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AARP Senior Life Insurance Review 2020

Pro Bullet Term life insurance
Pro Bullet Whole life insurance
Pro Bullet Guaranteed acceptance life insurance
Licensed Life Insurance Agent/Marketing Manager
Published on July 21, 2020

For more than two decades, AARP has offered term and permanent life insurance for seniors. You don't have to take a medical exam to apply for this simplified issue coverage.

AARP serves up its life insurance through an exclusive arrangement with New York Life. 

AARP: Who is it best for?

  • AARP members: You must be a member of AARP to purchase an AARP life insurance policy, so if you are already a member, you are a perfect fit to get life insurance with no medical exam.
  • Those looking to bypass a medical exam: Getting a life insurance policy with AARP is exam free.
  • 50+ looking for a simplified application: Seniors looking to capitalize on a simple application can look no further than AARP life insurance. 

AARP life insurance policies

Policy type

Death benefit payout range

Age range

Exam required?

Term

$10k-$100k

50-74*

No

Whole

$2.5K-$50k

45-80*

No

Guaranteed Acceptance Whole

$2.5K-$25k

45-80*

No

*Members must be 50 years of age to apply. A spouse of a member is eligible to apply at age 45.

Table created for illustration purposes only. Information available at NYLAARP.com. Data effective 7/21/2020.

When it comes time to select a policy, AARP members have three life insurance options for seniors: level benefit term, whole, and guaranteed acceptance life insurance. No AARP life insurance plans require a medical exam—acceptance is based entirely on answers to health questions and other general information.

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AARP term life insurance

Term insurance offers no benefits beyond the stated dollar value of the policy. In other words, there is no investment or savings component. A term life insurance policy guarantees payment upon notification of the insured’s death if the policy is active and has not reached its termination date.

AARP offers its term life policy to members ages 50–74, with spousal coverage for people 45–74. There is no waiting period, and death benefits range from $10,000 to $100,000, before terminating at age 80.1

While generally affordable, these life insurance premiums are calculated upon enrollment and incrementally increase as the insured ages. For example, a policy issued at age 56 will see rate hikes at ages 60, 65, 70 and 75.2

AARP whole life insurance

Whole life insurance is a type of permanent life insurance that offers coverage that does not expire before the death of the insured. Additionally, whole life offers a savings component enabling policyholders to borrow from future premiums if needed.

AARP’s whole life policy includes these benefits:

  • Coverage for AARP members ages 50–80 (and spousal coverage from age 45–80)
  • No waiting period requirements for a policy
  • Death benefits from $2,500 up to $50,000, which could be enough to cover funeral expenses

Premiums are based on the insured’s initial age and do not change as policyholders age or health conditions change. Premium payments discontinue as of age 95, but coverage continues until death.3

AARP guaranteed acceptance whole life

All applicants are guaranteed acceptance for this AARP life insurance once they meet the age requirement; however, this plan generally has lower coverage amounts and higher premiums than other guaranteed policies.

AARP offers its guaranteed life product to those members age 50–80 (and spousal coverage from age 45–80). Death benefits range from $2,500 up to $25,000, will never decrease, and are available for life. There is no waiting period with this plan, but benefits during the first two years of coverage will pay only a portion of the death benefit. Full benefits are available for any accidental death as of the first day the policy is active.4

Premiums are based on the insured’s initial age. They do not change as you age regardless of health changes. Premium payments will end at age 95, but coverage will continue in full for the rest of your life.

Note: there are exceptions to the information provided above for different states, for different ages, and for different coverage amounts.

How much does life insurance with AARP cost?

This life insurance company offers seniors a variety of policies—with none requiring a medical exam to qualify. AARP’s Level Benefit policy offers $100,000 in coverage (provided applicants are in good health). However, AARP does not turn away those applicants with pre-existing conditions, making this company's whole life insurance policy an attractive choice for individuals dealing with medical issues (although coverage caps out at $50,000).

Note: AARP's term rates increase over time as you hit different age thresholds.5 Check out AARP to learn more about pricing increases and at what ages you can expect the rates to increase.

AARP term life insurance sample rates

AARP's term life insurance rates rise every five years, from age 50 to 80, at which time coverage expires. Your monthly premium with AARP also depends on how much coverage you choose ($10,000–$100,000), your gender, your health, and whether or not you smoke.

Term life insurance for healthy male
Age

$25,000

$50,000

$100,000

50–54

$26

$45

$79

55–59

$36

$65

$116

60–64

$50

$94

$171

65–69

$67

$128

$236

70–74

$95

$184

$342

Sample monthly quotes based on nylaarp.com and are for illustration purposes only. Actual quotes may vary. Data effective 7/21/2020.

Term life insurance for healthy female
Age

$25,000

$50,000

$100,000

50–54

$18

$29

$52

55–59

$22

$38

$69

60–64

$32

$58

$108

65–69

$44

$81

$154

70–74

$74

$141

$272

Sample monthly quotes based on nylaarp.com and are for illustration purposes only. Actual quotes may vary. Data effective 7/21/2020.

Why you should consider AARP

AARP offers a variety of policies to applicants who are 50 and above—including offering AARP Level Benefit Term Life policy. For nearly every policy offered, AARP only requires that an application be completed. (There is no required medical exam.) And, although, AARP offers up to $100,000 in coverage (death benefit), the amount of coverage available without an exam varies from policy to policy. If you are looking for more than $100K, AARP says you can give them a call, though you might be able to find higher coverage amounts from another company. 

Pro HeadingPros
  • Pro BulletNo Exam
  • Pro BulletGuaranteed Acceptance option
  • Pro BulletWill take preexisting conditions
Con Heading Cons
  • Con BulletLow coverage amounts
  • Con BulletAARP membership required
  • Con BulletAvailable only to 45+

Is AARP financially stable?

AARP is underwritten by New York Life Insurance Company. This is also a benefit to getting a policy through AARP. New York Life has a pretty impressive resume with over $10 billion in annual premium,6 New York Life is a company you can trust to provide benefits to your family. This insurance company earns high financial stability marks across the board.

AARP Financial ratings
A.M. Best (FSR)

A++

S&P

AA+

Moody's

Aaa

Fitch

AA+

Table created using information available at AMBest.com, StandardAndPoors.com, Moodys.com, and FitchRatings.com. Data effective 7/21/2020. Ratings are for New York Life Insurance Company.

Since AARP offers life insurance through New York Life Insurance company the ratings provided are for New York Life. 

A.M. Best gives them a superior rating of A++. This rating means a lot considering A.M. Best is the gold standard for financial stability ratings in the insurance industry. 

S&P also gives New York Life a top-notch rating. 

Moody's give New York Life there highest rating. They are judged to be of the highest quality with minimal risk. 

Fitch also agrees that New York Life is a high-quality company with minimal risk of not meeting financial obligations. 

Claims and customer service

Rates are only one thing to consider when selecting an insurance provider. Equally important is the company’s reputation when it comes time to file a claim and receive benefits.

According to the National Association of Insurance Commissioners (NAIC), New York Life has had few complaints filed against them. New York Life has a complaint ratio of just 0.21 in 2019.7 To put that into perspective the national average is 1.00, so they receive way below the national average in terms of complaints.  

New York Life had just 59 complaints in 2019.8 For a company raking in over $10 billion in premiums that is a very low number of complaints. 

Bottom line: AARP could be the perfect match if you are already a member

If you are already a member and over the age of 50, AARP could be a great option for you. They offer both term life insurance and whole life insurance that could meet your needs. 

If you aren't sure if AARP is right for you to compare quotes or give us a call and talk to a licensed life insurance agent. 

Want to learn more? Read up here:

Sources

  1. AARP, "AARP Term Life Insurance"
  2. AARP, "AARP Term Life Insurance"
  3. AARP, "AARP Permanent Life Insurance"
  4. AARP, "AARP Easy Acceptance Life Insurance"
  5. AARP, "AARP Term Life Insurance"
  6. National Association of Insurance Commissioners, "New York Life Insurance"
  7. National Association of Insurance Commissioners, "New York Life Insurance"
  8. National Association of Insurance Commissioners, "New York Life Insurance"
Written by
Chelsie Ball
Chelsie is fixated on developing innovative ways to present complex ideas and maneuvering people to the information they need. She has worked in digital marketing for the past eight years and has been a licensed life insurance agent since 2010. When she isn’t looking out for the user, you can find her watching Netflix or desperately trying to find a real hobby.