AARP Life Insurance Review-2023

AARP Life Insurance

AARP Life Insurance is the short for “Association for American Retired Persons”. It was established in 1958. AARP life insurance policies are usually underwritten by New York Life. New York Life is the second biggest life insurance agency in America according to its market share. It has served the nation for 180 years. The New York Life insurance company started off in 1845. Here’s an outline of the blog topics:

  1. What are the salient features of AARP policies?
  2. Which type of life insurance policies are offered by AARP?
  3. Which riders does AARP offer with its life insurance policies?
  4. AARP Quick Facts include:
  5. FAQ’s

What are the salient features of AARP policies?

Some of the important features of AARP life insurance policies include:

  1. The New York Life underwrites policies for AARP.
  2. Most of the life insurance policies for members of AARP are “Paid Out” after the policyholder reaches the age of 95 years.
  3. You can attain approval without giving a medical exam for Term Life and Permanent Whole Life policies with AARP.
  4. You can easily get its exact quotes online and submit your application online too!
  5. After the age of 95: most senior citizens are no longer liable to pay monthly premiums and their dependents receive full death benefit after they pass away.
  6. AARP members cannot buy high coverage policies.
  7. Only members of AARP can buy their life insurance policies.

Which type of life insurance policies are offered by AARP?

AARP Term Life Insurance Policy

It is a typical term life for 10-30 years, whatever suits your budget and insurance needs. The AARP Term Life has a big disadvantage. It has specific premium and cost for age periods like 65-69, 70-75, 76-80 and so on. Once you enter from one period to another age group, your premiums increase.

AARP Term Life offers a “Guaranteed Exchange Option Rider” which lets you convert your term life into a whole life after expiry. Similarly, you do not have to undertake the health questions, again.

Permanent Whole Life Insurance Policy

It offers a typical permanent whole life insurance policy which lasts till last breath. This policy gives fixed premiums for life. It provides cash value for living benefits to policyholders. Usually, the whole life coverage is between $10,000-$150,000.

If, however, you need more whole life coverage, you’d have to call them directly. Moreover, the biggest benefit of AARP policies is they get “paid out” after you reach 95 years’ of age. So, you no longer have to pay monthly premiums and you will stay covered till your death.

However, your dependents receive a full and tax-free death benefit payout when you pass away.

Burial Insurance/ Final Expense Life Insurance Policy

The AARP Final-Expense Insurance policy offers coverage around $25,000 for covering the funeral costs or medical bills. It also has the built up cash value.

AARP Guaranteed Acceptance Life Insurance Policy

Anyone with terminal illness can also apply for guaranteed acceptance and attain approval. Furthermore, Guaranteed Acceptance offers a 2 years waiting period and it has lenient underwriting. Similarly, you do not need to pass any medical exam or answer any health questions.

If you die within the 2 years’ waiting period, however; your dependents will get a graded death benefit. It means they will get a full refund of premiums paid with 10% interest. Consequently, they will not get a full death benefit payout. Again, at the age of 95 years, you do not have to keep up the monthly premiums any longer with AARP.

Which riders does AARP offer with its life insurance policies?

  • Terminal Illness Rider: If you get diagnosed with a fatal illness and have a life expectancy of less than 1 year; you can use money from cash value to pay the medical bills. You can use up to 50% of your cash value amount. After you pass away; that amount is subtracted from your death benefit, while the rest is paid to your beneficiaries by AARP.
  • Waiver of Premium Rider: If you’re living in a nursing home for more than 180 days; you will no longer need to pay monthly premiums.

AARP Life Insurance Quick Facts include:

  • Location of AARP headquarters: Washington DC
  • Net Worth of New York Life Assets: $702 Billion
  • How can you buy AARP Life Insurance? You can buy an AARP policy by calling the company’s phone number. You can also get a quote and start your application online.


What are the benefits of buying AARP Life Insurance Policies?

It is a simple and straightforward online application process. You can get exact quotes online. The biggest advantage is that all its life insurance policies are “Paid Out” after the policyholder reaches the age of 95 years.

Now; you no longer need to pay any more monthly premiums; and after you expire, your beneficiaries will receive a full death benefit payout. AARP enjoys a very good repute and rapport with the financial ratings agencies. So does New York Life for its underwritings for AARP, with AM Ratings, Moody’s, and S&P Global.