Colonial Penn vs Gerber Life: Which Guaranteed-Issue Policy Costs Less?
Gerber Life's Guaranteed Life Insurance is cheaper than Colonial Penn at every age tested. At age 65, Gerber provides $10,000 in coverage for $62.61 per month, while Colonial Penn's unit system requires $79.60 per month for equivalent coverage. Both include a 2-year graded death benefit and no health questions (source: Asurgo carrier comparison, June 2026).
Colonial Penn and Gerber Life are the two most recognized guaranteed-issue burial insurance carriers in the country. Both accept every applicant with no health questions, both offer level premiums that never increase, and both include a 2-year waiting period. The only real difference is price, and Gerber wins at every age. This guide shows the math most comparison sites skip. Jump to the rate comparison, the unit system explained, or the FAQ.
The Comparison
Two Guaranteed-Issue Carriers, One Clear Winner on Price
Colonial Penn and Gerber Life are more alike than different. Both sell guaranteed-issue whole life insurance to seniors with no health questions, no medical exam, and a 2-year graded death benefit. Both have level premiums that never increase. Both are financially stable and pay claims. The meaningful difference between them is cost, and that difference is significant.
Colonial Penn uses a $9.95 per unit pricing system that makes direct comparison difficult. Gerber uses a straightforward monthly premium. When you translate Colonial Penn's units into a per-$10,000 cost, Gerber is 21 to 27 percent cheaper at every age from 55 to 75. That said, both carriers are substantially more expensive than simplified-issue alternatives, which most seniors qualify for.
I am a licensed insurance specialist (NPN #20817039). Asurgo represents Gerber Life and can place Gerber guaranteed-issue policies, but we do not sell Colonial Penn. This comparison uses Colonial Penn's published per-unit benefit values and Gerber's published rate card alongside Asurgo's own carrier illustrations for the independent alternatives. For the individual reviews, see our Colonial Penn review and Gerber Life review. For broader context, start with final expense insurance.
The Bottom Line
Quick Answer: Which Is Cheaper?
Gerber Life is cheaper at every age. When you calculate the cost per $10,000 of coverage, Gerber saves you $15 to $31 per month compared to Colonial Penn depending on your age. At 65, that is $16.99 per month less, or $203.88 per year. The savings add up to over $2,000 in the first 10 years alone.
Colonial Penn's one advantage: issue ages. Colonial Penn accepts applicants up to age 85, while Gerber stops at 80. If you are between 81 and 85, Colonial Penn is your option. For everyone 50 to 80, Gerber offers the same guaranteed acceptance at a lower price.
Both are outpriced by simplified-issue alternatives. Mutual of Omaha charges $41 per month at age 65 for the same $10,000, with day-one coverage and no waiting period. That is 35% less than Gerber and 48% less than Colonial Penn. Most seniors qualify by answering a short set of health questions.
Head to Head
Side-by-Side Comparison: Colonial Penn vs Gerber Life
| Feature | Colonial Penn | Gerber Life |
|---|---|---|
| Product type | Guaranteed-issue whole life | Guaranteed-issue whole life |
| Pricing model | $9.95/unit (coverage varies by age) | Standard monthly premium |
| Health questions | None | None |
| Medical exam | No | No |
| Issue ages | 50-85 | 50-80 |
| Coverage range | ~$9K-$25K (15-unit max, varies by age) | $5,000-$25,000 |
| Waiting period | 2-year graded | 2-year graded (premiums + 10% interest) |
| Rate lock | Yes, locked for life | Yes, locked for life |
| AM Best rating | A- (Excellent) | A (Excellent) |
| BBB rating | B | A+ (not accredited) |
The side-by-side reveals how similar these two products are. Same product type, same guaranteed acceptance, same waiting period, same locked premiums, same purpose. The differences come down to pricing structure, issue ages, and financial ratings. Gerber has higher ratings from both AM Best and the BBB, and lower premiums at every age within the shared 50-to-80 range.
The Math Most Sites Skip
Rate Comparison: Cost per $10,000 of Coverage
Colonial Penn does not quote a simple monthly rate. Instead, they sell coverage in $9.95 units, with each unit providing a different amount of coverage based on your age and gender. To make a fair comparison, we calculated how many units a woman needs to reach $10,000 and what that costs per month. This is the math Colonial Penn's advertising does not show.
Monthly Cost for $10,000, Female
| Age | Colonial Penn | Gerber Life | Savings w/ Gerber | Mutual of Omaha (SI) |
|---|---|---|---|---|
| 55 | $59.70 (6 units) | $44.28/mo | $15.42/mo (26%) | $24/mo |
| 60 | $69.65 (7 units) | $51.06/mo | $18.59/mo (27%) | $33/mo |
| 65 | $79.60 (8 units) | $62.61/mo | $16.99/mo (21%) | $41/mo |
| 70 | $99.50 (10 units) | $75.53/mo | $23.97/mo (24%) | $53/mo |
| 75 | $139.30 (14 units) | $108.17/mo | $31.13/mo (22%) | $72/mo |
What the Numbers Show
The pattern is clear:
- Gerber is 21-27% cheaper than Colonial Penn at every age. The monthly savings range from $15.42 at age 55 to $31.13 at age 75. Over 10 years, the savings add up to $1,850 to $3,736 depending on your age.
- Mutual of Omaha costs even less. At every age, the simplified-issue rate from Mutual of Omaha is 34-48% cheaper than Colonial Penn and 35-46% cheaper than Gerber. The MoO policy also pays from day one with no 2-year waiting period.
- Both guaranteed-issue options are expensive. At age 65, you are paying $62.61 (Gerber) or $79.60 (Colonial Penn) for $10,000 of coverage. The same $10,000 from Mutual of Omaha costs $41. If you can answer a few health questions, you save significantly with either carrier.
See if you qualify for lower rates
Most seniors qualify for simplified-issue coverage that costs 30-50% less than guaranteed issue. One call, 25+ carriers, no obligation.
The Long-Term Math
Cumulative Cost Over 10 Years (65-Year-Old Female, $10,000)
Monthly differences compound quickly. This table shows what a 65-year-old non-smoking woman pays in total over time for $10,000 of coverage from each carrier. All three have level premiums, so the math is straightforward.
| Timeframe | Colonial Penn | Gerber Life | Mutual of Omaha |
|---|---|---|---|
| Year 1 | $955 | $751 | $492 |
| Year 5 | $4,776 | $3,757 | $2,460 |
| Year 10 | $9,552 | $7,513 | $4,920 |
| Year 15 | $14,328 | $11,270 | $7,380 |
Over 10 years, the difference between Colonial Penn and Gerber is $2,039. The difference between Colonial Penn and Mutual of Omaha is $4,632. Choosing Gerber over Colonial Penn saves roughly $200 per year. Choosing Mutual of Omaha (if you qualify) saves roughly $460 per year compared to Colonial Penn and $260 per year compared to Gerber.
The Fine Print
Colonial Penn's Unit System Explained
Colonial Penn's advertising promotes "$9.95 a month" for life insurance. That is the cost per unit, not the cost of a policy. Each unit provides a fixed amount of death benefit based on your age and gender at the time of purchase. The coverage per unit drops significantly as you get older:
| Age | Coverage per Unit (Female) | Units for $10,000 | Monthly Cost |
|---|---|---|---|
| 55 | $1,761 | 6 | $59.70 |
| 60 | $1,515 | 7 | $69.65 |
| 65 | $1,258 | 8 | $79.60 |
| 70 | $1,000 | 10 | $99.50 |
| 75 | $762 | 14 | $139.30 |
| 80 | $608 | 15 (max) | $149.25 (~$9,120) |
The unit system is not inherently deceptive, but the "$9.95 a month" advertising creates an impression that does not match reality for most buyers. At age 75, reaching $10,000 in coverage requires 14 units at $139.30 per month. At age 80, the 15-unit maximum cannot even reach $10,000 for a woman. Gerber Life, by contrast, quotes a single monthly premium for the coverage amount you choose, up to $25,000. No unit math required. For the full analysis, see our Colonial Penn review.
Common Ground
What Colonial Penn and Gerber Life Have in Common
Despite the pricing difference, Colonial Penn and Gerber Life are structurally the same product. Understanding what they share helps clarify what you are actually choosing between.
- Guaranteed acceptance. No health questions, no medical exam, no one turned away within the eligible age range.
- 2-year graded death benefit. If the policyholder dies from non-accidental causes within the first 2 years, beneficiaries receive a return of premiums paid (Gerber adds 10% interest) rather than the full death benefit. Accidental death is covered from day one with both carriers.
- Level premiums. Both carriers lock your rate for life. It will never increase regardless of age or health changes.
- Permanent whole life. Both policies remain in force for your entire life as long as premiums are paid. There is no termination date.
- No cash value accumulation to speak of. While technically whole life, these small-face guaranteed-issue policies build minimal cash value relative to premiums paid.
The waiting period is the biggest concern for most seniors considering guaranteed-issue coverage. It is not unique to either carrier. Every guaranteed-acceptance life insurance product on the market uses a similar 2-year graded structure. If you want to avoid the wait entirely, you need to qualify for simplified-issue coverage, which pays the full death benefit from day one.
The Third Option
The Better Option for Most Seniors
Before choosing between Colonial Penn and Gerber Life, check whether you need guaranteed-issue coverage at all. Roughly 70 to 80 percent of seniors qualify for simplified-issue whole life, which offers three advantages over both Colonial Penn and Gerber:
- Lower premiums. At age 65, Mutual of Omaha charges $41 per month for $10,000, compared to Gerber's $62.61 and Colonial Penn's $79.60. That is 35% less than Gerber and 48% less than Colonial Penn.
- Day-one full coverage. No 2-year waiting period. Your beneficiaries receive the full death benefit from the day the policy is issued.
- Same permanent protection. Level premiums that never increase, coverage that never expires, no medical exam required.
The only requirement is answering a short set of yes-or-no health questions. Common conditions like Type 2 diabetes on oral medication, high blood pressure, and managed heart conditions are accepted by simplified-issue carriers. Many seniors assume they cannot qualify when they actually can. An independent broker checks eligibility across 25+ carriers at no cost. See our Mutual of Omaha review or our Mutual of Omaha vs Colonial Penn comparison for the full breakdown.
Check if you qualify for simplified issue
Most seniors qualify for coverage that beats both Colonial Penn and Gerber Life on price. We can also place Gerber policies for seniors who need guaranteed acceptance.
When Colonial Penn Fits
Who Should Choose Colonial Penn
Colonial Penn makes sense in a narrow set of situations:
- You are between 81 and 85, which puts you outside Gerber's issue age range (50-80)
- You prefer the unit system's flexibility to buy exactly the number of units you want, rather than choosing a fixed coverage amount
- You have specifically been declined by Gerber (rare, since both are guaranteed acceptance)
For applicants ages 50 to 80, there is no pricing scenario where Colonial Penn is cheaper than Gerber for the same amount of coverage. If you are in that age range and leaning toward Colonial Penn based on their TV advertising, reviewing the rate table above may change your mind. See our full Colonial Penn review for details.
When Gerber Fits
Who Should Choose Gerber Life
Gerber Life's Guaranteed Life Insurance is the better guaranteed-issue option when:
- You need guaranteed acceptance with no health questions and are between ages 50 and 80
- You have been declined by every simplified-issue carrier due to serious health conditions
- You want the lowest available guaranteed-issue premium with level rates that never increase
- You want straightforward pricing without calculating units
Before choosing Gerber, check whether you qualify for simplified-issue coverage first. The savings are substantial. If you do need guaranteed acceptance, Asurgo can place Gerber policies directly. See our full Gerber Life review for the complete product breakdown.
Common Questions
Frequently Asked Questions
Is Gerber Life cheaper than Colonial Penn?
Yes. Gerber Life's Guaranteed Life Insurance is cheaper than Colonial Penn at every age tested for the same $10,000 of coverage. At age 65, Gerber charges $62.61 per month compared to Colonial Penn's $79.60 (8 units at $9.95 each). That is a 21 percent savings. The gap ranges from 21 to 27 percent depending on age. Both are guaranteed-issue whole life with locked premiums and a 2-year waiting period.
How does Colonial Penn's $9.95 plan compare to Gerber?
Colonial Penn charges $9.95 per unit per month, but each unit buys a different amount of coverage depending on your age. At age 65, one unit buys roughly $1,258 of coverage for a woman. To reach $10,000 in coverage, a 65-year-old woman needs 8 units at $79.60 per month. Gerber provides the same $10,000 for $62.61 per month with a straightforward monthly premium and no unit math.
Do both Colonial Penn and Gerber Life have a waiting period?
Yes. Both Colonial Penn and Gerber Life include a 2-year graded death benefit waiting period. If the policyholder dies from non-accidental causes within the first 2 years, beneficiaries receive a return of premiums paid (Gerber adds 10 percent interest) rather than the full death benefit. Accidental death is covered in full from day one with both carriers. This waiting period is standard across all guaranteed-issue life insurance products.
Does Colonial Penn or Gerber require health questions?
Neither requires health questions. Both Colonial Penn and Gerber Life are guaranteed acceptance, meaning every applicant within the eligible age range is approved regardless of health conditions. Colonial Penn accepts ages 50 to 85. Gerber accepts ages 50 to 80. No medical exam is required by either carrier.
What ages can apply for Colonial Penn vs Gerber Life?
Colonial Penn accepts applicants ages 50 to 85. Gerber Life accepts ages 50 to 80. If you are between 81 and 85, Colonial Penn is available but Gerber is not. For applicants 50 to 80, both carriers are options, and Gerber is cheaper at every age in that range.
Which has a better financial rating, Colonial Penn or Gerber?
Gerber Life has a slightly higher AM Best rating of A (Excellent) compared to Colonial Penn's A- (Excellent). Gerber holds an A+ BBB rating (not accredited), while Colonial Penn holds a B BBB rating. Both companies are financially stable and pay claims. Gerber is backed by Western and Southern Financial Group.
Can I get more than $25,000 from either carrier?
Neither carrier offers more than roughly $25,000 in guaranteed-issue coverage. Colonial Penn's maximum is 15 units at $149.25 per month, which provides roughly $9,000 to $25,000 depending on age and gender. Gerber's maximum is $25,000. If you need higher coverage, simplified-issue carriers offer up to $50,000 or more, and term carriers like Globe Life offer up to $100,000.
Are there cheaper alternatives to both Colonial Penn and Gerber?
Yes. Simplified-issue whole life carriers like Mutual of Omaha offer significantly lower rates with day-one coverage and no waiting period. At age 65, Mutual of Omaha charges $41 per month for $10,000 compared to Gerber's $62.61 and Colonial Penn's $79.60. Most seniors qualify for simplified issue by answering a few health questions. No medical exam is required.
How much coverage does $9.95 buy at Colonial Penn?
One unit at $9.95 per month buys a fixed amount of coverage based on your age and gender at the time of purchase. At age 55, one unit provides $1,761 for a woman. At age 65, one unit provides $1,258. At age 75, one unit provides $762. At age 80, one unit provides $608. The coverage per unit drops significantly with age, which is why the total cost for $10,000 of coverage increases sharply for older applicants.
Can I switch from Colonial Penn to Gerber Life?
Yes. You can purchase a Gerber policy at any time while your Colonial Penn policy is still active. Once the new Gerber policy is in force, you can cancel Colonial Penn with no penalty. Keep in mind that both carriers have a 2-year graded benefit period, so your new Gerber policy will start its own 2-year clock. Also consider simplified-issue carriers, which may offer even lower rates than Gerber if you qualify.
Related Reading
You probably qualify for something better than both.
Colonial Penn and Gerber Life exist for seniors who cannot qualify for coverage any other way. Most seniors can. Asurgo shops 25+ carriers, including Mutual of Omaha, Transamerica, Aflac, Aetna, AIG, and Gerber, to find the lowest rate for your specific health profile. If you do need guaranteed acceptance, we can place Gerber policies directly. Getting a quote takes a few minutes and does not obligate you to buy.
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Nicholas Norminton, Licensed Insurance Specialist
Nicholas is a nationally licensed insurance specialist who has personally helped thousands of clients secure life insurance coverage. He built Asurgo into a trusted, tech-forward brokerage serving clients in all 50 states with access to 25+ carriers. Asurgo represents Gerber Life and can place Gerber guaranteed-issue policies. Asurgo does not sell Colonial Penn policies. Colonial Penn information in this comparison is based on the company's published per-unit benefit values and publicly available rate data.
Sources
AM Best (financial strength ratings) · NAIC Consumer Insurance Search (complaint index data) · Better Business Bureau (BBB ratings). Colonial Penn unit values from the company's published per-unit benefit table (colonialpenn.com, captured March 2026). Gerber rates from the Gerber Life Guaranteed Life rate card (GL-RC, policy form series ICC12-GWLP / GWLP-12), accessed May 30, 2026. Mutual of Omaha rates from current Asurgo carrier illustrations, 2026.