The Colonial Penn $9.95 plan costs $9.95 a month for one unit of coverage, not for a fixed death benefit. How much one unit pays depends on your age, gender, and state, and you choose how many units to buy. Five units cost $49.75 a month and ten cost $99.50. For the first two years a natural death pays back the premiums plus 7% interest. After that the plan pays the full benefit.
We are the Policy Review Center, an independent comparison and referral service. We are not Colonial Penn and not affiliated with it. The figures below come from Colonial Penn’s own product and FAQ pages, and the arithmetic shows what different unit counts cost, so you can judge the plan by what it pays per dollar.
Not sure what your $9.95 plan actually pays? The plan buys units, so the benefit depends on your age when you started. A licensed professional will read your paperwork with you and work out what you hold. Free, no obligation.
What the Colonial Penn $9.95 plan actually is
The $9.95 plan is guaranteed acceptance whole life insurance sold in small units of coverage. Guaranteed acceptance means there is no medical exam and no health questions, so within the plan’s age range you cannot be turned down for your health. Whole life means the premium per unit is level for life and the coverage does not expire while premiums are paid. The “$9.95” in the name is the monthly price of a single unit.
That last point is where most confusion starts. A unit is not a fixed dollar amount of coverage. It is a building block, and the benefit one unit buys is set by your age and sex at enrollment. This is also the kind of plan that carries a two-year graded period, which is standard across the industry for guaranteed acceptance coverage and not unique to any one company. If you already own the plan and want it read line by line, our Colonial Penn policy help guide walks through billing, beneficiaries, and claims.
What a unit of coverage actually buys
Colonial Penn’s FAQ says the benefit amount you receive per unit depends on your age, gender (in Montana, age only), and state of residence. The company does not publish a benefit-per-unit chart on its product pages. You see yours in a quote or on your policy schedule. What is fixed is the price, and that makes the cost of any number of units simple arithmetic.
| Units | Monthly premium | Annual premium | Premiums over the first two years |
|---|---|---|---|
| 1 unit | $9.95 | $119.40 | $238.80 |
| 3 units | $29.85 | $358.20 | $716.40 |
| 5 units | $49.75 | $597.00 | $1,194.00 |
| 10 units | $99.50 | $1,194.00 | $2,388.00 |
| 15 units | $149.25 | $1,791.00 | $3,582.00 |
Arithmetic from the $9.95 per unit monthly price on Colonial Penn’s product page. Your quote shows how many units you can buy and what benefit each unit pays.
Colonial Penn’s pages describe a cap on units, and the cap shown varies by page and state: one product page says up to 25 units, a state page says up to 15. Your quote shows the limit that applies to you. A cap means the plan has a ceiling on total coverage, which is worth knowing if you need a larger amount.
Want your unit count turned into a dollar figure? Bring your statement, or just your age and the year you started. We will explain it in plain terms, and keeping the plan is a fine answer.
What the $9.95 plan really costs per benefit dollar
The measure that matters is the monthly cost per $1,000 of death benefit. The formula is $9.95 divided by the number of thousands one unit pays. Colonial Penn does not publish the benefit per unit, so the table uses hypothetical values to show the method. Plug in the figure from your own quote.
| If one unit paid (hypothetical) | Cost per $1,000 of benefit per month | Monthly cost of 5 units |
|---|---|---|
| $1,000 | $9.95 | $49.75 |
| $2,000 | $4.98 | $49.75 |
| $3,000 | $3.32 | $49.75 |
| $4,000 | $2.49 | $49.75 |
Hypothetical benefit values to demonstrate the method, not Colonial Penn figures. Cost per $1,000 equals $9.95 divided by the thousands of dollars one unit pays.
Use the same formula on any other quote and the comparison is fair. A level final expense plan quotes a flat benefit, so divide its monthly premium by its benefit in thousands. The lower number buys more coverage per dollar. None of this makes the unit plan a poor product. Colonial Penn says acceptance is guaranteed and your rate never increases, which is the point of the design. For a neutral overview of how this product category is priced, the III has an explainer on final expense insurance.
Want your unit count turned into a dollar figure? Bring your statement, or just your age and the year you started. We will explain it in plain terms, and keeping the plan is a fine answer.
The two-year graded period, with numbers
Colonial Penn’s disclosure reads: if death occurs during the first two years of coverage, the beneficiary receives the premiums paid plus 7% interest compounded annually. For death from accidental causes during the first two years, the full face amount is paid. After the first two years the full face amount is paid.
| When death occurs | Natural causes | Accidental causes |
|---|---|---|
| Months 1 to 24 | Premiums paid plus 7% interest, compounded annually | Full face amount |
| Month 25 and after | Full face amount | Full face amount |
Source: Colonial Penn guaranteed acceptance disclosure. Your policy states the exact terms.
The gap between the two columns is the exposure in the first two years. Say you hold 5 units and pass away from natural causes after 12 months. You will have paid $597.00, and the benefit is that amount plus 7% interest, not the face amount on your schedule. The same policy at month 25 pays the full face amount. Our guide to guaranteed acceptance life insurance explains why this period exists, and our page on final expense with no waiting period covers plans that start full coverage on day one for people who qualify.
Who the $9.95 plan fits
The plan is a good fit when guaranteed acceptance is exactly what you need. For these situations, it does a real job:
- A health condition makes a plan that asks medical questions hard to qualify for, and this plan asks none.
- You want a small, lifelong policy aimed at a funeral and final bills, not income replacement.
- You value a name you recognize and a simple application over squeezing out the last dollar of coverage.
- You want a level premium that does not rise with age and coverage that does not expire while it is paid.
If that describes you, the $9.95 plan is something to feel good about. The one thing worth confirming is that you actually need guaranteed acceptance, because the alternative below sometimes buys more for the same money.
How the $9.95 plan compares to other options
The most common alternative is a level final expense plan that asks a few health questions. We help you compare the two, side by side, for your age and health. Here is how they line up on what matters.
| The $9.95 unit plan | A level final expense plan | |
|---|---|---|
| Qualifying | No health questions, no exam | A few health questions, no exam |
| Pricing | Units of coverage at $9.95 each | A flat death benefit you choose |
| Coverage per dollar | Lower (the price of guaranteed acceptance) | Often higher for those who qualify |
| When coverage starts | Two-year graded period for natural death | Often full coverage from day one |
| Coverage length | Lifelong while premiums are paid | Lifelong while premiums are paid |
| Best for | Health rules out the questions | You can answer a few questions |
A comparison of two common guaranteed-issue and simplified-issue structures, not a quote. Which one fits depends on your age, health, and state. We help you compare both with no obligation.
Neither is the better product in the abstract. Guaranteed acceptance wins when health rules out the questions. A level plan wins on coverage per dollar and on day-one coverage for those who can answer them. The job you are solving for decides the column. If you want the full picture of the market, our guide to final expense coverage lays the choices out, and our independent Colonial Penn review looks at the company itself.
Before you buy or cancel, here is what to check
A few minutes of checking saves the most common regrets. Whether you are about to sign up or thinking of switching away, run through these first:
- 1.Confirm the benefit, not the premium. Ask for the actual death benefit your units would buy at your age, in dollars. The $9.95 figure tells you almost nothing on its own.
- 2.Add up the real monthly cost. Multiply the units you need by $9.95. That total, against the benefit, is the number that matters.
- 3.Check where you stand on the graded period. If you already own the plan and are past two years, the full benefit is in force, and that is worth keeping.
- 4.Never cancel until a new plan is in place. A fresh guaranteed acceptance plan starts its own two-year clock, so do not give up coverage you have already earned.
- 5.Compare at least one level plan. If your health lets you answer a few questions, see what the same money buys with full day-one coverage before you decide.
That fourth point is easy to miss, and it is where people lose coverage they had already waited two years to fully earn. A review that ends in “keep what you have” is a successful review. You can also confirm any carrier is licensed in your state through your state insurance department.
Reading your policy schedule
Four lines on your schedule answer most questions. Find them before you call anyone.
| Find this on your schedule | Why it matters |
|---|---|
| Number of units | Multiply by $9.95 to confirm the monthly premium |
| Face amount (total benefit) | This is the number your beneficiary receives after two years |
| Policy date | Add 24 months to see when the full benefit begins |
| Cash value and loan balance | A loan reduces the death benefit if unpaid |
Use the figures on your own schedule. We can read it with you for free.
When not to call us
If you are past the two-year mark, the face amount covers what you wanted, and the premium fits your budget, keep the policy. Colonial Penn says that once you are insured your rate never increases and your benefit will not decrease as you grow older or if your health changes. Canceling starts a new two-year clock on any replacement guaranteed acceptance plan. To change a beneficiary you do not need us either: Colonial Penn says most policy documents include a form you complete and mail, or you can download one. We are glad to run the numbers if you are comparing, but a review that ends in “keep it” is a good result. For rates by age, see our page on Colonial Penn rates by age.
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Questions people ask about the $9.95 plan
01How much coverage does the Colonial Penn $9.95 plan buy?
The $9.95 is the price of one unit of coverage, not a fixed death benefit. How much benefit one unit buys depends on your age and sex when you enroll. Colonial Penn does not publish a single benefit-per-unit figure, so you see yours in a quote or on your policy schedule. To reach a larger amount you buy more units, so the real monthly cost is a multiple of $9.95: 5 units cost $49.75 a month and 10 cost $99.50.
02What is a unit of coverage on the Colonial Penn plan?
A unit is the building block the plan uses to price guaranteed acceptance whole life. Each unit is $9.95 a month. The dollar amount of death benefit one unit provides is set by your age and sex at enrollment, so two people paying the same premium can hold very different benefit amounts. Colonial Penn caps the number of units you can buy, and the cap shown varies by page and state, so there is an upper limit on total coverage through this plan.
03How much is $9.95 a month in actual coverage at my age?
It depends on your age, gender (in Montana, age only), and state. The same $9.95 unit pays a different benefit for different people. The honest way to get your number is to read the benefit-per-unit figure off a quote or your policy schedule. A licensed professional can translate units into a plain dollar amount for you on a short call, free and with no obligation.
04Why does the $9.95 plan cost more than $9.95 a month?
Because $9.95 buys one unit, and one unit is often a modest benefit. To cover a typical funeral, many people buy several units, and the premium is the number of units times $9.95. So a plan advertised at $9.95 a month frequently runs much higher once it holds enough units to do the job. That is not a catch, it is just how unit pricing works, and it is worth knowing before you buy.
05Does the Colonial Penn $9.95 plan have a waiting period?
Yes, a two-year limited benefit period. Colonial Penn’s disclosure says that if death occurs during the first two years, the beneficiary receives the premiums paid plus 7% interest compounded annually. For death from accidental causes in the first two years, the full face amount is paid, and after two years the full face amount is paid for any cause. Confirm the terms on your own policy.
06Is the $9.95 plan a good deal?
It is a good fit for someone who wants guaranteed acceptance, a name they know, and a small lifelong policy without health questions. The tradeoff is the two-year graded period and cost per benefit dollar. If your health lets you answer a few questions, quote a level final expense plan too and divide each monthly premium by its benefit in thousands. The lower number buys more coverage per dollar, and some plans start full coverage on day one. Comparing both is the only way to know which wins for you.
07Should I cancel my $9.95 plan to switch?
Not before you check a few things. If you are past the two-year graded period, the full benefit is now in force, and a new guaranteed acceptance plan would start its own two-year clock. Never cancel an old policy until any new one is fully in place. Sometimes keeping what you have is the better move, and a free review will tell you that plainly.
08Does the Colonial Penn $9.95 premium go up as I age?
Colonial Penn says that once your coverage begins, your rate will stay the same and never increase as long as you keep your insurance and pay your premiums when due. It also says your benefit will not decrease as you grow older or if your health changes. Read your own policy for the exact wording.
09What ages can enroll in the Colonial Penn $9.95 plan?
Colonial Penn describes the coverage as available for ages 50 to 85 in most states, and some states set different limits. Acceptance is guaranteed within the eligible ages, with no medical exam and no health questions. Your quote confirms whether you qualify where you live.
10Does the $9.95 plan build cash value I can borrow against?
Colonial Penn says the coverage begins to build cash value after the first year and that you can take a loan against it while the policy is active and premiums are current. The loan interest rate is 8% compounded annually, and any unpaid loan and interest reduces the death benefit. Borrowing against a small policy is rarely worth it, so ask for the numbers first.