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AARP Life Insurance Company Review 2019

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AARP Life Insurance Review

AARP life insurance is a popular option for adults over the age of 50, seeking convenient life insurance coverage. The available life insurance products offer many advantages such as a quick and straightforward application process, no medical exams, and competitive rates.

When it comes to the type of life insurance products, you can choose from term life, permanent life, and even a guaranteed acceptance life insurance coverage.

AARP is a membership-based organization. Similar to Costco or Sam’s Club where you need to have a membership to purchase products, AARP requires you to purchase a membership to buy their life insurance coverage. You may apply for AARP membership and coverage at the same time.

AARP memberships are available to individuals who are over the age of 50 years old. For those who are under age 50, associate membership is available. However, all of the AARP life insurance products require you to be between the ages of 50 and 80 to qualify.

AARP life insurance from New York Life includes a variety of options to suit different life situations. To find out if one of these products meets your specific needs, use the rest of this detailed AARP life insurance review.

AARP Life Insurance Review

AARP Life Insurance

  • Highly Rated Life Insurance Company
  • No Medical Exam Required
  • Multiple Coverage Options

The American Association of Retired Persons (AARP) began in 1958. One of the primary goals of the organization was to provide an affordable solution to private health insurance to the elderly.

It joined forces with the National Retired Teachers Association (NRTA) in 1982, coming together under the AARP umbrella. Before the AARP, aging Americans had little or no access to private health insurance options. Medicare, which provides health insurance to people over 65, did not start until 1965.

Over the years, the organization has grown to provide a wide range of numerous benefits and discounts, especially for medications and healthcare. Over time, it has developed other types of insurance options including what we now know as AARP life insurance.

The life insurance products offered through AARP are underwritten and backed by New York Life Insurance Company. New York Life was founded in 1845 and is currently the third-largest life insurance company in the U.S.

AARP Company Ratings and Financial Strength

Life insurance from AARP is underwritten and issued by New York Life Insurance Company. The insurance company currently has the highest financial strength ratings currently awarded to any US insurer:

  • A.M. Best: A++ (Superior)
  • Fitch: AAA (Exceptionally Strong)
  • Standard & Poor’s: AA+ (Very Strong)
  • Moody’s: Aaa (Highest Quality)

The financial strength of the insurer is an important consideration that should never be overlooked when shopping for life insurance coverage. You want to ensure that the company has the assets to pay claims should one ever arise.

Based on the ratings from the top four rating agencies, New York Life has a healthy financial outlook. This should give you peace of mind in knowing that the company can payout on an AARP life insurance claim.

Overview of Available AARP Life Insurance Products

The AARP Life Insurance Program from New York Life offers several different life insurance options for seniors. The companies popular line of life insurance coverage includes the following:

  • AARP Level Benefit Term Life Insurance
  • AARP Permanent Life Insurance
  • AARP Guaranteed Acceptance Life Insurance
  • AARP Young Start Life Insurance

Keep reading to take a closer look at these AARP life insurance policies.

AARP Level Benefit Term Life Insurance

The Level Benefit Term Life Insurance from AARP offers up to $100,000 in protection with a coverage period that can be renewed to age 80. This insurance option is available to AARP members who are between the ages of 50 to 74.

The main advantages of the Level Benefit Term Life Insurance option include:

  • Lower initial premiums
  • No medical exam
  • No waiting period
  • Accelerated benefit
  • 30-day refund period
  • Waiver of premium for qualified nursing home stays
  • Guaranteed exchange privilege

The term life product offers policy features such as an accelerated benefit and waiver of premium benefit at no extra cost. If you receive a diagnosis of a terminal illness with less than 24 months to live, you can access half of your death benefit amount in advance.

The waiver of benefit feature will waive all premiums if you are required to be confined to qualifying nursing home lasting 180 days or longer. As long as your confined to a nursing home, AARP will waive all premium payments.

Along with these included benefits, AARP term life insurance has a couple of disadvantages. While the initial rates are lower at the time coverage is purchased, the rates will increase throughout the life of the policy.

Due to the gradual rate increases, the term life insurance policy may not offer the most affordable solution in the long run.

New York Life uses five-year age bands to set the current rates for premiums. For example, the first age band covers those between the ages of 50 and 54. The next age band starts at 55.

If you receive a policy at the age of 53, your rates increase when you reach 55. The age bands end at ages 75 to 79 with coverage ending at age 80.

While coverage ends at 80, you will have the option to exchange the term life policy for the AARP-endorsed permanent life insurance before the policy ends. Keep in mind when switching to a term policy to a permanent policy, rates will be much higher.

Despite the rate increases, the AARP level benefit term life insurance policy remains a great option for adults who need convenient coverage without a medical exam or waiting period.

AARP Level Benefit Term Life Insurance

ISSUE AGES:50-74
COVERAGE AMOUNTS:$10,000-$100,000
HEALTH CLASSES:Non-Tobacco / Tobacco
RIDERS:Accelerated Death Benefit (Included)
Waiver of Premium for Certain Qualified Nursing Home Confinements (Included)
COVERAGE DURATION:Renewable to age 80
ADDITIONAL FEATURES:

*Full coverage beginning day one
*Protection up to age 80
*Guaranteed exchange privilege
*30-day free look
*Benefits do not decrease if health changes overtime
*Simple application process with no medical exam

AARP Permanent Life Insurance

If you’re searching for an AARP burial insurance policy, then this is the coverage you will want to consider. AARP permanent life insurance provides lifelong protection up to $50,000 with no medical exam required. Unlike the term life insurance policy, this option comes with guaranteed rates that will never increase.

Other benefits of the permanent life insurance policy include:

  • No medical exam
  • No waiting period
  • Permanent life insurance for your entire life
  • Simple application process
  • Cash value accumulation
  • Waiver of premium for qualified nursing home stays
  • Accelerated benefit
  • 30-day guarantee

AARP’s permanent life insurance coverage offers many of the same benefits that are included in the term life insurance. However, with a permanent plan, you will receive coverage for life.

Additionally, you will not be required to keep paying premiums when you reach age 95. After age 95 your coverage will remain active, but no further payments will be necessary. This is what is known as a paid-up feature.

Besides guaranteed permanent coverage, this plan comes with tax-deferred cash value growth. Your policy builds cash value over time, which you can borrow against if needed. Keep in mind that borrowing is treated as a loan with interest.

AARP Permanent Life Insurance

ISSUE AGES:50-80
COVERAGE AMOUNTS:$2,500-$50,000
HEALTH CLASSES:Non-Tobacco / Tobacco
RIDERS:Accelerated Death Benefit (Included)
Waiver of Premium for Certain Qualified Nursing Home Confinements (Included)
COVERAGE DURATION:Lifetime
ADDITIONAL FEATURES:

*Full coverage beginning day one
*Lifetime of protection
*Rates will never increase
*Guaranteed cash value growth
*Paid-up at age 95
*30-day free look
*Benefits do not decrease if health changes overtime
*Simple application process with no medical exam

AARP Guaranteed Acceptance Life Insurance

Those with existing medical issues may find it easier to apply for the AARP guaranteed acceptance life insurance plan. AARP members between the ages of 50 and 85 may apply and cannot be turned down. There are absolutely no medical questions asked with this coverage and approval is guaranteed

It also comes with the following benefits:

  • Coverage up to $25,000
  • No medical exam
  • No waiting period
  • Guaranteed rates and benefits
  • Accelerated benefit

This coverage does offer the accelerated benefit for terminal illness, but unfortunately, this policy does not include the waiver of premiums for nursing homestays. 

It also comes with a limited benefit period. AARP Guaranteed Acceptance is what is known as graded death benefit coverage. During the first two years, the company does not pay the full benefit if death has occurred from natural causes. The death benefits the first two policy years is equal to 125% of all the premium payments paid.

AARP Guaranteed Acceptance Life Insurance

ISSUE AGES:50-80
COVERAGE AMOUNTS:$2,500-$25,000
HEALTH CLASSES:N/A
RIDERS:Accelerated Death Benefit (Included)
COVERAGE DURATION:Lifetime
ADDITIONAL FEATURES:

*Cannot be turned down for coverage
*Lifetime of protection
*Rates will never increase
*Guaranteed cash value growth
*Paid-up at age 95
*30-day free look
*Benefits do not decrease if health changes overtime
*Simple application process with no medical exam

AARP Young Start Life Insurance

The AARP Young Start Life Insurance provides protection for children or grandchildren of AARP members. This AARP life insurance policy is available to current AARP members between the ages of 50 and 80 that would like to purchase life insurance coverage for children up to 17 years of age. It comes with these benefits:

  • Up to $20,000 coverage
  • No medical exam
  • Simple application process
  • Low childhood rates

This policy provides a lifetime of protection. Children can keep the policy for their entire lives. When they become adults, they will still pay premiums based on childhood rates. This is a convenient way to provide financial security for children or grandchildren.

An important feature that comes with this life insurance coverage is the Valuable Premium Waiver Feature. The benefit protects the child should the policy owner pass away. AARP will waive all premiums until the child turns age 21 and is able to take full control of their life insurance policy.

AARP Young Start Life Insurance

ISSUE AGES:Up to age 17
COVERAGE AMOUNTS:Up to $20,000
HEALTH CLASSES:N/A
RIDERS:Valuable Premium Waiver Feature
COVERAGE DURATION:Lifetime
ADDITIONAL FEATURES:

*Up to $20,000 in life insurance coverage
*Lifetime of protection
*Low childhood rates that will never increase
*No medical exam required
*30-day free look
*Benefits do not decrease if health changes overtime
*Simple application process with no medical exam

AARP Life Insurance Rates

An AARP life insurance quote can be obtained by visiting the companies website. The below are sample AARP rates as advertised on their website for all four coverage options. This will provide you with some insight into how much the coverage will cost if approved. 

AARP Level Benefit Term Life Insurance Rates

Monthly AARP Level Benefit Term Life Insurance Rates

AGE$10,000$25,000$50,000$75,000$100,000
50-54$14.00$26.00$45.00$62.00$79.00
55-59$18.00$36.00$65.00$91.00$116.00
60-64$24.00$50.00$94.00$133.00$171.00
65-69$31.00$67.00$128.00$182.00$236.00
70-74$42.00$95.00$184.00$263.00$342.00

 

Monthly AARP Level Benefit Term Life Insurance Rates

AGE$10,000$25,000$50,000$75,000$100,000
50-54$11.00$18.00$29.00$41.00$52.00
55-59$13.00$22.00$38.00$54.00$69.00
60-64$17.00$32.00$58.00$83.00$108.00
65-69$21.00$44.00$81.00$118.00$154.00
70-74$33.00$74.00$141.00$207.00$272.00

AARP Permanent Life Insurance Rates

Monthly AARP Permanent Life Insurance Rates

AGE$2,500$5,000$10,000$25,000$50,000
50$9.00$17.00$33.00$79.00$157.00
55$11.00$21.00$41.00$100.00$199.00
60$13.00$25.00$48.00$118.00$235.00
65$16.00$31.00$61.00$150.00$298.00
70$21.00$40.00$79.00$195.00$388.00
75$26.00$50.00$98.00$242.00$483.00
80$32.00$62.00$123.00$306.00$610.00

Monthly AARP Permanent Life Insurance Rates

AGE$2,500$5,000$10,000$25,000$50,000
50$7.00$13.00$25.00$60.00$119.00
55$9.00$16.00$30.00$73.00$145.00
60$10.00$19.00$37.00$89.00$177.00
65$13.00$24.00$47.00$116.00$230.00
70$17.00$32.00$63.00$155.00$308.00
75$21.00$41.00$81.00$201.00$400.00
80$26.00$51.00$100.00$248.00$494.00

AARP Guaranteed Acceptance Life Insurance Rates

Monthly AARP Guaranteed Acceptance Life Insurance Rates

AGE$2,500$5,000$10,000$15,000$25,000
50$12.00$23.00$45.00$67.00$110.00
55$14.00$26.00$51.00$76.00$126.00
60$16.00$31.00$60.00$90.00$148.00
65$19.00$36.00$71.00$106.00$175.00
70$22.00$43.00$85.00$126.00$210.00
75$26.00$51.00$101.00$151.00$251.00
80$28.00$54.00$106.00$158.00$262.00

Monthly AARP Guaranteed Acceptance Life Insurance Rates

AGE$2,500$5,000$10,000$15,000$25,000
50$11.00$20.00$38.00$56.00$92.00
55$12.00$23.00$44.00$65.00$107.00
60$14.00$27.00$52.00$78.00$128.00
65$17.00$32.00$63.00$93.00$154.00
70$20.00$39.00$76.00$113.00$187.00
75$24.00$47.00$92.00$137.00$227.00
80$25.00$49.00$96.00$144.00$238.00

AARP Young Start Life Insurance Rates

Monthly AARP Young Start Life Insurance Rates

AGE$10,000$15,000$20,000
0-17$5.00$7.50$10.00

Application Process for AARP Life Insurance

AARP offers multiple methods when it comes to applying for life insurance coverage. One of the quickest is through their online website, which allows you to view rates and apply for both membership and coverage at the same time. You can also call and speak with a live customer service representative or even request an application kit by mail.

Just Three Application Questions

The most significant niche to AARP life insurance is their three-question application process. There are no medical exams required any of the life insurance options they offer. Eligibility is based on the answers to three simple application questions. If applying for a Guaranteed Acceptance policy, these questions will not apply.

#1. In the past 2 years have you had treatment for or been diagnosed by a doctor as having heart trouble, stroke, cancer, lung disease or disorder, diabetes, liver or kidney disease, AIDS, AIDS Related Complex, or immune system disorder?

#2. In the past 2 years, for any condition, have you been admitted to or confined in a hospital, sanitarium, nursing home, extended care, or special treatment facility?

#3. In the past 3 months, have you consulted a doctor or had treatment or diagnostic tests or any type? (Note: You are not required to report negative AIDS or HIV tests.) 

AARP will utilize the use of underwriting tools to verify the responses to the application questions and determine eligibility. Answering “yes” to any of the above application questions will disqualify you from one of the level benefit plans.

You can also be disqualified if any of the underwriting reports such as the MIB or prescription check show a conflict with the responses to the application questions. 

Does AARP Offer Any Underwriting Niches?

Every life insurance company has a niche within the insurance market. These niches can be a benefit or feature within the coverage like living benefits, rates, or favorable underwriting toward a specific medical condition. 

With AARP, their niche is, without a doubt, the convenient no medical exam, three-question application process. 

The insurance company is favorable to some health risks as long as it’s not related to one of the questions on the application.

AARP Membership and Other Insurance Options

AARP offers many different products and services besides life insurance policies. The organization has partnered with large insurance companies to provide homeowner’s insurance, vehicle insurance, and various healthcare plans.

  • Life Insurance (New York Life)
  • Long Term Care (New York Life)
  • Dental Insurance (Delta Dental)
  • Vision Insurance (EyeMed)
  • Medicare Insurance (UnitedHealth Care)
  • Auto Insurance (The Hartford)
  • Boat Insurance (The Hartford)
  • Motorcycle Insurance (Foremost)
  • Mobile Home Insurance (Foremost)

Becoming an AARP member also unlocks a wide variety of benefits. Available AARP membership benefits include discounts for car rentals, hotel stays, cruises, shopping, dining, travel, and much more.

We should also mention that AARP offers a massive selection of online games that include Mahjongg, Solitaire, and Word Games. Many of the online AARP games are available to the public but members can enjoy access to additional games that are not available to non-members.

What is the cost of an AARP Membership?

AARP membership is a re-occurring annual fee of $16. It appears that they are currently running a promo in which you can save 25% if you enroll and sign up for auto-renewal. This option would lower the annual cost to $12.

Pros and Cons of AARP Life Insurance

No matter the product you choose, AARP life insurance policies include several useful advantages:

  • Strong financials
  • Simple AARP application process
  • No medical exams whats so ever
  • Guaranteed rates for permanent life policies

No medical exams are one of the benefits of applying for coverage from the New York Life Insurance Company. Your acceptance is based solely on answers that you provide to the health questionnaire.

While AARP programs do not require a medical exam, you still need to provide honest answers to all medical questions. New York Life may request medical information from your healthcare provider or physician.

During the first two years, the company can cancel your policy if the application form contains discrepancies related to your medical history.

New York Life also maintains the highest financial strength ratings. You do not need to worry about the longevity of the company. AARP and New York Life will still be around to pay out your benefits decades from now.

With the permanent life policies, including guaranteed acceptance life insurance, you get guaranteed rates for life. Your premiums never increase.

Along with these benefits, you can enjoy a streamlined application process. You need to answer three application questions.

More Than A Few Negatives About AARP Life Insurance

Despite the many advantages, AARP insurance options come with potential drawbacks:

  • Requires a membership fee
  • Increasing rates for term life insurance
  • Limited death benefits
  • No AARP life insurance for seniors over 80
  • No universal life insurance coverage
  • Not the most affordable company

The first negative to AARP life insurance is the fact you will need to sign up for a membership to buy their life insurance coverage. AARP is one of the only companies that we are aware that does this.

Although membership is very inexpensive and can provide plenty of benefits, we find it odd that it’s part of the requirements of having to purchase an AARP life insurance policy or even any other insurance the company offers.

What we would consider the most significant drawback comes with AARP’s term life insurance policy and the increasing rates. Whenever you reach a five-year age band, your premiums will increase. This may result in higher prices compared to other companies that can offer you a fixed contract for 10, 15, or 20 years.

Quick Tip: Compare rates from multiple life insurance companies, especially ones that offer rates that are locked in for the entire duration of the term contract. Most companies will offer a 10, 15, 20, or even 30 year fixed premium contract lengths. 

The AARP guaranteed life insurance allows coverage up to $25,000. The permanent life insurance policy provides coverage up to $50,000 while the term life offers coverage up to $100,000.

The limited benefits may not appeal to everyone, especially if life insurance coverage is needed to cover smaller final expenses. However, if larger amounts of life insurance coverage are required, AARP will not be able to offer it. 

If you’re a senior over 80 with life insurance needs, AARP will not be able to help you. Permanent plans are only available up to age 80 and the term insurance age 74. There are plenty of highly rated companies can provide coverage past AARP’s age guidelines.

We will also make mention that there are no guaranteed universal life insurance options available as well. 

Lastly, AARP will not always be the cheapest company for life insurance option for seniors. We will admit that they can offer excellent coverage and benefits, but other life insurance companies can do significantly better. We urge that you always compare rates against other top companies as savings can be very significant. 

Overall, these are not significant drawbacks and may not affect everyone. If you choose permanent life or guaranteed life, you get guaranteed rates for life. You can lock in a lower price by applying at a younger age. Of course, you need to be at least 50 years old to apply.

Should You Consider AARP Life Insurance?

Many people get AARP life insurance because it is a recognizable name. The sheer size of the organization means it can afford to do a lot of advertising. By doing so, it puts its name out there making AARP appear to be the most comfortable choice.

AARP’s advertising provides a look at the positives of the organization, and it is an excellent organization in many ways. But when it comes to life insurance, there are many other considerations to take into account.

It is worth your time to compare quotes from other life insurance companies before making your decision, especially if you are healthy and on a budget.

If you don’t want to pay a membership fee, and want to avoid rising premiums, another life insurance company may be right for you.

In the end, the main strength of the AARP life insurance coverage is the simplified application process.

Most of the available policies require no medical exam or waiting period. With guaranteed acceptance and permanent life, you also receive guaranteed rates and benefits for life.

These policies are backed by New York Life, one of the largest insurers in the U.S.

Before deciding on a life insurance policy with AARP, be sure to check out all your options. Work with an agent or agency that can offer you multiple coverage options and companies. These are generally independent organizations such as Top Quote Life Insurance.

If we can assist you in any way, please do not hesitate to reach out to us.

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Jeffrey Manola

Jeffrey Manola

Jeffrey Manola is the owner and an experienced life insurance agent at Top Quote Life Insurance. His goal is to provide online consumers with the absolute top quotes for all term life insurance, permanent life insurance, and no medical exam life insurance. Not only does he strive to provide you with the best premium for your life insurance coverage, but he also wants you to be well informed about life insurance coverage options and its importance. Never hesitate to reach out to Jeffrey if you need help. Top Quote Life Insurance is more than just an online quoting agency. We want to help you save money, protect your future, and earn your trust (888) 777-7574.

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