Mutual of Omaha vs. Colonial Penn: Comparing the Two Most-Advertised Guaranteed Acceptance Plans

If you’re over 50 and own a TV, you’ve seen both: Mutual of Omaha’s Guaranteed Whole Life and Colonial Penn’s guaranteed acceptance whole life. They’re the two most heavily advertised “you can’t be turned down” plans. The short answer: they’re more alike than different. Both skip health questions, both lock your premium, and both limit what they pay for an illness-related death in the first two years. The biggest practical difference is how you buy coverage. Mutual of Omaha sells a flat dollar amount. Colonial Penn sells units whose value depends on your age and gender. And the most useful point of all applies to both: if you can answer a few health questions, you may qualify for coverage that pays in full from day one.

A note on fairness: United Eagles Financial is an independent agency, and Mutual of Omaha is one of the carriers we work with. We’re not affiliated with Colonial Penn. We’ve kept this comparison to facts each company publishes, checked as of October 2026.

Side-by-side comparison

	Mutual of Omaha Guaranteed Whole Life	Colonial Penn Guaranteed Acceptance
Issue ages	45–85 (50–75 in NY)	50–85 in most states (DC 55–85; MN & MO 50–75; NJ 50–77 men / 50–82 women; NY 50–75; PA 56–85)
Health questions	None	None
Medical exam	No	No
How you choose coverage	A dollar amount: $2,000–$25,000 ($5,000–$25,000 in WA)	Units: fixed price per unit; the dollar benefit per unit depends on age and gender at purchase
Advertised price point	n/a	”Starting at $9.95 a month”
Natural-cause death, first 2 years	All premiums paid plus 10%	Premiums paid plus 7% interest, compounded annually (Michigan notice)
Accidental death, first 2 years	Full benefit from the first day	Full face amount if death occurs within 90 days of the accident
After 2 years	Full benefit for death from any cause	Full face amount for death from any cause
Premiums	Never increase	Locked in, never increase
Cash value	Yes	Yes, after the first year (loans at 8% compounded annually)

The real difference: a flat amount vs. units

Mutual of Omaha: you pick the benefit, say $10,000, and get a premium for that amount. It’s easy to see exactly what your family would receive.

Colonial Penn: the price per unit is fixed, and the coverage each unit buys depends on your age, gender (age only in Montana) and state when coverage starts. Colonial Penn says the younger you are at the start, the higher your benefit for life. So the advertised “$9.95 a month” is a starting price, not a set amount of coverage. To compare fairly, ask Colonial Penn for the dollar benefit, then ask for a Mutual of Omaha quote at the same monthly cost (or the same benefit). Line them up dollar for dollar.

Neither approach is wrong. Units make the price simple. A flat face amount makes the coverage simple. Most families care most about what the policy pays, so we suggest comparing on the benefit.

The graded period: similar, with small differences

Both plans guarantee acceptance by limiting what they pay for a natural-cause death in the first two years:

• Mutual of Omaha pays all premiums paid plus 10%. Accidental death gets full benefits from the first day.
• Colonial Penn (Michigan notice) pays premiums paid plus 7% interest, compounded annually. Accidental death gets the full face amount if death occurs within 90 days of the accident.

In both cases, the full benefit applies for any cause after two years. The exact refund formulas differ a little, but the practical effect is the same: an illness in the first two years returns roughly what was paid in, not the face amount.

Which one fits better?

It depends on your age and what you value:

• If you’re 45–49, only Mutual of Omaha’s plan accepts you (Colonial Penn starts at 50 in most states).
• If you want to see your benefit in plain dollars, Mutual of Omaha’s flat face amount is simpler to compare.
• If you’re between 50 and 85 (in most states), both are open to you. Get the actual dollar benefit and monthly price from each and compare them directly.

What we wouldn’t do is choose between them before checking the bigger question.

The bigger question: do you need guaranteed acceptance at all?

Guaranteed acceptance plans are built for people whose health keeps them from qualifying anywhere else, and for those people they do an important job. But many people buy them assuming they won’t qualify for anything better, when they actually would.

Simplified-issue final expense plans ask a short list of health questions, with no exam. If you qualify for a level plan, it pays the full benefit from day one for any cause, with no two-year wait. Many common, managed conditions still qualify at the right carrier, and every carrier draws the lines differently. That’s why it pays to have someone check several carriers’ questions at once. Read more in burial insurance with no waiting period, look up your situation in our health-condition guides, or see our Mutual of Omaha review and final expense overview.

Frequently asked questions

Is Mutual of Omaha or Colonial Penn cheaper?

It depends on your age, gender and state, and on how much coverage you want. Colonial Penn prices by the unit, and Mutual of Omaha prices by the dollar amount. The fair comparison is the monthly premium for the same dollar benefit. Get both quotes and compare them that way.

Do both plans have a waiting period?

Both have a two-year limited benefit for natural-cause deaths. Mutual of Omaha pays premiums paid plus 10%. Colonial Penn (Michigan notice) pays premiums paid plus 7% interest, compounded annually. Both pay the full benefit for qualifying accidental deaths during that period, and for any cause after two years.

Can I get either plan if I’m 45?

Mutual of Omaha’s Guaranteed Whole Life starts at 45 (50 in New York). Colonial Penn’s plan starts at 50 in most states, and the starting age is higher in DC and Pennsylvania.

Do the premiums go up as I get older?

No. Both companies say your premium is locked in when coverage starts and won’t increase.

Should I buy guaranteed acceptance if I have a health condition?

Not automatically. Many managed conditions still qualify for day-one, level coverage with a carrier that asks health questions. Check that first, and keep guaranteed acceptance as the backup if you don’t qualify.

Compare before you buy

Before you sign up for either plan, take five minutes to see whether you qualify for coverage with no waiting period. If you don’t, we’ll help you compare the guaranteed options dollar for dollar. Get a quote or call 586-343-1505. No pressure.

Colonial Penn is a trademark of its owner. United Eagles Financial is not affiliated with Colonial Penn. Mutual of Omaha is a trademark of its owner. United Eagles Financial is an independent agency, not Mutual of Omaha. Product details were checked against each company’s website as of October 2026 and vary by state. Your policy and state notices control.

Sources: Mutual of Omaha: Whole Life Insurance (Guaranteed Whole Life ages and benefit amounts) · Mutual of Omaha: The value of Guaranteed Whole Life insurance (graded death benefit) · Colonial Penn: Guaranteed Acceptance Life Insurance (units, ages by state, FAQs) · Colonial Penn: Disclosures & Notices (Guaranteed Acceptance product notice, Michigan) · Colonial Penn: Guaranteed Acceptance FAQ