Colonial Penn is one of the most popular life insurance companies in the United States. Over six million people have life insurance policies with Colonial Penn.
The Company’s TV ads make it sound like its policies are low-cost and have an easy application process.
But are both of these true? In this article, we’ll look at the Colonial Penn $9.95 plan to see if it’s worth the time and price.
What Is the Colonial Penn $9.95 Plan?
The Colonial Penn $9.95 plan is a whole life insurance policy that costs $9.95 per month.
The trick is that they don’t tell you how much coverage you’re actually getting for that price.
In the end, most people who apply for this policy end up with coverage of somewhere between $400 and $2,000 in TOTAL for the 995 sticker price.
How Much Do Funerals Cost These Days?
Dying isn’t cheap these days.
On average, a funeral costs about $7,500. But that’s just an average – the cost of a funeral can range anywhere from $5,000 to $10,000 or more.
And that doesn’t even include the cost of a headstone or the burial plot. When you add everything up, the total cost of final expenses can easily be $15,000 or more.
So if you’re looking at the Colonial Penn $9.95 plan as a way to cover your final expenses, you’re going to be disappointed. The coverage simply isn’t enough.
Pros and Cons of Colonial Penn Life Insurance
Some people are happy with their Colonial Penn life insurance policy. But there are also a lot of people who are not so happy. Let’s go over the positives first.
Pros of Colonial Penn Life Insurance
Here is what we see as the positives of buying life insurance from Colonial Penn:
The application process is easy
This one Colonial Penn does have right. Applying for their policies is very easy. You can apply over the phone in just 10-15 minutes and even faster online.
Their entire online application is just one page.
No medical exam is required
This brings us to the next positive. While life insurance applications often require a medical exam, or at least some look into your medical history, – the Colonial Penn $9.95 Plan does not.
No needles, no urine samples no blood pressure. And for a lot of people, that means no pressure.
Many other life insurance companies these day do not require a physical exam, but Colonial Penn Life Insurance Company takes it further by making their plan guaranteed acceptance. This means that no matter what your health is like, you will be accepted for coverage.
The Cons of Colonial Penn’s $9.95 Plan
Now let’s go into the downsides of the policy.
Minimal Death Benefit
The biggest complaint is that the coverage you receive is simply too low for the price.
Remember, most people only get $400 to $2,000 in coverage from this policy – which isn’t nearly enough to cover the average funeral these days.
Delayed Claims Payouts
The second common complaint is that people have had problems getting their claims paid out by Colonial Penn. Sometimes, it can take months (or even longer) to get your money.
Colonial Penn $9.95 Plan Reviews
To see a good collection of customer reviews, check out the beginning of this Colonial Penn $9.95 plan review from GetSure.
Colonial Penn life insurance lawsuit
In 2019, a class action lawsuit was filed against Colonial Penn life insurance. The lawsuit alleges that the company uses deceptive marketing practices to lure people into buying policies that they don’t need.
The lawsuit also claims that Colonial Penn makes it difficult for policyholders to cancel their policies or get a refund.
If you’re considering buying a Colonial Penn life insurance policy, do your research first. Make sure you understand precisely what you’re getting – and what you’re not- before making your decision.
How much coverage is the $9.95 plan?
The $9.95 plan from Colonial Penn life insurance is a whole life insurance policy that costs just $9.95 per month.
The company does not disclose how much coverage you will actually get for that price. You must go through a lengthy application process to get a quote. Based on this information, they’ll give you a quote for how much coverage you qualify for. Most people who apply for this policy end up with coverage of somewhere between $400 and $2,000 in TOTAL for the 995 sticker price.
Conclusion: What is the best life insurance for seniors?
The Colonial Penn 995 plan may not be the best for seniors, but that doesn’t mean there is a one-size-fits-all answer to this question.
The right type of life insurance coverage is ultimately the one that meets your needs best. If your needs are temporary, then term life insurance may be appropriate for you. On the other hand, if your expenses are inevitable (like those for your final arrangements), then final expense insurance policies (a type of whole life insurance coverage) may better serve your needs.
Beyond that, your health will play a significant role. If you are in great health, then a guaranteed acceptance life insurance plan like this one from Colonial Penn will always be too expensive for you. The more information you give them about your health, the more accurate their quote will be – but that also means that if you have any health concerns, you will pay more.
There are a lot of seniors who are perfectly healthy and could get much better coverage at a lower price by shopping around and comparing rates.
The best way to find the right life insurance for seniors is to use an independent life insurance agent who can help you compare rates from dozens of companies.
An independent agent will know which companies will likely give you the best rate based on your health, age, and coverage needs – and they can do all the shopping around for you.
Best of luck finding a policy!