The Truth About AARP Life Insurance [Review 2021] (New York Life)


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WHAT IS AARP INSURANCE?

AARP group is an interest group that places focus on issues affecting the aged population in the United States, especially those 50 years or older.

It has several affiliate organizations, including AARP Foundation, AARP Services, Inc. Legal Counsel for the Elderly, AARP Financial Services Corporation, AARP Insurance Plan. 

AARP Insurance is an Insurance program that offers term and permanent coverage with simplified writings. In other words, applicants do not have to go through the rigors of physical examination to qualify for coverage as acceptance is based on applicants’ health status and personal information.

The mission of AARP Insurance is to empower people to choose how they live as they grow older. Boasting over 38 million registered members, AARP has functional offices in all 50 states, accommodating members aged 50 and above.


FINAL EXPENSE INSURANCE FOR MY PARENTS

What is the best final expense insurance policy for my parents? If you are an adult child looking to find the right burial insurance product for your mom or dad. Before you purchase AARP, understand that AARP is a product we replace on a daily basis.

Often times you are sold a term product, this product will expire at age 80. Now you are older and perhaps have some health issues. In fact, adult children take over the necessary documents for their parents and find out that their parent’s policy expired already and that their parents do not have coverage at all. Don’t find out the hard way!

This is why you need a LEVEL product that will remain the same for the rest of your life! Your Coverage will never EXPIRE! EVER!

AARP NEW YORK LIFE INSURANCE

New York life is a well-known Insurer with an A++ financial strength rating from A.M. Best.

The AARP Life Insurance Program from New York Life is endorsed by AARP and is the only life insurance program developed exclusively for AARP members. It offers coverage to seniors that have pre-existing medical conditions or would have difficulty getting life insurance elsewhere. 

The coverage offered by AARP New York Life insurance includes both permanent and term life insurance. Both plans utilize simplified underwriting, which implies that New York Life insurance reviews only a few medical questions.

Be warned, Unlike Level Simplified Products, with AARP, YOU WILL BE OVERPAYING BY UP TO 30%!!!!

Applicants do not have to undergo a medical exam to qualify for coverage unless they have a significant health impairment or medical condition. Seniors with poor health conditions have an option with AARP guaranteed acceptance whole life.

Keep in mind, what you may think will only qualify for a guaranteed issue product, may indeed qualify for day one coverage with an A+ rated level benefit carrier such as Royal Neighbors of America.

This is a unique policy because applicants get automatic approval with no medical questions asked.


AARP NEW YORK LIFE INSURANCE PLANS

AARP New York Life Insurance comes with different life insurance plans with special rates based on the New York Life group division’s group insurance rates.

AARP life insurance rates vary depending on your selected plan. AARP and New York Life offer group term and whole life insurance policies for seniors, as well as whole life insurance coverage for minors.

All of their policies are either simplified issue or guaranteed acceptance, which means there are no medical exams and coverage is issued quickly.

The four major AARP life insurance plans with their key features and sample rates will be highlighted as follows:

  • AARP Level Benefit Term Life
  • AARP Whole Life
  • AARP Guaranteed Acceptance Life
  • AARP Young Start Program

AARP TERM LIFE INSURANCE

AARP Term Life Insurance, also known as AARP LEVEL BENEFIT TERM LIFE, does not require any medical exam before applicants can be enrolled, and acceptance is based on several general health questions.

It is quite expensive with relatively high premiums unlike level simplified issue carriers such as Mutual of Omaha, which increases as you get older, and the maximum coverage amount costs up to $100,000.

The policy can be issued between ages 50 – 75 and expires at age 80, while death benefits usually remain. So, unless you have a pre-existing medical condition, AARP term life insurance is usually not recommended for seniors due to its relatively high premiums, which continues to increase as you get older, and it ends once you clock 80.

Also, keep in mind, your premiums will increase every 5 years! At this stage of life, do you think this is the right product for you? NO! Not at all.


AARP WHOLE LIFE INSURANCE

Like AARP Term Life Insurance, AARP Whole Life Insurance requires no medical exam, and acceptance is based on several health questions. AARP Whole Life rates are really expensive, with a maximum coverage amount of $50,000.

Unlike the Term Life Insurance plan, Whole Life Policy does build cash values, and Life Insurance payments stay level until a beneficiary clock 95. However, only a few individuals live up to 95, but the opportunity to stop making payments and continue to have coverage isn’t typical among whole life insurance companies.

It is an excellent plan for seniors, and it is mainly designed for senior citizens looking for funds to cover funeral expenses and pay off minor debts. The plan builds cash value over time, which can be borrowed against whenever you have a sudden emergency expense.

It is a good option for those who have any prior medical condition. 

Furthermore, AARP Whole Life Insurance comes with two riders that offer financial assistance if a beneficiary becomes disabled or ill.

  • WAIVER OF PREMIUM: If you face a disability or illness that requires you to stay in a nursing home, you won’t have today premiums for the entirety of your stay (or until you turn 80, whichever is sooner). You should bear in mind that premiums are only waived after you’ve stayed in a nursing home for six months, at least.
  • ACCELERATED DEATH BENEFIT: For those diagnosed with a terminal illness for which they’ve been told they have less than 12 months to live can access up to 50% of the policy’s death benefits while they’re still alive.

AARP is a marketing tool for New York Life and certain products will expire at age 80. Be careful!


AARP GUARANTEED ACCEPTANCE INSURANCE

AARP Guaranteed Acceptance Insurance Plan is available to those between the ages of 50 and 80. Applicants can qualify for this plan with no medical exam or health questions asked. It is ideal if you need life insurance for parents in poor health to cover final expenses.

This AARP New York Life Insurance is also very expensive and has a maximum coverage of only $25,000. The plan also builds cash values with cash insurance payments staying level till the senior clocks 95. It also provides for a death benefit, which limits payouts during the first two policy years.

However, if you pass away during the first two years of coverage due to a non-accident, your beneficiary will not receive the full death benefit. They will rather receive 125% of the value of premiums that have been paid to that point. Waiting periods are relatively standard for guaranteed acceptance coverage as insurers try to avoid huge payments if terminally ill patients sign up. 

AARP Guaranteed Acceptance Whole Life Insurance is not the cheapest of plans for seniors. However, it can be your best option if you have experienced a severe medical condition in the past.


AARP YOUNG START PROGRAM

AARP’s Young Start Program allows you to purchase whole life insurance coverage for a child or grandchild that is younger than 18 years of age. Like the previous plans, there are no medical exams required as acceptance is based on several general health questions and the policy also builds cash value.

AARP’s Young Start Program provides 3 levels of coverage to include $10,000, $15,000, $20,000 for death benefit with a monthly premium of $5.00, $7.50 and $10.00 respectively.

The plan is intended to shield parents and relatives from the costs associated with a child dying early. AARP’s policy differs from those offered by other insurers because coverage is never interrupted whenever a child reaches 21 and premiums stay level for as long as the policy remains in force.

The implication is that while the policy’s cash value will grow relatively slow, it can continue to grow for decades and can be accessed if your child or grandchild decides to have it.

If a guardian eventually passes away, the child or grandchild won’t have to pay premiums to keep coverage in place until they turn 21. At that point, premium payments will continue to be set according to the amount of initially purchased coverage.

AARP’s Young Start Program provides good value for those in need of a small policy on a younger family member. It’s the best bet that will aid parents with funeral costs associated with a child dying early.

It is important to note that these plans are only available to AARP members who are 50 years or older, and membership can cost between $12 to $16 per year depending on your payment method.

If you are a Senior and need any assistance. CLICK HERE.