The permanent life insurance policy offered through AARP comes with some of the following features:
Coverage ranging from $10,000 to $100,000 Whole life insurance rates.
Guaranteed acceptance for those between ages 50 and 75
Coverage for AARP members’ spouses between the ages of 45 and 74
No medical exam for acceptance
A permanent life insurance policy through AARP is available only to AARP members and spouses. Applying is as simple as providing general information, answering three medical history questions, and permitting AARP/New York Life to verify that information independently. Seems like a painless process, but is it truly that simple and reliable?
Life the life
It is unusual to approach pros and cons from this direction, but let’s consider the cons of AARP insurance before addressing the pros. This is important because many of AARP’s cons are its main selling points to members.
AARP frequently touts guaranteed acceptance, low rates, and no premium changes for the same amount of coverage over the life of a policy. These are simply not true. While it seems attractive, AARP and New York Life are businesses and will act accordingly.
For starters, AARP boasts guaranteed acceptance with no medical exams, but that doesn’t mean a potential client’s medical history won’t be looked at closely. Those who have had a long medical history with complications from certain diseases will be denied coverage. Regarding premiums, AARP can sometimes offer the better rate compared to others but that is not always going to be the case.
Lastly, regarding cons, it is impossible for AARP to ensure that premiums will never change. If the cost of covering its insured members goes up, New York Life will raise premiums because it is a business.
This doesn’t mean that AARP doesn’t offer great benefits to some. Those in good health and with steady finances are likely to run into few if any hiccups with AARP. Additionally, AARP’s insurance underwriters (NYL and in some cases United Health Group) are well-vetted providers with solid financial standing themselves. This means members don’t have to worry about dealing with shady insurance providers that might not be there for them when they are needed.
All that being said, there are other options that seniors should consider if they feel AARP isn’t offering the best coverage. Even if AARP seems to be offering an unbeatable coverage option, it never hurts to shop around to ensure that the best premiums and coverage are being accessed.
Guaranteed No Lapse Universal (GUL), Whole Life, and Term Life insurance policies are all available to seniors looking to provide an extra security net for the loved ones they might leave behind when they die. Each of these plans can be found, through an independent insurance agent, with rates equal to or lower than AARP and with no need for a medical exam.
Term life insurance is the easiest to explain so let’s start there. As the name suggest, these life insurance policies offer coverage for a specified term and provide only a death benefit payment in the event the policyholder dies during the covered term. Premiums for these policies are the lowest available, but there is no cash build up over time and if the term expires, the coverage ends.
Cheap insurance life term
GUL policies help individuals build on the coverage of a term life policy. Universal policies generally offer a death benefit to beneficiaries, but also provide policy holders with a cash investment option that grows with the plan.
Lastly there is whole life insurance. Whole life policies cover a policy holder for as long as they are alive. The premium for the policy and the death benefit are set at a specific rate for the life of the policy and will not change. Like a Universal policy, it offers the policy holder the ability to have a cash investment and even borrow against that amount.