AARP Senior Life Insurance Review

A+ (from A.M. Best)

  • No Exam
  • Term & Whole
  • Low coverage
  • Member exclusive

For more than two decades, AARP has offered life insurance to its members through an exclusive arrangement with New York Life. This means the nearly two million members currently enrolled in the program are technically covered by New York Life, a company included in JD Power’s most recent list top-5 life insurance providers.

AARP: Who is it best for?

  • AARP members: You must be a member of AARP to purchase a life insurance policy from AARP, 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, however, you do have to become an AARP member to apply.
  • 50+ looking for a simplified application: Seniors looking to capitalize on a simple application can look no further than AARP. However, you do have to become an AARP member to apply.

AARP life insurance policies

Policy type Death benefit payout range Age range Exam required?
Term $10k-$100k 50-74 No
Whole Up to $50k 45-80* No
Guaranteed Acceptance Whole Up to $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.


How much does life insurance with AARP cost?

AARP 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 its Permanent Life Insurance policy an attractive choice for individuals dealing with medical issues (although coverage caps out at $50,000).

Man in excellent health.

Age Coverage Amount Term Monthly Rate Permanent Monthly Rate
50-59 $25k

$50k

$100k

$36

$65

$116

$109

$216

Not available

60-69 $25k

$50k

$100k

$67

$128

$236

$174

$346

Not available

70-74 $25k

$50k

$100k

$95

$184

$342

$229

$457

Not available

75-79 $25k

$50k

$100k

Not available

Not available

Not available

$328

$654

Not available

80 $25k

$50k

$100k

Not available

Not available

Not available

$337

$673

Not available

Sample quotes based on nylaarp.com and are for illustration purposes only. Actual quotes may vary. Data effective 5/20/2019.

Woman in excellent health. 

Age Coverage Amount Term Monthly Rate Permanent Monthly Rate
50-59 $25k

$50k

$100k

$22

$38

$69

$83

$164

Not available

60-69 $25k

$50k

$100k

$44

$81

$154

$137

$273

Not available

70-74 $25k

$50k

$100k

$74

$141

$272

$186

$370

Not available

75-79 $25k

$50k

$100k

Not available

Not available

Not available

$328

$654

Not available

80 $25k

$50k

$100k

Not available

Not available

Not available

$333

$664

Not available

Sample quotes based on nylaarp.com and are for illustration purposes only. Actual quotes may vary. Data effective 5/20/2019.

Ready to compare quotes? 


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 holders the guaranteed option to transition to an AARP-endorsed group permanent life insurance policy once they turn 80. 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, only $50,000 in coverage is available if you opt for a term life policy.

Pros

  • No Exam
  • Guaranteed Acceptance option
  • Will take preexisting conditions

Cons

  • Low coverage amounts
  • AARP membership required
  • Available only to 45+

AARP’s policy options

When it comes time to select a policy, AARP members have three main options to choose from. The good news is that none of AARP’s life insurance policies require a medical exam—acceptance is based entirely on answers to health questions and other general information.

The three types of insurance you can purchase from AARP are term life, permanent (or whole) life, and what AARP calls a guaranteed acceptance policy.

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. Term life 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.

Like most policies, 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.

Whole life insurance

Permanent life insurance, sometimes called whole life, 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 coverage
  • Death benefits from $2,500 up to $50,000 if the policy is active
  • At age 85, the coverage amount for policyholders automatically increases by 30% with no change in the premium.

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.

Guaranteed Acceptance whole life

All applicants are guaranteed acceptance for 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.

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 AARP stacks up

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 $11.1 billion in policy owner benefits and dividends, New York Life is a company you can trust to provide benefits to your family. They earn high financial stability marks across the board.

AARP Financial ratings  
A.M. Best (FSR) A++
S&P AA+
Moody’s Aaa
Fitch AAA

Table created using information available at AMBest.com, StandardAndPoors.com, Moodys.com, and FitchRatings.com. Data effective March 2019. Ratings are for New York Life Insurance Company.


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.

Customer support is one area where AARP falls short. J.D. Power gave AARP three (out of five) stars for customer satisfaction, though AARP does offer members an informative Learning Center where articles on financial planning and policy management are available.

AARP does offer a robust claims settlement process that begins with requesting a downloadable Claims Packet. (Or customers can dial a toll-free number to file a claim.) Either way, customers will need the deceased’s Social Security number, date of death, the cause of death, and an original death certificate. Claims typically take between 45 and 90 days to process.


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

While AARP isn’t known to have the best customer service, they can be a great option if you are already an AARP member, if you are looking to get life insurance but have a preexisting condition, or if you want to avoid taking the medical exam.

Want to learn more? Read up here:


AARP FAQs

Is there any way I can be insured past age 80 if I purchase the term life policy?

Yes. Switch your AARP Level Benefit Term Life Insurance for AARP-endorsed group permanent life insurance until the policy ends at age 80 (or any time before that). This privilege is guaranteed, and you will not be required to take any medical tests or answer any health questions. Your age determines rates at that time.

Does coverage end at a certain age for the permanent life policy?

No. AARP Permanent Life Insurance allows for coverage for the remainder of your life. If you paid your premiums and did not make material misrepresentations about your health on your application, then at age 95, your coverage is considered “paid up.” No further premiums will be needed.

Does coverage end at a certain age for the guaranteed acceptance life policy?

No. AARP Guaranteed Acceptance Life insurance is in effect for your lifetime. At age 95, as long as all premiums have been paid, coverage is considered “paid up.” No further payments will be required.


14 comments... add one
  1. Anthony Gilliam

    Request information on permanent insurance from AARP. I am a 54 years old Male and my wife is 52. I’m looking for a policy that goes beyond 80 years old.

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