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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 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 — 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 50–85 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.

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 until you purchase 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 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 an offer $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.” 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. Don’t rely on the commercial alone. It lacks a lot of clarity. If you have purchased, you may use the free look period (20–30 days) to cancel if the policy isn’t right for you. You will in that case received 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, this might be 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 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)

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 even have 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. Let them 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 real 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 the contract 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.

Reading Colonial Penn reviews is a good place to start. We suggest not limiting yourself to one insurance company with 1 product though. For most people the top suggestion to finding the best final expense insurance…take a few minutes and talk to an independent life insurance agent/broker like Maple Valley Insurance Group. Get real insight on what is best for you and your family.