A master marketer, AARP has grown to over 37 million subscribers. The not for profit organization has amassed a very large group of people to be marketed to. I have been on their mailing list myself since I turned 50!! In this post, you will get an AARP life insurance review from a professional agents point of view.
Now, you should know that AARP is not an insurance company. They don’t pay claims. They do not underwrite insurance policies. However, they do license the use of the AARP name to bidding insurance companies who wish to offer a insurance product to the members. This allows the insurance company to brand their insurance policy with the AARP name and logo on it. AARP may or may not endorse the specific product but it does allow life, health and even auto insurance products from particular insurance companies to be marketed to its members. Those people who purchase the AARP branded products will be required to pay $16 a year to maintain a membership status with the organization to purchase this life insurance.
Insurance companies pay heavily for permission to use the AARP brand name on their products. One company is awarded the use of the logo. AARP life insurance for seniors is underwritten and offered by New York Life. Health (Medicare related) insurance is underwritten and offered by United Health Care. For your car… automobile coverage is provided by The Hartford. Each of these insurance companies have their own licensed sales people that sell these insurance products to members of the AARP association.
Today I will be putting the 3 AARP labeled life insurance offerings from New York Life under the microscope.
We are evaluating life insurance for senior needs here, giving both facts and our opinion on these 3 products as a licensed, independent life insurance agency.
Just a heads up to any AARP members…you are going to get the truth in this review. Don’t take anything personally but don’t assume that these policies are anything special either.
If a product is low quality and/or overpriced, we will highlight it. I’m not here to be a nice guy, just call as I see it as a very qualified, seasoned professional in the life insurance business.
The following questions will be answered:
- Is this life insurance product anything special?
- Do the products provide good value for the typical retiree on a fixed income?
- Are these among the best offerings on the market for your dollar?
- Do the AARP life insurance plans really have seniors best interest in mind or is it just fluff to make a buck?
Let’s get started.
AARP Life Insurance For Seniors
There are a total of 3 policy offerings available with AARP New York Life Insurance program. 2 of them are designed for senior end of life expenditures. These 2 are based on whole life insurance. Be aware, the 3rd product is not designed is NOT for final expense, end of life needs. This particular policy expires at the 80th birthday of the insured individual.
This outlier product is a term life insurance policy that includes increasing premiums in 5 year rate bands until expiration is reached.
Yes, AARP is paid handsomely for licensing its brand name to New York Life.
Should you assume that these offerings are top notch?
I don’t think so. Reading reviews about AARP life insurance is going to make this clear. I think the tendency of AARP members is to assume the association is “looking out for seniors.” This is where seniors get blindsided. It is New York Life insurance, not the associations product.
Most insurance companies do not like to pay licensing fees or high paid, celebrity endorsers. It ultimately raises the price of their products. This makes it harder for them to compete against other insurers that offer the same products thru other channels. As a business, the insurance company inevitably charges marketing expenses to the consumer one way or another. New York Life offered AARP the highest fee for the use of the AARPNYL name on 3 products in their total portfolio.
Got a question for you.
Do you like going to the grocery store and only having 1 brand of everything?
Think I know how you would answer that question.
Choice is important. Choice in life insurance gives you the opportunity to find what is best for you and your overall health at a price you can afford.
New York Life offers many fine products. However, the AARP life insurance for seniors isn’t among their finest insurance policies.
AARP No Medical Exam Life Insurance
Easy issue, no exam life insurance is quite common on the market. Often it is a very good option for people in less than very good health or those who need a smaller policy amount. All 3 AARP life insurance policies are no medical exam products. This makes acquiring life insurance for someone age 50-80 significantly easier to obtain. No needles and no one visiting you at your home putting you on a scale or sending you into your bathroom with a cup. No medical exam life insurance is very popular with consumers 50-85 for final expense planning.
The only downside is that coverage will cost more without a paramedical exam requirement.
Why you may ask?
The insurance company cannot verify your current state of health without a paramedical exam. In other words, they don’t get to know as well to better assess you as a overall risk. As such, they raise premiums to offset the uncertainty.
No Exam life insurance is not revolutionary and quite common in the industry. It is very easy to apply for and approvals can come very quick, depending upon the insurance companies applications process.
The AARP Term Life Insurance Policy
AARP Level Benefit Term Life is the only term life insurance option for association members.
If you were not aware, term life insurance is temporary coverage. You are “renting” life insurance protection for a certain time period, after which the coverage and/or the pricing “terminates.”
The AARPNYL term insurance plan from New York Life expires promptly on your 80th birthday.
If the policy expires prior to the insureds death, the beneficiary(s) receive nothing.
The owner of a term policy is paying for pure life insurance protection only. There is no cash value or return of premiums in this policy.
AARP level benefit term life insurance is available with death benefit amounts ranging from $10,000 to $150,000. Higher amounts are available but special approval is required.
As a simplified issue policy with limited health questions, the term life policy is designed to accommodate less than ideal health which can help with ease of qualification. Your answers to some basic health questions will determine general eligibility for coverage.
Most people who apply are accepted.
Now, go down below and take look at the AARP term life quotes from their website from 2020.
Looks pretty great right? Well, until the shocking facts come out. Notice: It is advertised with the terminology “affordable rate that increases over time.”
Your rates are not guaranteed here folks!! Those rates will also go up on you in 5 year age bands. Yes, unlike guaranteed level term life insurance, the rates do not stay fixed. So yes, you will have rate increases on this policy.
Examine the fine print in the snapshot we included below.
If you know your needs only require term life insurance, we advise you to get an instant comparison quote of the top term life insurance companies and rates for seniors.
Here’s the reality of AARP Level Benefit Term life insurance. It starts off at age 50 being affordable only to go sky high at age 75. Not good timing. The New York life policy increases in cost every 5 years regardless of your health until it expires. You really don’t know what you might be paying, just an estimate. Nothing has a written guarantee except the face amount (death benefit).
This policy is a bit deceptive in my opinion. When the insured turns 75, the policy get expensive. AARPNYL term life insurance policy owners tend to drop the policy at this point. So now whole life is there only choice based on advanced age and likely declining health. Whole life is now more expensive than it would have been if it had been purchased alternatively to the term life plan. Whole life insurance does not go up in price once your purchase your policy.
When the AARP branded policy expires on your 80th birthday, often it becomes very difficult to qualify for life insurance.
Yes, in this term policy you are guaranteed the right to convert your term policy to a permanent, NYL whole life insurance policy. This however must be done before expiration. The pricing at that time will be based on your advanced age. This will lock your premium for life.
Important note: Having experience helping a few unhealthy people convert their NY Life AARP life insurance policy to whole life insurance, I’ve found the rates to be very high. Be warned!
Whole life insurance with New York Life gets very, very expensive at age 75 particularly for men. Do you expect your health to be the same at 75 or 80 compared to age 60 or 65?
If you fail to act before the conversion expiration date, you would be required to qualify again based on your health in which case, you may be declined for coverage with the AARP life insurance plans.
You will have some hard decisions to make at that point. It is going to be a lot more costly!!
Ladies and Gentleman, at Special Risk Life Insurance, we have worked with plenty of very upset people over this AARP life insurance policy. We know the complaints all to well.
Final Expense life insurance should be whole life insurance from the very beginning. Lock the rate and your best health in for your lifetime to protect your loved ones.
Any term other than guaranteed level term life insurance is a low grade life insurance policy to start with and should be avoided regardless of the initial teaser rates.
The world hasn’t become less expensive to live in. Plan for the future. Is it worth saving a few bucks each month only to pay thru the nose at age 75 and beyond?
Do you 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!!
Where do consumers go wrong with this policy?
Typically, they are attracted by the initial low price but don’t understand expiration or the rate increases built into the policy. Some folks thought they could by whole life insurance later, if they needed it. Problem is, now their health declined and it is considerably more expensive due to advanced age.
Folks, regardless of the company, life insurance gets more expensive to apply for as you age. It is not like automobile or homeowners insurance. There are consequences for choosing the wrong type of life insurance the first time around. Work with a independent agent or broker who can get you the protection your family needs.
Continuing on…
The value of the premiums paid on this AARP term policy over time needs to be considered. While the death benefit stays level, the policy premium is not level and can really bleed your wallet over time.
How many people do you know that are age 80 or more? Personally, I know a lot! Average life expectancy for women is about 80.
My own Mom is still cooking along in her 80’s.
This is a ticking time bomb policy often expiring worthless.
Trying to buy permanent life insurance at age 80 can be expensive even if your health is still pretty good. Most elderly people must face the odds that multiple health issues will reduce your options with insurance companies.
Reputable life insurance agents and agencies refuse to market policies like . This is bottom of the barrel life insurance laced with policy limitations that often penalize seniors.
I’m sorry, but it is nothing short of irresponsible to market junk like this as final expense or burial insurance. Term insurance is NOT for final expenses. Term life insurance is for the “what-ifs” in a defined period of time.
The reality is, quality term life insurance is for completely different applications and beyond the scope of this article.
Isn’t lifetime dependability for your loved ones most important? Is an expired policy sitting in a drawer beneficial to the family?
Ask yourself before purchasing any life insurance. Why am I doing this?
To be fair we have provided a AARP term life insurance quote in a chart below. Rates a little outdated for 2023 but you will get the point.
Let’s start looking at the different NYL AARP life insurance plans below.
AARP Whole Life Insurance No Medical Exam Policy
Now, this is a product designed to get the job done for seniors. AARP Permanent Life Insurance is the best burial insurance product they offer to 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 the 2020 rates on the AARP Whole Life Insurance sample below.
While it may not have your exact age and ideal benefit amount, it gives you an idea and basis of comparison. You can obtain coverage all the way up to $50,000 and still have no medical exam. This policy will not expire since it is whole life insurance. Regardless of when you pass, the policy will pay benefit amount to your loved ones.
Full benefits are available upon acceptance. In other words, there is no waiting period for full coverage. You can apply as a member thru age 80. Beyond that, your eligibility is determined by health questions in the application.
This is a quality policy designed for for the lifetime of any senior. Further, the premium cost will never change and your benefits never decrease regardless of age or your health.
This permanent, whole life policy is also “simplified issue” in which most seniors who apply will be accepted.
As a general rule, most applicants can qualify for simplified issue whole life insurance though this New York Life product may not be able to accept your health while another insurance company will give you the same benefits and quality in their policy.
Higher coverage amounts may be requested, but requires additional approval before official 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 cash value inside these whole life policies as it will decrease the payout to the beneficiary if it is not reimbursed to the policy.
This is a better product for seniors without a doubt. You will know exactly what you will be paying each 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’s: AARP Permanent Life Insurance is quite expensive compared to the top life insurance carriers on the market. This policy is a standard, simplified issue whole life policy. There are a lot of life insurance carriers out there that will offer you the same policy with much better pricing.
So with that said…
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 AARP whole life insurance rates are not competitive very quickly!!
AARP Guaranteed Acceptance Life Insurance Policy
Ok, here is where life insurance can get pricey for many seniors… AARP Easy Acceptance Life Insurance. This is the most expensive product of the 3.
I will explain why.
This product is a permanent, whole life insurance policy that does not ask any health history questions. Most of the time, this does not work in the policy owners favor nor that of the beneficiary.
As a result, it has some very significant limitations you should be clear on.
First of all, this is pure, high risk life insurance.
With AARP guaranteed acceptance life insurance, all qualified individuals regardless of health and can legally consent to the coverage on their own, can be insured. Again, there are no health questions asked.
A side effect of a “no health questions” policy is…
A limited benefit period of 2 years in which natural death is not fully covered. If a natural loss of life occurs to the insured, all of the premiums plus and interest factor will be paid to the policy beneficiary.
All guaranteed acceptance policies has no health questions and a minimum of 2 years with limited benefits.
Why?
The insurer has very, very little information about the insured person. As a result, are taking a significant gamble. Not knowing anything about the insureds health removes the best tool they have for evaluating their applicant.
Look below for the rates on the AARP Easy Acceptance Life Insurance 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 guaranteed acceptance life insurance. There are several reputable carriers that offer this type of policy.
AARP Easy Acceptance Life Insurance 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 regardless of age or declining health. The one exception to this… any cash value that the policy owner borrows from the policy and not repaid.
Beyond the higher premiums…
A key point to remember… This policy will not cover the insured person in full for natural death during the first 2 years.
Any guaranteed acceptance whole life policy (AARP Easy Acceptance Life Insurance) 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. Many carriers will pay 10% interest. If you paid $100/month for 12 months and died due to a natural cause, your family would receive $1200 + the interest as your death benefit. After 2 years, the policy will be paying the full death benefit.
All life insurance will cover you immediately for accident death in the full amount of the policy.
Now, it is extremely easy to qualify for a guaranteed issue policy but does that really help your loved ones handle the financial stress brought on by death if something happens in those first 2 years?
Would you have peace of mind buying this AARP life insurance plan just because there are no health questions?
Our recommendation is to leave this type of whole life insurance as “Plan B” if you cannot get covered medically.
The AARP guaranteed acceptance life insurance capped at a maximum death benefit of $25,000. Applicant thru age 80 can get a policy.
AARP Life Insurance Quotes (2018)
Level Benefit Term Life Insurance Rates
AARP Term Life Insurance Quotes For Men
AARP Term Life Insurance Quotes For Women
Permanent Whole Life Insurance Rates
AARP Whole Life Insurance Quotes For Men
AARP Whole Life Insurance Quotes For Women
Guaranteed Acceptance Whole Life Insurance Rates
AARP Guaranteed Acceptance Life Insurance Quotes For Men
AARP Guaranteed Acceptance Quotes For Women
Life Insurance For AARP Members Only
NYL only offers these 3 specific life insurance plans to members of AARP. If you are not already a member, you will have pay your membership to apply for any of the life insurance policies.
Any Life Insurance For AARP Seniors Over 80?
No.
If you did not purchase a permanent, whole life insurance policy from AARP/NYL prior to turning age 81, you are ineligible to apply for any of the 3 policies. No worries, we’ve got you covered. Working with seniors 80+ almost daily looking for affordable whole life insurance (lifetime coverage), we have several companies who can offer life insurance protection. You can either give us a call at 269-230-3464 or use our instant quoting tool on this page to see the best rates on the senior insurance market. If you are in decent health for your age, use “Excellent Health” to bring up the best plans and rates you may qualify for even over age 80!
Get a Quote From Special Risk Life Insurance
If you’re visiting our site today looking into AARP/NYL life insurance rates and policies, have you taken the time to shop the complete life insurance market? If not, what is stopping you? Take the time and 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. Our tools allow you to see whole life insurance pricing and level premium, term life insurance which does NOT increase in price during the entire term of the policy.
For the whole life quoting tool…unless you have a very, very serious medical situation, select “Excellent Health.” 85% of people 50-85, yes including seniors, pre-qualify for the best offerings from these premium carriers.
If you just want to zero in and see if you pre-qualify give us a call or you may proceed in your instant quote by 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. These products with the AARP licensing and logo are from New York Life. This is one life insurance company out of hundreds. Is there any reason why you believe they may be the best to protect your family?
To top it off, I can’t tell you how many seniors 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. There are other insurance companies that will help you save your hard earned money and offer you financial protection for those you care about the most.
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 shopping for you…free.
Ny Life AARP Life Insurance Review in Conclusion
You’ve probably sensed my bias against the AARP Guaranteed Acceptance Life Insurance offerings.
Honestly, it’s not that I don’t like it, it is simply an “over prescribed” product in the vast majority of health cases we come across. In other words, unnecessary for the 85-90% of applicants.
At Special Risk Life, we are in the life insurance market daily working with people 50-85 who rarely need this limited, expensive policy. For those who ultimately do, there are carriers such as Gerber Life and AIG with the same no exam, no question, guaranteed acceptance policy at a much lower price.
Many of our callers don’t understand the limitations of “guaranteed acceptance” nor how much extra they are paying for this policy. The vast majority of our clients qualify for lower rates with a standard, simplified issue whole life policy with full, immediate benefits.
There are situations where Guaranteed Acceptance life insurance is absolutely needed. Do yourself and your family a favor, don’t buy it unless there is no better solution. The higher pricing and 2 year limited benefit period takes all the air out of it even. Please, do not try to self assess yourself unless you have been diagnosed with a terminal illness or have recently told you have internal cancer. (Prostate cancer is an exception in some cases)
I’m sure you understand that having no medical questions on an application raises the rates up!!
Why?
Simple answer: Insurance companies cannot evaluate the risk profile of the insured without health info so they have to assume the risk is very high.
The policy sounds great when you don’t know the truth.
If you have a terminal condition and believe you need AARP Guaranteed Acceptance life insurance, take a pause. Gerber Life or AIG usually have the best rates. Use the Final Expense Quoting Tool on this page. In the “Health Class” drop down menu, select “Poor Health.”
Make sure you use the same benefit amount in each try and remember the mandatory 2 year (or more) limited benefit period.
Thumbs down on the AARP term life insurance policy.
Obtaining an AARP term life insurance quote is easy enough when you look at the chart above. Just remember, those rates are going to rise until the policy expires on you. The age brackets are in 5 year increments. Rates are not locked. There are no guarantees on the cost. Review the fine print again as needed for clarity.
Offering a term life insurance plan such as AARP life insurance for seniors does the organization a disservice. Does not matter what they advertise or tell you. Why they licensed and approved NYL to offer such a low tier life insurance policy to retired people is mind boggling.
People are being teased with low, initial teaser rates to hook you. By the time you hit 75 the price is ridiculous and you may have been paying for the last 20+ years.
And…
It simply is not good for final expense protection. Not only does the price go up on you in 5 year age bands, but it EXPIRES on your 80th birthday, automatically!
As a company, we regularly hear from disappointed or very upset people who dropped the coverage after they have had it a few years. Seniors on a fixed income drop it when they need it the most which is typically age 75. Again, the rates go way up at that point, until expiration.
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 life insurance policy with some health history questions. It is still a no exam, simplified medical underwriting policy that the average senior can qualify for.
While still very overpriced, it is first day whole life coverage, the meat and potatoes of senior burial insurance policies. This policy will offer the best benefits of the 3 for you and your family.
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.
If there is a downside to the AARP/NYL branded whole life policies…they are not very competitive.
Sorry folks, AARP life insurance products for seniors offer nothing special.
You can get the same or even a better policy elsewhere and save a lot of money in the process.
And…
Yes, these alternative products are from top life insurance carriers.
Is there any reason you would want to pay the AARP life insurance cost?
Is AARP NYL Life Insurance Legit?
Yes.
New York Life has been in business since 1845. They are the insurance company offering the AARP branded policies to members. If you are asking this question, I would suggest you give us a call. Don’t put try to put a square peg in a round hole. All life insurance companies are legit but some of the policies they offer may NOT be the right policy at a fair price. Apples are not apples with life insurance policies.
I have no reservations about writing business with New York Life on their better products. These 3 we reviewed today are average to poor.
In our AARP life insurance review for seniors, we hope you have learned how to select the right policy and save money on no exam, senior life insurance thereby avoiding policies that are not in your best interest. It starts with working with the right people.
Am I saying you should go cancel your life insurance from AARP? No, but I do suggest looking at better offers on the market especially if you have or are considering the AARP level benefit term offering. Between the AARP term insurance and Globe Life replacements we’ve done, we know seniors complaints only too well. .
These policies all leave something to be desired. The value of ownership is just not there. Other companies easily supplant them frankly.
Wheter they are not priced competitively or are not senior burial/final expense insurance products (AARP term life insurance).
NYL has some very fine insurance products. However, those are not not available thru AARP and are not as easy to qualify for.
As you comb thru other AARP life insurance reviews, remember that the association makes an a lot of money licensing their brand name to New York Life. They are the insurance company behind the products. This is at your expense and you are not receiving a premium policy in exchange.
Is it in your best interest? I’m not seeing it.
Be careful what life insurance you are buying. It is not always a simple apples to apples like many assume. What is written into a whole life or term life insurance contract is what you are going to get. Read your policy when you receive it. Benefits paid have nothing to do with the name of the insurance on the policy.
We all want to buy the right coverage don’t we?
Carefully consider what you are purchasing before assuming it must be a good product because it has an AARP stamp on it.
It means nothing folks.
Is AARP 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 official Special Risk Life Insurance Grades:
AARP Term Life Insurance = “F”
AARP Whole Life and Guaranteed Issue Whole Life = “C”
None of these policies rank well among the top life senior life insurance companies. AARP whole life insurance for seniors would be the only passing grade they receive here. We have receive so many complaints regarding their term life product over the years.
Look elsewhere folks. AARP New York Life insurance rates are very high for nothing special in return.
Take action now and 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. Having choice is the key to finding the best protection for those you care about the most.
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. (269) 230-3464
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.
