AARP Life Insurance Review

ByTop10.com StaffJul.17, 2018

This site is a free online resource that strives to offer helpful content and comparison features to its visitors. Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented, and in some cases may also impact the rating that is assigned to them. To the extent that ratings appear on this site, such rating is determined by our subjective opinion and based on a methodology that aggregates our analysis of brand market share and reputation, each brand's conversion rates, compensation paid to us and general consumer interest. Company listings on this page DO NOT imply endorsement. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information, including pricing, which appears on this site is subject to change at any time.

In a Nutshell

Thanks to the elimination of the medical examination component of most insurance processes, with AARP you can quickly access coverage that is active as soon as it is approved. AARP’s range of options and long history of good service make it a solid choice for families looking for a secure future.

pros

  • Application can be handled online or offline
  • Premium rates available online

cons

  • Coverage limited to $100,000
  • No medical exam means premiums may be higher

Best For?

  • Streamlined insurance applications and efficient coverage

Unlike many peers, AARP life insurance application process can be handled online in most states, helping to speed up the approval and underwriting processes. The absence of a medical examination requirement also simplifies the steps towards receiving coverage while an online portal modernizes many insurance functions like paying premiums, adjusting important personal details, and even changing beneficiaries.

  • Prospective policyholders seeking educational information on the value of life insurance

The AARP Learning Center contains materials designed to educate users on the nuances of life insurance, the different types of policies available, and how life insurance can be an advantageous tool for beneficiaries. You can also access resources designed to help them with financial planning as you age. 

Features

As a group dedicated to improving the well-being of its members, AARP goes to great lengths to ensure applicants and policyholders have all the resources they need to understand life insurance products and the benefits. The Learning Center hosted on the site is filled to the brim with articles that cover the basics of life insurance and compare the available options to a glossary of terms designed to help users understand the language contained in the policies. In addition, the organization provides useful tips and discusses potential pitfalls alongside suggestions for individuals related to the beneficiary like an estate executor, surviving spouses or family, and even an overview of the process for submitting claims.

Existing AARP members already reap notable rewards in the form of savings on travel and entertainment, discounts for goods and services, and other useful benefits. When it comes to insurance, AARP members have several useful tools at their disposal to aid the decision-making process. A helpful premium calculator tool for each plan gives potential policyholders the ability to examine premium rates depending on gender and age and amount of coverage desired.

Another useful benefit is the 30-day guarantee that accompanies each policy after the desired coverage amount is approved and underwritten. Should a policyholder be unsatisfied for any reason, they are eligible to end coverage within 30-days and receive a refund. In addition, AARP users have access to an online portal to make premium payments, change personal information, adjust beneficiaries, and handle several other useful functions.

Application Process

One of the areas AARP shines relative to other insurance plans is the simplified underwriting process which requires no medical exams. The steps towards obtaining life insurance coverage from AARP start with a simple application that includes basic information like name, address, age, the amount of coverage desired, and finally the AARP member number. You can fill out an application online or submit it by mail depending on the state. Once a policy is approved and underwritten, full coverage is immediately granted for most of the products, the one exception being the Guaranteed Life Insurance policy. 

Policy Types and Terms

AARP focuses on 4 main offerings that provide varying degrees of coverage.

Plan
Coverage
Level Benefit Term Life Insurance$10,000 - $100,000
Permanent Life Insurance$5,000 - $50,000
Guaranteed Life Insurance$2,500 - $25,000
Young Start Life Insurance$10,000 - $20,000

Level Benefit Term Life Insurance plan issues coverage for amounts ranging between $10,000 and $100,000. Premiums gradually rise over time and are set in 5-year increments; however, benefits remain constant throughout the policy until it expires at age 80. One of the primary advantages of this plan is no waiting period or medical exam is necessary to receive coverage. Furthermore, coverage can be paid out earlier in an accelerated benefit if terminal illness is a factor and premium payments are waived if a doctor orders a policyholder to remain in a nursing home for more than 180 days. Finally, the policy can be exchanged for permanent life insurance if handled before age 80.

The Permanent Life Insurance policy grants between $5,000 to $50,000 in coverage. AARP determines eligibility based on answers to health questions, but no medical exam is necessary to qualify for coverage. Policyholders can borrow against the cash value of the policy and premium payments end at age 95 even though coverage is for life. In addition, accelerated benefits and waivers for premiums are the same as the Level Benefit Term Life Insurance plans.

If you’ve been rejected by other insurers you will appreciate the Guaranteed Life Insurance policy that ensures acceptance for AARP members for coverage ranging from $2,500 to $25,000. Premiums are guaranteed to never rise throughout the entirety of this permanent policy. No medical information is required for approval and premium payments end at age 95. Full benefits are accumulated after the first 2 years alongside the accelerated benefit, with payouts of only 125% of the paid in premiums granted in the case a policyholder passes within the first 2 years.

The final plan helps cover younger family members with $10,000 to $20,000 of coverage for children or grandchildren of AARP members up to 17 years old. The Young Start plan is a permanent insurance policy that is designed to give coverage at low rates that can never be increased throughout the length of the term. The policy can be kept intact for the covered individual’s entire life, and at age 21, the child becomes the beneficiary instead of a parent or legal guardian, giving them the option to change the policyholder.

Taken together, these term and permanent life solutions can provide valuable degrees of coverage for individuals, spouses, children, and even grandchildren via simple applications that do not require medical exams.

Help and Support

When it comes to getting assistance, AARP users have multiple channels to request help.  Users can create an account to interface with support representatives via the virtual service center. Here, policyholders can manage and make payments online, change account information, and access all related policy forms. Representatives are also available via a toll-free number from Monday to Friday from 9am to 9pm Eastern Standard Time and Saturdays from 9am to 5pm. Wait times are minimal, and the service is very friendly and helpful. 

Summary

As one of the foremost authorities for retirees, AARP is a widely recognized name in excellence for activities that go towards supporting its large community of members. With nearly 38 million dues-paying members, it represents one of the largest non-profit special interest groups in the United States engaged in lobbying efforts relating to health care, employment, and financial protections for its members. In partnership with New York Life Insurance Company, it has built a program designed to help its members access term and permanent life insurance products with a streamlined process that is designed to eliminate many barriers that currently define life insurance applications.

It has built a more advanced system for obtaining life insurance that shortens the application process and helps expedite coverage. Apart from giving potential policyholders the option of applying online, AARP’s web portal is great for existing policyholders who want to handle activities related to their account. With an abundance of educational resources at users’ fingertips and friendly service representatives, AARP stands out as an advantageous option if you’re seeking straightforward coverage via a simplified route. 

Physical Address

The AARP Life Insurance Program

New York Life Insurance Company

5505 W. Cypress Street

Tampa, FL 33607