Colonial Penn's $50,000 policy costs between $30 and $60 per month for most people, depending on your age and health

Colonial Penn advertises a $50,000 life insurance policy as one of its core products, and the monthly cost lands somewhere in that $30 to $60 range for the majority of customers. The exact price depends on your age when you buy it — someone in their 50s pays less than someone in their 70s — and on whether you have any serious health conditions. Colonial Penn does not require a medical exam for this policy, which is why the price can vary more than traditional life insurance.

The policy itself is a may provide issue whole life policy, meaning the company will not turn you down based on your health history. That convenience comes with a trade-off: the monthly premium is higher than you would pay for term life insurance at the same death benefit, and there is a waiting period before the full benefit pays out if you die.

Key Takeaways

  • Colonial Penn's $50,000 policy typically costs $30 to $60 per month, with the exact amount based on your age at purchase.
  • The policy is whole life coverage, meaning premiums stay the same for your entire life and the benefit never expires.
  • There is usually a two-year waiting period — if you die within two years of buying the policy, your beneficiary receives only the premiums you paid back, not the full $50,000.
  • You can cancel the policy at any time and get your money back, though the refund process takes several weeks.
  • The actual monthly cost for your specific age and situation requires a quote directly from Colonial Penn, since rates vary by individual.

How the waiting period affects what your beneficiary receives

Colonial Penn's $50,000 policy includes a two-year waiting period that most people do not expect. If you buy the policy and die within the first two years, your beneficiary does not receive the full $50,000. Instead, they receive the premiums you paid into the policy, plus a small amount of interest. After two years, the full death benefit becomes available.

This waiting period is the reason Colonial Penn can offer the policy without a medical exam — it protects the company from insuring people who know they are terminally ill. If you are buying life insurance to cover a specific need that will happen soon, this policy may not be the right fit. If you are buying it for long-term coverage, the two-year window passes quickly and becomes irrelevant.

Why the monthly cost is higher than term life insurance

A $50,000 term life policy from another company might cost $15 to $25 per month for someone in their 60s, while Colonial Penn's whole life version costs roughly double. The difference is that term insurance expires — usually after 10, 20, or 30 years — while Colonial Penn's whole life policy lasts your entire life and the premium never increases.

Whole life also builds cash value over time, meaning you can borrow against the policy or surrender it for money back. That feature adds to the cost. If you only need coverage for a specific number of years — to pay off a mortgage or cover your children's education — term insurance is cheaper. If you want coverage that lasts until you die and does not require a medical exam, the higher cost of whole life makes sense.

How to get an actual quote for your age and situation

Colonial Penn publishes sample rates on its website, but those are not your rate. To find out what you would actually pay, you need to contact Colonial Penn directly through their website or by phone. They will ask your age, whether you smoke, and whether you have any serious health conditions — even though they will not deny you based on your answers, the information affects your price.

The quote process takes a few minutes and does not obligate you to buy. Once you have a number, you can compare it to other may provide issue policies from companies like AARP (through UnitedHealthcare) or Mutual of Omaha, which offer similar products at sometimes lower rates. The monthly cost difference between companies can be $10 to $20, so getting multiple quotes is worth the time.

What happens if you cancel the policy

You can cancel a Colonial Penn policy at any time, and the company will refund your money. The refund is based on the cash value the policy has built up, which grows slowly in the first few years and faster later on. If you cancel in the first year or two, the refund may be less than you paid in premiums because of administrative fees.

The refund process typically takes four to six weeks after you submit a cancellation request. During that time, the policy remains active and your beneficiary is still covered. If you are thinking about canceling, call Colonial Penn first to ask what your current cash value is — that number tells you exactly what you would receive back.

When a $50,000 policy is enough and when it is not

A $50,000 death benefit covers funeral costs (which run $7,000 to $12,000), pays off a small mortgage or car loan, and leaves a modest amount for your family. It is not enough to replace your income or support a spouse for years. If you have dependents who rely on your paycheck, you probably need more coverage — most financial advisors suggest 5 to 10 times your annual income.

A $50,000 policy makes sense if you are older, have no dependents, and want to make sure your funeral is paid for and you do not leave debt behind. It also makes sense as a supplement to a larger term policy — some people buy a $50,000 whole life policy to cover final expenses and a $250,000 term policy to cover income replacement. That combination gives you the permanent coverage you need plus the affordable temporary coverage you need.

Frequently Asked Questions

Does Colonial Penn charge more if I smoke?

Yes. Smokers pay a higher monthly premium than non-smokers for the same $50,000 benefit. The exact difference varies by age but is typically $5 to $15 more per month. Colonial Penn defines smoking as using cigarettes, cigars, or pipes within the past 12 months.

Can I increase the death benefit after I buy the policy?

No. Colonial Penn's $50,000 policy is a fixed benefit and cannot be increased. If you later decide you need more coverage, you would have to buy a separate policy. Some people buy multiple Colonial Penn policies for this reason, though each one has its own two-year waiting period.

What if I miss a premium payment?

Colonial Penn will use the cash value in your policy to cover missed payments, so your coverage does not lapse immediately. Once the cash value runs out, the policy will terminate. You can reinstate it within a certain timeframe by paying back premiums plus interest, but it is easier to set up automatic payments from your bank account.

Is the $50,000 benefit taxable to my beneficiary?

No. Life insurance death benefits are not taxable income to the person who receives them. Your beneficiary gets the full $50,000 tax-free. This is true for Colonial Penn and all other life insurance companies.