Key takeaways
- Guaranteed Acceptance Whole Life has no health questions and no exam; ages 50 to 85 in most states.
- Coverage is sold in units. The price per unit is fixed, but the benefit per unit depends on your age, gender and state.
- Non-accidental death in the first two years pays premiums plus 7 percent interest compounded annually; accidental death pays the full amount.
- Colonial Penn Life Insurance Company was listed at A (Excellent) by AM Best, stable outlook, on CNO Financial Group's ratings page when we checked in September 2026.
- It is sold directly to consumers by phone, mail and online, with a 30-day money-back period.
Colonial Penn's main final expense product is Guaranteed Acceptance Whole Life, a policy for people 50 to 85 (in most states) with no health questions and no medical exam. It fits people whose health would likely get them declined elsewhere. The trade-off is a two-year limited benefit for natural-cause death and unit pricing that buys less coverage as you age.
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Colonial Penn at a glance
This summary comes from Colonial Penn's own product pages and CNO Financial Group's ratings page, checked September 30, 2026. The ratings page does not show the date each rating was assigned.
Feature | Guaranteed Acceptance Whole Life |
|---|---|
Insurer | Colonial Penn Life Insurance Company, Philadelphia (part of CNO Financial Group). Not the CNO insurer licensed in New York, per CNO's ratings page |
Issue ages | 50–85 in most states |
Coverage range | Sold in units; benefit per unit varies by age, gender and state. Up to 25 units (some state pages list 15) |
Price | Fixed price per unit; premiums start at $9.95 a month |
Underwriting | Guaranteed acceptance: no health questions, no exam |
Waiting period | Years 1–2: non-accidental death pays premiums plus 7% interest compounded annually |
How to buy | Directly from Colonial Penn by phone, mail or online |
Financial strength | AM Best A (Excellent), stable outlook, per CNO ratings page (checked September 2026) |
NAIC complaint data | Look up Colonial Penn Life Insurance Company on the NAIC Consumer Insurance Search |
What does Colonial Penn's Guaranteed Acceptance plan include?
It is permanent whole life insurance that you can't be turned down for because of your health. Colonial Penn's product page and state product terms list these features:
- No health questions and no physical. Acceptance is guaranteed.
- Locked-in premium. Your rate never increases once coverage takes effect.
- Benefit doesn't shrink with age. It is set by your age and gender (age only in Montana) when coverage starts.
- Coverage can't be canceled as long as you pay premiums.
- Cash value starts building after the first year, and you can borrow against it.
- Flexible payments monthly, quarterly, twice a year or yearly. Paying annually saves one month's premium, according to the company.
The company's About Us page says Colonial Penn was one of the first insurers to offer a guaranteed acceptance plan for people 50 and over, in 1968. It also offers an "easy-issue" whole life product, which is a separate plan.
How does Colonial Penn's unit pricing work?
The price per unit is fixed, but the coverage each unit buys is not. Colonial Penn explains that a unit "corresponds to the life insurance benefit amount" you can buy, and that amount depends on your age, gender and state. You can buy several units to build a larger benefit.
This is the most misunderstood part of the plan. The $9.95 figure is the starting monthly premium, not a promise of a specific benefit. Because older applicants get less coverage per unit, a 50-year-old and an 80-year-old paying the same monthly amount will have very different death benefits. Always ask for the dollar benefit, not just the number of units.
How does Colonial Penn's two-year waiting period work?
Colonial Penn's plan has a two-year limited benefit period for death from non-accidental causes, which is how it can guarantee acceptance. The product terms (Policy Form ICC15-045) spell it out:
When death occurs | Cause | What the beneficiary receives |
|---|---|---|
Years 1–2 | Natural (non-accidental) | Premiums paid plus 7% interest, compounded annually |
Years 1–2 | Accident (death within 180 days of the accident) | Full face amount |
Year 3 and later | Any cause | Full face amount |
The accidental death definition excludes death from illness or disease, infection, suicide, medical or surgical treatment, voluntary gas inhalation or taking poison, and any act of war.
For example, a hypothetical buyer who pays $600 in premiums and dies of heart disease in month 20 would have a beneficiary receive roughly those premiums plus 7 percent annual interest, not the full face amount. If that same person lived past the two-year mark, the full benefit would apply. To see how this compares with other carriers' graded periods, read our guide to guaranteed issue life insurance.
Is Colonial Penn financially strong?
Colonial Penn's ratings are in the "A" range from all four major agencies. When we checked on September 30, 2026, CNO Financial Group's ratings page listed Colonial Penn Life Insurance Company at:
- AM Best: A (Excellent), outlook stable
- S&P: A-, outlook stable
- Fitch: A-, outlook stable
- Moody's: A3, outlook stable
These ratings are opinions about the insurer's ability to pay claims. They do not measure price or customer service.
What about complaints?
The NAIC Consumer Insurance Search shows complaint counts and a complaint index for each company. Search for "Colonial Penn Life Insurance Company." An index of 1.00 means complaints matched what you'd expect for a company of its size; lower means fewer, higher means more. Check more than one year and read the complaint reasons, since a single year can swing.
Pros and cons of Colonial Penn
Pros
- Guaranteed acceptance: no health questions and no exam.
- Available up to age 85 in most states.
- Premium is locked in and the benefit doesn't decrease with age.
- Accidental death pays the full amount from day one (within 180 days of the accident).
- Early natural-cause death still returns premiums plus 7 percent compounded interest.
- A (Excellent) AM Best rating and a 30-day money-back period.
Cons
- Two-year limited benefit for natural-cause death.
- Colonial Penn Life is not the CNO insurer licensed in New York, so New York residents need to confirm which company would issue a policy.
- Benefit per unit falls as your age at purchase rises, so coverage can be small for older buyers.
- The $9.95 starting price is easy to misread as a fixed benefit.
- Coverage is capped by a unit limit that can vary by state.
- Policy loans charge 8 percent interest compounded annually.
- Sold direct, so no one compares it with other insurers' plans for you.
Who is Colonial Penn a good fit for?
Colonial Penn may fit you if you are 50 to 85, have health conditions that would likely lead to a decline on a simplified issue policy, and want a policy that can't turn you down. Before you settle for a two-year limited benefit, a licensed agent can check whether your health would qualify you for a simplified issue plan that pays the full benefit from day one.
You may want to look elsewhere if you are in reasonably good health. Simplified issue policies that ask health questions, such as Mutual of Omaha's Living Promise, can pay the full benefit from day one. It is also smart to compare the dollar benefit per premium dollar before committing, especially if you are over 75.
What are the alternatives to Colonial Penn?
Other guaranteed issue and final expense options we review:
- Gerber Life Guaranteed Life review: no health questions, sold in set coverage amounts.
- Corebridge guaranteed issue review: another guaranteed issue whole life policy.
- Mutual of Omaha Living Promise review: health questions, but full coverage from day one if you qualify.
For side-by-side comparisons, see our best final expense insurance companies page or the final expense insurance guides.
Frequently asked questions
Does $9.95 a month buy $10,000 of coverage from Colonial Penn?
No. $9.95 is the starting monthly premium for coverage units, not a set benefit. Colonial Penn says the benefit amount per unit depends on your age, gender (age only in Montana) and state, so older applicants get less coverage per unit. Get a quote to see the exact benefit for your age.
See final expense optionsHow many units can I buy from Colonial Penn?
Colonial Penn's main product page says you can see quotes for up to 25 units of coverage. Some of its state pages list up to 15 units, so the limit can vary by state. The quote tool shows what is available where you live.
See final expense optionsCan I borrow against a Colonial Penn policy?
Yes, once the policy has cash value. Colonial Penn says cash value begins to build after the first year and that policy loans carry 8 percent interest compounded annually. Any unpaid loan and interest is subtracted from the death benefit.
See final expense optionsCan I cancel a Colonial Penn policy if I change my mind?
Colonial Penn offers a 30-day money-back period. If you return your policy documents within 30 days of receiving them, the company says you get a full refund.
See final expense optionsIs Colonial Penn the same company as CNO Financial or Bankers Life?
Colonial Penn Life Insurance Company is its own insurer, based in Philadelphia, and is part of the CNO Financial Group family of brands along with Bankers Life and Washington National. Your policy is issued by Colonial Penn Life Insurance Company. CNO's ratings page notes that Bankers Conseco Life Insurance Company, not Colonial Penn Life, is the CNO insurer licensed in New York, so New York residents should confirm which company would issue their policy.
See final expense optionsSources
About the author
Editorial TeamResearch & editorial
Our editorial team researches and writes these guides from primary sources — including the VA, IRS, Social Security Administration, CFPB, NAIC, and NFDA — and updates them as rules and figures change. Guides are general information, not financial, legal, or tax advice.
