When one thinks of insurance, it’s rare that they think about life insurance.
However, as we live our lives and enter the world of adulthood, we start to realize just how important it is to have adequate coverage in place for ourselves and our families.
Every person should carry life insurance to protect their loved ones.
Life insurance is important for people of all ages, whether they are young or retired, to protect their family financially if there is a tragic accident.
There are many different types of life insurance policies that provide different levels of coverage and benefits.
And with so many providers and companies to choose from it gets overwhelming, that is why we try our best to deliver simple yet full reviews of best insurance companies.
In this article, we will take a look at AARP Life Insurance, stick around to learn more about it and whether or not you should opt for one of its plans.
AARP Life Insurance Reviews
First Thing First, What is AARP Life Insurance?
AARP stands for the American Association of Retired Persons.
The AARP is a nonprofit organization which advocates for Americans over 50 years old and provides a variety of services to current and future retirees.
One of these services is life insurance, which offers a number benefits including guaranteed lifetime protection against the risk of death before age 65, tax-qualified earnings on premiums paid, and a choice of plans to fit your needs.
AARP life insurance is a product designed to help people achieve lifelong financial security and peace of mind.
It’s available in various forms like term life insurance and whole life insurance (which will be covering them later in this article).
AARP strives to offer quality products at competitive rates to help protect families for generations.
AARP Life Available Insurance Plans and Packages
Have you found yourself in a situation where you need life insurance but can’t afford to purchase a plan?
If so, AARP may be the best company for you. The organization offers affordable coverage and low premiums for seniors who need protection from the unexpected.
Here are the insurance plans that company offers:
- AARP Whole Life Insurance (The policy can be issued from ages 50-80)
If you’re a senior and have had a medical condition for over 2 years that’s well managed, such as diabetes, AARP whole life insurance policy is a strong option.
The AARP’s no medical exam whole life insurance policy is a form of final expense insurance (also called burial insurance), as the amount of coverage available is usually just sufficient to cover end-of-life expenses.
AARP’s whole life insurance policy offers $5,000 to $50,000 as a death benefit and is available if you’re between the ages of 50 and 80.
The AARP’s whole life insurance policy is relatively unique in that premium payments end when you turn 95.
Relatively few people live to be 95, but the opportunity to stop making payments and continue to have coverage isn’t common among whole life insurance companies.
With AARP whole life insurance:
- The maximum coverage amount is $50,000
- No medical exam is needed.
- Your acceptance is based on a health survey.
- AARP whole life rates are costly.
- This whole life policy does build cash values.
- AARP Guaranteed Acceptance Whole Life Insurance (The policy can be issued from ages 50-80)
Similar to the AARP whole life insurance policy.
The key difference is that their guaranteed acceptance policy only offers between $2,500 and $25,000 of coverage.
In addition, if you pass away during the first two years of coverage due to a non-accident, your beneficiary won’t receive the full death benefit.
Instead, they will receive 125% of the value of premiums you had paid until that point.
Waiting periods are fairly standard for guaranteed acceptance coverage as insurers want to avoid large payments in the case terminally ill patients sign up.
With AARP Guaranteed Acceptance Whole Life Insurance:
- The maximum coverage is only $25,000.
- No medical exam is needed.
- Graded death benefit which limits payouts during the first 2 policy years
- The AARP death benefits will always remain the same
- Ideal if you need life insurance for parents in poor health to cover final expenses
- AARP Term Life Insurance (The policy can be issued from ages 50-74)
The most affordable type of life insurance policy is called term insurance.
This coverage is often used to protect your income or pay off the mortgage if you die during a specific time period.
It is also crucial to have a premium that fits your budget over the future life of your policy.
With AARP Term Life Insurance:
- AARP Term life insurance death benefits range from $10,000 to $100,000.
- The AARP’s term death benefits are limited.
- No medical exam is needed.
- AARP’s term life insurance policies from New York Life are 1-year annually renewable policies.
- Your initial premiums are determined by what 5-year age bracket you fall into and, each time you enter a new age bracket, the rates increase.
- AARP Whole Life Insurance for Children
This type of policy is typically intended to shield parents and relatives from the costs associated with a child dying early.
However, AARP’s policy is different from those offered by other insurers as coverage is not interrupted when the child comes of age (turning 21) and premiums are level for as long as the policy remains in force.
This means that, while the policy’s cash value will grow very slowly, it can continue to grow for decades and is available if your child or grandchild ever wants to access it.
In addition, if you pass away, the child or grandchild won’t have to pay premiums to keep coverage in place until they turn 21.
At that point, premium payments will continue to be set according to whatever amount of coverage was initially purchased.
With AARP Whole Life Insurance for Children:
- You can to purchase whole life insurance coverage for a child or grandchild that’s younger than 18.
- There’s no medical exam.
- The policy builds cash value.
What Riders Does AARP Life Insurance Offers?
Insurance riders are add-ons that you can add to your car or homeowners insurance policy. They typically come in the form of an agreement that is signed by the insured and the insurer.
The agreement usually states what is covered and what isn’t, as well as any other conditions agreed upon by both parties.
AARP Life Insurance offers:
- Waiver of Premium:
If you face a disability or illness that requires you to stay in a nursing home, you won’t have to pay premiums for the entirety of your stay (or until you turn 80, whichever is sooner).
- Accelerated Death Benefit:
If you’re diagnosed with a terminal illness and the doctor believes you have less than 12 months to live, you can access up to 50% of the policy’s death benefit while still alive.
Quick Tips To Consider Before Buying an Insurace
Before you start comparing companies, choose the type of life insurance you want, such as term or whole life.
ecide which life insurance riders, if any, you want the policy to include.
Calculate how much life insurance you need and how long you want the coverage to last.
Check that the insurers you’re considering offer the coverage you’re looking for. When comparing rates, be sure the quotes are for the same amount of coverage over the same period of time.
It’s also important to make sure the policy’s medical requirements match your needs.
For example, if you want to skip the life insurance medical exam but don’t mind answering health questions, confirm that the application process for each policy you’re comparing aligns with that.
AARP Life Insurance PROS
- Availability of child whole life insurance.
- No medical exams required
- Transparent pricing
- Low-cost coverage available for children.
AARP Life Insurance CONS
- Insurance issued by third-party organizations.
- Coverage options and restrictions vary by state.
- AARP membership required.
- Low coverage maximums.
AARP Life Insurance Reviews, Customer Complaints and Satisfaction
Over three years, New York Life has drawn fewer than the expected number of complaints to state regulators for a company of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.
New York Life also has an A++ (Superior) rating from AM Best, the agency’s highest rating. AM Best’s Financial Strength Ratings reflect a company’s stability and credibility.
A high rating from AM Best means that you can be assured that the company will pay out any claims and contractual obligations.
New York Life ranked No. 6 out of 23 companies in J.D. Power’s 2020 U.S. Life Insurance Study for overall customer satisfaction.
Should I Opt For AARP Life Insurance?
For those 50 or older, the AARP Life Insurance Program can be an easy way to get life insurance policies at a relatively affordable rate.
Backed by New York Life Insurance Company, the AARP policies are underwritten by a top-notch insurer with an excellent reputation.
AARP can be a useful supplemental option if you have insurance through an employer or a separate individual policy.
However, AARP’s maximum coverage amounts are quite low.
Many families will need more than $100,000 of coverage for their protection, so you’ll need to work with another insurer if you need a higher coverage amount.
Do you want to get the best deal? Click here to get a quote.
AARP Life Insurance Frequently Asked Questions (F.A.Q)
- Does AARP Insurance Offer Other Types of Insurance?
Yes, AARP partners with third parties to offer a variety of other types of insurance like:
- Homeowners insurance.
- Car insurance.
- Renters insurance.
- Motorcycle insurance.
- Dental insurance.
- What Are The Requirements To Get Insured With AARP Life Insurance?
While there are no medical exams required for any of the three policy options offered to AARP members, there are health questions that must be answered.
Any major medical issues may disqualify an individual from getting coverage through a term or traditional whole life policy.
The guaranteed acceptance whole life policy does not require these health questions to be answered.
Also, applicants must meet age requirements to qualify for the simplified underwriting insurance programs offered through AARP and New York Life.
- How do AARP Life Insurance Rates Compare?
Before you consider buying through the AARP life insurance program, we strongly suggest you take the time to do some comparison shopping!
If you are a senior looking for life insurance, your health is the most important factor to consider when applying for coverage.
If you are in average health or better, it will be much cheaper to obtain coverage with a policy in the open market.
Some of our policies will require a brief medical examination to qualify for coverage but offer substantial cost savings in return for your good health.
Click here to get the best quote.
- What is AARP Life Insurance Cancellation Policy?
While most companies offer a 10-day free look period, AARP’s insurance policies have a 30-day free look period, meaning you have 30 days to review your policy and to cancel it without penalty.
You’ll also get a full refund on all premiums paid. After the 30-day free look period expires, the cancellation policy is dependent on your plan type.
AARP Life Insurance Reviews – Final Thoughts
AARP is a strong member-focused non-profit organization, and its partnership with New York Life offers an affordable, simple way to get term or permanent life insurance coverage for AARP members.
At the end of the day, life Insurance can be a valuable protection when it comes to providing for your family in case of a tragic event.
It allows you to choose how much coverage you want and customize your premiums based on your needs.
If you are considering buying life insurance, consider consulting with an experienced agent before signing any contracts because this way you can avoid paying more than necessary for insurance that doesn’t protect your financial interests.