AARP Life Insurance Review

#3 in Life Insurance

Background-AARP Life Insurance

The American Association of Retired Persons is an organization founded in 1958 with a mission to improve the lives of Americans as they age. Membership is open to anyone over the age of 50 and the association delivers a wide range of benefits with your enrollment including discounts on a huge list of goods and services, insurance, financial services, travel benefits, automotive, etc. Because of AARP's vast membership of 38 million people, the non-profit is able to generate considerable income through membership fees and consequently able to offer these discounts and resources to its members.

One of the benefits AARP is term life insurance for seniors that is underwritten by New York Life, one of the oldest, largest, and most successful life insurance companies in the US. The AARP Life Insurance Program is a straightforward term policy designed for quick approval for those aged 50-74. With it, you can get up to $100,00 for your family which can be used for final expenses, unpaid bills, etc. Monthly rates depend on age and coverage amount, but as an example $100,000 worth of coverage can be as low as $74/month.

Company Reputation

Since New York Life Direct AARP is provided through by New York Life, the plan is backed by the strongest financial ratings in the life insurance business. In terms of creditworthiness and the ability for the company to pay out claims you are not going to get a better financial outlook. In 2014 the company had about 5.6% market share and paid out over $1 billion in individual life insurance claims. 

Standard and Poor’s

AA+

Moody’s Rating

Aaa

A.M. Best FSR

A++

Fitch Ratings

AAA

Customer Experience

New York Life was given a complaint ratio of .13 by the National Association of Insurance Commissioners. This is below (better) the national median score of 1.0 for all life insurance providers. The company also received the 4th highest satisfaction score on JD Powers' 2015 Household Insurance Study. 

Policies

AARP's Life Insurance Program is a more straightforward product compared to New York Life's pricier offerings. In contrast to its underwriter's more elaborate insurance, financial planning and investment services, AARP's life insurance was specifically designed for everyday seniors eager to get a limited, affordable, no-hassle policy with minimum effort. It offers $10,000-$100,000 in coverage with no medical exam or waiting period. What's more, if you are not a member, the organization makes it easy for you to apply for membership and life insurance at the same time online.

New York Life Direct AARP

 

Issue Age

50-74

Terms

5 years

Coverage Limits

$10,000-$100,000

Guaranteed level premiums

Yes, for initial term. Rates will then increase in 5 year increments until coverage ends at age 80.

Guaranteed benefits

Yes, benefits will not decrease regardless of changes in your health.

Guaranteed Renewability

Yes, until age 80.

Medical Exam

No. Acceptance based on answers to health questions and information you provide or agree to let New York Life obtain.

 

Additional Features

The AARP Life Insurance Program is limited to members of the organization. The good news is membership to AARP can cost as little as $13/year and entitles you to a list of benefits on everything imaginable. Some of these include:

Discounts on

  • Shopping, restaurants, entertainment
  • Hotels, cruises, vacations
  • Automotive assistance
  • Home security
  • Health and wellness
  • Car rental
  • Flights
  • Dental/long term care/home/automobile/motorcycle/life/RV insurance

Additional benefits specific to the Life Insurance Program include:

Accelerated Death Benefit- In the unfortunate event you are diagnosed with a life threatening illness and given a limited time to live you may access up to HALF of your benefit amount. It will be paid directly.

Waiver of Premium- If you are placed in a nursing home for longer than 180 days your premiums will be waived the duration of your stay, or until the policy ends at age 80. This benefit does not apply if the nursing home is primarily for rest, drug or alcohol addiction, or the treatment of psychiatric disorders.

Help and Support

New York Life representatives field customer support calls for the AARP Life Insurance Program. Customerservice is available Monday - Friday: 8 a.m. to 8 p.m. (ET), and Saturday: 9 a.m. to 5 p.m. (ET)

AARP Life Insurance

The AARP Life Insurance Program is a great good for those 50 and older who want an affordable and easy to understand life insurance policy to protect their family members in later years. The biggest plus here is that it is backed by New York Life, a company with considerable financial strength. Generally speaking, when you go through New York Life for your insurance policy the process can be a little more in-depth and time consuming. With AARP's life insurance offering you are getting the best of both worlds, a New York Life-backed policy packaged through AARP that is designed for quick approval, no waiting periods, and no medical exam. The only catch is that you need to be a member of AARP, but overall a great offer for seniors who are.

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