Review of AARP Life Insurance Policies
AARP does a great job of marketing. With over 37 million members, the Company certainly has a deep pool of customers to market to. However, one thing you should know from the outset is that AARP uses New York Life for the Company’s life insurance plans. That means your options are limited to ONE company.
In contrast, at TermLife2Go, we work with dozens of the top life insurance companies and top no medical exam life insurance companies in the marketplace. We can align you with the right company for your needs based on your unique health and lifestyle. Give us a call today to see what we can do for you!
Disclaimer: We are not AARP life insurance nor are we affiliated with the company in any way. If you need to reach the company, you can go to www.nylaarp.com/Life-Insurance/Customer-Service or call 1-800-850-2658.
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Hopefully you are reading this AARP life insurance review before you went ahead and purchased life insurance coverage through AARP. At TermLife2Go we are not big fans of AARP’s life insurance for seniors offerings. The main reason: price.
AARP life insurance rates are higher than the competition for similar products. However, due to their brand name the company can charge a higher premium and still insure a ton of people.
The reason? Most people don’t shop around and use an agency such as TermLife2Go, that can help you find the lowest life insurance rates by age. However, if you searched for AARP Life Insurance reviews then you probably are more savvy than the normal consumer. Which means, you have a great shot at finding more competitive life insurance quotes than the life insurance program AARP offers.
AARP Life Insurance Reviews
Let’s start this review with one of the most commonly asked questions about AARP.
Is AARP an insurance company?
One of the most common questions people ask is if AARP is an insurance company. The answer to that question is NO, AARP is not an insurance company.
Instead, AARP is more like a marketing company that sells its brand image to the highest bidder. Currently, the highest bidder is New York Life for life insurance, The Hartford for car insurance, and United Healthcare for health insurance.
In order to qualify for these insurance products offered by AARP you have to be a member of AARP. The irony is, life insurance plans through AARP typically costs a great deal more than a competitor product. So not only do you have to pay a membership fee, but you also have to pay an additional cost to purchase the insurance coverage.
AARP Senior life insurance products
As you may have read in other AARP life insurance reviews, the different types of life insurance products marketed by AARP through New York Life Insurance Company include Level Benefit Term Life Insurance, Permanent Life Insurance, and Guaranteed Acceptance Life Insurance.
One thing you may notice already is the low face amounts. They are not high enough death benefits for anything other than final expenses.
The AARP term life insurance policy maxes out at $100,000, the AARP permanent insurance maxes out at $50,000 and the AARP guaranteed issue life insurance maxes out at $15,000.
Please note: AARP term life insurance rates are not and will increase over time. AARP permanent life insurance rates are fixed, so your premium will remain the same.
Level Benefit Term Life Insurance:
One thing to note on AARP’s level term life insurance is that the premiums go up every five years. The only thing truly “level” is the death benefit.
Coverage begins at age 45 and the next band where the premium will increase is age 50, then at age 55, then 60, so on and so on until age 80 when the coverage ends.
(Buyer beware: see our Globe Life Insurance review for another company whose life insurance program ends at a specific age).
AARP’s level benefit term life policy’s minimum coverage is $10,000 and the maximum coverage is capped at $100,000.
Permanent Life Insurance:
AARP’s permanent life insurance will provide fixed premiums for the life of the policy. In other words, what you pay on day 1 is the same you will pay throughout the life of the policy.
The face amount options are $5,000 up to and including $50,000, so the coverage is more geared toward simplified issue final expense insurance. The product is fine but you can probably find something similar for a lower price.
Guaranteed Acceptance Life Insurance:
AARP’s guaranteed issue burial life insurance policy has a typical two year graded death benefit.
A graded death benefit means the product does not pay out for two years, accept in the event of an accidental death.So if you die due to natural causes during the first two years of the policy, the company will return your premiums paid. If you die due to an accident, the company will pay the full death benefit to your beneficiary.
The face amount options on AARP’s Guaranteed Acceptance policy are $2,500, $5,000, $7,500, $10,000 and $15,000.
AARP Life Insurance Rates
Please note: The below sample AARP rates are just that: samples. We listed the level benefit term life insurance and permanent life insurance rates as of March 2016. Rates change, so the below sample AARP life insurance rates may not be a true reflection of what the Company’s rates currently are.
Sample AARP Life Insurance Rates 50K
Sample AARP Life Insurance Rates 100K
AARP’s Term Life rates are good but we at TermLife2Go feel that they could be better.
AARP’s life insurance options are good, but far from great. Let’s look at the Level Benefit Term Life Insurance option.
Level Benefit Term Life
This policy only lasts until age 80 and the premiums increase every five years. Further, the maximum coverage amount is $100,000. These are all good options but not great options.
You can view AARP life insurance rates for yourself by following this link: www.nylaarp.com/Life-Insurance/Get-A-Quote
- … a competitor will charge a similar price or even less for a fixed premium.
- Further, most life insurance companies offer a term policy until at least age 85, with most offering renewable term to age 95, instead of AARP’s cap at age 80.
- Finally, most insurance carriers include face amounts well beyond $100,000.
Since AARP’s clients are retired seniors, wouldn’t it make sense to have a product that lasted beyond age 80? It makes you scratch your head as you wonder how many of these policies actually pay out.
Next, let’s consider
AARP’s Permanent Life Insurance
This is a pretty straight forward product. It builds cash value, has level premiums and a fixed death benefit. Since it is permanent life insurance it lasts the rest of your life (as long as you pay your premium). But consider the main drawback of AARP’s permanent life insurance policy: price.
For example: AARP life insurance rates for a 50 year old male applying for a $25,000 permanent life insurance coverage comes in at $81.46 a month in premium payments.
Compare whole life insurance quotes to one of the companies that TermLife2Go represents. This top rated life insurance company offers a $25,000 permanent policy that builds cash value, has fixed premiums and death benefit and lasts the rest of your life for only $66.35. That is a savings of $180 a year or $5,400 in savings over 30 years for policyholders.
Finally, let’s look at
AARP’s Guaranteed Acceptance Life Insurance
This policy has fixed premiums and death benefit, builds cash value, and has a two year graded death benefit for AARP members. Once again, price is the main way we can differentiate between AARP and the company we represent.
AARP life insurance rates for a 60 year old male wanting $15,000 of coverage are $89.04 a month.
Now compare final expense insurance quotes with the company we represent that has the same fixed premiums and death benefit, builds cash value, and has a similar two year graded death benefit. The same policy runs $60.28 a month compared to AARP life insurance rates of $89.04. That is $29 a month in savings or roughly $350 a year, or $3,500 in savings every 10 years!
There is a better way!
TermLife2Go is an agency comprised of seasoned professionals whose #1 goal is to find you the best policy at the lowest price available. We do not recommend only one company offering only three different products because the fact is, there are no two customers who are alike.
You have your own unique needs and goals and our job is to discover what those are and find a suitable product that meets that need. It is this mindset that allows us to consistently find the most affordable rates on life insurance for our clients.
We offer various products such as term life insurance, whole life insurance, universal life insurance, return of premium, guaranteed issue, simplified issue, and accelerated underwriting policies.
Basically, if it exists we can probably get it for you.
We also represent dozens of different life insurance companies. Therefore, whatever product you need and whatever price is best, that is the company we will recommend for you.
We go the extra mile for you
We have an article where we detail out the 4 step approach we use to get people with pre-existing conditions approved for life insurance. If you read the article you will see that we go above and beyond for our clients.
So, what are you waiting for? Give us a call today to see what we can do for you!
Thank you for reading our article, AARP Life Insurance Reviews. If you have any questions please leave a comment below.