AARP has partnered with New York Life to offer group life insurance to AARP members. Because the AARP offers lower benefit amounts, its permanent life insurance policies are similar to funeral insurance or final expense insurance.
AARP offers up to $50,000 in coverage with its permanent group life policies. These policies have no waiting period and only require a health questionnaire, not a medical exam, for underwriting. The premium rates also remain consistent without any increases.
Those interested in more than $100,000 in coverage need to contact New York Life directly.
AARP members who do not want to fill out a health questionnaire as part of their application can apply for AARP’s guaranteed acceptance group life insurance.
These policies offer up to $25,000 in coverage. Premium payments remain level and end at age 95. These policies also include an accelerated benefit if the insured is diagnosed with a terminal illness and their life expectancy meets the policy’s requirements. This allows policyholders to access up to half of the death benefit while still living.
While these policies have nice features, there are some limitations. Benefits are limited during the first two years if the death results from natural causes. In this case, the beneficiaries receive 125 percent of the premiums already paid on the insurance policy.
The death benefit is also not paid in the event of suicide during the first one or two years, depending on the state and policy terms.
Interested AARP members can view quotes and apply quickly online after providing some basic information about themselves. This quick access to information makes the purchasing process smooth and allows people to learn the premium costs quickly.
New York Life has high financial strength ratings, which indicates financial stability and ability to pay claims.
Only AARP members age 50–80 and their spouses age 45–80 are eligible for coverage through AARP group life insurance plans. For those interested in their policies, it may be worthwhile to join the AARP. Otherwise, shoppers may have to consider other options.