The commercials say $9.95. They don’t tell you that $9.95 buys as little as $418 in coverage — with a 2-year waiting period before it even pays out. Here’s exactly what you’re actually paying for, and what the same money buys you elsewhere.
Colonial Penn’s $9.95 plan is a guaranteed acceptance whole life insurance policy sold in “units.” Every unit costs $9.95 per month. The catch is that the amount of coverage each unit provides depends entirely on your age and gender at the time you apply. The older you are, the less coverage each $9.95 buys. There are no health questions and no medical exam — but this comes with a mandatory 2-year waiting period on all natural cause deaths and some of the worst coverage-per-dollar ratios in the final expense market.
⚠ The number they hide in the commercial: Jonathan Lawson says “coverage starts at $9.95 a month.” He does not say how much coverage that $9.95 actually buys at your age. A 75-year-old male gets $549 in coverage per $9.95 unit. To get $10,000, he needs 19 units — but Colonial Penn caps you at 15 units. That means a 75-year-old male cannot reach $10,000 in coverage from Colonial Penn at any price.
I get calls every week from seniors who signed up for Colonial Penn after seeing the commercial and then discovered what they actually bought. A 70-year-old woman came to me paying $149.25/month for 15 Colonial Penn units — $15,000 in coverage with a 2-year wait. I moved her to Mutual of Omaha level benefit: $15,000, full payout from day one, for $76/month. That’s $876 per year she was wasting. Please call before you sign anything: (754) 800-1152.
Colonial Penn never publishes a simple rate chart because their unit system makes that inconvenient. Here is every age from 55 to 85 with the real numbers, including the actual monthly cost to reach $10,000 in coverage:
| Age | Per unit — Female | Per unit — Male | Units for $10K (F) | Units for $10K (M) | Monthly for $10K (F) | Monthly for $10K (M) |
|---|---|---|---|---|---|---|
| 55 | $1,761 | $1,420 | 6 | 8 | $59.70 | $79.60 |
| 60 | $1,515 | $1,167 | 7 | 9 | $69.65 | $89.55 |
| 65 | $1,258 | $896 | 8 | 12 | $79.60 | $119.40 |
| 70 | $1,000 | $689 | 10 | 15* | $99.50 | $149.25* |
| 75 | $762 | $549 | 14 | 15* (max $8,235) | $139.30 | $149.25* — can’t reach $10K |
| 80 | $608 | $426 | 15* (max $9,120) | 15* (max $6,390) | $149.25* — can’t reach $10K | $149.25* — can’t reach $10K |
| 85 | $468 | $418 | 15* (max $7,020) | 15* (max $6,270) | $149.25* — can’t reach $10K | $149.25* — can’t reach $10K |
*15 units is the maximum. Highlighted rows indicate ages where $10,000 in coverage is impossible regardless of units purchased. Source: ColonialPenn.com. Not a quote.
✖ At age 75 and above, Colonial Penn cannot provide $10,000 in coverage at any price. The average U.S. funeral costs $8,000–$12,000. An 80-year-old male paying the maximum $149.25/month gets only $6,390 in coverage — not enough to cover burial costs — and must still wait 2 years before it pays out.
This is the comparison Colonial Penn’s commercials never show. Same coverage amount, same age — radically different cost and protection:
| Profile | Colonial Penn monthly | Waiting period | Mutual of Omaha monthly | Waiting period | Annual savings |
|---|---|---|---|---|---|
| Female, age 65 | $119.40/mo (12 units) | 2 years | $58/mo | None | $736/yr saved |
| Male, age 65 | Max 15 units = $13,440 only | 2 years | $76/mo for full $15K | None | Can’t match at Colonial Penn |
| Female, age 70 | $149.25/mo (15 units) | 2 years | $76/mo | None | $879/yr saved |
| Male, age 70 | Max 15 units = $10,335 only | 2 years | $100/mo for full $15K | None | Can’t match at Colonial Penn |
All Colonial Penn $9.95 policies have a 2-year waiting period for natural cause deaths. If you die from any medical or health-related cause within the first 2 years of your policy, your beneficiaries receive only your premiums paid back plus 7% interest — not the death benefit. If you pay $119.40/month for 18 months and then die from a heart attack, your family receives approximately $2,148 — not the $15,000 you were insured for. Only accidental death is covered from day one.
✖ This is not an industry standard. Mutual of Omaha, American Amicable, and Royal Neighbors all offer level benefit policies that pay the full death benefit from day one for both natural and accidental causes — at lower monthly premiums than Colonial Penn. The 2-year waiting period is specific to guaranteed issue products. Most seniors qualify for simplified issue level benefit and never need to accept a waiting period.
Jonathan Lawson is Colonial Penn’s current TV pitchman. Unlike previous spokespeople Alex Trebek and Ed McMahon who were paid celebrity endorsers, Lawson is an actual Colonial Penn employee who works in their marketing department. The company deliberately shifted to an employee pitchman to make the advertising feel more genuine and trustworthy.
The issue is not whether Lawson is real or fake. The issue is that the product he promotes does not deliver what his presentation implies. The commercial emphasizes “$9.95” and “guaranteed acceptance” without ever showing viewers how much coverage that $9.95 actually buys at their specific age — and that omission causes real financial harm to seniors who sign up believing they have meaningful burial coverage.
The only valid use case: Your health is so severe that you cannot qualify for any simplified issue policy from any carrier, and you are between ages 50 and 85. Even in this scenario, AIG/Corebridge guaranteed issue is typically cheaper for the same coverage with the same 2-year waiting period. Colonial Penn is rarely even the cheapest guaranteed issue option available.
For everyone else — the vast majority of seniors — simplified issue level benefit from Mutual of Omaha, American Amicable, or Royal Neighbors delivers dramatically more coverage at lower cost with full payout from day one. Conditions like diabetes, COPD, heart disease, and cancer history do not automatically disqualify you. See our health condition guides: diabetes, COPD, heart disease, cancer history.
| Carrier | Coverage type | Waiting period | Est. $15K cost (F, 65) | Health questions | Best for |
|---|---|---|---|---|---|
| Colonial Penn | Guaranteed issue | 2 years | $119.40/mo | None | Last resort only |
| Mutual of Omaha | Level benefit | None | $58/mo | Simplified | Clean health, best rates |
| American Amicable | Level benefit | None | $62/mo | Simplified | Diabetes, smokers, COPD |
| Royal Neighbors | Level benefit | None | $56/mo | Simplified | Cheapest pricing, lenient underwriting |
| AIG / Corebridge GI | Guaranteed issue | 2 years | $100/mo | None | Severe health — cheaper than Colonial Penn |
⚠ Even AIG/Corebridge guaranteed issue — same 2-year waiting period as Colonial Penn — costs less for the same coverage amount. There is almost no scenario where Colonial Penn is the cheapest guaranteed issue option. If you genuinely need guaranteed issue, call us and we’ll find you a better rate: (754) 800-1152.
We’ll tell you in 10 minutes whether you qualify for level benefit at a fraction of Colonial Penn’s cost. If you don’t qualify for anything better, we’ll tell you that honestly. No pressure, no obligation.
See What I Actually Qualify For →Tell us your age and basic health. In most cases you’ll qualify for more coverage, at lower cost, with full payout from day one. Free, no obligation, 10 minutes.