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AARP Life Insurance Review [Top Policies and Rates]

Review of AARP New York Life

When looking into life insurance, most people tend to run a mile when they see ‘AARP’ so today we have a complete guide that will explain what it is, who can use it, what options you will find, and more. Before we go any further, we should clear up one of the most common misconceptions and say that AARP is not a life insurance company for seniors. Instead, it used to stand for the American Association of Retired People and it could be better described as a marketing company represented by the highest bidder. Currently, for life insurance this is New York Life.

2017 Review of AARP New York Life Insurance

With this in mind, AARP New York Life offers a broad range of life insurance plans for all who are members of the group. According to a recent report, this is just under 38 million people because it is an open group for all those over 50 years of age. Considering New York Life is one of the biggest and most powerful life insurance providers today, there are numerous policies available and many choose to go with them both in the short- and long-term.

NY Life offers this disclaimer: New York Life Insurance Company pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP and its affiliates are not insurers. AARP does not employ or endorse agents, producers, or brokers. AARP has established the AARP Life Insurance Trust to hold group life insurance policies for the benefit of AARP members.

NY Life Insurance Policies Available with your AARP Membership

With the NY Life Insurance endorsed by AARP, there are a number of policy options including both simplified issue and guaranteed issue life insurance. Later, we will also discuss the permutations for entry because you will find different levels just as is common with regular life insurance. Without further ado, let’s take a look a look at AARP life insurance for seniors.

AARP Life Insurance for Seniors

Level Benefit Term Life Insurance

For members between the ages of 50 and 74, simplified issue term life insurance is available and this is a short-term option where it will last for a certain amount of years before expiring. Throughout the duration of the policy, the death benefit will stay exactly the same but the premium normally increases every five years. Although term life insurance is only designed to last for a limited period of time, it can be converted to a more permanent option as long as this is done before the insured’s 80th birthday.

For this option, coverage can normally range from $10,000 to $100,000 but some customers have received more than this after contacting New York Life directly. For many, the main concern with life insurance is taking a medical exam but this isn’t required. Instead, there will be three simple questions just so they can get an overview of your health. For this type of insurance, you are likely to be accepted.

Permanent Life Insurance

Rather than covering a set period of time, this will be simplified issue permanent life insurance and is available for those aged between 50 and 80 years. Instead of increasing every five years, the premium remains level for this choice and the coverage ends as soon as the insured passes away. In terms of coverage, you will normally find that $50,000 is the cut-off point but you may be able to go higher by contacting New York Life as we suggested before. Once again, three simple health questions will be required so that they can get an overview of your health without having to complete a medical exam.

Whole Life w/ Children

For all AARP members, there will be life insurance for children or even grandchildren assuming that they are younger than 17 years of age and this will be done through the Young Start program offered by AARP. For coverage, it reaches just $20,00 and the same three questions we have seen all the way through are needed as opposed to a full medical exam. For a policy worth the maximum $20,000, the charge will be around $120 each year and the beneficiary will be the parent of the child. As soon as the child hits the age of 21, they own the policy and can name their own beneficiary.

Guaranteed Acceptance Life Insurance

For all those aged between 50 and 80, an application can be filed in confidence that it will be accepted regardless of details. With this option, there is no medical examination and the questions are also removed from the process.This type of product is perfect for those looking for burial expense or final expense insurance.

However, there is a downside in that the guaranteed acceptance life insurance policy is graded benefit, which means only a percentage of the death benefit will be paid to the beneficiary if the death if from natural causes within the first two years. For accidental death, the death benefit will be ‘active’ so to speak from the very first day. For coverage, New York Life can be contacted if you want to go above and beyond the $25,000 limit.

Three Questions

Before we take a look at New York Life in more detail as well as whether this insurance is right for you, we have more information on the permutations required for each option. For the guaranteed whole life option, this is pretty clear cut because all applications are accepted regardless of health because there is no medical exam nor are there any questions to answer.

For term life and the regular whole life policy, three questions will determine your health and therefore play a role in deciding the premiums you will pay.

  • Have you consulted a doctor within the last three months? Furthermore, have you been diagnosed or been given treatment/medication for health issues? (At this point, a negative result for HIV/AIDS does not need to be mentioned)
  • Have you had treatment, medication, or been diagnosed with heart trouble, lung disease, cancer, stroke, diabetes, kidney or lung disease, AIDS, or an immune system disorder within the past two years?
  • In the same time period, have you spent time in a hospital, a nursing home, sanitarium, extended care facility, or anything of this type?

Within your real application, the questions may be worded slightly differently to this but the premise will be exactly the same. If you answer ‘No’ to every one of the questions, there won’t be any problems with your application and it will pass straight through. If you were to answer ‘Yes’ to one or more questions, you will either see higher premiums or you will be asked to contact New York Life for more details.

AARP Life Insurance Reviews

So far, you might be reading this whilst planning exactly what option you plan to apply for but all of this knowledge to this point is useless if New York Life aren’t good insurers. Luckily, they are one of the best in the world and actually one of the most popular within the United States so you have nothing to worry about.

According to a recent survey, New York Life was awarded four points out of a possible five for customer satisfaction, policy offerings, billing and payment, price, and customer interaction. With this in mind, they were ranked towards the top of the 21 companies taken into account. In the survey, those five factors were the key points to which all insurance companies were judged and compared. In the end, New York Life came out with ‘Better than most’ in all five categories and their superiority shone through.

AARP Life Insurance Rates

If we were to choose a downfall for this type of insurance, it would probably come with the rates because they have received some criticism over the years. With most of the generic life insurance options on the market, there will be an opportunity to lock down the prices for a certain amount of time or, in some cases, forever. With guaranteed universal life, rates can normally be secured until at least 90 years of age. With term life insurance, you can normally achieve up to 30 years without the premium changing at all but it works a little differently with AARP insurance.

At first, the level benefit term life insurance rates will begin low so you will be getting a very good deal. However, the price will increase with each five-year period that passes so it can be difficult to maintain in the long run.Notice how the product is called level benefit, not level term. The death benefit is level but the premium goes up every five year as the term is renewed. This can be a bit misleading.

Sadly, this even has a name and many experts call it ‘pricing you out of your policy’. Just before retirement, this is where the policy is needed the most but, when the coverage is needed at an older age, the premiums are so high that it is nearly impossible to keep up. Considering income is fixed by this point, it presents a financial challenge by the mid-70s. In fact, some reports even suggest that rates can multiply by FOUR between the age of 54 and 70.

Is AARP Right for You?

So we have reached the ultimate review, the crux of the guide; who will benefit from this type of insurance? If you were to open a policy, would it be a good move? In truth, we can’t answer this directly for you because your situation is unique and you will need to speak to an expert or financial adviser. This way, they can review your unique circumstances and provide the best course of action. However, we can give scenarios where the insurance policy would be helpful. As you will see, there are occasions where AARP life insurance for seniors will be beneficial.

Smokers

If you are a smoker and need coverage of between $50,000 and $100,000, AARP could actually be cheaper than any other alternative policy. Within the application process, you will not be asked about habits such as smoking which is fine as long as you are healthy. If you experience the side-effects of smoking such as COPD or emphysema, then this changes a little as you may have to choose the guaranteed acceptance insurance which is priced higher than the permanent life insurance.

Overweight

Once again, the three questions we saw earlier do not mention weight so this does not play a part in New York Life’s decision to insure you. If you are overweight by more than 80 pounds, AARP’s life insurance will be beneficial for you. If you are less than 80 pounds overweight, you might want to compare AARP with regular insurance because the results may differ.

Felony Charges

Out of all your options, this could be the only one for you if you are on probation, parole, or have been charged with a felony in the past five years. For the most part, normal life insurance providers will be cautious when providing you with life insurance because it covers your health.

No Work/Disabled

Finally, most regular life insurance companies will ask you why you are collecting social security or disability before the age of 60. When all is said and done, this could reflect badly on your application. Furthermore, AARP doesn’t ask for your current income which makes it perfect for those with no job.

AARP Life Insurance Review Summary 

As you can see, there are many factors to consider when it comes to this topic so be sure to read AARP life insurance reviews and talk to professionals about your personal situation. If you can benefit, there is no reason why you shouldn’t take advantage of being an AARP member! However, be sure to shop around. There are many top final expense insurance companies that may offer more competitive rates than AARP.

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