Life Insurance: Is Aarp Coverage Worth The Cost?

AARP life insurance is provided by New York Life and is available to AARP members aged 50 and above, as well as their spouses. The program offers term, whole, and guaranteed life insurance without a medical exam. AARP's no-exam policies could be a good option for seniors with pre-existing conditions. However, coverage is limited to $150,000, and those looking for higher coverage will need to look elsewhere.

AARP's term life insurance

A unique feature of AARP's term life insurance is the built-in Guaranteed Exchange Option Rider, which allows eligible policyholders to convert their term policy into permanent coverage without undergoing a medical exam or answering health questions. This option provides flexibility and peace of mind for those who want to ensure continued coverage as they age.

Overall, AARP's term life insurance is a good option for those who want the convenience of avoiding a medical exam and the flexibility of converting their policy to permanent coverage later on. However, the increasing premiums every five years can be a drawback for those looking for predictable budgeting.

AARP's whole life insurance

AARP Whole Life Insurance is a type of permanent life insurance coverage that lasts for the duration of your life, provided you pay the premium. Unlike a term life policy, whole life insurance policies include a cash value component that you can borrow against in the future. Whole life insurance is usually much more expensive than term life coverage.

AARP Permanent Life Insurance is a whole life insurance policy available to AARP members between the ages of 50 and 80. You can get up to $50,000 in coverage when you apply online, but higher coverage limits are available if you work with an agent. There's no medical exam required, and your premium will never increase.

Once you turn 95 (or earlier, depending on your state), your policy is deemed "paid up". That means your policy will remain in effect for the rest of your life, but you don't have to continue making monthly payments.

AARP's guaranteed acceptance life insurance

The AARP guaranteed acceptance life insurance policy builds cash value over time, which can be withdrawn or borrowed from if needed. Once the policyholder turns 95, the policy is deemed "paid up", meaning premium payments end and the policy remains in effect for the rest of their life.

While the policy guarantees coverage, there are some limitations to the death benefit. If the insured dies of natural causes within the first two years of the policy, only a portion of the death benefit will be paid out (110% of the premiums paid in most states). After the first two years, the full benefit is paid out from the first day of coverage, even in cases of accidental death.

The maximum coverage offered under this policy is $25,000, but higher coverage may be available by contacting New York Life directly. It is important to note that this policy is not available in all states.

AARP's no-exam life insurance

With AARP's no-exam life insurance, you can easily apply online in minutes and get a free instant quote. There is no medical exam required; instead, you just need to provide health and other information. The coverage options available include term life insurance, whole life insurance, and guaranteed acceptance life insurance.

Term life insurance from AARP provides coverage over a fixed period, known as the term. The rates increase every five years as you enter a new age band. AARP's term life insurance is available to members aged 50 to 74 and their spouses aged 45 to 74, with coverage amounts ranging from $10,000 to $150,000.

On the other hand, whole life insurance is a type of permanent coverage that lasts for your entire life, as long as you continue paying the premiums. AARP's whole life insurance offers up to $50,000 in coverage for members aged 50 to 80 and their spouses aged 45 to 80. The best part? Your premium will never increase.

Additionally, AARP also offers guaranteed acceptance life insurance, which does not require a medical exam or health questions. This option guarantees acceptance regardless of health and is available to applicants aged 50 to 80. The coverage limit for this option is $25,000, and it includes a graded death benefit for the first two years.

Overall, AARP's no-exam life insurance provides a convenient and accessible way to obtain life insurance coverage, especially for those who may have health conditions. It offers flexibility, ease of application, and valuable benefits to ensure financial protection for your loved ones.

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, like when your kids are in college. Adding a second policy provides protection until the term ends, until age 80. 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 and use the money for any purpose. 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 doctor's orders and for a qualified reason, this rider will waive your life insurance premiums after you have been in the nursing home for 180 consecutive days.

Frequently asked questions