AARP Life Insurance Review
Are you considering buying life insurance from AARP? We strongly suggest you do your research before making a policy purchase. AARP life insurance options are among the most expensive policies on the market. Individuals who purchase life insurance from AARP pay far more than they have to.
Our company loves AARP as an organization. They are a fantastic company that offers a wide range of benefits to their 38 million members. The benefits of an AARP membership far outweigh the annual $16 membership cost. However, when it comes to life insurance, AARP is likely not your best option.
Below we’ll discuss why and dig deeper into AARP’s life insurance offering so you can make an informed decision.
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AARP Life Insurance Overview
- New York Life Insurance Company underwrites all AARP life insurance policies
- Two whole life insurance options. Simplified Issue Whole Life & Guaranteed Acceptance Whole Life
- Neither policy requires a medical exam
- One of the most expensive policies on the market
- Up to $50,000 in coverage
- Ages 50 to 80
- Two year waiting period on guaranteed acceptance policies
New York Life Insurance Company Underwrites All AARP Policies
AARP is not an insurance company. Therefore they do not issue or underwrite their policies. Instead, New York Life Insurance Company underwrites and issues all AARP life insurance policies.
Rating And Reviews
AARP: As an organization, AARP has high ratings by consumers as well as outside parties. AARP’s BBB rating is A+. However, their consumer rating with the BBB is only 1 1/2 stars. Keep in mind that any organization with 38 million members and still growing is doing many things well.
New York Life: NY Life holds high financial ratings with all the major rating institutions. And they hold the highest possible AM Best rating A++ (Superior). Very few carriers have this rating. However, NY Life does not hold as high of ratings with consumers of their products. The BBB and Consumer Affairs both show many negative complaints against New York Life.
We will say that New York Life is a reliable insurance carrier. They are financially strong and one of the nation’s largest financial institutions. However, their senior life insurance options are less than ideal. New York Life offers quality products for younger, healthy individuals. Not the elderly or the sick.
We frequently find our clients better policies at lower rates with other insurance carriers.
AARP Life Insurance Options
AARP offers three different policies for individuals over age 50. One term product and two separate permanent whole life insurance options.
AARP Term Life Insurance – is available for individuals age 50 to 74. However, coverage only lasts until you reach age 80. AARP term life insurance is a renewable policy that expires every 12 months. Each time you renew, your rates will increase. There is an option to convert this policy into permanent coverage. However, that will increase your premium rates significantly.
To qualify, you must undergo a medical exam and reach the minimum health requirements.
Keep in mind that term life insurance is temporary and will expire. Most individuals over age 50 are seeking life insurance as financial protection against end-of-life costs. Therefore term coverage is not a popular choice for older individuals.
AARP Traditional Whole Life – is available for individuals age 50 to 80 years old. Policies provide up to $50,000 in coverage. There are no medical exams, but there is a health questionnaire. And not everyone will qualify.
AARP whole life policy offers day one coverage, and level premiums that never increase. These types of plans are also known as final expense life insurance.
AARP Guaranteed Acceptance Whole Life – is available for individuals age 50 to 80 years old. There are no medical exams or any health questions. As long as you’re within the qualifying age range, your acceptance is guaranteed.
Guaranteed acceptance life insurance from AARP provides up to $25,000 in coverage. And there’s a two year waiting period before the full death benefit is eligible.
Guaranteed acceptance life insurance is the last resort option for life insurance coverage. These policies are for individuals seeking life insurance with pre-existing medical conditons and those too old for other types of policies.
Do AARP Members Get a Discount on Life Insurance?
AARP members do not receive a discount for life insurance. The company offers insurance coverage through New York Life as a benefit of convenience, not for a financial discount. New York Life determines the cost of your life insurance policy based on your mortality rate and coverage amount that you’re seeking.
Many AARP members are under the impression that they are saving on their life insurance; however, they are incorrect. In reality, the opposite is true. Most members who buy life insurance from AARP pay more than they have to for their coverage. As we’ve mentioned above, New York Life is among the most expensive companies to buy life insurance from.
Compare The Top Insurance Provider – Save Money On Your Policy
If you’re looking to save money on your life insurance policy, it’s essential to shop around before your buy. AARP only offers life insurance from a single insurance carrier. There are dozens of insurance carriers providing similar products and compete for your business with lower rates.
The only way to find your best life insurance option is to quote and compare life insurance companies side by side.
How Our Independent Agency Can Help
Our independent agency specializes in helps individuals age 50 to 85 find affordable life insurance coverage. We’ll save you both time and money on your life insurance policy.
We’ve partnered with all the top-rated insurance carriers across the country so that you can do all your shopping in one location.
By filling out the quote form on your screen, you’ll instantly see personalized rates from all the top providers.
If you’ve been considering AAPR life insurance, we strongly suggest letting us help you shop for a more affordable policy. We’re positive we can find you a better policy and a lower rate.
Our services are free. And there’s no obligation when speaking with an agent.
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