AARP Life Insurance Review

Rating: 8 / 10 (Very good)
Disclosure: We receive advertising revenue from some partners. Learn more.
AARP Life Insurance Program offers both life insurance and annuities products through New York Life, one of the largest mutual insurance companies in the world. New York Life holds a BBB rating of A-, as well as an A.M. Best financial rating of A++, an S&P rating of AA+, and a Moody's rating of Aaa.

How is AARP rated?

Breakdown

8/10
Financial Strength
8/10
Customer Experience
8/10
Policies
8/10
Flexibility

Overall Rating: 8 / 10 (Very good)

The AARP Life Insurance Program from New York Life Insurance Company offers members both term and permanent life insurance policies without medical exam requirements. Their plans are varied and customizable, yet their term life policies are restrictive in comparison to similar products offered by competitors.

Financial Strength

Key Details

Underwriter
The New York Life Insurance Company
Marketshare 2016
4.11%
Premiums Written 2016
$4,902,529,968
Standard & Poor's Financial Rating
AA+
Moody's Financial Rating
Aaa
AM Best Financial Rating
A++

Financial Strength - 8 / 10

AARP policies are underwritten by New York Life, a company that enjoys outstanding financial strength and creditworthiness. As of 2016, New York Life holds an A.M. Best rating of A++ (Superior), an S&P rating of AA+ (Very strong), and a Moody's rating of Aaa (Exceptional).
*The above information reflects the financial strength of the underwriter of the AARP life insurance policies: The New York Life Insurance Company.

Reputation & Customer Experience

National Association of Insurance Commissioners

NAIC Complaint Ratio 2016
0.15
NAIC Total Complaints 2016
53
*The NAIC complaint ratio (in this case 0.15) is a ratio of the number of complaints a company received to the its total premiums written in a calendar year. The median complaint ratio across all companies is 1. A score below 1 means the company received fewer than average complaints. A score above 1 means the company received a higher number of complaints than average.

Customer Ratings

Date Collected
2017-07-31

Customer Experience - 8 / 10

New York Life Insurance Company holds a Better Business Bureau rating of A-, having received a considerably low number of complaints in a three-year term. The NAIC has also reported that New York Life had a total complaint ratio of 0.15 for individual life insurance policies in 2016, quite a small figure for a company of its size.

AARP Policies

AARP offers customers the following life insurance policies: Term, Whole Life, Guaranteed Acceptance/ Final Expense. Because we feel that Term Life insurance is a superior choice for most customers, we've focused our review on the AARP Term Life policy.

Term Life Insurance

Minimum Age
50
Maximum Age
74
Minimum Death Benefit
$10,000
Maximum Death Benefit
$150,000
Available Terms
5 year

Key Term Policy Features

  • Term-Permanent Conversions

Policies - 8 / 10

AARP offers New York Life Insurance policies without physical exams, just simple health-related questions. The company provides level benefit term life insurance coverages as well as whole life and guaranteed acceptance policies. Their most basic plan features a simple application, no waiting periods, affordable rates that increase over time, and a guaranteed exchange privilege that allows policyholders to upgrade to a permanent policy at any time. One potential drawback about AARP term life coverages is that premiums increase as policyholders enter each new age band, which means premiums are not guaranteed and will steadily increase every five years.

Flexibility & Available Riders

Flexibility - 8 / 10

AARP extends a broad range of optional coverages or riders for their permanent life insurance policies, offering an enhanced beneficiary benefit, children's insurance or child's protection benefit, accidental death benefit, and waiver of premium options. They also offer a separate supplemental life insurance policy and extended term insurance, yet none of these options seem to be available for their term life product.

Additional Company Information

Homepage URL
Company Phone
(800) 865-7927
Headquarters Address
51 Madison Avenue, New York, NY, 10010
Mailing Address
5505 W. Cypress Street, Tampa, FL, 33607
Year Founded
1845

Top Rated
Our Partner
9.7 / 10
  • Get $250,000 of Term Life Coverage for as Low as $14/Month
  • Save up to 70% on your term life policy
  • Get a free, no-obligation term life insurance quote
  • Over 88 million customers worldwide rely on AIG
  • It takes 2 minutes to request your term life quote