AARP life insurance plans offer seniors an affordable way to obtain coverage to help pay for final expenses such as burial and funeral costs.
In 2023, the average funeral cost could range from $7,000 to $12,000. With an AARP insurance policy, you can purchase a large enough death benefit to cover your final expenses and eliminate any financial burden on your loved ones.
AARP offers both term life and permanent life insurance policies. However, AARP is one of many options for buying life insurance coverage.
Before choosing a term life or permanent life insurance policy from AARP, you should learn the full details on all three AARP life insurance policies.
In this AARP life insurance review, we examine the three life insurance options available through AARP:
- AARP Level Benefit Term Life Insurance
- AARP Permanent Life Insurance
- AARP Guaranteed Acceptance Life
The following AARP life insurance review examines the most important details of each policy, including the issue ages, coverage amounts, rates, policy riders, and whether you need a medical exam. Keep reading to learn all about these popular AARP life insurance products.
AARP Life Insurance Company
AARP is not an insurance company. AARP is a nonprofit organization that offers a variety of insurance options through partnerships with other established insurance companies.
The American Association of Retired Persons (AARP) was formed in 1958 and currently provides its services to over 38 million members. The organization is dedicated to helping people aged 50 and older access affordable services and products, including several insurance plans.
Along with offering affordable insurance options, AARP provides members with various benefits. As an AARP member, you may receive discounts on healthcare services and travel and dining.
The AARP also advocates for seniors through major lobbying efforts. They want to ensure that seniors receive the care and support they deserve.
AARP auto, health, and life insurance plans are issued from The Hartford Group, UnitedHealthcare, and New York Life. New York Life Insurance Company administers all three AARP life insurance policies.
As one of the largest life insurance companies, New York Life Insurance is a trusted choice for your life insurance needs. The company was founded in 1845 and is ranked #67 on Forbes’ 2021 Fortune 500 List of the largest US corporations by revenue. New York Life Insurance also ranked 3rd for two years in a row (2019 and 2020) on AM Best’s Top 200 US Life/Health Insurers list.
AARP Life Insurance Ratings & Reviews
Before applying for life insurance, you should review the company’s financial strength ratings and customer reviews. Companies with high financial strength ratings are less likely to default on their financial obligations to their policyholders.
Because AARP teams up with New York Life to issue the life insurance plans purchased through AARP, you will want to focus on the insurance ratings of New York Life.
The good news is that New York Life has been in business for 177 years and, during that time, has received some of the highest ratings from several of the top independent rating services:
- AM Best: A++ Superior
- Fitch: Exceptionally Strong
- Moody’s: Highest Quality
- Standard & Poor’s: Very Strong
New York Life is not accredited by the Better Business Bureau (BBB). However, you can find many positive New York Life reviews online. For example, the company has a 4.1 out of 5 rating on TrustPilot.
A recent J.D. Power Individual Life Insurance Study gave New York Life an overall customer satisfaction index score of 777 based on a 1000-point scale. The industry average is a score of 776.
The National Association of Insurance Commissioners NAIC notes that New York Life has a customer complaint ratio of 0.25. This number is well below the median complaint ratio for all insurance companies of 1 and goes to a maximum of 2.
Companies with a score below 1 demonstrate that they have received fewer than average customer complaints. Conversely, a score above 1 means the insurance company received a high volume of customer complaints. For example, the total number of customer complaints received by New York Life for 2021 was 55.
New York Life is one of the top insurance companies in the nation based on reviews, financial ratings, and insurance company complaints. As a result, you can rely on the company to carry out the details of your AARP New York Life insurance policy.
AARP Life Insurance Plans
- Temporary coverage options
- Permanent coverage options
- No medical exams
- Access to AARP membership
- Benefits won't decrease
- Convenient payment options
- Apply by mail or online
AARP offers three life insurance options through its partnership with New York Life. The company calls it their AARP Life Insurance Program. These policies are often used as a form of final expense insurance, as they are intended to cover burial costs and other final financial obligations.
An AARP burial insurance may be a smart choice for seniors with medical issues that may keep them from obtaining coverage through other insurance companies that would require traditional medical underwriting. The three AARP life insurance options include:
- AARP Level Benefit Term Life Insurance
- AARP Permanent Life Insurance (Whole Life)
- AARP Guaranteed Acceptance Life
Each AARP life policy has different coverage amounts, rates, and policy features. However, all three plans also include several of the same features and advantages:
- No medical exam required
- Streamlined application process
- Affordable rates for most individuals
- Issued by a trusted life insurance company
All three life insurance options include affordable rates for most applicants and a simple application process. However, choosing the right policy may depend on your age, current health, and the amount of insurance coverage you need. Here is a breakdown of the features for each policy option.
AARP Life Insurance Program from New York Life Insurance Company
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Policy Type: | Term Life | Whole Life | Whole Life |
| Death Benefit: | Day one coverage | Day one coverage | 2-year graded death benefit |
| Issue Ages: | 50-74 (Spouses 45-74) | 50-80 (Spouses 45-80) | 50-80 (Spouses 45-80) |
| Coverage Amounts: | $10,000 up to $100,000 | $5,000 up to $50,000 | $2,500 up to $25,000 |
| Contract Length: | Coverage up to age 80 | Lifetime coverage | Lifetime coverage |
| Rates: | Rates increase every five years | Rates locked in | Rates locked in |
| Cash Growth: | No cash value growth | Guaranteed cash growth | Guaranteed cash growth |
| Policy Riders: | Accelerated Death Benefit Waiver of Premium Protect Plus Rider | Accelerated Death Benefit Waiver of Premium | Accelerated Death Benefit Waiver of Premium |
| Medical Exam: | No medical exam required | No medical exam required | No medical exam required |
| State Availability: | Available in all states | Available in all states | Available in all states |
Death Benefit Payout
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Death Benefit: | Day one coverage | Day one coverage | 2-year graded death benefit |
AARP Level Benefit Term Life is temporary group life insurance coverage that includes a level death benefit with no waiting period on the benefit payout. Immediately after your coverage takes effect, your beneficiaries are entitled to the full death benefit upon your death. This is commonly referred to as day one coverage as it offers immediate life insurance protection without a waiting period.
AARP Permanent Life is a simplified issue whole life insurance plan that also includes day one life insurance coverage immediately after your coverage becomes active. Acceptance is based on answers to a few medical questions, and if you qualify, you will receive immediate life insurance protection.
AARP Guaranteed Acceptance Life is a second whole life insurance policy that includes a two-year graded death benefit. The waiting period before full coverage begins for death from natural causes. Any death from natural causes during the first two policy years results in a limited benefit equal to 110% of the premiums paid in most states. On the other hand, the full death benefit is paid for accidental death with no waiting period.
Guaranteed acceptance life insurance is often referred to as life insurance with a waiting period because the coverage accepts everyone regardless of past or current health conditions. However, the insurance company restricts the payout for the first two policy years of having the life insurance policy. After policy year two, the death benefit becomes fully payable to the beneficiary when the policyholder’s death occurs.
Issue Ages
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Issue Ages: | 50-74 | 50-80 | 50-80 |
AARP Term Life Insurance has an issue age of 50 to 74 years old. Issue ages are the minimum and maximum age limits that someone can apply for coverage with AARP. Coverage ends when you turn 80, which is why term life includes a shorter age range. Spouses may also apply for a term life insurance plan if they are between 45 through 74 years old.
AARP Whole Life Insurance and Guaranteed Acceptance policies have the same issue ages of 50 to 80 years old. Spouses may also apply but must be between the ages of 45 and 80.
If a spouse chooses to apply for AARP life insurance coverage, they will not be required to obtain their own AARP membership. Instead, only the primary applicant must purchase a membership.
Coverage Amounts
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Coverage Amounts: | $10,000 up to $100,000 | $5,000 up to $50,000 | $2,500 up to $25,000 |
The coverage amount, which is referred to as the death benefit and the total amount of money paid to your beneficiary if you die while the contract is active, varies with each type of policy.
AARP Term Life Insurance offers the highest range of coverage, with death benefit amounts starting as low as $10,000 to $100,000.
AARP Whole Life Insurance offers coverage amounts starting as low as $5,000 to $50,000.
AARP Guaranteed Acceptance offers coverage amounts starting as low as $2,500 to $25,000.
Regardless of the type of coverage you choose, once you select a death benefit amount and have been approved for a policy, the death benefit is guaranteed to remain the same throughout your contract, regardless of your age or health changes.
If you need a larger death benefit, you can contact New York Life to speak with an agent. They may be able to arrange a policy that meets your specific needs.
Contract Duration
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Contract Length: | Coverage up to age 80 | Lifetime coverage | Lifetime coverage |
AARP offers a temporary life insurance plan, also referred to as term insurance, and two permanent plans, known as non-participating whole life insurance.
Unlike most traditional term insurance plans that would allow you to choose between different term lengths of 10, 20, or 30-years, AARP Term Life Insurance does not have term lengths. Instead, the coverage is designed to remain active up to 80. However, you may choose to can cancel at any time.
When you have reached the age of 80 with AARP, or anytime before you reach age 80, you will have the option to exchange your term life policy for permanent insurance offered by AARP without a medical exam. The rates will be based on your age at the exchange time.
Both whole life insurance options are permanent coverage. The policy never expires if you continue paying your premiums. At the age of 95, New York Life considers your premiums “paid-up.” You no longer need to pay a monthly premium or worry about your policy expiring when you have a paid-up policy.
Rates
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Rates: | Rates increase every five years | Rates locked in | Rates locked in |
AARP life insurance rates will vary depending on the type of coverage. AARP term life insurance starts with lower rates than the other two permanent policies.
The term life insurance coverage includes a level benefit, but the rates rise as you age. Whenever you reach a new five-year age band, your rates increase. For example, if you obtain term life insurance between the ages of 50 and 54, your rates increase when you reach the age of 55 and again when you reach 60, 65, 70, and 75. Your policy ends when you turn 80.
Both permanent plans offer a level premium that will never increase as you age. AARP whole life insurance will cost more than the term insurance plan but is cheaper than the Guaranteed Acceptance coverage that accepts everyone regardless of their medical history.
Policy Riders
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Policy Riders: | Rates increase every five years | Rates locked in | Rates locked in |
All three plans include policy riders at no extra charge. These riders are referred to as living benefit riders because you can utilize them while you’re alive. An accelerated death benefit and waiver of premium option are available for qualifying situations.
Accelerated Death Benefit
If you become terminally ill, you can receive up to 50% of your death benefit. However, the terminal illness must include a life expectancy of two years or less. In the state of New York, the illness must include a life expectancy of 12 months or less.
The accelerated death benefit is yours to use as you choose. You can use it to cover medical bills, pay off debts, and any of your personal needs. (Available on all three plans)
Waiver of Premium
If you become confined to a nursing home for at least 180 consecutive days, you may qualify for a waiver of premium. Your coverage continues without needing to continue paying the monthly premiums. Facilities used for rest, drug or alcohol rehabilitation, or the treatment of mental diseases do not qualify for the waiver. (Not available with Guaranteed Acceptance)
AARP Term Rider Protect Plus
This optional policy rider is only available with the AARP Level Benefit Term Life plan. It works by allowing you to add additional life insurance coverage at a later time if your life insurance needs become greater. The only exception is that your base coverage cannot exceed a total death benefit of $150,000.
Cash Value Growth
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Cash Growth: | No cash value growth | Guaranteed cash growth | Guaranteed cash growth |
AARP’s Permanent Life and Guaranteed Acceptance life insurance policies accumulate guaranteed cash value. However, the term life insurance policy does not gain cash value.
A predetermined amount from each premium payment is placed in a cash-value account with the whole life and guaranteed acceptance policies. The cash value should equal the death benefit by the time you reach the age of 95, at which point you can stop paying premiums without losing coverage.
AARP should illustrate how the cash value growth will perform throughout the contract length, which is often located within the physical life insurance policy.
Medical Exam Requirements
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| Medical Exam: | No medical exam required | No medical exam required | No medical exam required |
Medical exams are not required to obtain insurance coverage through AARP, but you need to answer health questions during the application process except for the Guaranteed Acceptance plan.
The underwriting process relies on data obtained through third parties to help verify answers to the health questions listed on the application. You must also disclose any pre-existing health conditions, as the information that you provide is verified through the Medical Information Bureau (MIB) and other sources.
State Availability
| Level Benefit Term Life | Permanent Life | Guaranteed Acceptance Life | |
|---|---|---|---|
| State Availability: | Available in all states | Available in all states | Available in all states |
New York Life Insurance Company, the company that issues the policies, is licensed to issue insurance in all 50 states and several territories, including Puerto Rico. However, the company mentions that the online application may not be available in every state.
If the online form is not available in your state, you can call New York Life to speak with an agent and complete the application over the phone or via mail.
2023 AARP Life Insurance Rates
Below is a look at the different AARP life insurance rates for seniors. All rates reflect the monthly costs for various death benefit amounts for male and female non-tobacco users.
All AARP life insurance rates shown in the below rate tables have been obtained from AARP’s website, where you can fill out a quick quote form to receive an instant quote.
The online quote form will require you to submit contact information such as your name, address, date of birth, gender, and email before you can view rates for coverage. In addition, you will also be asked if you use tobacco and if you are a current AARP member.
After completing the short quote form, AARP will display monthly rates for various coverage amounts. You are not required to speak with a sales agent to view quotes. However, you will receive emails from AARP about your quote should you provide them with your email address.
AARP Term Life Insurance Rate Chart
| Issue Age | Gender | $10,000 | $20,000 | $30,000 | $50,000 | $100,000 |
|---|---|---|---|---|---|---|
| Age 45-49 | Male | $12 / monthly | $18 / monthly | $24 / monthly | $36 / monthly | $62 / monthly |
| Age 45-49 | Female | $10 / monthly | $13 / monthly | $17 / monthly | $23 / monthly | $39 / monthly |
| Age 50-54 | Male | $14 / monthly | $22 / monthly | $30 / monthly | $45 / monthly | $79 / monthly |
| Age 50-54 | Female | $11 / monthly | $16 / monthly | $20 / monthly | $29 / monthly | $52 / monthly |
| Age 55-59 | Male | $18 / monthly | $30 / monthly | $42 / monthly | $65 / monthly | $116 / monthly |
| Age 55-59 | Female | $13 / monthly | $19 / monthly | $26 / monthly | $38 / monthly | $69 / monthly |
| Age 60-64 | Male | $24 / monthly | $42 / monthly | $59 / monthly | $94 / monthly | $171 / monthly |
| Age 60-64 | Female | $17 / monthly | $27 / monthly | $38 / monthly | $58 / monthly | $108 / monthly |
| Age 65-69 | Male | $31 / monthly | $55 / monthly | $80 / monthly | $128 / monthly | $236 / monthly |
| Age 65-69 | Female | $21 / monthly | $36 / monthly | $51 / monthly | $81 / monthly | $154 / monthly |
| Age 70-74 | Male | $42 / monthly | $78 / monthly | $113 / monthly | $184 / monthly | $342 / monthly |
| Age 70-74 | Female | $33 / monthly | $60 / monthly | $87 / monthly | $141 / monthly | $272 / monthly |
Monthly male/female non-tobacco premium rates current as of 6/3/2022 representing the cost of a $10,000 / $20,000 / $30,000 / $50,000 / $100,000 AARP Term Life Insurance policy. Your initial premium is based on your age at issue. Premiums will increase as you enter each new five-year age band as shown in the table above. Rates are not guaranteed.
AARP Whole Life Insurance Rate Chart
| Issue Age | Gender | $5,000 | $10,000 | $25,000 | $50,000 |
|---|---|---|---|---|---|
| Age 50 | Male | $18 / monthly | $34 / monthly | $81 / monthly | $148 / monthly |
| Age 50 | Female | $14 / monthly | $26 / monthly | $58 / monthly | $101 / monthly |
| Age 55 | Male | $23 / monthly | $44 / monthly | $104 / monthly | $195 / monthly |
| Age 55 | Female | $16 / monthly | $31 / monthly | $72 / monthly | $124 / monthly |
| Age 60 | Male | $27 / monthly | $52 / monthly | $124 / monthly | $233 / monthly |
| Age 60 | Female | $20 / monthly | $38 / monthly | $87 / monthly | $151 / monthly |
| Age 65 | Male | $34 / monthly | $66 / monthly | $158 / monthly | $299 / monthly |
| Age 65 | Female | $25 / monthly | $49 / monthly | $114 / monthly | $203 / monthly |
| Age 70 | Male | $43 / monthly | $85 / monthly | $206 / monthly | $396 / monthly |
| Age 70 | Female | $33 / monthly | $65 / monthly | $156 / monthly | $288 / monthly |
| Age 75 | Male | $54 / monthly | $106 / monthly | $259 / monthly | $503 / monthly |
| Age 75 | Female | $42 / monthly | $83 / monthly | $203 / monthly | $392 / monthly |
Monthly male/female non-tobacco premium rates current as of 6/3/2022 representing the cost of a $5,000 / $10,000 / $25,000 / $50,000 AARP Whole Life Insurance policy. Rates are guaranteed to remain the same for life.
AARP Guaranteed Acceptance Rate Chart
| Issue Age | Gender | $5,000 | $10,000 | $15,000 | $25,000 |
|---|---|---|---|---|---|
| Age 50 | Male | $30 / monthly | $59 / monthly | $88 / monthly | $146 / monthly |
| Age 50 | Female | $23 / monthly | $45 / monthly | $67 / monthly | $110 / monthly |
| Age 55 | Male | $35 / monthly | $69 / monthly | $102 / monthly | $169 / monthly |
| Age 55 | Female | $27 / monthly | $52 / monthly | $78 / monthly | $129 / monthly |
| Age 60 | Male | $41 / monthly | $80 / monthly | $120 / monthly | $199 / monthly |
| Age 60 | Female | $31 / monthly | $60 / monthly | $89 / monthly | $147 / monthly |
| Age 65 | Male | $46 / monthly | $91 / monthly | $136 / monthly | $225 / monthly |
| Age 65 | Female | $37 / monthly | $72 / monthly | $107 / monthly | $177 / monthly |
| Age 70 | Male | $55 / monthly | $108 / monthly | $161 / monthly | $268 / monthly |
| Age 70 | Female | $44 / monthly | $87 / monthly | $130 / monthly | $215 / monthly |
| Age 75 | Male | $62 / monthly | $123 / monthly | $184 / monthly | $306 / monthly |
| Age 75 | Female | $51 / monthly | $100 / monthly | $149 / monthly | $248 / monthly |
Monthly male/female non-tobacco premium rates current as of 6/3/2022 representing the cost of a $5,000 / $10,000 / $15,000 / $25,000 AARP Guaranteed Acceptance policy. Rates are guaranteed to remain the same for life.
AARP Life Insurance Frequently Asked Questions – Overview
Here are answers to the most asked questions about AARP life insurance policies:
Does AARP Offer a Burial Insurance Policy?
AARP’s three life insurance plans can provide financial protection from burial expenses. Traditionally burial insurance is marketed under whole life insurance coverage, often referred to as final expense insurance. These plans are generally purchased with a death benefit amount solely intended to pay for all burial costs.
AARP offers two whole life insurance plans that fall under the standard features of final expense insurance. These features include permanent coverage, smaller death benefit amounts, and simplified non-medical underwriting.
In addition to the two permanent plans, AARP term insurance plans offer up to $100,000 of coverage, covering burial expenses, cremation costs, funeral costs, and much more.
Be sure to check out our best burial insurance companies list.
How Do You Apply for AARP Life Insurance?
To apply for AARP life insurance, you must contact the company by phone or visiting their website. The application can be completed entirely online or by requesting a paper application mailed to your home address.
Should you choose to apply for an AARP life insurance policy, you will be required to enroll as an AARP member. Enrollment is completed during the application process. AARP charges a $16 annual membership fee that will be added to the first premium payment if you receive coverage.
To begin the application process, you must start by receiving a quote through the website. The quote form requires you to fill out a few basic details, including your name, address, date of birth, and gender. You must also disclose whether you have used tobacco or nicotine in the past 12 months.
After completing the initial quote form, AARP presents you with monthly rates for various coverage amounts. If the rate seems reasonable, you can continue with the online application.
Should you proceed with the life insurance application, the entire time it takes to complete it should take around 15 minutes. Depending on the type of coverage you are applying for, you may be required to answer health questions.
The company’s underwriters will review your application and notify you of your status. Most applications are approved within 14 days or sooner.
What Determines Eligibility for Coverage?
Eligibility for coverage is determined based on a variety of medical and personal factors, including:
- Age
- Health history
- Family health history
- Occupation and hobbies
- Criminal history
AARP life insurance is available for those between the ages of 50 and 80 (50 and 74 for term life insurance). New York Life also reviews your health history, occupation, hobbies, and criminal history for potential disqualifying events, such as a cancer diagnosis or felony conviction.
Which AARP Life Insurance Plan Is Best?
Each plan from AARP offers distinct advantages that may appeal to people in different situations. For example, a whole life insurance policy may offer the best solution for those in relatively good health with no major medical conditions that want lifetime coverage and the peace of mind knowing that when they pass, their beneficiary will receive a guaranteed death benefit payout.
Guaranteed acceptance from AARP is likely the better option for those with pre-existing health conditions, which would generally be a decline for traditional life insurance plans. Although the first two policy years have a graded death benefit, you can’t be turned down for coverage. Plus, after policy year two, your life insurance death benefit becomes fully payable to your beneficiary at your passing.
If you want the lowest cost, you may want to start with AARP term life. The term life policy often begins with the lowest prices and includes coverage up to the age of 80.
How Quickly Is Approval for Coverage?
Approval for coverage is often made within a few days, up to two weeks. However, most applicants are notified within one week upon the application being assigned to an underwriter.
What Happens After You Are Approved for Coverage?
If you are approved for coverage, New York Life will send you a copy of the policy. The policy goes into effect immediately and you are eligible for a death benefit from day one. However, the guaranteed acceptance plan includes a two-year waiting period for full coverage.
Does AARP Accept People with Pre-Existing Health Conditions?
AARP accepts applicants with certain pre-existing health conditions. However, some medical conditions viewed as high-risk may disqualify you from getting term life or whole life insurance coverage.
Major medical issues like cancer and heart disease may disqualify you from getting term life or whole life insurance. However, you can still obtain guaranteed acceptance if you fail to qualify for term life or whole life policies.
Is It Possible to Increase the Death Benefit After a Policy Has Been Purchased?
If you purchase an AARP Term Insurance policy and add the AARP Term Rider Protect Plus Rider, you will have the option to increase your death benefit. However, your total death benefit cannot exceed a maximum of $150,000.
The whole life and guaranteed acceptance policies would require you to purchase an additional policy if you wanted to increase your overall coverage. However, you cannot exceed a total of $50,000 of coverage with AARP Whole Life Insurance and $25,000 with AARP Guaranteed Acceptance plans.
Both permanent plans also include cash value that accumulates with each payment. Therefore, if you do not withdraw funds from the cash value account, the value of your policy will increase over time.
How Much Does AARP Life Insurance Cost?
AARP advertises that its life insurance payments start at just $11 per month. However, Life insurance rates vary based on a variety of factors, including your age. If you are close to the maximum issue age, you will likely pay a higher monthly premium compared to a younger applicant.
AARP guaranteed life, and AARP whole life insurance rates never increase. Your rates are guaranteed for life. However, the AARP term life policy includes a level benefit with graded premiums. The rates are based on five-year age bands. Each time you enter a new band, your rates go up. This is a significant disadvantage to AARP term life insurance plans.
How Do You Get an AARP Life Insurance Quote?
You can get AARP life insurance quotes by visiting the company’s website and completing their online application form. You can also contact them toll-free to receive a quote.
Independent agencies such as ours are not able to sell AARP products.
How Long Does Coverage Last?
The duration of coverage depends on the policy that you select. Permanent life insurance coverage lasts for life if you continue paying the premium payments. AARP whole life insurance and guaranteed acceptance policies never expire and include guaranteed rates.
Term life insurance lasts until you turn 80 or stop paying the premiums. However, AARP offers term policyholders the opportunity to convert their term coverage to permanent coverage with its Guaranteed Exchange Option.
The Guaranteed Exchange Option allows you to take your current term insurance policy and exchange it for an AARP permanent policy without evidence of insurability.
What is the Cancellation Policy with AARP?
AARP offers a 30-day free look period, instead of the 10-day free look period that most insurance companies offer. You can cancel your policy within the first 30 days to receive a full refund. If you cancel after 30 days, you do not get anything back, other than the cash value from the whole life or the guaranteed acceptance plan.
How Do You File an AARP Death Benefit Claim?
New York Life handles claims and payouts for death benefits. You can start the claim-filing process online by submitting the contract number and the social security number of the deceased. New York Life then reviews the claim and may request additional documentation.
What Benefits Do You Get with an AARP Membership?
AARP members receive access to a massive selection of special benefits, including discounts on prescriptions, medical devices, restaurants, dental insurance, hearing care, and much more.
Click here to view a complete list of all AARP membership benefits.
Does AARP Offer Any Additional Insurance Options?
AARP also offers auto insurance and health insurance through other insurance companies. However, the only other life insurance plan is the AARP Young Start Program.
The Young Start Program provides life insurance coverage for children between the ages of 1 and 18. The insurance program is intended to cover funeral costs in the event of a child dying early.
How Do I Contact AARP Customer Service?
Claims and any questions related to your insurance policy are handled by New York Life, which means that you need to contact New York Life for most customer service inquiries.
You can call the customer service department at 1-800-607-6957 Monday through Friday between 8 am and 8 pm and Saturday from 9 am to 5 pm.
Advantages of Purchasing an AARP Life Insurance Policy
AARP life insurance policies offer a wide range of advantages for seniors:
- No medical exams are required for any of the policies
- Policies issued by one of the top insurance companies
- Transparent pricing without any surprises
- Coverage available for spouses and children
AARP life insurance reviews often point out that AARP policies do not require medical exams, which allows for a simple, online application process consisting of just a few medical questions.
As AARP is not an insurance company, the policies are issued through a third party. Luckily, AARP partnered with New York Life to offer its AARP life insurance program. New York Life is a trusted company with over 175 years of experience.
The plans also include transparent pricing. You do not need to worry about hidden fees or any other surprises.
AARP life insurance policies are also available for your spouse/partner and children. Spouses between the ages of 45 and 80 and children between the ages of 1 and 18 qualify for coverage.
Disadvantages of Purchasing Your Life Insurance with AARP
AARP life insurance comes with many advantages, but you should also consider the following disadvantages:
- Limited coverage
- You may find lower rates elsewhere
- It’s group life insurance
- You need an AARP membership
The maximum death benefit is $100,000 with the term life policy, $50,000 with the whole life policy, and $25,000 with the guaranteed life insurance policy.
While their life insurance plans are designed primarily for seniors that require smaller coverage amounts, none of these policies are likely to cover your mortgage or other major debts. However, the coverage amount is still suitable for covering final expenses.
You are highly likely to find lower rates from other companies. Unfortunately, AARP is often on the expensive side of senior life insurance options for burial and final expense coverage.
Several highly rated insurance providers can offer the same coverage, if not better, at a lower cost. Before committing to an AARP policy, compare quotes from other providers to ensure you’re getting the best value for your life insurance coverage.
AARP is group life insurance, so except for the two permanent plans offered, the rates for their term insurance plan can increase based on the level of risk of all the people in your age group.
You also need to get an AARP membership, which costs $16 per year. While an AARP membership comes with many benefits, including discounts on hundreds of products and services, we can not name another insurance provider that requires a membership fee to obtain life insurance coverage.
Conclusion – Is AARP Life Insurance Worth It?
You may want to purchase life insurance through AARP if you are between the ages of 50 and 80 and need limited coverage. AARP policies include limited maximum death benefits. These policies are primarily intended to cover final expenses. You may also use AARP insurance to supplement existing term life or permanent life insurance policies.
An AARP whole life insurance policy may not offer the cheapest option, as you may get lower rates from other whole life insurance companies. However, New York Life is more likely to accept those with pre-existing medical conditions.
If you suffer from major health issues, AARP also offers guaranteed acceptance, which guarantees you can receive a life insurance policy.
Consider getting term life insurance for those who want the most affordable AARP life insurance. You pay less initially and receive a level death benefit. After that, the rates increase with each five-year age band, but you can convert the policy to a permanent policy or keep the term life policy until you turn 80.
In the end, AARP life insurance can be a good option for seniors, but you’re likely to find much better options from other providers. So if you’re considering an AARP life insurance policy, before committing to one of their plans, reach out to us so we can show you alternative options that will likely result in an overall better policy at a potentially cheaper cost.
