Last Updated on: August 20th, 2025
Reviewed by Kyle Wilson
When researching life insurance for seniors, Colonial Penn Life Insurance is often one of the first names people come across. Their famous “$9.95 per month” plan is widely advertised, promising affordable coverage without health questions or medical exams.
But what do you actually get for $9.95? Is it really the cheapest and best burial insurance option for seniors, or are there better alternatives? This detailed guide breaks down the truth behind Colonial Penn’s policies, their pros and cons, rate charts, and how they compare to other burial insurance companies.
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Colonial Penn is a life insurance company that focuses primarily on guaranteed acceptance whole life policies. These plans are marketed toward seniors between the ages of 50 and 85 who may struggle to qualify for traditional life insurance due to health conditions.
The key selling points include:
On the surface, this sounds appealing. But the details of the coverage — especially how much you actually get for $9.95 — reveal the limitations.
Colonial Penn advertises its “$9.95 per unit” plan. Instead of offering coverage amounts like $10,000 or $20,000 directly, they sell policies in units of coverage.
For example:
So, if you wanted $10,000 in coverage, you’d need around 10–15 units, which could cost $100–$150 per month, much more than the advertised $9.95.
Here’s a simplified look at how much coverage you can expect to receive per unit of $9.95 depending on age:
Age | Coverage Per Unit |
50 | $1,700 – $2,000 |
60 | $600 – $1,000 |
70 | $400 – $700 |
80 | $300 – $500 |
This shows that the older you are, the less value you receive. While the premium per unit never changes, the coverage amount decreases with age.
This is Colonial Penn’s most popular product.
Not as popular because seniors generally prefer lifetime coverage.
Anyone aged 50–85 is accepted, regardless of health history.
No doctor visits or blood tests required. This makes it easy for seniors with pre-existing conditions.
Monthly rates never increase once your policy is active.
As long as you pay premiums, coverage continues for life.
One unit often equals less than $1,000 in coverage, not enough for most burial or final expenses.
The $9.95 ads create the impression you can get full coverage for under $10, but in reality, you’d need multiple units.
For natural deaths within the first two years, beneficiaries only receive premiums paid plus interest, not the full death benefit.
Other burial insuranc companies often provide $10,000–$15,000 in coverage for around $30–$50/month with no waiting periods.
Feature | Colonial Penn | Other Providers |
Medical Exam | None | None |
Acceptance Age | 50–85 | 40–90 |
Monthly Cost | $9.95 per unit | $25–$50 for $10,000 coverage |
Coverage Amount | $400–$2,000 per unit | $5,000–$30,000 |
Waiting Period | 2 years | Some plans with no waiting period |
As the table shows, Colonial Penn’s biggest weakness is low coverage per dollar spent. Many seniors may find better value with other burial insurance providers.
Colonial Penn’s $9.95 plan is real, but it doesn’t provide the coverage most seniors need. While guaranteed acceptance is a benefit, the limited payouts and waiting periods make it less competitive than other burial insurance providers.
If you’re looking for better value, compare Colonial Penn with Burial Senior Insurance, where you may find affordable policies that cover $10,000–$25,000 in burial or final expense insurance without the same limitations.
You get one unit of coverage, typically $400–$1,000 depending on age and gender.
You would need multiple units, which could cost over $200 per month depending on your age.
Coverage is low, usually less than $1,000 per unit.
Yes, Colonial Penn offers legitimate insurance policies, but they may not provide the best value.
It’s an option for seniors with serious health issues, but many other companies offer higher coverage at lower prices.
Senior Writer & Licensed Life Insurance Agent
Iqra is a dynamic and insightful senior writer with a passion for life insurance and financial planning. With over 8 years of hands-on experience in the insurance industry, Iqra has earned a reputation for delivering clear, actionable advice that empowers individuals to make informed decisions about their financial future. At Burial Senior Insurance, she not only excels as a licensed insurance agent but also as a trusted guide who has successfully advised over +1500 clients, helping them navigate the often complex world of life insurance and annuities. Her articles have been featured in top-tier financial publications, making her a respected voice in the industry.
Burial Senior Insurance provides information and services related to burial insurance for senior citizens, including policy options and end-of-life support services.
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