When you see Affordable Colonial insurance on TV touting life insurance for $9.95 a month, it might be tempting to sign up. After all, you can get whole life insurance with no medical exam for that price. This type of coverage can help pay for burial expenses and provides peace of mind knowing that you’ll be covered when your time comes. However, it’s important to understand what you’re getting for this low rate before deciding to take the plunge.
In reality, the $9.95 plan offers minimal whole-life coverage and is only available to those ages 50 to 85. It’s also sold based on units instead of a flat amount of coverage. For example, one unit purchased for $9.95 a month gets you $792 in coverage. The number of units you purchase determines the total amount of coverage you receive, but the total amount varies by age and gender.
Pros and Cons of Choosing Gerber Life Insurance
Colonial Penn has several other whole-life policies, but the $9.95 plan is the company’s most popular offering. It’s designed to be affordable for people with limited incomes, but it has a number of drawbacks including limited coverage for the price, a two-year waiting period for natural death, and higher rates than competitors.
Overall, Colonial Penn is a solid choice for affordable life insurance. The company has a good financial rating from A.M. Best and earns high marks for customer service. However, the company has received more complaints to state insurance regulators than is typical for a large life insurer.