The Colonial Penn $9.95 Plan: What $9.95 a Month Really Buys
You have seen the Colonial Penn ad: life insurance for $9.95 a month. It is a real plan, and it is guaranteed acceptance with no health questions. But $9.95 buys one unit, and a unit is a small amount of coverage that gets smaller as you age. At 65, one unit buys $1,258 (female) or $896 (male). Here is exactly what $9.95 buys at your age, what the 2-year waiting period means, and how the same money compares across 25+ carriers.
How It Works
How the Colonial Penn $9.95 Unit Works
Colonial Penn does not sell life insurance the way most carriers do. Instead of quoting a flat dollar amount of coverage at a set monthly price, Colonial Penn sells coverage in "units." Each unit costs exactly $9.95 per month. The amount of death benefit that one unit provides depends entirely on your age and gender at the time of purchase.
The younger you are when you buy, the more coverage each $9.95 unit provides. A 50-year-old woman gets $2,000 per unit. A 70-year-old woman gets $1,000 per unit. A 80-year-old man gets just $426 per unit. The price is the same in every case, but the value changes significantly.
Key rules of Colonial Penn's unit system:
- Price per unit: Always $9.95/month, regardless of age or health
- Coverage per unit: Determined by your age and gender at the time you purchase. Older applicants get less coverage per unit.
- Maximum units: 15 units per person, capping the monthly premium at $149.25
- Guaranteed acceptance: No health questions, no medical exam, ages 50 to 85
- 2-year graded death benefit: All Colonial Penn policies include a mandatory waiting period. If the insured dies of natural causes during the first two years, beneficiaries receive only the premiums paid plus interest - not the full face amount.
- Locked for life: Once purchased, both the $9.95 per-unit price and your coverage amount per unit never change
The $9.95 price point is designed to be memorable from television advertising. What the ads do not emphasize is that $9.95 buys one unit of coverage, and one unit is rarely enough to cover funeral expenses, a mortgage balance, or any other financial obligation your family might face.
The Math
What $9.95 Actually Buys by Age
The table below shows the verified death benefit amount that one $9.95 unit of Colonial Penn coverage provides at each age. These values are based on Colonial Penn's published per-unit rate charts. The pattern is straightforward: the older you are when you buy, the less coverage you get for the same $9.95.
For the complete rate chart including units needed for $10,000, see our Colonial Penn rate chart by age.
| Age | Female (per $9.95 unit) | Male (per $9.95 unit) |
|---|---|---|
| 50 | $2,000 | $1,669 |
| 55 | $1,761 | $1,420 |
| 60 | $1,515 | $1,167 |
| 65 | $1,258 | $896 |
| 70 | $1,000 | $689 |
| 75 | $762 | $549 |
| 80 | $608 | $426 |
To put these numbers in context: the national median funeral cost is roughly $8,000. At age 65, one unit buys $1,258 of coverage for a woman or $896 for a man. That single unit covers about 11 to 16 percent of a funeral. To reach meaningful coverage, most seniors need 5 to 15 units, bringing the real monthly cost to $49.75 to $149.25. At age 75 and older, men cannot reach $10,000 of coverage even at the maximum 15 units. The $9.95 figure in the ad is the cost of one unit, not one policy.
Comparison
What the Same Money Buys Elsewhere - Verified 2026 Rates
A healthy senior who qualifies for simplified-issue coverage can get a fixed $10,000 death benefit with day-one full protection at the rates shown below. Colonial Penn's unit system delivers a smaller, graded benefit for a comparable or higher monthly dollar amount. This is not a knock on Colonial Penn. It is simply the comparison that the television ad does not include.
| Age | Female | Male |
|---|---|---|
| 50 | $24 | $31 |
| 60 | $33 | $44 |
| 70 | $53 | $75 |
| 80 | $98 | $140 |
Look at the numbers side by side. At age 65, a woman pays $79.60 per month at Colonial Penn for $10,000 of graded coverage with a 2-year waiting period. The same woman could pay $41 per month at Mutual of Omaha for $10,000 of day-one level coverage. That is 48% less per month with immediate full protection from the first day.
At age 70 for men, the gap gets even wider. Colonial Penn hits the 15-unit cap at $149.25 per month for roughly $10,335 of coverage with a 2-year wait. Mutual of Omaha charges $75 per month for $10,000 with no waiting period at all. Over five years of payments, the Colonial Penn policyholder pays $8,955 while the Mutual of Omaha policyholder pays $4,500 for comparable coverage that pays out in full from day one. The difference compounds over every year of premiums.
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Verdict
Is the Colonial Penn $9.95 Plan Worth It?
The $9.95 plan is worth it in one specific situation: you cannot pass any health questions at any other carrier. If you have been declined multiple times due to serious health conditions like recent cancer treatment, recent stroke or heart attack, organ transplant, or similar conditions, guaranteed acceptance is genuinely valuable. Colonial Penn does not ask a single health question. You apply, you are accepted, and you have coverage after the 2-year graded period.
For everyone else, the math does not favor Colonial Penn. Here is why:
1. The per-unit cost is high relative to what you get. At age 70, a man pays $9.95 per month for $689 of coverage. That works out to $14.44 per $1,000 of coverage. Mutual of Omaha charges $7.50 per $1,000 for the same person with no waiting period. You are paying nearly double per dollar of death benefit through Colonial Penn.
2. The 2-year waiting period is real. Every Colonial Penn policy includes a mandatory graded death benefit. If the insured dies of natural causes during the first two years, beneficiaries receive only the premiums paid plus a small amount of interest. They do not receive the full face amount. Simplified-issue carriers pay the full benefit from day one for applicants who qualify.
3. The 15-unit cap limits total coverage. At older ages, men cannot reach $10,000 even at the maximum 15 units. A 75-year-old man maxes out at roughly $8,235 of coverage for $149.25 per month. An 80-year-old man gets only about $6,390 at the same $149.25 monthly cost.
The honest question is not "is the $9.95 plan a scam" (it is not). The question is "could the same budget buy more coverage, faster, from a carrier that offers day-one benefits?" For roughly 85% of seniors, the answer is yes.
Not sure if you would qualify for day-one coverage?
An Asurgo specialist can check your eligibility across 25+ carriers in minutes. If you qualify, you could save 40-65% compared to Colonial Penn.
Alternatives
Colonial Penn $9.95 Plan Alternatives
The advantage of working with an independent broker instead of buying directly from Colonial Penn is transparency. When you request a quote through Asurgo, you see every carrier by name with the specific monthly rate for your age, gender, state, and health profile. There is no unit math to decode. Coverage is quoted in clear dollar amounts so you know exactly what your family receives.
For applicants who qualify for simplified-issue coverage - and most seniors do - day-one full benefits are available from multiple carriers at significantly lower rates than Colonial Penn. You answer a short health questionnaire (typically 8 to 12 yes-or-no questions), and if you qualify, your full death benefit is active from the first day of coverage. No 2-year waiting period.
If you do not qualify for simplified issue due to serious health conditions, an independent broker can still find guaranteed-issue options from multiple carriers, not just Colonial Penn. Having more than one guaranteed-issue option means you can compare prices and benefits rather than accepting the first plan you see on television.
Learn more:
Common Questions
Frequently Asked Questions
How much coverage is $9.95 a month with Colonial Penn?
The $9.95 buys one unit of coverage. How much that unit provides depends on your age and gender. At age 50, one unit provides $2,000 (female) or $1,669 (male). At age 65, one unit provides $1,258 (female) or $896 (male). At age 80, one unit provides only $608 (female) or $426 (male). Most seniors need 5 to 15 units to get meaningful coverage, bringing the real monthly cost to $49.75 to $149.25.
What is a unit in Colonial Penn insurance?
A unit is Colonial Penn's way of selling coverage. Each unit costs $9.95 per month, and the death benefit per unit is determined by your age and gender at the time of purchase. You can buy up to 15 units. The $9.95 per-unit price and your coverage amount per unit are both locked for life once you purchase. Younger applicants get more coverage per unit.
Is the Colonial Penn $9.95 plan a good deal?
It depends on your health situation. If you cannot qualify for simplified-issue coverage due to serious health conditions, Colonial Penn's guaranteed acceptance is valuable because no health questions are required. For healthy seniors who can answer a short questionnaire, simplified-issue carriers like Mutual of Omaha offer 40 to 65 percent more coverage per dollar with no waiting period. The $9.95 plan is not a scam, but it is not the best value for most applicants.
Does the $9.95 plan have a waiting period?
Yes. All Colonial Penn policies include a mandatory 2-year graded death benefit period. If the insured dies of natural causes during the first two years, beneficiaries receive only a return of premiums paid plus interest, not the full face amount. After two years, the full death benefit applies. This is standard for guaranteed-issue policies industry-wide, not unique to Colonial Penn.
Can I get more coverage for the same price elsewhere?
In most cases, yes. A 65-year-old woman pays $79.60 per month for $10,000 of Colonial Penn coverage with a 2-year waiting period. The same woman could pay $41 per month at Mutual of Omaha for $10,000 of day-one level coverage with no waiting period. That is almost twice the value per dollar. An independent broker can compare 25+ carriers to find your lowest qualifying rate.
Is Colonial Penn guaranteed acceptance?
Yes. Colonial Penn accepts all applicants ages 50 to 85 with no health questions and no medical exam. This is the plan's primary advantage. The trade-off for guaranteed acceptance is a 2-year graded death benefit period and higher per-dollar cost compared to carriers that ask health questions. If you can answer health questions and qualify for simplified-issue coverage, you will typically get better rates and immediate full coverage elsewhere.
Related Pages
The Bottom Line on the $9.95 Plan
The Colonial Penn $9.95 plan is real, and it serves a purpose for seniors who cannot qualify for coverage anywhere else. But for the majority of applicants, the same budget buys significantly more coverage with day-one benefits from simplified-issue carriers. The only way to know where you stand is to compare. Asurgo is an independent brokerage licensed in all 50 states. We compare 25+ A-rated carriers, find your lowest qualifying rate, and handle the paperwork. No obligation, no pressure.
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Nicholas Norminton, Licensed Insurance Specialist
Specialties: final expense, Colonial Penn analysis, carrier comparison, simplified-issue underwriting.
Nicholas is a nationally licensed insurance specialist who has helped thousands of families find the right final expense coverage. As an independent broker representing 25+ carriers, he reviews competitor products like Colonial Penn from a no-conflict-of-interest position.
Sources
- NAIC Consumer Insurance Search - National Association of Insurance Commissioners (naic.org)
- AM Best Financial Strength Ratings - AM Best Company (ambest.com)
- Colonial Penn published rate information (publicly available, March 2026)