June 8, 2024

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AARP Life Insurance Review

AARP has only four insurance plans. None of these programs require a medical exam; instead, you only need to answer questions about your health. …

AARP, through its underwriting company, New York Life, is included in our:

Professionals explain

  • No medical exam required: Most life insurance companies require you to undergo a medical exam, and you may need to answer several health-related questions. In AARP’s life insurance plans, a medical exam is not required for any policy.
  • Transparent pricing: While some companies require you to call and speak to an agent to get a quote, AARP allows you to get a quote for all of their policies online. With transparent pricing, you can choose the right policy for you and even apply online for most programs.
  • Low-cost coverage for children: If you’re an AARP member, you can buy life insurance for your children or grandchildren for as little as $5 a month and accumulate cash value over time.

Prisoner explained

  • Insurance issued by third-party agencies: Despite the AARP name, life insurance sold through the AARP Life Insurance Plan is not issued by AARP. Instead, the policy is underwritten by New York Life Insurance Company.
  • Coverage and limitations vary by state: Life insurance products and features vary by state. For example, not all states offer accessible policies, and neither do Maryland, New York, or Washington offer teenage life insurance.
  • AARP Membership Requirements: To be eligible for the AARP life insurance plan, you must be an AARP member. Full AARP membership is limited to those 50 and older, and you must pay a fee to join.
  • Lowest Sum Insured: The highest you can get in an AARP life insurance plan is a $100,000 term life policy. For many, this amount won’t be enough to meet your family’s needs, so you may want to consider another company that offers a higher coverage policy.

Notice

AARP membership is only $12 per year

Available plans

AARP has only four insurance plans. None of these programs require a medical exam; instead, you only need to answer questions about your health.

Eligibility is limited to AARP members aged 50 to 74 and their spouses aged 45 to 74.

Tier Benefit Period

With an AARP horizontal benefit term life insurance policy, you can get coverage between $10,000 and $100,000. Unlike other term life insurance plans, you cannot choose your term; instead, your policy lapses when you turn 80, regardless of when you signed up.

Permanent life

AARP permanent life insurance covers you up to $50,000. Your insurance rates are guaranteed to never increase, and your policy is valid for life.

Accept life easily

You can get $2,500 to $25,000 in coverage by purchasing an accessible life insurance policy. There is no physical exam, you just need to answer a health question to apply for health insurance. If you are not currently terminally ill, accept the guarantee that your rates will never increase.

Youth Life Insurance

If you’re an AARP member, you can buy permanent life insurance for your young children or grandchildren up to age 18, you can get them up to $20,000 in coverage, and it can accumulate over time cash value. Once the child turns 21, they become the owner of the account and are responsible for paying the premium.

Young Start Life Insurance is not available in Maryland, New York, or Washington.

Available passengers

When you buy life insurance, you usually can add an insurance endorsement, also known as a rider, to your plan. Riders can enhance or customize your coverage, enabling you to receive benefits early and even cover your nursing home premiums.

The AARP life insurance plan only provides for two passengers.

Accelerated benefits

If you are diagnosed with a terminal illness, have a life expectancy of 24 months or less, and have an American Association of Retired Persons (AARP) permanent life insurance policy, you can receive up to 50% of your benefits while enjoying the accelerated benefits rider amount.

In New York, you have to get a life expectancy of 12 months or less to take advantage of this rider.

Waiver of premiums

If you are confined to an eligible nursing home for 180 consecutive days or more, you will not have to pay future premiums and waive the premium rider. Only skilled nursing facilities are eligible; assisted living and personal care homes are not eligible for this benefit.

New York Life pays AARP royalties to use the organization’s name and intellectual property in the AARP life insurance plan, so you can contact New York Life with any personal questions.

Through the online **** center, you can make payments, download the necessary forms, and update your beneficiaries. While you cannot submit a claim online, you can download the data package needed to start the claim process.

Complaint Index

The National Association of Insurance Commissioners collects all complaints about insurance companies and publishes a company complaint rate. These ratios are the number of complaints received versus the company’s share of the insurance market.

Since AARP’s policies are underwritten by New York Life, we reviewed New York Life’s Complaint Index.

Newyork Life received fewer complaints in 2019 than you’d expect for a company of this size. In 2019, its complaint rate was only 0.40, far lower than the industry’s national complaint index of 1.0.  

New York Life’s complaint rate has been lower than the National Complaint Index for the past three years, meaning the company has received relatively few complaints because of its market share.

Third-party rating

New York Life is the company that underwrites the policies in the American Association of Retired Persons (AARP) life insurance plan and has an excellent reputation. In the JDPower 2020 U.S. Life Insurance Study, New York Life ranked sixth out of 24 insurers based on its pricing, communications, and product offerings. Its scores are well above the industry average, indicating strong customer satisfaction.  

Newyork life also received an A++ (higher) rating from the agency’s highest rating, best. AM Best’s financial strength rating reflects the company’s stability and creditworthiness. A high rating from AM Best means you can rest assured that the company will be able to pay any claims and contractual obligations.

Cancellation of an insurance policy

While most companies offer a 10-day free viewing period, AARP policies have a 30-day free viewing period, which means you have 30 days to review your policy and cancel it without penalty. You will also receive a full refund of all premium payments.

After the 30-day free viewing period expires, the cancellation policy depends on your plan type. If you cancel term life insurance, your contract will be canceled, but you will not receive a refund of your premium. For permanent coverage, you can surrender the policy before the policy expiration date. If you do, you will receive either the accumulated cash value or the prepaid premium less any fees.

Please read the program documents carefully before applying and contact customer support if you have any questions. You can cancel your policy by calling 800-607-6957.

Price

With the AARP Life Insurance Plan, you can get instant quotes online. If you choose term or permanent life insurance, you can even submit your application online.

Policies in AARP life insurance plans are relatively affordable, especially considering that policies are designed for people 50 and older, a group that typically pays more for life insurance than younger adults.

Like other insurance companies, AARP’s life insurance plans base your premiums on a range of factors, including gender, age, and tobacco use. To illustrate how different factors can affect your cost, we’ve got quotes from 50-year-olds** and** who don’t use tobacco in excellent health.

Validity period

For term life insurance, your rates will increase over time. Premiums increase as you enter each new five-year-old age bracket and are based on prevailing rates at the time. Below are the current rates for a $100,000 policy.