What Is Colonial Penn?
Colonial Penn Life Insurance Company, founded in 1968 and based in Philadelphia, is now part of CNO Financial Group. It focuses on offering guaranteed-acceptance whole life insurance primarily to people between the ages of 50 and 85, with no health questions or exams required.products.colonialpenn.com+15Wikipedia+15Bankrate+15
Their flagship plan starts at $9.95 per month per unit, where each unit typically provides about $1,000 in coverage (and older applicants receive fewer benefits per unit).PissedConsumer+3Colonial Penn+3Reddit+3 Acceptance is guaranteed due to a two-year graded benefit period.products.colonialpenn.com+2Colonial Penn+2
Coverage Options
Guaranteed Acceptance Whole Life Insurance (for ages 50–85)
- No medical exam and no health questions.
- Coverage is sold in units, based on age and gender.
- Benefits in the first two years are limited:
- Year 1: Return of premiums + 150%
- Year 2: Return of premiums + 300%
- Full benefit after Year 2, including accidental death.PissedConsumer+11products.colonialpenn.com+11Colonial Penn+11
- Premiums locked in and cannot increase as long as you pay on time.Colonial Penn+2Colonial Penn+2
Other Products
- Simplified‑issue permanent whole life (e.g. LifeChoice in New York)
- Renewable term across ages 18–75 in eligible statesTrustedChoice.com+2Bankrate+2
What Customers and Experts Say
Regulatory and Industry Ratings
- AM Best rating: A (Excellent)
- BBB rating: A+, but plagued by hundreds of customer complaints.Bankrate+3Colonial Penn+3Forbes+3Better Business Bureau+2TrustedChoice.com+2
- NAIC complaint index: Very high—11.88 as of the latest data, well above the industry average of 1.00.Forbes+1
Common Criticisms (from users & review sites):
- Misleading advertising around the $9.95/unit messaging. Customers often believe it means flat rate coverage.Colonial Penn+8Reddit+8Reddit+8
- Low coverage amounts—e.g. a 75-year-old may get only $200 in face value for $9.95/month.Better Business Bureau
- High cost per actual coverage compared to similar no-exam policies from other firms.Reddit+1
- Denied claims or delays, especially if death occurs within first two years.Colonial Penn+2products.colonialpenn.com+2
- Unresponsive or poor customer service—many report rude interactions or difficulty obtaining refunds.trustpilot.comBetter Business Bureau
Real Reddit Voices:
“The $9.95 plan is a complete rip off… If you pay just for this plan for 20 years your total payout will be around $1,000.”Reddit
“At age 70… over 14 years your grandmother will spend $1,680… she’d have more than $2,200 in the bank.”Reddit
Pros and Cons at a Glance
| 👍 Pros | 👎 Cons |
|---|---|
| No medical exam or health questions required | Limited benefits per unit; older applicants receive significantly less value |
| Premiums fixed and coverage cannot be canceled (if paid) | Very high complaint index (NAIC ~12 times benchmark) |
| Accessible for people up to age 85 regardless of health | Graded benefits: no full death benefit in first 2 years |
| Highly rated by AM Best and BBB (financial strength) | Misleading ads and abundant reports of poor customer service, denied claims, or billing issues |
Is Colonial Penn Worth It?
Who might consider Colonial Penn?
- Individuals aged 50–85 in poor health who are unable to qualify elsewhere for life insurance.
- Those needing a small policy strictly for final expenses and not expecting large returns.
Who should avoid it?
- Seniors seeking meaningful coverage for burial or medical debts—they may spend more than they ever receive.
- Anyone who can qualify for other no-exam policies that offer better coverage for the money.
If you are healthy enough to pass a basic health questionnaire, comparing policies through brokers or other insurers may offer more value.
How to Apply or Cancel
- Apply online, by mail, or by phone (application info available via Colonial Penn site).
- Offers a 30-day money-back guarantee—return documents within 30 days for a full refund. Colonial Penn+1ForbesRedditColonial Penn+3Bankrate+3TrustedChoice.com+3Reddit+4Wikipedia+4Bankrate+4RedditReddit+15Colonial Penn+15Colonial Penn+15
Conclusion
Colonial Penn is a legitimate, long-established provider of no-exam whole life insurance for older adults. Its coverage is guaranteed regardless of health—but for many, the $9.95/unit plan delivers far less than expected and may cost more in premiums over time than benefits received. Customer complaints remain high, and reviews frequently highlight misleading advertising and poor support.
If you really need coverage for final expenses and can’t qualify elsewhere, Colonial Penn may serve as a last resort—just be sure to read the fine print carefully. For most others, exploring alternatives with better value and transparency is highly recommended.
