For a person who is in a high risk situation, while expensive compared to the more competitive companies, it may be a solution.
You just have to realize $9.95 is a teaser rate to capture your interest in the product. It buys you 1 “unit” of their life insurance. The intention is to get you to call up Colonial Penn and just buy the policy. It does not buy very much life insurance protection, period.
So, the Colonial Penn life insurance @ $9.95 per month…
The older you are on the date of purchase, the less that $9.95 per month will buy in real financial protection for your loved ones. Truth is… a great majority seniors we work with purchase much more protection than this plan can offer.
For those who purchase the coverage…Colonial Penn will pay the claims according to the terms of the policy. That is all. If you misunderstood the commercial, they are not liable. It is written in the policy they mail you once your purchase coverage.
Conclusion: 995 Insurance from Colonial Penn
Determining the need for high risk life insurance should be done only with an independent life insurance specialist.
Again, our suggestion…
Never try to sort this out on your own or call an insurance company home office like Colonial Penn. You could end up ripped off and/or underinsured. This could be devastating for your family if you buy the wrong policy. Most people 50-85 can qualify for much better coverage than they believe.
The ads you see to buy Colonial Penn, Globe Life or AARP/New York Life etc, are rarely in your best interest. They engage in a numbers game of mass marketing and/or gimmicks. Those companies would rather you did not do your due diligence as you have.
Folks, the easier life insurance is to qualify for, the higher the cost of purchasing it. Depending on the type of whole life insurance, it may increase the risk to your family of not receiving the monies you intended just because the wrong policy was purchased.
Do you want to save money and obtain the best benefits available or…
would you prefer to worry for 2 years just so you don’t have to answer a few health questions?
Which one would truly give you and your family real peace of mind?
We recommend going the Plan A route first.
Sure I’m bit biased myself because I have access to all the top burial insurance companies and plans out there. As a life insurance field underwriter and independent agent/broker I don’t have to rely on Alex Trebek insurance to meet the needs of my clientele either.
At Maple Valley Insurance Group, we don’t put “square pegs in round holes” regardless of the celebrity marketing, nor should you. Now that you know the real cost of $9.95 life insurance, put away your thoughts of Alex Trebek insurance. There are much better whole life policieis available including lower pricing then the Colonial Penn 995 insurance plan.
Always have an independent, seasoned professional verify your need for any guaranteed issue life insurance before buying.
Because all life insurance companies have different health questions. There may be several companies unable to insure you for immediate, full benefits while another can give you that same coverage very affordably without needing to resort to high risk life insurance such as the Alex Trebek advertisement for senior life insurance. Every week we have people who think they can’t qualify for the best benefits and lower premiums. After a few minutes on the phone, they find out they can easily qualify for a premium policy for a much lower premium than Colonial Penn.
Even if you have been declined elsewhere, don’t lose heart.
About 5-10% of our cases where guaranteed acceptance whole life insurance is truly necessary, we generally recommend the likes of AIG or Gerber Life not only for pricing but the amount of available protection over Colonial Penn Guaranteed Acceptance. The both offer additional benefits during the first 2 years for death due to natural causes.
You’re certainly welcome to experiment with the instant quote tool on this page. Compare Alex Trebek life insurance rates by selecting “Poor” under the health classification menu. Better yet, give us a call and let’s talk about your needs and find the right plan to protect your family.
If you’ve found this article helpful, let us know. We welcome comments below.
Any questions you have, feel free to give us a call at 269-244-3420. We’re always here to help.