Colonial Penn Rate Chart by Age (2026): What $9.95 a Unit Really Buys
Updated July 31, 2026
Our 2.5/5 comes down to a trade-off: the company is financially sound and pays its claims, but you pay a high price for every $1,000 of coverage, you wait two years for full coverage to kick in, and it draws more complaints than most.
If you’ve watched much daytime TV, you’ve almost certainly seen the ad: life insurance for just $9.95 a month, no health questions asked. For years, Alex Trebek was the face of it. It may be the most recognized life insurance offer in America — and one of the most misunderstood.
So before you call the number on the screen, here’s what that $9.95 really buys, who it makes sense for, and who can do a lot better somewhere else.
Key takeaways
- The “$9.95 a month” plan sells units, not a fixed payout.
- Coverage carries a 2-year waiting period for natural death.
- Premiums are locked, but the price per dollar of coverage is high.
- Most healthy applicants can get day-one coverage cheaper elsewhere.
What Colonial Penn Actually Sells
One Colonial Penn product gets nearly all the airtime: a small whole life policy sold as burial or “final expense” insurance. The big promise is that you can’t be turned down — no health questions, no medical exam. Here’s what that really means for you.
The appeal is obvious, especially if your health isn’t perfect: everyone gets approved. But that promise comes with two catches. First, the coverage amounts are small. Second, there’s a two-year waiting period before the full payout is in place. We’ll cover both below.
Colonial Penn does sell other policies — term and whole life that ask health questions — through its parent company, CNO Financial Group. You just rarely see those on TV. The ads almost always feature the guaranteed plan, which happens to carry the smallest coverage and the highest cost per dollar of benefit.
The “Unit” System Explained — And Why It Matters
Colonial Penn doesn’t price its famous plan in dollars of coverage. It prices it in “units.” Each unit costs $9.95 a month. You can buy up to 25 units, so the most you’d ever pay is 25 × $9.95, or $248.75 a month. Here’s the part the ad skips: how much coverage one unit buys depends entirely on your age and whether you’re a man or a woman.
| Age | Coverage per $9.95 unit (Female) | Coverage per $9.95 unit (Male) | For ~$10,000 (Female) | For ~$10,000 (Male) |
|---|---|---|---|---|
| 50 | $2,000 | $1,669 | 5 units · $49.75/mo | 6 units · $59.70/mo |
| 55 | $1,761 | $1,420 | 6 units · $59.70/mo | 8 units · $79.60/mo |
| 60 | $1,515 | $1,167 | 7 units · $69.65/mo | 9 units · $89.55/mo |
| 65 | $1,258 | $896 | 8 units · $79.60/mo | 12 units · $119.40/mo |
| 70 | $1,000 | $689 | 10 units · $99.50/mo | 15 units · $149.25/mo |
| 75 | $762 | $549 | 14 units · $139.30/mo | 19 units · $189.05/mo |
| 80 | $608 | $426 | 17 units · $169.15/mo | 24 units · $238.80/mo |
Coverage-per-unit figures are Colonial Penn’s published guaranteed-acceptance values (colonialpenn.com, retrieved July 2026); amounts vary by state. Monthly cost = units × $9.95. Colonial Penn caps purchases at 25 units ($248.75/month). All coverage begins after a mandatory 2-year graded period.
*Approximate values based on publicly available Colonial Penn unit pricing. Individual rates may vary by state.
Take a 70-year-old woman. She gets $1,000 of coverage for each $9.95 unit, so reaching $10,000 takes 10 units — $99.50 a month. A 70-year-old man gets only $689 per unit and needs 15 units to hit $10,000, or $149.25 a month. For that same kind of money, carriers we work with can often cover a healthy 70-year-old for $15,000 to $25,000, with the full amount in force from day one.
Real Costs vs. What You Actually Get
Let’s put those numbers in plain terms. A funeral in the U.S. runs about $8,000 to $12,000 once you add a plot, a headstone, and basic services. For most people buying in their 70s, Colonial Penn’s coverage doesn’t come close to that bill.
Here’s the math for a 70-year-old woman who buys 8 units:
- Monthly premium: $79.60
- Annual premium: $955.20
- Total paid over 5 years: $4,776
- Coverage received: ~$5,384
- Coverage during first 2 years: Premiums returned plus 10% interest only
- Average funeral cost: $8,000–$12,000
- Shortfall: $2,600–$6,600
Your family would get the payout — and then still have to find thousands of dollars somewhere else to cover the rest of the funeral.
The 2-Year Waiting Period: What Happens If You Die Early
Colonial Penn’s guaranteed plan has a two-year waiting period built in. If you pass away in the first 24 months from anything other than a true accident, your family doesn’t get the full coverage amount. Instead, the company returns the payments you made, plus 10% interest.
That might sound fair — after all, you get your money back. But look closer. A 73-year-old man who buys in January 2026 and passes away in October 2027 will have paid about $1,910. His family would receive roughly $2,100 — not the $4,568 printed on the policy — right when they’re facing a $10,000 funeral bill.
Carriers like Mutual of Omaha, Aetna, and American Amicable offer fully underwritten plans where a healthy senior with no major conditions qualifies for day-one full coverage with no waiting period whatsoever. Even many applicants with controlled conditions like Type 2 diabetes or high blood pressure qualify for level plans at competitive rates.
Customer Complaints and Claims Experience
By the numbers: Colonial Penn’s NAIC complaint index for individual life has run several times the industry baseline of 1.00 — a three-year average near 7 as reported in 2024 (NAIC Consumer Information Source). Most complaints cite claim delays and policyholder service.
A quick word on the company itself, because it speaks to trust. Colonial Penn started in 1968 — its founder, Leonard Davis, also helped launch AARP — and today it’s part of CNO Financial Group. It sells straight to the public through TV, mail, and phone, not through independent agents.
On financial strength, it’s solid: AM Best rates it A (Excellent), which means it has the resources to pay claims. That part isn’t the concern. The concern is the price you pay and how clearly the plan is explained.
So what is that complaint index? State insurance regulators (grouped under the NAIC) track how often a company draws complaints compared with its size. A score of 1.0 is average. Colonial Penn’s has run higher than that for years, and the complaints tend to cluster around two things: policies that weren’t clearly explained at the sale, and confusion about the two-year waiting period.
In plain terms: people buy thinking they’re fully covered right away. Then a claim comes in during the first year, and the family learns they only get the payments back — not the full amount. The fine print is accurate. The TV pitch just doesn’t tell the whole story.
Who Colonial Penn Is Actually Right For
To be fair: Colonial Penn is genuinely useful for a narrow group of people.
- Applicants who have been declined everywhere else due to serious health conditions (active cancer, congestive heart failure requiring hospitalization, AIDS/HIV, organ transplant waiting list)
- People who only need $2,000–$5,000 of coverage to supplement an existing plan
- Applicants who are 80 or older and have limited options elsewhere
If you don’t fall into one of those groups — and most people don’t — you’re very likely paying more for less coverage than you actually need.
Better Alternatives to Consider
The best alternative often depends on where you live. Which companies are available — and what they charge — can vary from one state to the next. See the top options in Florida, Texas, and California, or find yours in our burial insurance by state directory.
Before you settle on Colonial Penn, look at what the same money buys elsewhere. The table below compares rough monthly rates for a 70-year-old woman who wants $10,000 of burial coverage.
| Company | Monthly Rate (F, Age 70) | Coverage | Waiting Period | Health Questions |
|---|---|---|---|---|
| Colonial Penn | ~$148/mo for ~$10k* | $10,000 | 2 Years | None |
| Mutual of Omaha | ~$52/mo | $10,000 | None (level) | Yes (short) |
| Aetna | ~$55/mo | $10,000 | None (level) | Yes (short) |
| American Amicable | ~$50/mo | $10,000 | None (level) | Yes (short) |
*Colonial Penn rate is estimated based on units required to reach $10,000 coverage at age 70. Actual rates vary. Competitor rates are sample rates for healthy non-smoking female. Call for exact quotes.
Most seniors who can answer a few health questions — even with controlled diabetes, high blood pressure, or a past heart issue — qualify for one of these plans at a fraction of what Colonial Penn charges for guaranteed coverage.
Colonial Penn’s famous unit pricing makes coverage look affordable until you do the math on what a unit actually buys at your age. In 18 years I have rarely seen it beat a properly shopped policy. Run a real comparison before you call the number on TV.
Sources
- Colonial Penn — Guaranteed Acceptance Life Insurance (unit system, 25-unit maximum, 2-year graded benefit). colonialpenn.com, retrieved July 2026.
- AM Best — Financial Strength Rating A (Excellent), CNO Financial life/health subsidiaries incl. Colonial Penn Life Insurance Company, affirmed Feb 26 2025. ambest.com.
- NAIC Consumer Information Source — company complaint index, individual life. naic.org.
- NFDA — 2023 median cost of a funeral with burial ($7,848) / cremation. nfda.org.
Frequently Asked Questions
Is Colonial Penn legitimate?
Yes. Colonial Penn is a licensed insurance company owned by CNO Financial Group, rated A (Excellent) by AM Best for financial strength. They pay claims. The concern is not legitimacy — it is value. You tend to pay significantly more per dollar of coverage compared to other carriers.
Can I get $9.95 coverage from Colonial Penn?
Yes, one unit costs $9.95 per month. But one unit buys less than $1,000 of coverage for most seniors in their 60s and 70s. A meaningful policy — enough to cover a funeral — requires roughly 8 to 24 units depending on age and gender, running about $80 to $240 per month.
Is there a waiting period with Colonial Penn?
Yes. Their guaranteed acceptance policy has a 2-year graded benefit. If you pass away in the first 24 months from anything other than a pure accident, your beneficiary receives your premiums returned plus 10% interest — not the face value of the policy.
Can I be turned down by Colonial Penn?
No — that’s the appeal of their guaranteed acceptance product. You cannot be turned down for any health reason. However, this guarantee is why the policy costs so much more and has the 2-year waiting period.
What happens to my Colonial Penn policy if I stop paying?
After a certain number of years, your policy may have built enough cash value to continue as a reduced paid-up policy or extended term. Early in the policy, lapsing typically means the coverage simply ends with no refund of premiums.
Does Colonial Penn cover accidental death from day one?
Yes. The graded benefit applies to natural causes. Death by accident is generally covered at the full face value from the first day of the policy, subject to the specific policy terms in your state.
Pros
- Guaranteed acceptance, no health questions.
- Premiums locked for life.
- Well-known, financially stable carrier.
Cons
- Unit pricing hides how little coverage you get.
- 2-year wait on natural death.
- Higher cost per $1,000 than independent carriers.
The bottom line
Colonial Penn is a legitimate, financially stable company — but the unit pricing and 2-year wait make it a poor value for most seniors. If you’re in reasonable health, an independent broker can almost always find day-one coverage for less. Compare before you commit.