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Colonial Penn 995 Plan Review (2026): Coverage, Costs, Rate Chart & Comparison
Updated for 2026 • Latest Insurance Updates
Senior citizens seeking a convenient life insurance plan may find the Colonial Penn 995 Plan appealing due to its guaranteed acceptance and advertised $9.95 per month cost. Designed for individuals aged 50–85, this plan offers no medical exams or health questions.
However, the $9.95 rate can be misleading. Coverage is sold using a unit-based system where benefits vary significantly by age and gender. This guide explains how the plan works, 2026 unit values, real-life examples, pros and cons, and how it compares with competitors.
What Is the Colonial Penn 995 Plan?
The Colonial Penn 995 Plan is a guaranteed acceptance whole life insurance policy available to applicants aged 50–85. It requires no medical exam and no health questions, making it accessible to seniors and individuals with health conditions.
- $9.95 per unit per month
- Coverage amount varies by age and gender
- Up to 15 units allowed in most states
- Lifetime coverage with fixed premiums
The low advertised price applies to a single unit. Most people require multiple units to obtain meaningful coverage.
How the Unit System Works
- Younger applicants receive more coverage per unit
- Older applicants receive less coverage per unit
- Each unit costs $9.95 per month
- Maximum of 15 units limits total coverage
2026 Coverage Per Unit (Approximate)
| Age | Male Coverage / Unit | Female Coverage / Unit |
|---|---|---|
| 50 | $1,669 | $2,000 |
| 55 | $1,420 | $1,761 |
| 60 | $1,167 | $1,515 |
| 65 | $896 | $1,258 |
| 70 | $689 | $1,000 |
| 75 | $549 | $762 |
| 80 | $426 | $608 |
| 85 | $418 | $468 |
Real-Life Coverage Examples
- Male, Age 60: 9 units ≈ $10,503 coverage → $89.55/month
- Female, Age 65: 8 units ≈ $10,064 coverage → $79.60/month
- Male, Age 75: 15 units ≈ $8,235 coverage → $149.25/month
Pros & Cons of the Colonial Penn 995 Plan
Pros
- Guaranteed acceptance (50–85)
- No medical exams or health questions
- Fixed lifetime premiums
- Cash value accumulation
- Simple application
Cons
- Two-year waiting period for natural death
- Low coverage per unit for older applicants
- Maximum 15 units limits benefits
- Higher cost per $1,000 of coverage
Comparison With Other Carriers
| Carrier | Plan Type | Monthly Premium (~$10K) | Notes |
|---|---|---|---|
| Colonial Penn | Guaranteed Acceptance | $89–$150 | 15-unit max, waiting period |
| Mutual of Omaha | Final Expense | $56–$60 | Immediate coverage |
| Aetna / Aflac | Simplified Issue | $55–$58 | Lower cost |
| Gerber Life | Guaranteed Issue | $60–$65 | Higher limits |
Who Should Consider the 995 Plan?
- Seniors with health conditions
- Applicants needing $8K–$15K coverage
- Those wanting no exams or underwriting
Who Should Avoid It?
- Healthy seniors eligible for underwritten plans
- People needing more than $15,000 coverage
- Buyers wanting immediate full benefits
Final Takeaway
The Colonial Penn 995 Plan is a basic guaranteed acceptance option that works best for seniors with health issues seeking modest final expense coverage. While easy to qualify for, its unit system and waiting period can make it expensive compared to competitors. Always calculate unit needs carefully and compare quotes before purchasing.