How Much Is A $50000 Life Insurance From Colonial Penn? Age-Based Rates

how much is a $50000 life insurance from colonial penn policy from Colonial Penn really worth and what will it cost you? Many seniors are drawn to Colonial Penn because of its heavily advertised “$9.95 per month” life insurance plan. But here’s the truth: that $9.95 price tag only buys one “unit” of coverage, and the actual amount of coverage per unit depends on your age and gender.

If you’re exploring a $50,000 Colonial Penn life insurance policy, you need to know how the unit system works, how much coverage you can realistically get, and whether competitors may offer better value. This guide breaks it all down, with age-based examples, a cost table, and side-by-side pros and cons.

Why Consider a $50,000 Life Insurance Policy?

A $50,000 life insurance policy is often chosen by seniors who want affordable coverage that still provides meaningful support for their families. This amount can:

• Cover Funeral Costs: Funerals now average $7,000–$12,000. A $50,000 policy easily covers this.
• Pay Off Debt: Help clear credit cards, medical bills, or lingering loans.
• Leave a Legacy: Any remaining funds can serve as a small inheritance.

👉 Example: Mary, 62, purchased a $50,000 life insurance policy to ensure her children wouldn’t be financially stressed when covering funeral costs.

How Colonial Penn Structures Its Life Insurance

Colonial Penn specializes in guaranteed acceptance whole life insurance for people ages 50–85. Instead of quoting a standard premium, they use a unit system:

• $9.95 Per Unit: Each unit costs $9.95 monthly.
• Coverage Varies: The amount of insurance one unit buys depends on your age and gender.
• Max 15 Units: You can buy up to 15 units, but older applicants won’t reach $50,000.
• No Medical Exam: Coverage is guaranteed, with no health questions.
• Two-Year Waiting Period: For non-accidental deaths, full benefits begin only after two years.

👉 Example: John, 70, discovered that one unit only gave him $689 in coverage, so he’d need many more units (and higher premiums) to approach $50,000.

Breaking Down the Colonial Penn Unit System

The older you are, the less coverage each unit provides. Here’s why it matters:

• Age Impact: A 50-year-old male might get $1,669 per unit, but by age 80, it drops below $500.
• Gender Differences: Women usually receive slightly higher coverage per unit.
• Coverage Limits: Even with 15 units, older applicants may not qualify for $50,000.

👉 Example: Sarah, 65, needed 12 units ($119.40/month) just to get close to $50,000.

Colonial Penn $50,000 Policy: Age-Based Cost Estimates

Here’s an approximate breakdown of how much coverage costs for men and women with Colonial Penn. Note: premiums stay fixed for life, but coverage is capped.

Age	Gender	Coverage per Unit	Monthly Cost for 15 Units	Maximum Coverage Possible	Can You Reach $50,000?
50	Male	$1,669	$149.25	$25,035	❌
50	Female	$1,953	$149.25	$29,295	❌
60	Male	$1,023	$149.25	$15,345	❌
60	Female	$1,228	$149.25	$18,420	❌
70	Male	$689	$149.25	$10,335	❌
70	Female	$843	$149.25	$12,645	❌
80	Male	$493	$149.25	$7,395	❌
80	Female	$584	$149.25	$8,760	❌

👉 Reality Check: Colonial Penn’s maximum 15 units fall far short of $50,000 at every age. To get true $50,000 coverage, you would need dozens of units—which isn’t allowed.

What Does the $9.95 Colonial Penn Plan Really Offer?

The $9.95 plan is famous but misleading without context:

• Not $50,000 Coverage: It buys just one unit, often worth only a few hundred dollars.
• Waiting Period Applies: For natural deaths within 2 years, only premiums + interest are refunded.
• Low Value for Older Seniors: At age 80, a man’s unit covers less than $500.

👉 Example: Lisa, 68, thought $9.95/month would buy $50,000. She later learned she’d need 60+ units, which isn’t possible.

Pros and Cons of Colonial Penn Life Insurance

Pros	Cons
Guaranteed acceptance (ages 50–85)	Maximum 15 units = under $30,000 coverage
No medical exams or health questions	$9.95 ads can feel misleading
Fixed premiums for life	Two-year waiting period for natural deaths
Builds small cash value	Much more expensive than competitors for same coverage
Backed by A.M. Best A rating	High complaint ratio reported with NAIC

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How Colonial Penn Compares to Other Life Insurance Providers

If you truly want $50,000 coverage, consider these alternatives:

• Mutual of Omaha: Up to $50,000, often cheaper than Colonial Penn, no waiting period for healthy applicants.
• AARP/New York Life: Up to $30,000, good for smaller policies with flexible terms.
• State Farm: Guaranteed issue up to $15,000, with stronger customer service reviews.

👉 Example: Mike, 60, bought a $50,000 Mutual of Omaha policy for $100/month—versus $149.25 with Colonial Penn for less than $30,000.

Who Should Consider Colonial Penn’s $50,000 Policy?

Colonial Penn isn’t right for everyone. It’s best suited for:

• Seniors with health issues: Especially if turned down elsewhere.
• Those needing guaranteed acceptance: No medical exams, no questions asked.
• People who only need small coverage amounts: For burial or final expenses.

Not ideal for:

• Healthy applicants who could qualify for larger policies at lower rates.
• Anyone strictly needing $50,000 in coverage (Colonial Penn can’t deliver).

How to Apply for Colonial Penn Life Insurance

Applying is straightforward:

• Online: Visit colonialpenn.com, select units, and name beneficiaries.
• Phone: Call (800) 523-9100 for an agent.
• Approval: Guaranteed with no health questions.

👉 Example: David, 67, applied online and received policy confirmation in days.

Tips for Getting the Best Value

• Compare Quotes: Always check Colonial Penn against competitors.
• Calculate Needs: You may not need $50,000—sometimes $25,000 suffices.
• Check for Riders: Colonial Penn offers accidental death or chronic illness riders to expand coverage.
• Look Beyond Ads: The $9.95 offer is rarely enough for real needs.

Final Thoughts

So, How Much Is A $50000 Life Insurance From Colonial Penn?

The honest answer: you can’t actually reach $50,000 with Colonial Penn’s $9.95 per unit plan. Even with the maximum 15 units, coverage falls below $30,000 for most applicants. While Colonial Penn may work for seniors with health conditions who value guaranteed acceptance, healthier individuals will usually find better rates and full $50,000 coverage elsewhere.

👉 If peace of mind and simplicity are your priorities, Colonial Penn is worth considering. But if you want the best value for $50,000 coverage, compare quotes from providers like Mutual of Omaha, AARP, or State Farm.

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