AARP Life Insurance is a program that offers policies underwritten by New York Life, which is the second-largest life insurance company in the US. AARP members can purchase term or permanent life insurance without a medical exam, making it an option for those with health conditions. However, AARP life insurance is not BBB accredited and has received mixed reviews from customers. While some praise the company for fast and helpful service, others have complained about misleading marketing and difficulty collecting death benefit payments.
Characteristics | Values |
---|---|
BBB accreditation | Not BBB accredited |
BBB rating | N/A |
BBB opinion | BBB's opinion reflects its view of the entire organization's interactions with its customers, including interactions with local locations |
Years in business | 179 |
What You'll Learn
AARP's rating by BBB
AARP is not rated by the Better Business Bureau (BBB). However, the BBB has issued a rating for New York Life Insurance Company, which underwrites and issues AARP's life insurance policies. New York Life has been assigned an A+ rating by the BBB, which is the second-highest rating possible.
The BBB rating is based on information obtained about a business, including complaints received from the public. The ratings scale ranges from A+ (highest) to F (lowest). BBB accreditation indicates that the business meets accreditation standards, including a commitment to making a good-faith effort to resolve any consumer complaints.
While AARP itself does not have a BBB rating, the organization has received numerous customer reviews on the BBB website, with an average of 2.16 out of 5 stars across 243 reviews. It's worth noting that these reviews are for AARP as a whole and not specific to its term life insurance offerings.
The Ultimate No-Lapse Guarantee Life Insurance Guide
You may want to see also
AARP's life insurance policies
AARP is not an insurance company but an advocacy organisation that focuses on senior-related issues. They offer a suite of benefits to their members, including access to exclusive insurance products. AARP life insurance policies are underwritten and issued by New York Life.
AARP offers three types of life insurance policies: term life insurance, whole life insurance, and guaranteed acceptance life insurance.
Term Life Insurance
AARP's term life insurance is available to members aged 50 to 74 and their spouses aged 45 to 74. The coverage can last until the insured person turns 80, with the option to convert to permanent insurance at that time. The annual price increases every five years, as the insured person enters a new five-year age band. The coverage amounts range from $10,000 to $150,000 when applying online, with higher amounts available by phone. There is no medical exam required, but applicants must answer several health questions.
Whole Life Insurance
AARP's whole life insurance is available to members aged 50 to 80 and their spouses aged 45 to 80. The annual price remains level, and coverage lasts throughout the insured person's life, though premium payments may stop once the policy is deemed "paid up" (usually at age 95). The coverage amounts range from $10,000 to $50,000 when applying online, with higher amounts available by phone. There is no medical exam required, but acceptance is based on answers to health questions.
Guaranteed Acceptance Life Insurance
AARP's guaranteed acceptance life insurance is available to members aged 50 to 80 and their spouses aged 45 to 80 (up to age 75 in New York). Acceptance is guaranteed, and no medical exam or health questions are required. The policy has a waiting period, meaning only a portion of the death benefit is paid out if the insured person dies of natural causes within the first two years of the policy. The coverage amounts range from $10,000 to $30,000 when applying online, with higher amounts available by phone.
Customer Reviews and Ratings
AARP life insurance has received mixed reviews from customers. While some praise the company for fast, helpful, and empathetic agents and customer service, others complain about misleading marketing, unexpected premium increases, and difficulty collecting death benefit payments.
According to the Better Business Bureau (BBB), AARP Life Insurance Program is not BBB-accredited and has a large number of closed complaints in the last three years. However, New York Life, which issues AARP's policies, has received fewer complaints than expected to state regulators, according to a NerdWallet analysis.
Overall, AARP life insurance policies may be a good option for older individuals, especially those looking to avoid a medical exam. However, it's important to carefully review the terms and conditions, compare prices with other providers, and consider the mixed customer reviews before making a decision.
GST Exemption on Life Insurance: What You Need to Know
You may want to see also
AARP's customer complaints and satisfaction
AARP has received a variety of customer complaints across different platforms, including the Better Business Bureau (BBB), Trustpilot, and NerdWallet. The BBB, for instance, lists 254 total complaints against AARP in the last 3 years, with 103 of those closed in the last 12 months. These complaints cover a range of issues, including roadside assistance, travel bookings, unwanted emails, membership renewal practices, and issues with third-party providers.
Trustpilot reviews for AARP are also largely negative, with customers complaining about useless publications, unwanted emails, poor customer service, and hidden fees associated with endorsed companies.
However, AARP's life insurance policies, underwritten by New York Life, have received fewer complaints than expected to state regulators, according to a NerdWallet analysis. The NerdWallet review also highlights the ease of getting a quote and finding basic information on the AARP website, as well as the availability of phone support.
Overall, while AARP has received a significant number of customer complaints, the level of satisfaction appears mixed, with some customers praising the company's rewards program and employee referrals.
Life Insurance License Test: Challenging but Manageable
You may want to see also
AARP's customer experience
AARP's customer service line is responsive, with a live representative available within a few minutes. However, some customers have complained about receiving misleading information and inconsistent responses from the company's representatives.
AARP's website does not offer a live chat feature, and the company does not provide a public email address for customer support.
AARP has received positive reviews for its fast, helpful, and empathetic agents and customer service. On the other hand, some customers have expressed concerns about misleading marketing and difficulty collecting death benefit payments.
Overall, AARP's customer experience is rated highly for its ease of use and accessibility, but there are some mixed reviews regarding the quality and consistency of information provided by its representatives.
Max Life Insurance: Safe Investment Option?
You may want to see also
AARP's life insurance riders
Term Rider
This rider allows you to add a second term life policy to your current life insurance policy. This strategy is sometimes called "laddering" and can provide extra coverage during certain periods of your life, such as when your children are in college. You can apply for additional coverage between $2,500 and your current coverage limit, with a maximum coverage amount of $150,000.
Terminal Illness Rider
The Term Rider Protect Plus is a terminal illness rider. If you are diagnosed with a qualifying illness and are given less than two years to live (one year in New York), you can withdraw up to 50% of your death benefit. This money can be used for any purpose, but the death benefit paid to your beneficiaries will be reduced.
Waiver of Premium for Nursing Home Stays
If you are living in a nursing home under a doctor's orders for a qualified reason, this rider will waive your life insurance premiums after you have been in the nursing home for 180 consecutive days.
Schwab's Life Insurance: What You Need to Know
You may want to see also
Frequently asked questions
No, AARP life insurance is not BBB accredited.
The BBB rating of AARP life insurance is not available. However, New York Life Insurance Company, which underwrites AARP's life insurance policies, has received an A++ financial strength rating from AM Best.
The BBB rating is based on information obtained about the business, including customer reviews and complaints. The rating reflects BBB's opinion about the organization's overall interactions with its customers.
Customer reviews on the BBB website and other platforms, such as TrustPilot and ConsumerAffairs, are mixed. While some customers praise AARP for its helpful and empathetic agents, others complain about misleading marketing, unexpected premium increases, and difficulty collecting death benefit payments.
To file a complaint, you can submit a review on the BBB website or contact the BBB directly. The BBB will consider your feedback when evaluating AARP life insurance's rating.