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AARP Life Insurance Review
By Kat Tretina MONEY RESEARCH COLLECTIVE
AARP, an advocacy organization for people age 50 and older, is a well-respected brand. For those looking for an insurance company, AARP life insurance can be an appealing option because of the reputation of the organization behind the product.
Not that AARP is actually issuing policies itself. While it’s possible to purchase life insurance through AARP, the coverage isn’t underwritten by the organization. Instead, policies are issued through New York Life, one of the largest life insurance companies in the country.
Continue reading to learn more about the connection between the New York Life insurance company and AARP, and the policies available through their partnership.
Table of Contents
- AARP life insurance overview
- AARP’s services
- AARP life insurance cost
- AARP’s credentials
- AARP’s accessibility
- AARP’s customer satisfaction
- AARP life insurance FAQs
- How we evaluated AARP life insurance
- Summary of Miami Herald’s AARP review
AARP life insurance overview
- No physical exams required
- Quick and easy application process
- Backed by leading insurer
- Low coverage maximums
- Policies not available to everyone
- Limited policy options
AARP is a nonprofit organization focused on advocating on behalf of those 50 and older. It provides educational resources for consumers and policymakers, and lobbies government agencies on issues critical to older adults, including expanding access to healthcare, lowering prescription drug prices and promoting financial security.
AARP isn’t an insurance company. Because of that fact, the association entered into an agreement with New York Life, the third-largest writer of individual life insurance coverage in the U.S., based on direct premiums written, to offer life insurance plans with AARP’s endorsement. Through New York Life, AARP life insurance is available to the association’s membership in all 50 states and Washington, D.C.
AARP’s services
Under the AARP life insurance brand, New York Life sells term and whole life insurance policies. Coverage tends to be more limited than the options available to those who buy a policy directly through New York Life. Still, one big advantage to the joint AARP-New York Life insurance products is that none require a medical exam. Instead, you have only to answer some health questions and disclose other details about your medical history.
What it offers
Through AARP, you can purchase the following life insurance options:
Term life insurance
AARP’s level benefit term life insurance policy provides a death benefit of between $10,000 and $150,000. While term life insurance policies usually allow you to choose your own term — typically ranging between 10 and 30 years — AARP’s term life insurance lasts until you reach 80 years of age.
AARP term life coverage is only available to individuals who are AARP members and between the ages of 50 and 74. (The policyholder’s partner must be between the ages of 45 and 74.)
Permanent life insurance
If you’re looking for coverage that lasts for your lifetime, you can purchase up to $50,000 in coverage with an AARP permanent life insurance policy. There is no medical exam; you just have to answer questions about your health and medical history, and your policy will have guaranteed rates that never increase. This type of policy may accumulate cash value.
AARP whole life insurance is available to AARP members between the ages of 50 and 80. (The policyholder’s partner must be between the ages of 45 and 80.)
Guaranteed acceptance life insurance
With most of AARP’s policies, there is no need to get a medical exam, but you can be denied coverage based on your health or medical history.
For people who struggle to get life insurance, AARP’s guaranteed acceptance policy can be a useful solution. It provides up to $25,000 in coverage, and acceptance is assured.
Insurance riders
You can often use insurance riders to enhance your coverage or to purchase additional protection. With AARP, you have the option of purchasing the Term Rider Protect Plus rider. This rider allows you to get up to double your existing death benefit. You can also use the rider to access up to half of your death benefit if you’re diagnosed with a terminal illness and have a life expectancy of 12 months or less.
AARP life insurance comparison
With all of AARP’s policies, you can get quotes online. Below are quotes for a healthy 50-year-old woman for AARP’s life insurance options:
| Life insurance policy | Coverage period | No medical exam | Rates | Protection amount |
| Term life insurance | Until age 80 | Not required | $71 per month for $150,000 of coverage | Up to $150,000 |
| Permanent life insurance | For your lifetime | Not required | $110 per month for $50,000 of coverage | Up to $50,000 |
| Guaranteed acceptance life insurance | For your lifetime | Not required; acceptance guaranteed | $116 per month for $25,000 of coverage | Up to $25,000 |
What it doesn’t offer
Although AARP life insurance could be a good option for some, there are some limitations to keep in mind:
- Low coverage maximums: The maximum amount of coverage you can purchase through AARP is $150,000. If you’re like many people, that might not be enough insurance to provide for your beneficiaries’ needs. In that case, you may need to purchase a different policy through New York Life or another insurer.
- Other life insurance types: AARP only sells term and small whole life policies that will cover your final expenses. If you’re looking for other options, such as universal life coverage, you’ll need to work with another insurance company.
- Coverage for younger people: To purchase AARP coverage, you must be a member of AARP and meet the organization’s age restrictions. In general, those under the age of 50 are ineligible for coverage.
AARP life insurance cost
In general, AARP life insurance is more expensive than insurance sold by other companies. The primary reason is that AARP coverage is geared towards people who are 50 and older, and with life insurance, premiums get more expensive as the policyholder’s age increases.
Additionally, simplified underwriting coverage — insurance policies that allow applicants to skip the standard medical exam or that guarantee acceptance — tends to be more expensive than fully underwritten policies.
Your life insurance costs depend on how much life insurance you need, your age, your health and more.
AARP life insurance rates by age
Your age can significantly affect your life insurance premiums. Those payments tend to increase as you get older. The tables below show cost differences by age for different AARP life insurance products. The quotes are for a healthy woman.
AARP term life insurance premiums
With AARP’s term life coverage, your rates increase as you enter a new five-year bracket. For example, below are sample monthly premium payments for a healthy woman across various age ranges:
| Coverage Amount | Age 50-54 | Age 55-59 | Age 60-64 | Age 65-69 | Age 70-74 |
| $25,000 | $18 | $22 | $32 | $44 | $74 |
| $50,000 | $29 | $38 | $58 | $81 | $141 |
| $100,000 | $52 | $69 | $108 | $154 | $272 |
| $150,000 | $71 | $94 | $148 | $213 | $377 |
AARP permanent life insurance premiums
With AARP’s permanent coverage, your monthly premium rates are based on the age you are when you buy the policy, along with your desired coverage amount. Below are costs for different coverage amounts and ages at the time of purchase.
| Coverage Amount | Age 50 | Age 55 | Age 60 | Age 65 | Age 70 |
| $5,000 | $15 | $18 | $22 | $28 | $37 |
| $10,000 | $28 | $34 | $42 | $55 | $73 |
| $25,000 | $63 | $77 | $97 | $128 | $175 |
| $50,000 | $110 | $134 | $169 | $228 | $329 |
AARP guaranteed acceptance premiums
The guaranteed acceptance premiums are affected by your age in the same way that permanent life insurance premiums are. The monthly cost you pay is determined by your age when you purchase the policy and coverage amount.
| Coverage Amount | Age 50 | Age 55 | Age 60 | Age 65 | Age 70 |
| $5,000 | $24 | $28 | $33 | $40 | $47 |
| $10,000 | $47 | $55 | $65 | $78 | $92 |
| $15,000 | $70 | $82 | $96 | $116 | $137 |
| $25,000 | $116 | $136 | $159 | $192 | $228 |
AARP’s credentials
Although AARP is not the company that underwrites the policies sold through the AARP life brand, you can be assured that you are buying coverage from a reputable company. The underwriter, New York Life, is a top life insurance company.
When you’re shopping for a life insurance company, it’s wise to pay attention to the company’s financial stability. Your loved ones won’t get the death benefit for decades, so you need to make sure the company you choose can weather economic volatility. New York Life has an ‘A++’ (Superior) rating from AM Best, the credit rating agency, indicating that it’s financially sound and able to survive market changes.
AARP’s accessibility
AARP allows you to buy life insurance entirely online, or you can call and speak with a representative or work with an independent insurance agent.
Availability
You can learn about AARP’s policies, get life insurance quotes and apply for some forms of coverage online at NYLAARP.com. Its policies are available in all 50 states and Washington, D.C.
Contact information
You can reach customer support by calling 800-607-6957. AARP’s phone lines are staffed Monday through Friday from 8:00 a.m. until 8:00 p.m. EST.
User experience
The AARP life insurance website is easy to navigate. You can obtain quotes and get more information through the site, and you can even start a claim online.
Limitations
Unlike some life insurance providers, AARP life insurance’s customer support team isn’t available 24/7; you can only get help during its business hours. Representatives are available Monday through Friday: 8 a.m. to 8 p.m. (ET).
AARP’s customer satisfaction
AARP is a well-regarded brand with millions of satisfied members. Its life insurance options are sold through New York Life, one of the biggest life insurance companies in the country.
Customer complaints
Despite being a huge company, New York Life has received fewer complaints than regulators expect for a company of its size. The National Association of Insurance Commissioners collects the number of complaints that consumers submit and compares the number of complaints about each company against its competitors.
A complaint ratio below 1.0 indicates that the company received fewer complaints than expected. New York Life’s complaint ratio was 0.20 — much better than the industry standard.
Third-party ratings
In the J.D. Power U.S. Individual Life Insurance Study, New York Life was ranked 10th out of 22 insurance companies, with its score slightly above the industry average.
AARP vs. the competition
Compared to other life insurance companies, AARP’s policies have lower death benefit maximums and fewer options. But for older adults who have struggled to get coverage in the past, AARP’s coverage without medical exams could be a worthwhile investment. Here’s a comparison of AARP’s coverage compared with three of its major competitors:
| Coverage details | AARP | Colonial Penn | Northwestern Mutual | AAA |
| Maximum term life coverage | $150,000 | Not available; only sells whole life insurance | $500,000 | $5 million |
| Maximum whole life coverage | $50,000 | $50,000 | $1 million or more | $75,000 |
AARP life insurance FAQs
Does AARP have a waiting period?
AARP policies don't have waiting periods, but there are some cases where your beneficiaries might not receive the full death benefit. Some coverage options — such as guaranteed acceptance policies — pay a lower death benefit if you pass away within the first two years of the policy's effective date.
How do I submit an AARP life insurance claim?
You can submit a claim online or by calling the customer support phone number.
How does the AARP no-exam life insurance work?
None of AARP's policies require medical exams. For term and whole life coverage, you'll be asked to answer questions about your health and medical history, and you can be denied coverage. For guaranteed acceptance policies, there is no medical exam and you cannot be denied.
Does AARP life insurance have a cash value?
AARP permanent life insurance policies can accumulate cash value over time. However, term life policies don't build cash value.
Do I have to be a member to purchase AARP life insurance?
To purchase an AARP life insurance policy, you must be a member of AARP. If you aren't a member yet, you can purchase a policy as long as you meet the organization's age requirements for membership and pay the $16 AARP membership fee.
How we evaluated AARP life insurance
To identify leading life insurance companies, we looked at the major insurers and their available policies. To see how AARP measured up, we compared it to other insurers and looked at the following factors:
- Policy options
- Death benefit amounts
- Eligibility requirements
- Premiums
- Financial strength ratings
- Customer satisfaction rankings
Summary of our AARP review
For people who have been denied life insurance in the past due to their medical histories, AARP can provide some limited coverage. While the maximum death benefits aren’t large, none of the policies require medical exams, so you can purchase a basic life insurance policy that can serve as final expense insurance.
However, AARP life insurance policies tend to be expensive compared to the competition. If you are willing to undergo a physical exam, you may be able to get more coverage at a cheaper rate elsewhere.
