Colonial Penn Insurance is a licensed, financially rated life insurance company that specializes in guaranteed acceptance whole life insurance for adults ages 50 to 85. Within that age range, the company cannot turn an applicant down for health reasons, which is why it is frequently marketed to seniors who have already been declined by traditional insurers. That guarantee comes with trade-offs: coverage amounts are modest, the cost per $1,000 of benefit runs higher than medically underwritten policies, and new policies carry a two-year graded death benefit. Independent reviewers, including NerdWallet and U.S. News, have also flagged a higher-than-expected volume of complaints filed with state insurance regulators relative to the company’s size. This review breaks down exactly what the $9.95-a-month plan buys, how Colonial Penn’s Insurance ratings and reputation compare to competitors, and who should shop elsewhere before signing up.
| Quick Answer | Details |
|---|---|
| Best For | Adults ages 50 to 85 who have been declined life insurance elsewhere because of health conditions and need modest final-expense coverage. |
| Starting Price | $9.95 a month for its flagship guaranteed acceptance whole life plan. |
| Financial Strength | A (Excellent) rating from AM Best. |
| Death Benefit | Includes a two-year graded death benefit for deaths from natural causes. |
| For Healthy Applicants | Applicants healthy enough to pass a medical exam or short health questionnaire will typically get more coverage for the same premium through a traditionally underwritten policy. |
Key Takeaways
- Guaranteed acceptance whole life insurance is available to applicants ages 50 to 85 in most states, with no medical exam and no health questions.
- Premiums start at $9.95 a month, but that price buys one “unit” of coverage rather than a fixed dollar death benefit; the face amount a unit buys depends on your age, gender, and state.
- A two-year graded death benefit applies to death from natural causes. Accidental death is covered at the full face amount from day one.
- Colonial Penn Insurance holds an A (Excellent) financial strength rating from AM Best, but review sites report complaint volumes with state regulators that run above average for an insurer its size.
- Colonial Penn Insurance has operated since 1968 and is a wholly owned subsidiary of CNO Financial Group, a publicly traded insurance holding company.
Who Is Colonial Penn Insurance?
Colonial Penn Insurance Life Insurance Company was founded in 1968 by Leonard Davis, who also co-founded AARP, and is headquartered in Philadelphia, Pennsylvania. The company has been owned by CNO Financial Group, a publicly traded insurance holding company, since 1997. Colonial Penn Insurance built its national reputation through decades of direct-response television advertising, most memorably with longtime spokesperson Alex Trebek and, more recently, Jonathan Lawson, who continue to promote the company’s guaranteed acceptance plan directly to viewers rather than through a network of local agents.
According to the company’s own disclosures, Colonial Penn Insurance has more than 810,000 life insurance policies in force, representing over $3.6 billion of life insurance in force. The company sells directly to consumers by phone and online, and coverage availability, eligibility ages, and benefit amounts vary by state.
Financial Strength Ratings
A financial strength rating reflects an insurer’s ability to meet long-term obligations, including paying claims decades after a policy is purchased, a meaningful consideration for whole life insurance, which can stay in force for the rest of a policyholder’s life.
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| Rating Agency | Rating | What It Measures |
|---|---|---|
| AM Best | A (Excellent) | Ability to meet ongoing insurance obligations and pay claims |
| Better Business Bureau (BBB) | A+ (Accredited) | Responsiveness to customer complaints and business practices |
What Types of Life Insurance Does Colonial Penn Sell?
Colonial Penn Insurance sells permanent life insurance products built around simplicity rather than product variety. It does not offer investment-linked products such as universal or variable life insurance.
| Plan Type | Typical Age Range | Medical Exam? | Key Feature |
|---|---|---|---|
| Guaranteed Acceptance Whole Life | 50–85 | No exam, no health questions | Cannot be declined for health reasons; two-year graded death benefit |
| Whole Life Insurance (underwritten) | Varies by state, generally under 50–80 | Short health questionnaire, no exam | Full death benefit from day one if approved |
| Term Life Insurance | Varies by state | Simplified underwriting | Coverage for a set period; not available in every state |
| Accidental Death Coverage | Varies | None | Add-on benefit paid for covered accidental deaths |
The guaranteed acceptance plan is Colonial Penn’s flagship product and the one featured in its television and direct-mail advertising. Because the company cannot ask health questions or require an exam for this plan, it prices in the graded death benefit and modest coverage caps described below to manage the added mortality risk of insuring people regardless of health status.
How Much Does Colonial Penn Life Insurance Cost?
Prices for Colonial Penn’s guaranteed acceptance plan start at $9.95 a month, a figure confirmed in U.S. News’s 2026 review of the company and on Colonial Penn’s own site. That price, however, does not correspond to a fixed dollar amount of coverage.
Understanding the “Unit” Pricing Model
Colonial Penn Insurance sells guaranteed acceptance coverage in “units.” The price per unit is fixed for everyone of the same age, gender, and state of residence, but the death benefit that a single unit buys shrinks as the applicant’s age at purchase increases. This is because the insurer is pricing a level premium against a shorter remaining life expectancy for older applicants. In practical terms, a 50-year-old applicant will receive noticeably more coverage per unit than an 85-year-old applicant paying the same monthly rate. Buyers who want a larger death benefit can purchase multiple units, which increases the monthly premium proportionally.
Why Guaranteed Acceptance Costs More Per Dollar of Coverage
Because Colonial Penn Insurance cannot screen applicants for health conditions on its guaranteed acceptance plan, it takes on more mortality risk than an insurer that requires a medical exam or health questionnaire. Insurers typically offset that risk by charging more per $1,000 of coverage and by limiting the maximum benefit available. As a result, someone in good health who qualifies for a traditionally underwritten final expense or term policy will generally find more coverage for the same premium elsewhere, while someone who has already been declined for health reasons may find Colonial Penn’s guaranteed acceptance plan to be one of the few options available to them.
How Do You Apply for Life Insurance From Colonial Penn?
Colonial Penn’s application process is built around speed and simplicity, which is the plan’s primary selling point for older applicants.
- Request a quote online or by phone. Colonial Penn Insurance provides rate information based on age, gender, state, and desired coverage amount.
- Complete the simplified application. The guaranteed acceptance plan requires no medical exam and no health questions; other plans may require a brief health questionnaire.
- Receive an acceptance decision. Applicants who meet the age requirement for the guaranteed acceptance plan are approved regardless of health status.
- Make your first payment to activate coverage. Most policies include a free-look or cancellation window shortly after purchase, during which the policy can be canceled for a full refund.
Every guaranteed acceptance policy includes a two-year graded death benefit for death from natural, or non-accidental, causes. If the insured dies of natural causes during the first two years of coverage, the beneficiary receives the premiums paid plus interest rather than the full face amount. After the two-year period, the full face amount is paid for death from any cause. Death from a covered accident is paid at the full face amount from the first day of coverage.
Colonial Penn Pros and Cons
| Pros | Cons |
|---|---|
| Guaranteed acceptance for ages 50–85 regardless of health history | Coverage amounts are relatively low compared with medically underwritten policies |
| Premiums are locked in and do not increase for the life of the policy | Higher cost per $1,000 of coverage than traditional whole life insurance |
| No medical exam or health questions on the flagship plan | Two-year graded death benefit for non-accidental death |
| Backed by CNO Financial Group and rated A (Excellent) by AM Best | Review sites report a complaint volume with regulators above average for the company’s size |
| Simple, fast application by phone or online | Limited product variety compared with full-service insurance brokers |
What Do Customers and Independent Reviewers Say About Colonial Penn?
Independent reviews of Colonial Penn Insurance are mixed, and there is a consistent gap between the company’s financial strength ratings and the experiences some customers report during the application, billing, or claims process.
- NerdWallet (2026 review): Colonial Penn Insurance earned 3 out of 5 stars overall. NerdWallet’s editorial team cited the company’s far higher-than-expected complaint volume with insurance regulators and its relatively low coverage amounts as the main drawbacks, while noting its financial strength as a positive.
- U.S. News (2026 review): U.S. News confirms pricing starting at $9.95 a month and notes that coverage is restricted to applicants ages 50 to 85 in most states, with a death benefit that is limited compared with other senior life insurance products. U.S. News names USAA as its top overall pick for senior life insurance in its 2026 ratings.
- Consumer review platforms: A review roundup published by consumer-privacy site DeleteMe reported Colonial Penn Insurance holding roughly 1.5 out of 5 stars on Trustpilot based on a small sample of about 40 reviews, with similarly low scores on Yelp and Pissed Consumer. Reviewers most frequently cited claim delays, billing and refund issues, and frustration with customer service responsiveness.
Taken together, the pattern across reviewers is consistent: Colonial Penn Insurance is financially capable of paying claims, but the customer experience, particularly around understanding unit pricing and the graded death benefit before a claim is filed, is where most complaints originate.
Final Verdict: Is Colonial Penn Right for You?
Colonial Penn Insurance is a reasonable option for adults ages 50 to 85 who have been turned down for life insurance elsewhere because of health conditions and who need a modest policy to help cover final expenses. It is a less compelling option for healthy seniors, who will typically qualify for more coverage at a lower cost per dollar of benefit through a medically underwritten whole life, term, or final expense policy from another carrier. Before buying any guaranteed acceptance plan, it is worth requesting quotes from more than one insurer and confirming exactly how the graded death benefit and unit pricing apply to your age, gender, and state.
Still unsure which policy fits your unique budget and family protection needs? Don’t navigate the complex world of life insurance alone. At Premier Services Agency, our experienced insurance specialists can help you compare Colonial Penn Insurance side-by-side with dozens of top-rated providers to find you the best available rates. Contact Premier Services Agency today for a free, no-obligation life insurance consultation.
Frequently Asked Questions (FAQs)
For $9.95 a month, Colonial Penn Insurance provides one “unit” of its guaranteed acceptance whole life insurance. The dollar amount of coverage that unit buys is not fixed; it depends on your age, gender, and state of residence, since the company prices a level premium against your remaining life expectancy. Older applicants receive less coverage per unit than younger applicants paying the same $9.95 rate.
The main downsides are modest coverage amounts relative to the premium paid, a two-year graded death benefit for death from natural causes, and a higher-than-average volume of complaints filed with state insurance regulators, as reported by NerdWallet and other independent reviewers. Colonial Penn Insurance also offers a narrower range of products than full-service insurance brokers.
“Better” depends on whether you can pass underwriting. For applicants in good health, insurers offering medically underwritten term or whole life policies typically provide more coverage per premium dollar. U.S. News’s 2026 ratings name USAA as the top overall pick for senior life insurance. For applicants who cannot pass underwriting due to health issues, Colonial Penn remains one of a limited number of guaranteed acceptance options, alongside similar plans from other final-expense insurers, and it is worth comparing quotes before choosing one.
The face amount purchased for $9.95 a month varies by age, gender, and state, because Colonial Penn sells guaranteed acceptance coverage in priced units rather than fixed death benefit amounts. Request a personalized quote from Colonial Penn or a licensed agency to see the exact coverage amount available at your age and location.
