Neither one wins in the abstract, because they are built for two different buyers. Colonial Penn is guaranteed acceptance: no health questions, a short direct application, and coverage bought in fixed price units, which suits someone who has been declined before or simply wants certainty of approval. Lincoln Heritage sells Funeral Advantage, a simplified issue whole life policy written by an agent who asks a few health questions, and it comes with a funeral planning membership for the family. If you can comfortably answer health questions and want to name the benefit amount yourself, Lincoln Heritage is built for you. If you would rather have approval settled up front with no health questions at all, Colonial Penn is built for exactly that.
At a glance
| Colonial Penn | Lincoln Heritage | |
|---|---|---|
| What they mainly sell | Guaranteed acceptance whole life for ages 50 to 85 | Funeral Advantage simplified issue final expense whole life |
| Company structure | Subsidiary of CNO Financial Group, a publicly traded insurer | Privately held, part of the Londen Insurance Group in Phoenix |
| How you buy it | Direct to consumer: television response, mail, phone and web | Through an agent, usually a sit down at your kitchen table |
| Health questions | None on the guaranteed acceptance plan, and no medical exam | A few questions on the application, and no medical exam |
| How coverage is sized | You buy units at a fixed monthly price per unit | You choose a benefit amount and the premium follows |
| Waiting period | Two years for natural causes, accidents covered from day one | Day one coverage for those who qualify, graded options otherwise |
| What comes with it | Direct company servicing by phone, mail or online whenever you need it | Free Funeral Consumer Guardian Society membership for the family |
| Best known for | Decades of television advertising and a name almost everyone knows | Doing one job since 1963: final expense, and nothing else |
One starts with the premium, the other starts with the benefit
This is the difference that changes everything else. Colonial Penn's guaranteed acceptance plan is priced in units. You decide how many units to buy at a fixed monthly price per unit, and the death benefit those units provide is set by your age and sex at enrollment. The premium is the number you pick, and the benefit is the number that falls out, which is why two people paying the same amount can hold very different coverage. Lincoln Heritage runs the other direction. With Funeral Advantage you name the benefit your family would need, answer a few health questions, and the premium is what falls out. Bundled with it is membership in the Funeral Consumer Guardian Society, which helps the family with funeral planning and price comparison. So the honest question is not which company is better. It is whether you want approval guaranteed and the benefit calculated for you, or a benefit you choose with health questions attached.
Who each one actually suits
Colonial Penn
Direct-to-consumer guaranteed acceptance whole life sold in fixed price units
- You have been declined for coverage before, or a health history makes underwriting feel like a wall you would rather not walk into.
- You want to buy without an agent in your living room, on your own time, straight from the company.
- A familiar national name and direct company servicing matter more to you than having an agent walk you through the options in person.
- You want to start small and simple, with a premium you set yourself and can usually add to later.
Lincoln Heritage
Final expense specialist selling Funeral Advantage whole life through agents
- You can answer a few health questions, and you would rather choose the benefit amount than have it calculated from your premium.
- You want a person sitting across from you who will read the application aloud and answer questions on the spot.
- The Funeral Consumer Guardian Society membership genuinely appeals to you, because nobody in the family has planned a funeral before.
- You want the whole thing handled by a company that has done final expense and only final expense since 1963.
If you already hold one of them
If you already hold one of these, the most common right answer is to keep it. Coverage was priced on the health you had the day it was issued, and replacing it can restart a waiting period you have already served, which is the quiet cost people miss. With Colonial Penn, the useful thing to do is read your policy schedule and write down the actual dollar benefit your units provide, because that number is easy to lose track of. With Lincoln Heritage, make sure your family knows the Funeral Consumer Guardian Society membership exists, since it does nothing for them if nobody ever calls it.
Common questions
Which is better, Colonial Penn or Lincoln Heritage?
Neither is better on its own, they are built for different people. Colonial Penn's guaranteed acceptance plan cannot turn you down for your health, which is the whole point of it, and you buy coverage in fixed price units. Lincoln Heritage asks a few health questions in exchange for letting you choose the benefit amount, and adds a funeral planning membership for your family. The deciding question is usually whether you can comfortably answer health questions.
Why does Colonial Penn sell coverage in units instead of a dollar amount?
Units are how the plan prices guaranteed acceptance. Each unit costs the same fixed amount every month, and how much death benefit one unit provides depends on your age and sex when you enroll, which is what lets the company accept everyone without asking about health. It is a sound design for that job. It does mean the monthly figure and the coverage figure are two separate numbers, so read the benefit per unit off your quote or policy schedule and multiply it out. Then you know the dollar amount your family would actually receive.
What is the Funeral Consumer Guardian Society and do I pay extra for it?
It is a funeral planning membership that comes attached to a Lincoln Heritage Funeral Advantage policy at no separate charge. Per Lincoln Heritage, it helps the family with funeral planning, comparing prices among local funeral homes, and support at claim time. It is the piece of the program most people are actually buying without realizing it, and it is the main thing you would give up if you replaced the policy with something else.
Does either one require a medical exam?
No, neither one does. Colonial Penn's guaranteed acceptance plan asks no health questions at all for ages 50 to 85, so there is nothing to disqualify you. Lincoln Heritage is simplified issue, which means a few health questions on the application replace the exam, and the answers decide whether you get day one coverage or a graded benefit. Both approaches skip the paramedical visit and the lab work that a larger policy would involve.
Which one has a waiting period?
Both can, but not in the same way. Colonial Penn's guaranteed acceptance plan generally pays a reduced benefit for death from natural causes during roughly the first two years, with the full face amount after that, and death by accident is typically paid in full from the first day. Lincoln Heritage can offer day one coverage to applicants who qualify on the health questions, with graded options available for tougher health histories. Which one applies to you depends on your answers and on your contract, so it is worth confirming before you sign anything.
How much coverage can I get from each one?
Both are sized for final expense, meaning enough to handle a funeral and the bills that follow rather than to replace an income. Colonial Penn's plan caps the number of units you can hold, which sets an upper limit on coverage through it. Lincoln Heritage sets its own maximum benefit for Funeral Advantage. Neither figure applies to every applicant, so ask each company for the most it will issue at your age and in your state. If you need a materially larger amount, a level whole life policy that asks fuller health questions is usually the better tool.
How do I compare the two on price?
You cannot compare them on the advertised number, because the two plans quote different things. The honest method is to fix the benefit first. Decide the dollar amount your family would need, then ask each company what the monthly premium is for exactly that amount at your age, in your state. Once both quotes describe the same benefit, the comparison becomes simple. Pricing turns on age, sex, health and where you live, so anyone quoting you a figure without those is guessing.
If I already have one of these, should I switch to the other?
Not automatically, and often not at all. Coverage you already own was priced on the health you had when it was issued, so if your health has changed since, replacing it can cost more or may not be available on the same terms. Any honest comparison starts by valuing what you already hold, and a review that ends in keep what you have is a perfectly good result.
Can I hold policies from both companies at once?
Yes. There is no rule against owning coverage from more than one insurer, and plenty of households do, often because policies were bought at different life stages for different reasons. What matters is that the total coverage matches what your family would actually need, and that you are not paying twice for the same job.
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The right answer depends on you, not on the brochure.
Rates for Colonial Penn and Lincoln Heritage both depend on your age and health, which means the better buy for your neighbour may be the worse buy for you. A licensed professional will price both against what you already have and tell you which is genuinely better, including when the honest answer is to keep what you have.
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This comparison is general information, not legal, tax, or financial advice. Product availability, pricing and underwriting differ by state, age and health, and change over time. Policy Review Center is a free comparison and referral service, not an insurance agency, insurer, or producer, and it connects you with independent licensed agents. Carrier names are used for reference only and do not imply any endorsement or affiliation.