The American Association of Retired Persons (AARP) focuses on helping seniors in the United States through advocacy and support. If you're an AARP member, you can receive discounts on products and services.
The AARP also partners with companies that offer specific products geared for senior citizens. For example, the AARP offers life, dental, and health insurance in partnership with other companies.
The AARP offers term and whole life insurance for seniors through New York Life Insurance Company. It offers group life insurance coverage exclusively for AARP members, making these policies different from the other policies and services provided by New York Life Insurance Company. Applicants can apply for life insurance and AARP membership at the same time if they are not already members.
The AARP is a United States-based nonprofit organization for people who are 50 years old and older. Interested parties have to fill out an application and there is an annual membership fee that is as low as $16.
AARP was founded in 1958 and has grown from an association for retired teachers to an organization with more than 37 million members. AARP provides information, resources, discounts, and benefits to their members in a wide range of categories, including discounts, membership, job resources, Social Security, Medicare, health, and caregiving.
AARP does not issue the life insurance policies carrying its brand, New York Life does.
New York Life has received high financial strength ratings from A.M. Best, which indicates its financial stability.
New York Life's high financial strength ratings make the AARP's branded policies a life insurance option worth considering.
With the Level Benefit Term life insurance product, AARP offers $10,000 to $100,000 of coverage. To be eligible for this life insurance coverage, AARP members must be ages 50-74 years old. Spouses of AARP members can also qualify for this insurance coverage between ages 45 and 74.
Unlike other term life insurance policies, the premium payments with the Level Benefit term life insurance policies are subject to change. The life insurance premiums also increase in five year age increments for policyholders (ages 45-49, ages 50-54, etc.).
AARP's permanent life insurance offers $5,000 to $50,000 of life insurance coverage. While the level of coverage is substantially less than AARP's term life insurance, it also has the ability to build cash value.
Another advantage is that the premium payment does not change. AARP's permanent life insurance policy can be purchased until AARP members reach age 80.
Payments for permanent life insurance end at age 95, but coverage remains for your entire life.
No medical exam is required for either type of policy and acceptance is based on the applicants' answers to three health questions. There is also no waiting period. AARP also offers a limited life insurance policy (also through New York Life) with guaranteed acceptance.
All of the AARP's life insurance policies do not require a medical exam, though they do require answers to health questions. This makes it easier to be accepted.
However, because there is no medical exam requirement, policyholders may pay slightly higher premiums. However, this is typical of life insurance policies that do not require a medical exam.
It's also important to remember that purchasing life insurance through the AARP provides access to group life insurance rates. Group rates are often cheaper than individual life insurance premiums.
Both AARP's term and permanent life insurance policies include an accelerated death benefit in the even of terminal illness and a premium waiver for certain cases of long-term care in a nursing home.
There are not many AARP life insurance reviews on BestCompany.com. With so few reviews, general conclusions about customer satisfaction or the customer experience are not available.
However, of reviews received, the AARP has a majority positive reviews.
Reviewers express satisfaction with their life insurance rate, coverage option, and customer service.
Customer Review: Phillip Scott from Tuscola, Texas
"Price for insurance for my age group was lower than other companies,it was quickly approved and premium taken from my account automatically each month"
Although it has recieved a majority of positive reviews, AARP life insurance has also received a few negative reviews. These reviews express difficulty with communication and with the claims process.
Benefits for an AARP life policy are limited during the first two years of the insurance policy.
For example, a death benefit will not be paid to the beneficiary of the policy in cases of suicide within the first two years.
AARP offers their members an incredibly wide range of products and services, and the website is therefore very dynamic and difficult to navigate. There are dozens of categories to choose from and there are advertisements mixed in with the links.
On the main webpage alone, there are over two dozen header and sidebar links for everything from membership benefits to job resources to daily news highlights and much more.
Because there is so much information and so many offers for members, AARP's life insurance products are not mentioned on the main page or even the main benefits page, and can only be found by digging through the full list of member benefits or through a sitewide search.
However, once members link to the AARP New York Life website, the information is direct, easy to find, and answers nearly all the questions members may have.
AARP offers their members only two life insurance policy types and coverage amounts are restricted for each one. Members can contact New York Life for insurance policies with higher coverage amounts, but they will not receive the AARP group coverage rates, which means that they may pay higher premiums.
While it makes sense that AARP's life insurance products will be different for the older demographic they are serving, members should keep in mind that they may qualify for better coverage elsewhere.
Life insurance premiums are affected by the amount of coverage purchased. Individuals interested in AARP life insurance should evaluate why they are purchasing life insurance. Do you just need coverage for final expenses and money to pay for funeral costs?
Even purchasing a minimal amount of insurance helps protect the financial stability of your family and friends who would otherwise pay the cost of your funeral in full.