Blog

Buying life insurance can be confusing. There are dozens 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 the 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 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:

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

⚠️ Quick Tip: Most people between 50–80 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.

How the Unit Pricing Works

Colonial Penn’s $9.95 plan sells coverage in “units” — not dollars. Each unit always costs $9.95/month, but the death benefit you get per unit shrinks with age.

For example:

✅ Premiums stay level — but value drops as you age.

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 deaths
• 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, but they also offer better 2-year graded benefits.

See even better quotes by using our instant comparison tool →

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 actual policy. Don’t rely on the commercial alone. Use the free look period (20–30 days) to cancel if the policy isn’t right for you.

Better Burial Insurance Options

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 an independent agent, they can compare policies from dozens of top-rated carriers — often with first-day coverage and better rates.

💡 Don’t settle. Let us help you shop policies that offer:

• Full immediate coverage
• Lower premiums
• No exams and just a few health questions

Final Verdict

Is the Colonial Penn $9.95 plan a scam? Not exactly.

But for 90% of consumers, it’s not a smart purchase.

• High price, low value
• 2-year wait for full coverage
• Better options exist — period.

If you’re age 50–85 and in average or even poor health, you likely qualify for a better plan. Talk to a broker who works with multiple carriers and can help you compare apples-to-apples. The most important part of any life insurance policy is the “black and white” on the page combined with affordability. Especially for those seniors on a fixed income.

The name of the insurance company whether be Colonial Penn or AARP/New York Life on a policy does not = a good policy. There are brand name companies that sell lower tier life insurance policies or a niche policy like Colonial Penn’s $9.95 life insurance policy.

✅ Get your instant quote or call 269-244-3420 to speak with a friendly, knowledgeable advisor.