Colonial Penn Life Insurance Company sells whole life insurance by mail, phone and online, best known for its guaranteed acceptance plan that starts at $9.95 a month. The plan has no health questions, but it pays a limited benefit if you die in the first two years.
What Colonial Penn sells
| Product | What it is | Ages | Coverage |
|---|---|---|---|
| Guaranteed Acceptance Whole Life | Whole life insurance with no health questions. You buy it in units. It has a limited benefit in the first 2 years. | 50 to 85 in most states (DC 55 to 85, MN and MO 50 to 75, NJ 50 to 77 men and 50 to 82 women, NY 50 to 75, PA 56 to 85) | Up to 25 units. The dollar amount per unit depends on your age, gender and state. |
Key facts
- Financial strength: AM Best affirmed an A (Excellent) rating for Colonial Penn Life Insurance Company on April 8, 2026, with a stable outlook. Colonial Penn is part of CNO Financial Group.
- Price: Colonial Penn says the plan costs $9.95 per unit per month (colonialpenn.com FAQ, checked October 7, 2026). The price per unit is fixed.
- How units work: you pick how many units you want, up to 25. Each unit buys a set amount of coverage. That amount is based on your age, your gender (age only in Montana) and your state. An older person gets less coverage per unit than a younger person for the same price.
- Rate: Colonial Penn says once you are insured, your rate will never go up, and your benefit will not go down as you age.
- Waiting period: this is a graded death benefit plan. If you die in the first 2 years, the benefit is limited. A 2021 Missouri order says agents must tell buyers the benefit in the first two years is limited to a refund of premiums paid plus 7% interest.
- Coverage starts only when Colonial Penn gets your first premium payment.
- Loans: if you borrow against the policy, the loan rate is 8% compounded each year. Any unpaid loan is taken out of the death benefit.
- Complaint data: you can look up this company's complaint record on the NAIC Consumer Insurance Search site. We did not pull a complaint index number for this page.
Watch out for
- The $9.95 buys one unit, not a set dollar amount. At older ages one unit buys less coverage, so check the dollar benefit on your quote, not just the price.
- If you die from natural causes in the first 2 years, your family gets a limited benefit, not the full amount.
- In November 2021, Missouri's insurance department and Colonial Penn signed an agreement about how this plan was sold and advertised in Missouri. Colonial Penn did not admit to any violation and paid a $500 forfeiture.
Who it may fit
- People ages 50 to 85 who cannot pass health questions anywhere else.
- People who want a small, fixed monthly cost and are fine with a small benefit.
- People who expect to keep the policy well past the first 2 years.
Want to compare? A licensed agent can quote Colonial Penn next to other companies so you see the full picture. Check any company's complaint record with the NAIC Consumer Information Source.
Common questions
What does $9.95 a month buy?
It buys one unit. How much coverage one unit gives you depends on your age, gender and state. Ask for your exact dollar benefit before you buy.
Is there a waiting period?
Yes. For the first 2 years the death benefit is limited. A Missouri order says the limit is your premiums back plus 7% interest. After 2 years the full benefit applies.
Will my price go up?
Colonial Penn says your rate never goes up once you are insured, and your benefit does not drop as you age.
Sources
- Colonial Penn: Guaranteed Acceptance Life Insurance
- Colonial Penn FAQ: How does the $9.95 plan work
- Colonial Penn: Guaranteed Acceptance Whole Life (loan terms)
- Colonial Penn: homepage (AM Best mention and state age limits)
- AM Best affirms CNO Financial subsidiaries, April 8, 2026 (press release copy)
- Missouri Dept. of Commerce and Insurance: Order In Re Colonial Penn Life Insurance Company, Nov. 2021
- NAIC Consumer Insurance Search (complaint lookup)
