Colonial Penn advertises frequently on television that it offers the coverage you need and deserve for just $9.95 a month. What they don’t say in their ad is that $9.95 doesn’t purchase anywhere near enough coverage. For example, a healthy 65 year old woman in Connecticut will be insure for $1,333 if she pays Colonial Penn $9.95 a month. Not only is that a ridiculously low amount of coverage, its also extremely expensive. Think about it. By the time this healthy 65 year old turns 76, she will have paid $1333 for her $1333 in coverage.
In fact, the life expectancy of a health 65 year old woman is 22-23 years. This means that Colonial Penn will likely receive $2700 for the $1333 it will pay out by the time this insured passes away.
What can you do about it? Well really any other policy is better than Colonial Penn! If, however, you want the best coverage at the lowest price, we recommend several not-for-profit life insurance companies. The best of this bunch can get this 65 year:
$15,000 in immediate permanent coverage for $49.41 vs. $120 (Colonial Penn) ; $10,000 for 34.74 vs. $79 (Colonial Penn); or $5,000 for $20.07 vs. $37 (Colonial Penn).