aarp life insurance review
aarp’s life insurance program through new york life offers coverage to seniors who have pre-existing medical conditions or who would have difficulty obtaining life insurance elsewhere. None of AARP’s policies require a medical exam, so unless you have a significant medical condition, you’ll likely find whole life and term life insurance premiums elsewhere that are much lower.
If you’re a senior looking specifically for no medical exam or guaranteed acceptance coverage, AARP provides reasonable quotes for permanent life insurance. however, death benefits are limited to less than $50,000, so you’ll need to look elsewhere if your family needs additional financial protection.
Reading: How much is aarp life insurance
aarp life insurance products
aarp and new york life offer group term and whole life insurance policies for seniors, as well as whole life insurance coverage for minors. all of their policies are simplified issue or guaranteed acceptance, which means there are no medical exams and coverage is issued very quickly. The downside to this is that insurers assume applicants are at higher risk and therefore charge significantly more expensive premiums.
You should also note that these policies are only available to AARP members (meaning you must be at least 50 years old to qualify) and membership can cost anywhere from $12 to $200. 16 per year, depending on your payment method.
term life insurance with aarp level benefits
Unless you have a significant pre-existing condition and doubt your ability to pass a medical exam, we would not recommend AARP Level Term Life Insurance through New York Life. premiums are incredibly high and increase over time (unlike “level term” policies, “level benefit” means the death benefit stays the same while rates increase), and coverage ends when you turn 80.
aarp offers term life insurance coverage for members ages 50-74, and policies can be converted to a permanent life insurance policy at any time during coverage. Term life insurance death benefits only range from $10,000 to $100,000, which means you may not be able to cover larger financial obligations, like a mortgage. AARP’s term death benefits are limited, in part, because its policies don’t require a medical exam to get coverage.
To demonstrate, let’s say you’re a 60-year-old man who wants $100,000 coverage for 15 years. With the new york life aarp program, he would pay three different premiums during that 15-year period:
We compare this to quotes for a $100,000 15-year term policy from New York Life and five other major life insurance companies. As you can see below, whether you’re in good health, average, or even a smoker, AARP term life insurance from New York Life is significantly more expensive.
While AARP’s term life insurance rates are incredibly high, they are competitive with other no-exam policies for some health profiles. however, you still need to shop around and get multiple quotes. Depending on your age, height-to-weight ratio, tobacco use, and health responses, medical exam quotes for term life insurance can vary significantly. Using the example above, a 15-year, $100,000 term policy without medical exam for a 60-year-old would cost:
AARP whole life insurance without medical exam
Permanent life insurance policies, particularly those without health insurance, consistently have higher premiums. Given this, we also would not recommend AARP and New York Life simplified issue whole life insurance unless you have a pre-existing condition that prevents you from passing a medical exam. however, if you are a senior and have had a medical condition for more than 2 years that is well controlled, such as diabetes, your whole life insurance policy is a good option.
AARP’s No Medical Exam Whole Life Insurance Policy is a form of final expense insurance (also called burial insurance), in that the amount of coverage available is typically sufficient to cover end-of-life expenses . AARP’s whole life insurance policy offers between $5,000 and $50,000 as a death benefit and is available if you are between the ages of 50 and 80. While this is enough to cover a funeral and minor debts, it probably won’t be a large enough death benefit to cover your mortgage. therefore, if you have large outstanding debts, you may want to consider other insurers.
In addition, AARP Permanent Life Insurance includes two riders that offer financial assistance in the event you become disabled or ill:
- premium waiver if you have a disability or illness that requires you to stay in a nursing home, you will not have to pay premiums for your entire stay (or until you turn 80, whichever comes first). just keep in mind that premiums are only waived after you’ve been in the nursing home for at least 6 months.
- accelerated death benefit if you are 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 living .
- is available if you are between 50 and 80 years old
- You no longer have to pay the premium once you turn 95, as long as the coverage remains in force
- no medical exam
- if you are terminally ill, you can receive up to 50% of the death benefit while you are alive
guaranteed acceptance of the aarp whole life insurance program
aarp and new york life also offer guaranteed acceptance whole life insurance, although this option is not available in new jersey or washington. AARP’s Guaranteed Acceptance Policy is similar to its No Medical Exam Policy in that:
A key difference is that their guaranteed acceptance policy only offers between $2,500 and $25,000 of coverage. Also, if you die during the first two years of coverage due to an accident, your beneficiary will not receive the full death benefit. instead, they will receive 125% of the value of the premiums they had paid up to that point. waiting periods are fairly standard for guaranteed acceptance coverage, as insurers want to avoid large payouts in the event terminally ill patients enroll.
While AARP Guaranteed Acceptance Coverage offers competitive rates, if you are not already a member, you do not need to join AARP to gain access to this product. As you can see below, AARP quotes are on par with competing policies with nearly identical features that don’t require any membership.
aarp children’s whole life insurance
AARP’s Young Start Program allows you to purchase whole life insurance coverage for a child or grandchild under the age of 18. there is no medical exam and the policy builds a cash value, similar to your standard whole life policy. , but there are only three levels of coverage:
This type of policy is generally intended to protect parents and family members from the costs associated with the premature death of a child. however, aarp’s policy is different from those offered by other insurers in that coverage does not stop when the child reaches the age of majority (turns 21) and premiums are flat 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.
also, if you die, the child or grandchild will not have to pay premiums to keep coverage in force until they turn 21. at that time, premium payments will continue to be based on the amount of coverage. initially purchased.
AARP life insurance reviews and complaints
aarp life insurance policies are underwritten and administered by new york life, an insurer with an a++ (superior) financial strength rating for life insurance companies from a.m. best. however, the new york life with aarp program receives a significant amount of criticism regarding its handling of claims.
To reduce problems, be sure to carefully read all questions on the AARP and New York Life application and answer them as honestly and completely as possible. You must also give your beneficiaries access to a copy of the policy and all payment records. Finally, let your beneficiaries know that they will be better served by contacting AARP directly if they have any problems during the New York Life claim process.
To compare the cost of aarp/new york life insurance with its competitors, our editors compiled sample rates for aarp/new york life term and guaranteed acceptance whole life policies, as well as from the main competitors in each category. We consider rates for seniors in a variety of ages and health levels, even if the insured person smokes or not.
To evaluate AARP/New York Life’s service, ValuePenguin considered online customer reviews from around the web. We also consider the financial strength rating of a.m. best, which describes the company’s overall financial health and its ability to pay claims.
Guaranteed acceptance quotes were collected directly from each insurer’s website. term life insurance quotes are pulled from compulife, a software subscription.