A master marketer, AARP has grown to over 37 million subscribers. The not for profit organization has a large group of people to sell products to and clearly take advantage of it. I have been on their mailing list myself since I turned 50!!
Now, you should know that AARP is not an insurance company. They don’t pay claims. They do not underwrite insurance. However, they are a marketing and sales organization that showcases life, health and even auto insurance products.
All AARP life insurance is underwritten by New York Life while health (Medicare related) insurance is underwritten by the giant, United Health Care. Oh, yes…automobile insurance coverage is provided by The Hartford.
Today’s life insurance from AARP review will be discussing the products New York Life designed for organization to sell to its subscribers.
Is the insurance anything special?
Do they provide good value for the typical senior citizen?
Are these some of the best offerings on the market for your dollar?
Does the AARP life insurance program really have seniors best interest in mind or is it just fluff to make a buck?
Let’s get started.
Article Quick Links
- AARP New York Life Insurance For Seniors
- No Medical Exam AARP Life Insurance
- AARP Level Benefit Term
- AARP Whole Life Insurance
- AARP Guaranteed Acceptance Life Insurance
- AARP Life Insurance Rates
- Get an Instant Quote From the Top Companies
- Concluding This AARP Senior Life Insurance Review
- Is AARP Life Insurance Good or Not?
AARP New York Life Insurance For Seniors
AARP has a business arrangement with New York Life to provide life insurance to it’s members that wish to pay for it. While the life insurance is offered by AARP to its retired members, it is actually underwritten and administered by New York Life.
There are a total of 4 life insurance offerings to choose from. 3 of them are designed for seniors.
Yes, AARP is paid handsomely for selling these New York Life products to its members. You must be a paying member of the organization to have access to the products as well.
Take note here… AARP is offering 1 life insurance company to all its members, no more.
Should you assume that these offerings are the top notch since they are thru an association for retired people?
I am going firmly state this… no!! Do not jump to that conclusion.
Do you like going to the grocery store and only having 1 choice of everything?
Exactly!! Choice is important. Choice gives you the opportunity to find what is best for you and at a price you can afford.
While burial insurance AARP endorsed may seem to be a good option for seniors, it is far from the top of the heap.
Now, New York Life offers many fine products, but their finest insurance offerings are found only thru career New York Life insurance agents and independent agents/brokers.
No Medical Exam AARP Life Insurance
All the AARP burial insurance policies reviewed today are no medical exam. This makes acquiring life insurance for a senior significantly easier to obtain. No needles and no one visiting you at your home to check your health.
The downside is that coverage will cost a bit more without the exam in place.
Why you may ask?
New York Life simply cannot verify your current state of health without a paramedical exam. As such, they raise premiums for coverage somewhat to offset the additional risk to the insurance company.
No Exam life insurance is not revolutionary and quite common in the industry.
This is an “easy issue” life insurance offering often purchased by seniors who are preparing for defined, end of life expenses.
AARP Term Life Insurance – The”Level Benefit Term” Product
AARP offers 1 term life insurance product.
For review, all term life insurance is temporary coverage regardless of the carrier issuing the coverage. You are “renting” protection for a certain time period after which coverage “terminates.”
The owner of the policy is paying for pure insurance protection only. There is no cash value or return of any premiums in this policy. This is the nature of term life insurance and not exclusive to the AARP term offering.
AARP term life insurance is available with death benefit amounts ranging from $10,000 to $100,000. Higher amounts are available but special approval is required.
As a simplified issue policy with limited health questions, this policy is designed for senior health and ease of qualification. No medical exam is even required. Your answers to some basic health questions will determine eligibility for coverage.
Most people who apply are accepted.
Now, go down below and take look at a AARP term life quote from their website.
Looks pretty great right? Well here is the major problem with this product. It is advertised with the terminology “affordable rate that increases over time.”
Your rates are never guaranteed here folks!! They can still go up beyond the quoted prices every 5 years. That is the minimum it will rise.
Examine the fine print in the snapshot we included below.
Here’s the reality of AARP Level Benefit Term life insurance. This type of policy is rated up in cost every 5 years regardless of your health. In other words, it is not a fixed cost for the life of the policy. You really don’t know what you might be paying as nothing has a written guarantee.
Policies like this frequently become unaffordable down the road. At that point, are dropped in response, when a retired individual’s health may not as good anymore making it tougher and more expensive to qualify elsewhere.
Not displayed clearly is the expiration of coverage at age 80!
We all know plenty of friends and relatives that have lived well beyond age 80. Yes, you are guaranteed the right to purchase another permanent, whole life insurance policy that is endorsed (sold) by AARP (New York Life) to continue coverage prior to expiration.
Problem is…now your older, and they rate your premium based on your age at your attained age at that point in time.
Yes, this is burial insurance AARP has endorsed and regularly sells to seniors.
Big bucks folks!! Whole life insurance gets expensive at age 80 particularly for men.
I know this because I broker a lot of life insurance companies.
You will have some hard decisions to make at this point. It is going to be a lot more costly!!
Ladies and Gentleman, we have worked with plenty of very upset people over this policy. We know the complaints all to well.
Anything other the guaranteed level term life insurance is a low grade policy to start with and should be avoided regardless of the initial teaser rates.
The world hasn’t become less expensive to live in.
Why would we want a policy that goes up in price as the cost of living increases? Most seniors we work with are on a fixed income.
That is a double whammy!!
Most of the “upset people” that purchase policies like this do not understand what they bought from the AARP representative. Typically, the are pitched the initial low price and that is all they hear.
The value of the premiums paid over time needs to be carefully considered. While the death benefit stays level, the premium is anything but level.
The trouble continues when this policy expires promptly on your 80th birthday.
How many people do you know that live to 80+. Personally, I know a lot. Average life expectancy for women is about 80.
My own Mom is still cooking along in her 80’s.
Trying to buy permanent life insurance at that point is very expensive to lock in as the odds are multiple health issues have have now reduced your options.
AARP does give you option to convert to a NYL Whole life policy based at age 80, but it is not competitive cost wise at all.
Reputable life insurance agents and agencies refuse to market policies like this. This is bottom of the barrel life insurance laced with policy limitations.
I’m sorry, but it is nothing short irresponsible of AARP to market junk like this as final expense or burial insurance.
My advice… AARP Term life insurance should be disregarded if you are planning for final expenses a funeral or a burial policy.
Never, never, never!!
There you have it…the three N’s.
The reality is, quality term life insurance is for a completely different application and beyond the scope of this article.
Isn’t dependability for your loved ones most important?
Ask yourself about this before purchasing any life insurance.
To be fair we have provided a AARP term life insurance quote in a chart below.
AARP Permanent Life Insurance – Whole Life Insurance
Now this is a product designed to better get the job done for seniors.
People are just simply living longer aren’t they?
Modern medicine has a lot to do with it.
AARP Permanent life insurance offers a lifetime of protection and a guaranteed level premium for life.
Take a look at rates on the AARP Whole Life Insurance sample below.
While it may not have your exact age and ideal benefit amount, it gets you an idea and basis of comparison. You can obtain coverage all the way up to $50,000 and still have no medical exam.
Full benefits are available upon acceptance. In other words, there is no waiting period for full coverage. Your eligibility for this policy is simply determined by health questions during application. This is a quality policy designed for seniors. Further, the premium cost will never change and your benefits never go down regardless of your health over the years.
This permanent, whole life policy is another simplified issue policy in which most seniors who apply will be accepted.
As a general rule, most seniors can qualify for simplified issue whole life insurance like this by selecting an independent life insurance agency. You may or may not qualify this this particular product sold by AARP. It will have specific health questions to qualify you for coverage.
Anyway, higher coverage amounts may be requested, but require additional approval before application can be made.
This AARP New York Life policy will accrue cash value, but will be limited in that regard.
We do not recommend the use of the the cash value in these policies as it will decrease the payout to the beneficiary upon your death if the cash value is not repaid back into the policy prior to passing.
This is a better product for seniors without a doubt. You will know exactly what you will be paying per month for the protection. The cost will never change regardless of your health and you cannot outlive the benefits.
My evaluation…acceptable and a good type of coverage for a senior who is looking for burial insurance or the like.
The policy is a no exam application so it is very easy to apply for.
With that said, you should know…
The con…it is quite expensive compared to the other top life insurance carriers on the market. This policy is a standard, simplified issue whole life policy. There are a lot of carriers out there to obtain to obtain the best rates and coverage for you.
There are much better values out there for your money.
Our recommendation, fill out the instant final expense quote tool on this page. Select “Excellent Health” under the “Health Class” and you will see why the coverage is not competitive.
AARP Guaranteed Acceptance Life Insurance
Ok, here is where life insurance can get a bit pricey for a good number of seniors. While this product is a permanent, whole life insurance product, it has some limitations you should be very aware of before even considering the product. First of all, this is pure, high risk life insurance.
With the AARP guaranteed acceptance coverage, this whole life policy will accept anyone regardless of health.
As a side effect of a no questions asked policy…
It means it is the most expensive type of policy to buy. The insurer has very, very little information about you and as a result, are taking a significant gamble.
Look below for the rates on the guaranteed acceptance product. For those who have checked with a professional independent agency like Special Risk Life and could not qualify medically, this type of coverage can be a saving grace. If you have a terminal condition with less than 2 years estimated to live, this is all you probably qualify for. You would need high risk life insurance.
This particular burial insurance policy AARP markets is a guaranteed issue policy. It is also a permanent, whole life insurance policy which means you cannot outlive the benefits. Your premiums can never go up nor will the death benefit go down. The exception to this… any cash value is borrowed from the policy and not repaid.
Beyond the higher premium…
A key point to remember. This policy will not cover any insured person for natural death the first 2 years.
Any guaranteed acceptance whole life policy has what is called “limited” benefits the first 2 years.
During this “limited” waiting period, if natural death occurs to the insured, the beneficiary would receive a refund of paid premiums plus compounded interest. Some carriers will pay up to 10%.
Now, it is extremely easy to qualify for, but does that help your loved ones handle the financial stress brought on by death if something happens the first 2 years?
Would you have peace of mind buying this policy?
The AARP guaranteed acceptance life policy is also capped at a maximum death benefit of $25,000.
After the 2 year limited waiting period expires or if accidental death occurs, full benefits of the purchased policy will be available.
AARP Life Insurance Rates
Permanent Whole Life Insurance
Guaranteed Acceptance Whole Life Insurance
Rates For Men
Rates For Women
Get a Quote From Special Risk Life Insurance
Take the time to use our instant quoting tool. It will take you a minute or so, but you will see how overpriced these AARP policies are on an apples to apples basis.
Unless you have a very, very serious medical situation, select “Excellent Health.” 90% of seniors, regardless of age, qualify for the best offerings from these premium senior carriers.
If you just want to zero in and see if you qualify give us a call or you may proceed in your instant quote of requesting to apply online.
Folks, there are numerous life insurance companies that just have better products and much better rates.
Either way, now you have shopped rates and type of coverage among the top life insurance rates for senior coverage.
As you found out, AARP New York Life coverage did not fair well.
To top it off, I can’t tell you how many seniors each day I speak with that are upset with the mistake they made in their purchase.
Food for thought ladies and gentleman.
Don’t assume you can’t qualify for simplified, medically underwritten senior whole life insurance with full, immediate and level premiums for There are other insurance companies that will help you save your hard earned money.
All life insurance companies have different standards and medical questions used to compete with each other and earn your business. Let a professional sort this out for you.
A real, licensed professional can do the final shopping for you…free.
Conclusion to Our AARP Senior Life Insurance Review
You’ve probably sensed my bias against the Guaranteed Acceptance Life Insurance offerings.
Honestly, it not that I don’t like it, it is a very “over prescribed” product in the vast majority of health cases we come across.
We are in the high risk life insurance market daily!! We offer the product from several life insurance companies.
Seniors are not clearly explained the limitations nor how much extra they are paying for this policy. Roughly 90% of our clients qualify for lower rates with a standard, simplified issue whole life policy with full, immediate benefits.
There are times when Guaranteed Acceptance life insurance is absolutely needed. You don’t buy it unless there is no better solution. It has a significant limitation those first couple years coupled with a high premium comparatively.
I’m sure you understand that having no medical questions in an application raises the rates way up!!
The policy sounds great when you don’t know the facts and have not heard about all the other options to save money and get more benefits.
If you have a terminal condition and need Guaranteed Acceptance life insurance, Gerber Life or AIG usually have the best rates. Go here to get more information or use the Life Insurance Quoting Tool on this page. Run some free quotes on yourself and experiment with the “Health Class” menu. Run it one time with “Poor Health” which locks in Guaranteed Acceptance insurance and then run “Excellent Health” the second time around. This will put you in the typical 90% of senior clientele of ours.
Make sure you use the same benefit amount in each try.
Thumbs down on the AARP term life insurance policy.
Obtaining a AARP term life insurance quote is easy enough when you look at the chart above. Just remember, those rates are going to up until the policy expires on you.
This specific product is not for seniors at all. Does not matter what they advertise or tell you. You are being teased with the low, initial teaser rate to hook you!!
As a company, we hear nothing but disappointed to very angry people who dropped the coverage after they have had it a few years. It goes up every five years and expires at age 80. Many seniors drop it when they need it the most.
Again, how does that help our loves ones in our absence?
Avoid this product!! You were warned here. Too much negative feedback from former AARP customers regarding their experience.
Clearly, AARP’s best offering is their permanent, whole life product which is just a simplified issue whole life insurance policy with limited health questions.
While overpriced, it is still standard whole life coverage, the meat and potatoes of senior burial insurance policies.
It offers full benefits upon acceptance. A good majority of applicants will qualify…regardless of being in their “golden years.” Keep in mind, this product is senior oriented and forgiving of common health issues at the very least. There is no medical exam required.
If there is a downside to the AARP/NYL branded policy…it is not very competitive. You can get the same policy elsewhere and save a lot of money over the years offered by a top life insurance carrier.
Is there any reason you would want to pay the AARP life insurance cost?
Get more information about how to save money on no exam, senior life insurance and avoid paying for policies that are not in your best interest.
Am I saying you should go cancel your life insurance from AARP? No, but I suggest looking at better offers on the market especially if you have or are considering the AARP “level benefit term” offering.
Wrapping up, I cannot give a thumbs up to any of these products.
These AARP offerings leave something to be desired. The value of ownership is just not there.
Either they are not priced competitively or are not true burial/final expense insurance products.
New York Life Insurance tends to have some higher rates than some other life insurance companies, but those particular products are value driven and offer a bit more for the premium paid.
NYL premium life insurance products are not available thru AARP either.
As you comb thru other AARP life insurance reviews, remember that the association makes good money off the sale of these policies. It is mind boggling how much. This is at your expense and you are not receiving a premium policy in exchange.
Are they really working in your best interest if there are numerous better options out there?
According to Forbes, in 2012, AARP supported Obamacare’s cuts to Medicare benefits.
AARP managed to make 2.8 billion thru doing so.
Yes, 2.8 billion!!
Be advised, AARP has some very, very high paid people running the “not for profit” company it claims to be.
The product offerings provided to its paying members are proprietary products marketed only by AARP and its sales force.
The A A R P life insurance program does work directly with NYL to provide coverage. However, New York Life offers its best, premium products outside AARP thru its captive and independent agent network.
New York Life does offer some excellent products, but the offerings reviewed here are not in the same class.
Be careful what you are buying. Life insurance is not apples to apples like many assume.
We all want to buy the right coverage don’t we?
Carefully consider what you are purchasing before assuming it must be a good burial insurance product for you since AARP endorsed it.
It means nothing folks.
Is A A R P your friend in your life insurance quest? In the opinion of this independent life insurance agent and writer, no.
Is AARP Life Insurance Good?
Our Special Risk Life Grades:
AARP Term Life = “F”
AARP Whole Life and Guaranteed Issue Whole Life = “C”
Look elsewhere folks.
Get yourself a good independent agent/broker for starters. You will do a lot better and have all your options in front of you instead of disappointing, overpriced products from 1 company.
Hope this article has helped you make the best decision for yourself. Please feel free to comment below, continue exploring our site, or simply call to get your questions answered. We’re here to help. 800-598-6445
Special Risk Life is a veteran independent life insurance agency that specializes in guiding people with even the toughest health conditions thru the life insurance process. We are very passionate about helping people get the financial protection they want while delivering affordable coverage people can absolutely count on.