Colonial Penn $9.95 Plan Review: Is It Real Coverage?
What 1 unit of coverage actually buys at your age, the 2-year waiting period fine print, and better alternatives.
Key Takeaways
- Comparing 40+ A-rated carriers ensures you never overpay for life coverage.
- Pre-existing health conditions often qualify for level, day-one coverage with the right carrier.
- Our independent brokerage works directly for you — at no cost or added markup.
Colonial Penn is famous for its TV commercials promoting the "$9.95 Plan." While $9.95 a month sounds remarkably inexpensive, consumer reviews reveal that Colonial Penn's $9.95 plan is one of the most expensive ways to buy final expense coverage for seniors on a dollar-per-thousand basis.
1. How the $9.95 Unit System Works
Unlike traditional policies where you choose $10,000 or $15,000 in coverage, Colonial Penn sells coverage in units where every unit costs $9.95/mo. As you age, the death benefit provided by a single unit drops dramatically.
2. Real Coverage Value per $9.95 Unit
At age 65, a single $9.95 unit buys just $810 for males ($1,110 for females). To get roughly $10,000 in coverage, a 65-year-old male needs 12 to 13 units — costing nearly $120 to $130 per month!
Value Comparison
While a 65-year-old male pays ~$120/mo with Colonial Penn for ~$10,000 of coverage with a 2-year waiting period, top A-rated carriers offer $20,000 to $25,000 in immediate day-one coverage for the exact same monthly cost.
3. The Mandatory 2-Year Waiting Period
Because the $9.95 Plan has no health questions, non-accidental death in the first two years only returns paid premiums plus 7% interest, rather than the full benefit payout.
4. How Legacy Life Solutions Helps
We compare 40+ A-rated carriers to find simplified issue whole life plans that offer up to double the coverage for your budget — with immediate day-one benefits and no 2-year waiting period whenever possible.
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