Home > Colonial Penn > Better Alternatives
5 Better Alternatives to Colonial Penn for Final Expense Insurance
Colonial Penn is one of the most heavily advertised names in final expense insurance, but it is not the only option — and for many shoppers, it is not the best one. This guide compares five alternative carriers on coverage amounts, underwriting, and overall value. By the end, you should have a clear picture of which company fits your health, your budget, and your family’s needs.
Why Shoppers Look Beyond Colonial Penn
Colonial Penn is one of the best-known names in burial insurance. The company has been around since 1968, and its television ads run constantly. But name recognition and value are two different things.
Most people who start shopping for alternatives do so after they learn what the famous “$9.95 plan” actually buys. Once the details are clear, the math tends to speak for itself.
Here are the three issues that send shoppers looking elsewhere.
1. The $9.95 price is per unit, not per policy.
Colonial Penn does not sell a fixed amount of coverage for $9.95 a month. It sells “units.” Each unit costs $9.95 per month, but the amount of coverage each unit provides changes based on your age and gender.
Older buyers get less coverage for the same $9.95. A 57-year-old man receives $1,313 of coverage per unit, while a 77-year-old man receives only $493 per unit. Women receive somewhat more — a 50-year-old woman gets about $2,000 per unit, and a 70-year-old woman gets about $1,000.
To reach a real funeral-sized benefit, you have to buy many units. A 57-year-old man who wanted at least $10,000 would need eight units, costing him $79.60 per month.
2. There is a two-year waiting period.
The $9.95 plan is guaranteed acceptance coverage. There are no health questions and no medical exam, but there is a two-year waiting period, during which a death would only result in a refund of premiums to your beneficiaries.
If the insured dies from natural causes during that period, the payout is limited to the premiums already paid plus 7% interest. Accidental death is covered in full from the start.
3. The price per dollar of coverage is high.
This is the part that surprises most people. A 65-year-old man would pay $119.40 per month with Colonial Penn for roughly $10,000 in coverage — with a waiting period attached. That same man could get a $20,000 to $25,000 policy for about $120 per month from many other insurers.
| Issue | What Colonial Penn does | Why shoppers object |
|---|---|---|
| Pricing structure | Sold in $9.95 units; coverage per unit drops with age | Hard to know what you are actually buying |
| Waiting period | Two years for natural death on the $9.95 plan | No protection for natural causes in years one and two |
| Cost per dollar of coverage | Higher than most competitors | Roughly half the coverage for the same monthly payment |
None of this makes Colonial Penn a scam. It is a legitimate, A.M. Best “A” rated carrier, and guaranteed acceptance coverage exists for a real reason: some people cannot pass health questions anywhere.
The problem is that most shoppers never find out whether they could pass those questions. In 2026, many seniors can get more coverage with day-one benefits simply by answering basic health questions and letting a broker shop multiple carriers first.
That is what the next five sections are about — the carriers worth comparing before you settle.
Mutual of Omaha Living Promise
If you are in reasonable health, this is usually the first policy to compare against Colonial Penn. Mutual of Omaha’s final expense insurance regularly has the lowest premiums in the market, and there is no waiting period for those who qualify.
Who it fits
Living Promise fits seniors whose health is stable or well managed. That includes controlled high blood pressure, controlled diabetes, and most common age-related conditions.
It also fits people who want a strong company behind the policy. Mutual of Omaha carries an A.M. Best rating of A+ (Superior) and an average or below-average NAIC complaint index.
It does not fit someone who wants to buy without talking to anyone. Mutual of Omaha only sells Living Promise through licensed agents. It cannot be purchased entirely online, through the mail, or by calling the company directly.
Underwriting type
Living Promise is simplified issue, not guaranteed issue. There is no medical exam, but eligibility depends on your answers to a health questionnaire, your height and weight, and your medication history.
There are two tiers, and your health answers decide which one you get.
| Feature | Level Benefit | Graded Benefit |
|---|---|---|
| Ages accepted | 45 to 85 | 45 to 80 |
| Coverage range | $2,000 to $50,000 | $2,000 to $20,000 |
| Waiting period | None — full coverage day one | Two years for natural death |
| Health questions | Yes | Yes |
| Medical exam | No | No |
| Where available | All states except New York | All except Montana, North Carolina, New York |
| Terminal illness rider | Included | Not included |
If you have the graded plan and die from natural causes in the first two years, Mutual of Omaha refunds 110% of your premiums. Accidental death pays the full benefit even during those first two years.
Coverage range
Level benefit coverage runs from $2,000 up to $50,000, which is well above what most burial insurance carriers offer.
Sample monthly rates (Level benefit, non-tobacco)
| Age and gender | $10,000 | $15,000 | $20,000 |
|---|---|---|---|
| Female 55 | $28 | $40 | $52 |
| Male 55 | $36 | $52 | $69 |
| Female 65 | $41 | $60 | $79 |
| Male 65 | $54 | $83 | $110 |
| Female 75 | $71 | $107 | $142 |
| Male 75 | $97 | $148 | $197 |
| Female 80 | $98 | $146 | $194 |
| Male 80 | $135 | $208 | $276 |
How it beats Colonial Penn
Look at the 65-year-old man. Living Promise level benefit costs him $54 per month for $10,000 with no waiting period. Colonial Penn would charge him $119.40 per month for roughly the same $10,000 — with a two-year wait.
That is less than half the price for coverage that starts the day the policy is issued.
The trade-off is honest: you have to answer health questions, and you can be declined or moved to the graded tier. But the majority of applicants qualify for the no-waiting-period plan, and most people never find out because they never apply.
Transamerica Final Expense
Transamerica is the carrier most often mentioned in the same breath as Mutual of Omaha. It has been in business since 1906 and holds an A (Excellent) rating with A.M. Best.
Who it fits
Transamerica fits people who have real health history and still want coverage that starts on day one. This is the carrier’s strongest selling point.
Their underwriting accepts a number of high-risk conditions with no waiting period, including COPD, kidney disease, and Parkinson’s disease. Most seniors have one or two conditions on that list, and Transamerica does not automatically push them into a graded plan.
It also fits people who need flexible payment methods. Transamerica accepts Direct Express cards, which matters for people who receive Social Security but do not use a traditional bank account.
It does not fit anyone taking an antipsychotic medication. Any antipsychotic prescription results in the graded plan being offered, regardless of why it was prescribed. Doctors sometimes prescribe these drugs off-label for sleep or anxiety, so this catches people who are otherwise healthy.
It also does not fit someone in a hurry. Transamerica’s application is longer than most burial insurance companies.
Underwriting type
Simplified issue. No medical exam, but you answer health questions and Transamerica reviews your prescription history.
There are three health ratings.
| Rating | Waiting period | Who gets it |
|---|---|---|
| Preferred | None | Answer no to all health questions; lowest price |
| Standard | None | Certain health issues named on the application |
| Graded | Two years for natural death | High-risk conditions; most expensive tier |
If you have the graded plan and die from natural causes in the first two years, the payout is a refund of premiums paid plus 10% interest. Accidental death pays the full benefit at any time.
Palmetto Mutual’s assessment of the graded tier is blunt: it is not worth buying because it costs too much. That is worth knowing before an agent presents it as your only option — it usually isn’t.
Coverage range
Coverage starts as low as $1,000. The maximum is $50,000 for applicants age 55 and younger, and the cap steps down as age at application goes up.
Coverage is available in all 50 states plus Washington, D.C. It is a whole life policy, so the price never increases and the death benefit never shrinks.
Transamerica cannot be purchased directly from the company. It is sold only through licensed agencies.
How it beats Colonial Penn
Two things. First, price. Palmetto Mutual places Transamerica among the least expensive funeral insurance plans in the market, in the same tier as Mutual of Omaha. Colonial Penn sits at the opposite end.
Second, and more important for this audience: underwriting. Colonial Penn’s $9.95 plan gives everyone a two-year waiting period because it asks no health questions. Transamerica asks the questions and, for many people with serious conditions, still says yes to day-one coverage.
The trade-off is doing the paperwork. The application takes longer. For most people, that is a fair price for cutting two years off the waiting period.
Aflac Final Expense
Most people know Aflac from the duck and from supplemental insurance. Fewer know the company sells a competitive final expense insurance policy — and for some health profiles, it is the best-priced option on the board.
Who it fits
Aflac fits seniors with chronic conditions who still want coverage from day one. You can get no-waiting-period coverage with conditions like COPD, atrial fibrillation, Parkinson’s disease, lupus, multiple sclerosis, and diabetes.
It especially fits people carrying extra weight. Aflac has no build chart, so your height-to-weight ratio does not affect your eligibility or your price. That is unusual, and it can save a lot of money for someone Mutual of Omaha would decline or downgrade.
It fits people who want a fast answer. Applications are typically approved in five to ten minutes.
It does not fit anyone over 80. The age cap is 80, which is lower than Mutual of Omaha’s 85.
It does not fit New York residents. Aflac’s final expense policy is not available there.
Underwriting type
Simplified issue. No medical exam, but you answer health questions and Aflac electronically reviews your medical history.
There are three ratings.
| Rating | Ages | Coverage | Waiting period |
|---|---|---|---|
| Preferred | 45 to 80 | $2,000 to $50,000 | None |
| Standard | 45 to 80 | $2,000 to $50,000 | None |
| Modified | 45 to 75 | $2,000 to $25,000 | Two years for natural death |
One quirk worth knowing. Aflac bears the risk and pays the claim, but Aetna handles underwriting and administration. Aetna mails the policy and drafts the premium. The arrangement is normal, but it confuses people whose bank statement shows a name they did not expect.
Sample monthly rates (non-tobacco)
| Age and gender | $5,000 | $10,000 | $25,000 |
|---|---|---|---|
| Female 55 | $17 | $29 | $67 |
| Male 55 | $21 | $38 | $89 |
| Female 65 | $24 | $44 | $104 |
| Male 65 | $30 | $56 | $133 |
| Female 70 | $30 | $56 | $134 |
| Male 70 | $38 | $72 | $174 |
| Female 75 | $43 | $82 | $199 |
| Male 75 | $52 | $100 | $244 |
| Female 80 | $60 | $116 | $284 |
| Male 80 | $80 | $156 | $384 |
How it beats Colonial Penn
Take the same 65-year-old man. Aflac charges $56 per month for $10,000 with no waiting period. Colonial Penn charges $119.40 per month for roughly the same $10,000 — and makes him wait two years.
The health-based comparison is where Aflac really separates. A case study on a 65-year-old woman with diabetes diagnosed at 42, non-tobacco, wanting $20,000. Mutual of Omaha came back at $98.79 per month with a two-year waiting period. Aflac came back at $83.77 with no waiting period.
That is the whole argument for shopping. The best-rated carrier overall was not the best carrier for that person.
The honest drawback
Aflac’s NAIC complaint index is 3.3, which means it receives more than three times the expected number of consumer complaints for individual life products.
For context, Mutual of Omaha’s index is 0.78 and Colonial Penn’s is 5.44. So Aflac’s complaint record is worse than average and better than the company you are shopping away from.
Aflac’s financial strength is not in question. It carries an A+ rating with A.M. Best and strong marks from S&P and Moody’s, and its phone hold times average under two minutes.
Gerber Life Guaranteed Issue
The first four alternatives all ask health questions. This one does not. Gerber Life’s Guaranteed Life Insurance accepts everyone in the age range, with no exam and no health questionnaire.
That makes it a direct, apples-to-apples replacement for Colonial Penn’s $9.95 plan — same product category, same trade-off, different price.
Who it fits
Gerber fits someone who has genuinely been declined elsewhere, or whose health history is serious enough that no simplified issue carrier will offer day-one coverage.
Most seniors can qualify for a policy with no waiting period, even with high-risk pre-existing conditions. If you have not actually applied for a simplified issue policy and been turned down, you are probably not the right buyer for this product.
Gerber does not fit anyone over 80. There are no options above that age. In New York, the cap is 75.
Underwriting type
Guaranteed issue. No health questions, no medical exam, no possibility of being declined.
The trade-off is a two-year waiting period. If you die of any non-accidental cause within the first 24 months, Gerber refunds 110% of your premiums instead of paying the death benefit. Accidental death pays in full from day one.
This is not a Gerber flaw. Every guaranteed issue product works this way, because the insurer is accepting everyone sight unseen. The waiting period is the price of guaranteed acceptance.
Coverage range
| Feature | Detail |
|---|---|
| Policy type | Whole life |
| Ages accepted | 50 to 80 (50 to 75 in New York) |
| Coverage | $5,000 to $25,000 |
| Health questions | None |
| Medical exam | None |
| Waiting period | Two years for natural death |
| Builds cash value | Yes |
| Price increases | Never |
| Policy expires | Never |
Payment is flexible — ACH, credit card, or a mailed check or money order.
Sample monthly rates
| Age and gender | $5,000 | $10,000 | $25,000 |
|---|---|---|---|
| Female 55 | $23 | $44 | $109 |
| Male 55 | $29 | $58 | $143 |
| Female 65 | $32 | $63 | $155 |
| Male 65 | $43 | $85 | $212 |
| Female 70 | $38 | $76 | $187 |
| Male 70 | $50 | $99 | $247 |
| Female 75 | $55 | $108 | $269 |
| Male 75 | $70 | $140 | $347 |
| Female 80 | $89 | $176 | $440 |
| Male 80 | $124 | $247 | $617 |
How it beats Colonial Penn
Same 65-year-old man, same comparison. Gerber charges $85 per month for $10,000 with a two-year wait. Colonial Penn charges $119.40 for roughly $10,000 with a two-year wait.
Identical structure. Identical waiting period. Roughly $34 a month cheaper — about $400 a year.
Gerber also tells you plainly what you are buying. You pick $10,000 and you get $10,000 after year two. Colonial Penn sells units and lets you work out the death benefit yourself.
AIG (Corebridge) Guaranteed Issue Whole Life
A note on the name, too. AIG spun off its life insurance business in 2022 and rebranded it as Corebridge Financial. The policies are issued by American General Life Insurance Company, the same company that issued them under the AIG name. Nothing about existing coverage changed. Agents and websites still use both names, which is confusing but harmless.
Who it fits
This is the second guaranteed issue option on the list, and it fits the same narrow group Gerber does: people who have been declined elsewhere, or whose health is serious enough that day-one funeral insurance is not realistic.
Palmetto Mutual names AIG Guaranteed Issue its favorite among the guaranteed issue whole life policies it sells, ahead of United Home Life and Gerber Life. Two things drive that preference.
First, speed. Applications process in about 15 minutes, and the whole process is online. Policies typically issue within a few days.
Second, the riders. AIG includes living benefits at no extra premium, which most guaranteed issue policies do not offer:
- Terminal illness rider. If you are diagnosed with less than 24 months to live, you can access 50% of the death benefit while alive.
- Chronic illness rider. If you cannot perform two of six daily activities — bathing, dressing, eating, transferring, toileting, continence — AIG pays a one-time lump sum refund of your premiums, capped at 25% of the death benefit. On a $25,000 policy, that is up to $6,250.
These riders are not available in California.
It does not fit New York residents. AIG’s final expense products are sold in 49 states, not New York.
Underwriting type
Guaranteed issue. No health questions, no medical exam, no labs, no possibility of decline.
Two-year graded death benefit. Non-accidental death in the first 24 months pays 110% of premiums paid. Accidental death pays the full benefit at any time. Suicide in the first two years refunds premiums only.
Coverage range
| Feature | Detail |
|---|---|
| Policy type | Whole life |
| Ages accepted | 50 to 80 |
| Coverage | $5,000 to $25,000 |
| Aggregate cap | $25,000 total across all AGL guaranteed issue policies |
| Health questions | None |
| Waiting period | Two years for natural death |
| States available | 49 (not New York) |
| Builds cash value | Yes |
| Price increases | Never |
That aggregate cap matters. You cannot stack two AIG guaranteed issue policies to reach $50,000. The $25,000 limit applies to everything you hold with them combined.
One thing worth asking your agent about
AIG also sells a simplified issue product called SimpliNow Legacy. It asks a short set of health questions but pays the full death benefit from day one, with no waiting period. Coverage on the simplified issue side runs higher — up to $35,000.
This is the single most useful feature of the AIG lineup for someone shopping away from Colonial Penn. Your agent can try the simplified issue product first. If it declines you, the guaranteed issue product is the fallback at the same carrier, no shopping required.
How it beats Colonial Penn
Both are guaranteed issue whole life. Both have a two-year graded period. The differences are price and clarity.
Colonial Penn prices are not competitive and in some cases run more than 40% above the best available rates for the same guaranteed acceptance coverage.
AIG also sells you a stated death benefit. You choose $15,000, you get $15,000. No units, no reference chart, no arithmetic.
And AIG’s financial backing is real: an A (Excellent) rating from A.M. Best and a Fortune 500 parent company.
The honest drawback
The same one that applies to Gerber, and it is worth repeating because two of the five alternatives on this list are guaranteed issue products.
Guaranteed acceptance costs more than coverage that asks health questions. Always. If you can pass a health questionnaire, a simplified issue policy from Mutual of Omaha, Transamerica, or Aflac will cost less and cover you starting the day the policy is issued.
Guaranteed issue exists for the people who cannot. If that is not you, do not start here.
One additional item for anyone comparing carriers on financial strength: S&P Global currently rates Corebridge BBB+ with a negative outlook, tied to its planned merger with Equitable Holdings. That is a credit rating rather than an insurer financial strength rating, and A.M. Best still rates the issuing company A (Excellent), but it is a fair thing for a shopper to know.
Matching the Right Alternative to Your Health and Budget
Five carriers, and no single one is best for everyone. Insurance companies compete on two things: price and underwriting — meaning which health issues they accept and which they don’t. That is why the answer changes from person to person.
Here is how to narrow it down.
Step 1: Find out whether you actually need guaranteed acceptance
This is the step most Colonial Penn shoppers skip, and it is the one that saves the most money.
Guaranteed acceptance coverage — Gerber and AIG on this list, and Colonial Penn’s $9.95 plan — asks no health questions. In exchange, every one of them makes you wait two years for natural-cause coverage. There is no such thing as guaranteed issue with no waiting period. No company offers it, and no company offers a six-, twelve-, or eighteen-month wait either.
Simplified issue coverage — Mutual of Omaha, Transamerica, and Aflac — asks health questions. If you pass, you are covered in full the day the policy is issued, and you pay less.
Most seniors with pre-existing conditions can qualify for the second kind. There is a short list of conditions where guaranteed acceptance really is the only path:
- AIDS or HIV
- Alzheimer’s or dementia
- Currently in a hospital, nursing home, long-term care, or skilled nursing facility
- Actively have or are being treated for cancer (with some exceptions for basal cell, squamous cell, and certain stage 0-1 cancers)
- Hospice care
- Home health care
- Mental incapacity
- Terminal illness
- Wheelchair use due to an illness or disease
- Alcohol or drug abuse, or treatment for either, within the last 24 months
If none of those describe you, there is a very high chance you can qualify for immediate coverage at a lower price.
Step 2: Check your specific conditions against the list
Seniors are routinely surprised here. The conditions below all qualify for immediate coverage with at least one carrier.
| Condition | Immediate coverage possible? |
|---|---|
| High blood pressure | Yes |
| High cholesterol | Yes |
| Diabetes, Type 1 or Type 2 | Yes |
| Insulin use | Yes |
| COPD or emphysema | Yes |
| Oxygen equipment | Yes, but only with a couple of carriers |
| Heart attack (past) | Yes |
| Congestive heart failure | Yes |
| Stroke or mini-stroke (TIA) | Yes |
| Atrial fibrillation | Yes |
| Pacemaker or defibrillator | Yes |
| Chronic kidney disease | Yes |
| Dialysis | Yes |
| Parkinson’s disease | Yes |
| Multiple sclerosis | Yes |
| Lupus | Yes |
| Obesity | Yes |
| Depression, anxiety, bipolar disorder | Yes |
| Cancer (history of) | Depends on type, stage, and time since treatment |
| Organ or bone marrow transplant | Under 5 years: waiting period. Over 5 years: possible |
Your age, your state, and your full health history can change the answer. But congestive heart failure and dialysis appearing on the “yes” side of that table should tell you something about how far simplified issue underwriting stretches.
Step 3: Match your profile to a carrier
| Your situation | Where to look first |
|---|---|
| Good or well-managed health | Mutual of Omaha Living Promise — usually the lowest premium in the market |
| COPD, kidney disease, or Parkinson’s | Transamerica — accepts these with no waiting period |
| Overweight, or declined for height and weight | Aflac — no build chart, so weight is not a factor |
| Diabetes with complications | Aflac — often beats Mutual of Omaha on this profile |
| Age 81 to 85 | Mutual of Omaha — Aflac and the guaranteed issue options stop at 80 |
| Taking an antipsychotic medication | Anyone but Transamerica — they place all antipsychotic users in graded |
| Truly uninsurable | AIG or Gerber — guaranteed issue, two-year wait |
| Live in New York | None of these five sell there; you will need a different carrier |
Why the same person gets very different prices
Numbers on a 65-year-old woman, non-tobacco, diagnosed with diabetes at age 42, wanting $20,000 in coverage. Here is what three carriers offered the same woman:
| Carrier | Monthly premium | Waiting period |
|---|---|---|
| Aflac | $83.77 | None |
| Aetna | $91.70 | None |
| Mutual of Omaha | $98.79 | Two years |
Mutual of Omaha is the highest-rated carrier on this list. For this woman, it was the worst offer on the board — more money and a two-year wait.
That is the entire argument in one table. The best company overall is not the best company for you.
Step 4: Set a realistic coverage amount
Most families need $10,000 to $25,000 for a funeral and related costs. Buy what you can comfortably afford to keep paying for the rest of your life, because a lapsed policy pays nothing.
Coverage caps vary. Mutual of Omaha and Aflac go up to $50,000. Transamerica reaches $50,000 for younger applicants and less as age goes up. Gerber and AIG both stop at $25,000.
One more thing about how you buy
Four of these five carriers cannot be bought directly. Mutual of Omaha, Transamerica, and Aflac are sold only through licensed agencies. There is no online option and no company call center that will sell you the good product.
That is not an inconvenience — it is the point. A captive agent can only show you one company. If that company declines you or prices you badly, they have no second answer.
An independent agent can run your health history against many carriers at once and find the one whose underwriting accepts all of your conditions. It costs you nothing, and your premium is not higher for using one. The price is filed with your state’s insurance department either way.
The bottom line
Colonial Penn is expensive burial insurance with a two-year waiting period sold in units that make the real cost hard to see.
Every alternative on this list gives you a stated death benefit for a clearer price. Three of them can cover you starting on day one if you can answer health questions. Two of them will take you no matter what, for less than Colonial Penn charges.
Find out which group you are in before you decide. That is the whole job.
Keep Reading
About the Author
Dvir Mosche is an award-winning independent insurance agent and the founder of Palmetto Mutual, a trusted insurance brokerage specializing in Final Expense Life Insurance. Since entering the industry in 2017, he has been recognized multiple times as a top agent for his dedication to educating and assisting seniors in finding the proper coverage. His mission is to simplify the process, provide honest and personalized guidance, and ensure that every client gets coverage they can depend on for life.
