Are you considering an AARP Life Insurance policy to protect you and your family? However, you still have some questions and you would like to do some additional research first. I understand, I would also. Assurance Life always recommends shopping several companies before you decide to buy. Maybe you have received yet another AARP solicitation in the mail and you just want to know what the deal is? Let’s be clear, Assurance Life is not affiliated with AARP. If you already have an AARP life insurance policy (actually its an New York Life policy more on this later) and have questions, you can contact them directly at 800-865-7927. This is a review of AARP Life Insurance and we advise you to take this perspective and then research your options before you choose a company to handle your burial insurance.
First, you must be member to buy life insurance through AARP. In fact, just to get an individualized quote on their website you have to check a box that says you are indeed a member.
Here are some cold hard facts about AARP Life Insurance:
• AARP is NOT an insurance company
• AARP is a marketing company
• All AARP Life Insurance policies are underwritten by New York Life
• You Must be a member to purchase AARP Life Insurance
Let’s take look at the different types of AARP life insurance plans that are offered:
1. Level Benefit Term Life Insurance
2. Permanent Life Insurance
3. Guaranteed Acceptance Life Insurance
Level Benefit Term AARP Life Insurance
This plan is their flagship product. If you are looking for a burial insurance policy to cover your final expenses, this life insurance policy IS NOT FOR YOU. First, you need to know it’s term life insurance. Of course, all term life insurance policies terminate. Meaning it cancels, or better yet its temporary protection. If you are looking for more permanent coverage, whole life insurance is better bet to provide your family with lifelong protection. More on AARP’s permanent coverage later.
Here are the highlights of the Level Benefit Term AARP Life Insurance Product:
• Coverage up to $100,000
• Only available to AARP members
• No medical exams
• No waiting period
• Simple Application
• Ages 50-74 eligible (45-74 for spouses)
Coverage Ends at 80 – AARP Level Benefit Term Life Insurance
IMPORTANT TO KNOW – AARP’s Level Benefit Term Life Insurance policy expires at age 80. Unfortunately, this means that if you live to be 80 and 1 day, your policy will be cancelled and you and your family will be unprotected. Plus, you won’t get any money back that you put into the policy or have another option to purchase another term policy through AARP. If this has happened to you and you are over 80 years old and need a burial policy to cover your final expenses, you can call Assurance Life at 800-517-0810. Assurance Life has access to 25 of the top burial insurance companies in the US. Finding you plan for you in your 80’s won’t be a problem, we got you covered.
Here is how AARP talks about their coverage ending at 80 years old on their website:
This insurance coverage can never be cancelled without your consent—regardless of your health. As long as you pay premiums when they’re due and your Enrollment Form contains no misrepresentations about your medical history, you’re covered to age 80.
Premiums Increase Every 5 years
Before you purchase the AARP’s Level Benefit Term Life Insurance, something else to note is that your premium will INCREASE every 5 years. Here is how AARP describes this information on their website:
*Premiums above are the rates New York Life currently charges. Your initial premium is based on your age at issue; premiums increase as you enter each new five-year age band and will be based on the current rates at that time. Age bands begin at ages 45-49 and end at ages 75-79. Coverage ends at age 80. Premiums are not guaranteed. However, your rates may change only if they are changed for all others in the same class of insureds under this group policy.
So unfortunately, under this AARP life insurance plan your PREMIUMS ARE NOT GUARANTEED. Once again, if you are looking for a life insurance plan that covers your funeral expenses when you die, THIS PLAN IS NOT FOR YOU. You need a whole life insurance policy that WON’T EVER CANCEL and a policy that your monthly premium payments STAY THE SAME AND NEVER INCREASE. Whole life insurance plans make it super easy to budget for because your premiums never change. Another thing you need to know about their Level Benefit Term Life Insurance is, the rates on this plan are not competitive when looking at other term insurance providers. So higher premiums to start and your premiums are not guaranteed. Ouch! Unfortunately, Assurance Life doesn’t offer term insurance so you will have to look elsewhere if term insurance is what you are looking for.
Permanent AARP Life Insurance
Another type of insurance plan that offer AARP offers through New York Life is their Permanent Life Insurance product. Permanent life insurance is also called whole life insurance, burial insurance, funeral insurance and final expense insurance. This type of AARP burial insurance plans will last your whole life as long as continue making your premium payments. You have to ASK about burial insurance AARP or most of the time you will be sold their Level Benefit Term Life Insurance product.
Here are the highlights of the Permanent AARP Life Insurance Product:
• Coverage up to $50,000
• Only available to AARP Members
• No Medical Exams
• Tobacco/Non Tobacco Rates are the Same
• Guaranteed Rates that will Never Increase
• Insurance that Lasts Your Life
• Ages 50-80 eligible (45-80 for spouses)
Whole life insurance is great option for those wanting a plan to cover their final expenses. Permanent Life offered by AARP is definitely a better choice than their Level Benefit Term product. However, a couple things you need to know about their Permanent Life Insurance plan. First, its really for those individuals with very few health problems. New York Life is looking for the super healthy on this product it seems. If you have had any problems over the past two years you most likely be denied.
Here are some examples of conditions that they won’t take:
• Heart Problems
• Liver or Kidney Disease
• Diabetes with Insulin
Plus, they ask if you have been admitted or confined to a hospital, nursing home or treatment facility within the past 2 years. Also, they ask if you have consulted with a doctor or had treatment or testing of any type within the past 3 months. This is where this plan falls short. Their underwriting on this product is just too strict and they decline a ton of conditions. Assurance Life works with 25 of top burial insurance companies in the US. We have access to several companies who would approve you with some of the conditions listed above. This is why its always important to use an independent broker who has several companies to choose from when you are looking for burial insurance.
Guaranteed Acceptance AARP Life Insurance
AARP also offers another type of permanent life insurance which is called Guaranteed Acceptance Life Insurance. This plan has some of the same benefits as their permanent life however, guaranteed acceptance Life doesn’t ask any health questions on their application. In fact, your acceptance is GUARANTEED and you can’t be turned down. These types of plans are great for those with severe health issues and for those who can’t qualify for other traditional life insurance plans.
Here are the highlights of the Guaranteed Acceptance AARP Life Insurance Product:
• Coverage up to $25,000
• Only Available to AARP Members
• No Health Questions on Application
• No Medical Exams
• Guaranteed Acceptance
• Lifetime Protection
• Ages 50-80 eligible (45-80 for spouses)
Once again, guaranteed issued whole life insurance is a great option for those with severe health issues. However, a few things you need to know. Guaranteed issue life insurance is the most expensive type of life insurance out there. Why is this? Well, since these plans take everyone and don’t ask any health questions, the risks are higher for life insurance companies. Higher pricing comes with higher risks. Also, all of these types of plans come with a mandatory two year waiting period. This simply means if you die during the first two years of taking out your policy, your death benefit won’t be paid out. However, they will give you all your money back plus 25 percent interest. After two years, the entire death benefit would be paid out. Of course, if you were to die accidentally your death benefit would be paid even if you pass away during the first two years.
New York Life Insurance is a well-respected company and is certainly financially strong and not going anywhere. However, its important to know that you will pay more for their whole life insurance plans and that their term life plan should be completely out of the question for someone wanting coverage for burial expenses. We hope you enjoyed our AARP Life Insurance review. If you have more questions and would like get instant burial insurance quotes you can reach us at 800-517-0810. So, what are you waiting for?