AARP Life Insurance Review

AARP Life Insurance Review
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    Wondering if AARP is one of the best life insurance companies available? 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. Let’s see if they’re a good fit for you.

    PROS

    AARP offers several life insurance products and No Medical exam options.

    CONS

    Too expensive compared to competition; Term policy rates go up every 5 years.

    AARP Life Insurance Review

    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.

    Is AARP a life insurance company? This is one of the most frequent questions we get about AARP.  The answer is No.

    Actually, the AARP Life Insurance Program provides a selection of life insurance policies issued by New York Life Insurance Co. for their group’s members.

    AARP Life Insurance Program

    Cost
    Products
    Financial Strength
    Review Summary

    The AARP life insurance program provides shoppers a small selection of New York Life term and whole life options to AARP members.

    66.67
    OK

    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 examThere 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.

    Life Insurance Products with AARP

    With AARP, you have access to a few options. They offer both term life insurance as well as permanent life insurance options.

    AARP’s permanent coverage has a simplified underwriting process. With simplified issue underwriting, you do not need to participate in a medical exam like fully underwritten policies require. You must be an AARP member to apply and get their policies which costs $16 per year.

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

    AARP Level Benefit Term Life Insurance

    Term Life Insurance The AARP term life policy, offers up to $100,000 term life insurance coverage for a pre-determined period. With AARP, you can purchase a term life insurance policy if you are a member and are between the ages of 50 and 74. Your spouse is able to apply and can be between the ages of 45 and 74. This coverage may last up until the insured’s 80th birthdate. 

    life insurance tip

    Warning!

    Premiums increase every 5 years with this policy! This is not like a traditional term life policy where the premiums stay the same for the entire term length.

    AARP Life Insurance Rates

    Here are some sample AARP life insurance quotes. We calculated some rates for a 60-year old man shopping for a 15 year term life policy. He wants $100,000 of coverage. If he buys a policy with New York Life AARP’s program, his premium will go up 3 times over his 15-year term:

    15-Year TermMonthly Premium
    Ages 60 – 64$109
    Ages 65 – 69$144
    Ages 70 – 74$208

    Add it all up all those monthly premiums

    … and now you’re looking at an average monthly premium of $226!

    You can get a better rate from AARP competitors. Let’s see.

    $ 0
    Average Monthly Premium

    Let’s compare monthly rates for a 60-year old male who is shopping for a 15-year term $100,000 life insurance policy.

    Excellent Health

    $ 0
    AARP / NY Life
    $ 0
    Competition

    Standard Health

    $ 0
    AARP / NY Life
    $ 0
    Competition

    Tobacco User

    $ 0
    AARP / NY Life
    $ 0
    Competition

    Sample life insurance quotes from AARP / NY Life and competitor Banner Life were for a $100,000 15-year term life policy.

    Term Life Conversion: Their term policy has a conversion option available. It can be converted to one of AARP’s permanent policies before the age of 80. The new AARP permanent policy will have a rate that is based on your age. This is a no medical exam life insurance policy. However, you are required to answer a few health questions and provide certain health information to be accepted.

    AARP Whole Life Insurance with No Medical Exam

    Whole Life Insurance – AARP sells a couple of permanent life insurance policies. Their No Medical Exam Whole Life policy provides up to $50,000 worth of life insurance coverage. This policy lasts a lifetime and is a form of final expense life insurance. 

    Premiums remain at a fixed rate and will stop at the age of 95. You need to be an AARP member between the ages of 50 and 80. Your spouse can be between the ages of 45 – 80. Qualifying is based on answering a few health questions.

    life insurance without a medical exam

    AARP Guaranteed Acceptance Whole Life Insurance

    Guaranteed Issue Whole Life. If you are an AARP member between the age of 50 – 80, you may purchase a whole life insurance policy that is guaranteed. 

    This means you do not need to answer any health or qualifying questions to be accepted. This is a guaranteed issue policy with a “Graded Benefit”. A graded benefit simply means that the entire benefit won’t be paid out during a specific timeframe once the policy is issued. 

    There aren’t a bunch of guaranteed issue life insurance companies available. AARP, along with AIG, Mutual of Omaha, and Gerber offer these policies.

    The AARP GI Whole Life policy pays out 125% of the premiums paid if the insured were to pass away from natural causes in the 1st 24 months of the life insurance policy. If the insured were to pass away from an accidental death, the full benefit would be paid. This policy has a maximum $25,000 life insurance benefit.

    Let’s compare rates for a 65-year old male who is shopping for a Guaranteed Issue life insurance policy.

    $5,000 Death Benefit

    $ 0
    AARP / NY Life
    $ 0
    Competition

    $10,000 Death Benefit

    $ 0
    AARP / NY Life
    $ 0
    Competition

    $15,000 Death Benefit

    $ 0
    AARP / NY Life
    $ 0
    Competition

    $25,000 Death Benefit

    $ 0
    AARP / NY Life
    $ 0
    Competition

    Read more aboutAARP Permanent Life Insurance

    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.

    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.

    life insurance help

    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.

    Will AARP give you the best rate?

    Will AARP or some other company like Mass Mutual, CMFG Life, Progressive or Equitable Life Ins get you the best deal? If you want to make sure you’re getting the best life insurance policy available, here’s what you need to do…

    Step 1

    Do This Now

    Start by clicking here!

    You’ll see our instant life insurance calculator where you will compare rates from dozens of the top companies.

    Nothing too complicated, it just needs the basics about what you’re wanting, how much coverage, for how long, etc. That way we can understand your situation before we can help you.

    Complete the calculator details as accurately as possible, and be absolutely sure your contact information is correct so we can reach you.

    Step 2

    Here's what will happen next

    Once you’ve filled out the calculator, one of our licensed life insurance agents will reach out to you to provide you all your options and plan out who will provide you the best rate based on your specific health and lifestyle.

    All of the recommendations will be based off of the details you provide. It’s very important that you’re honest and answer your agent’s questions accurately. 

    This is where we really begin working to figure out exactly which company will get you the best rate, and how to make it happen. There are literally hundreds of companies and thousands of policy options available. We’ll make sure you get the best one.

    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.

    Comparing Life Insurance Rates

    Compare rates from over 60 top rated life insurance companies using our free quoter found on this page. You can always call us 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.

    AARP Life Insurance Review

    Thank you for reading our “AARP Life Insurance Review“. Please leave a comment or question below.

    If you’re not sure where to begin, give us a call. Our agents provide a free, no-pressure, educational approach to life insurance. We’ll compare dozens of the top companies in minutes to show you your most affordable options. Toll Free: (888) 411-1329

    AARP Company Details

    Name(s): AARP Life Insurance Program, New York Life Insurance Co

    Address:
    The AARP Life Insurance Program
    New York Life Insurance Company
    5505 W. Cypress Street
    Tampa, FL 33607

    Phone: 800-865-7927

    Ratings: A.M. Best (A++) Fitch (AAA) Moody’s (Aaa) Standard & Poor’s (AA+)

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    Michael Quinn LIB

    About Michael Quinn

    Michael Quinn is the cofounder of Life Insurance Blog and a multi-state licensed life insurance agent. LIB has helped thousands of people understand life insurance and secure affordable coverage.

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    1 thought on “AARP Life Insurance Review”

    1. Nice website and review of AARP. Independent agents can offer seniors more choices, cheaper products, and better service too. We also offer an AARP review because so many of our clients are considering them for final expense insurance. Good luck in 2017!

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