AARP Life Insurance Review

AARP Life Insurance Review

Retirees 50 years of age and older will benefit from this AARP life insurance review. Considered one of the largest advocacy groups in America, the organization offers coverage specifically meant for seniors. While AARP offers a variety of benefits to its members their life insurance benefits are less-than-desirable for seniors for several reasons outlined in this article. But first I’ll give you a brief overview of the history of AARP.

Looking for more? Click here to learn about about the best life insurance companies.

AARP History

AARP has 33 million members and was started as a quest to find health insurance for retired teachers in the late 1940s After opening a retirement home for teachers, Dr. Ethyl Percy Andrus needed insurance for her residents. Shortly after establishing the National Retired Teachers Association (NRTA), Dr. Andrus procured the services of an East coast advocate named Leonard Davis. In 1958, Dr. Andrus and Mr. Davis made the landmark decision to provide retirees throughout the nation with similar insurance coverage. As of June 2013, Funding Universe declared AARP the second most popular group affiliation in America, taking a back seat only to the Catholic Church.

AARP Life Insurance

Insurance coverage is one of the biggest benefits provided to AARP members. The benefits of AARP is that you can get a life insurance policy without a medical exam. There are just a few short questions you need to answer to qualify for a $50,000 policy, and a few more requirements to qualify for $100,000 worth of coverage.

There are two types of life insurance coverage currently available to AARP members via New York Life:

  • Level benefit, or an AARP term life policy, offers up to $100,000 in coverage for a pre-determined period. Premiums increase every 5 years with this policy.
  • Permanent (whole-life) policies provide up to $50,000 worth of coverage that lasts a lifetime. Premiums remain at a fixed rate.

Life insurance coverage through the company is easy and almost hassle-free, but members need to consider a few things. In a CBS News Article, the author questioned whether AARP was a good deal for seniors, considering rates increase every five years  To save money, senior applicants should compare term rates from several companies and purchase a level term policy.

Have a high risk condition? Click on our Preexisting Conditions page to learn how your health can affect your rates and the company you should choose.

By definition, level terms offer policyholders face value protection for a set period. As opposed to AARP most insurance companies guarantee that premiums never increase during the term period. Obtaining reasonable term coverage provides end-of-life protection while allowing seniors to keep more cash in their pockets.

Comparing Life Insurance Rates

Compare rates from over 60 companies using our free quoter found on this page. You can always call me at 888-411-1329 to discuss your life insurance needs.

Looking for more reviews?  Check out our SelectQuote review to see how well they perform at searching life insurance rates.

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By: Michael Quinn

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Michael Quinn

Michael Quinn is the founder of LifeInsuranceBlog. If you have specific questions or face challenges getting coverage. Please email or call me a call at 888-411-1329 - Either way, I'm happy to help you.

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