AARP Life Insurance Program Review: Coverage and Costs
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Life insurance coverage is an essential aspect of a solid financial plan for most individuals and families. Having the right coverage in place provides peace of mind to the insured, as the life insurance company agrees to pay a fixed amount to beneficiaries in the event of death.
Life insurance companies offer many options, including term insurance and permanent insurance. With term insurance coverage, individuals have life insurance for a specific period of time and then the policy expires. This can be useful in keeping the cost of coverage low while providing protection for decreasing financial needs, such as a mortgage balance.
Permanent insurance coverage is the opposite, as long as the premiums are paid according to the policy agreement. Permanent life insurance also accumulates cash value in some cases, which can be used as additional savings in the future.
Regardless of the type of insurance coverage chosen, it is important that individuals understand the cost and benefits of a specific life insurance policy as well as the strengths or disadvantages of the company providing the coverage.
Read on to learn more about the coverage, costs, advantages and disadvantages of AARP life insurance.
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The AARP is a national, non-profit organization that aims to help people over 50 understand their financial lives.
The company, founded in 1958, does not offer insurance directly to individual consumers, but instead partners with a national insurer to provide life insurance benefits to members of the organization. Currently, AARP provides life insurance coverage through New York Life. As a member of AARP, individuals have access to both term and permanent life insurance.
In addition to the Life Insurance Partnership, AARP offers several educational resources and services to its members. The AARP provides a comprehensive library of information on the health and well-being of the elderly, family care, retirement and work, travel and entertainment, and politics. The organization also offers discount programs through its membership arm, including savings on auto services, restaurants, shopping, and travel.
Overview of AARP life insurance
The AARP life insurance partnership through New York Life offers two main options for life insurance coverage, with costs depending on age, amount of coverage, state of residence and type of selected font.
For term life insurance coverage, a woman aged 60 to 64 has a monthly premium of $ 58 for $ 50,000 of coverage. The same age range for a man for the same amount of coverage is $ 94 per month.
The cost of this type of policy increases every five years, men aged 65 to 69 pay $ 128 per month, and men aged 70 to 74 pay $ 184 per month. Women aged 65 to 69 pay $ 81 per month and those aged 70 to 74 pay $ 141 per month.
The guaranteed whole life insurance offered by New York Life to AARP members has a different cost. 60-year-old women pay $ 128 per month for $ 25,000 of permanent coverage, while men of the same age pay $ 148 per month for the same amount of coverage.
Premium costs for term life insurance and guaranteed acceptance whole life insurance are slightly higher than those for insurance policies offered by similar providers.
Most Popular Coverage and Policy
AARP life insurance coverage options fall into three categories: term life insurance, guaranteed acceptance whole life, and traditional whole life insurance.
The Guaranteed Acceptance Policy is the most popular for AARP members because it provides permanent coverage, without medical examination, up to $ 25,000. Applicants must be aged 50 and 80 to qualify for this type of coverage, but it is guaranteed to stay in place as long as premiums are paid.
Term life insurance is also available without medical underwriting, with coverage between $ 10,000 and $ 100,000. Individuals must be aged 50 and 74 to qualify for the term life insurance policy. Coverage can extend up to age 80 provided the initial application was submitted before age 74. The cost of this type of policy increases every five years.
Whole life insurance is also available through New York Life for AARP members. This coverage provides up to $ 50,000 permanent cover with accumulation of cash value, and people aged 50 and 80 can qualify.
Conditions to be insured
While no medical exam is required for any of the three policy options available to AARP members, there are some health questions that need to be answered. Any major medical problem, such as cancer or heart disease, can prevent a person from obtaining coverage through a term policy or traditional whole life insurance policy. The whole life guaranteed acceptance contract does not require an answer to these health questions.
In addition to potential health issues, individuals are only eligible for the AARP life insurance program through New York Life if they are currently members of AARP. Membership in AARP requires a one, three or five year commitment, and the cost can be as low as $ 12 for the first year.
Additionally, applicants must meet age requirements to be eligible for the simplified underwriting insurance programs offered by AARP and New York Life.
AARP life insurance is available in all 50 states. Other than age requirements, there are no restrictions on who can apply and who may be eligible for coverage.
AARP is a well-known company that has an A + rating with the Better Business Bureau. New York Life also has an A + rating with the BBB, and the partner program has high ratings from AM Best, Fitch, and Standard & Poor.
Customer service with AARP is available from 7:00 a.m. to 11:00 p.m. (EST) Monday through Friday, while New York Life customer service is available from 8:00 a.m. to 8:00 p.m. (EST) Monday through Friday and 9:00 a.m. to 5:00 p.m. on Saturday. These extended hours allow AARP members to easily get in touch regarding coverage, payments or other policy questions and concerns.
Alternatives to AARP life insurance
- Age 21 To 54 eligible without medical examination
- Premiums $ 8/month
- Apply and be covered in minutes
- Age 20 To 60 eligible
- Apply online in less than 10 minutes
- Change your coverage as often as you need to
- Age 18 To 75 eligible
- Compare multiple suppliers in one place
- Apply and choose your plan in minutes
AARP is a strong, member-driven nonprofit, and its partnership with New York Life provides a simple and affordable way to obtain term or permanent life insurance coverage for AARP members. The initial cost of life insurance premiums may be slightly higher than that of comparable insurers, but this is in part because no medical underwriting is required. Individuals must first be members of AARP before inquiring about coverage through the New York Life Partner Program.