Why You Must Read This Jaw-Dropping AARP Burial Insurance Review Now

Written on June 2, 2016 by Choice Mutual

AARP burial insurance
Disclaimer: We are not affiliated with AARP. This is merely our review of their insurance program along with our opinions.

If you are the type that is just interested in some instant burial insurance quotes, the quick quote tool on this page will give you what you are looking for.

Chances are you probably got something in the mail from AARP (they mail like every day it seems), saw one of their online ads, or TV commercials promoting their life insurance to cover final expenses.

Now you wondering if AARP is the best for you… right?

So here’s what we are going to cover:

  • Want to know how their policies work? … 💥Ya we got that
  • Would you like to see all their rates for all their plans? … 💥Yep we have all of them
  • Want to know when their plans are good, and when they are bad? … 💥We have this too

Here’s the bottom line

Everything you could ever want to know about AARP life insurance for seniors is in this article. If they are a good fit for you, we’ll tell you. If they aren’t, we’ll tell you that too 🙂


Here’s a little spoiler alert: AARP is wonderful organization as a whole. However, their life insurance program is very rarely a good choice for anyone. They definitely did not make our list of best burial companies.


AARP Burial Insurance

Article Quick Navigation Links

  1. The Various Life Policies AARP Is Selling You
  2. Policy# 1- Their Life Insurance That Expires At A Certain Age [See The Rates]
  3. Policy# 2- Whole Life Insurance With Health Questions [See The Rates]
  4. Policy# 3- Guaranteed Whole Life With NO Health Questions [See The Rates]
  5. AARP & New York Life Company Background

 

AARP Burial Insurance Lineup

In total, AARP offers 3 different final expense policies.

  1. Level benefit term life up to $100,000 in coverage
  2. Simplified issue whole life up to $50,000 in coverage
  3. Guaranteed issue whole life up to $25,000 in coverage

Each policy pays out a tax free cash benefit directly to your beneficiary to cover final expenses.

 

Burial insurance AARP is provided by someone else

Believe it or not, AARP isn’t an insurance company. Many people think AARP burial insurance seniors is actually provided by AARP, but it’s not. 😯

Life insurance bought via AARP is actually provided by New York Life.

AARP burial insurance

Ultimately, AARP is just a marketing agency. AARP just sells the rights of their image to various insurance companies. Whichever insurance company offers the most money, that’s who AARP will endorse.

Presently, New York Life holds the rights to underwrite their life insurance contracts, Hartford handles the auto insurance, and healthcare is provided by United Health Care.

The moment another insurance company offers more money than one of those companies, you better believe AARP will be endorsing a new company.

Unfortunately for AARP, many of their customers are like Chris Farley here. They are not happy with the insurance they purchased through them.

AARP Burial Insurance

The consumer affairs website is riddled with complaints.

In the end, every AARP funeral insurance policy works differently. They are all unique. Below you will learn exactly how each one works, and see exactly what they cost.

 

Policy #1: Level Death Benefit Term Life | Policy Details, Prices, Pros & Cons

  • Face Amount Options: $10,000- $100,000
  • Age Availability: 50-74 (spouses 45-74 can apply too)
  • State Availability: All 50 states
  • AARP monthly membership fees required

This policy is without question their flagship life insurance product.

You are being sold their level benefit term life insurance policy any time you see their online ads like this one ↓

AARP Burial Insurance

or one of their TV commercials, or one of their direct mail pieces they send you every week 😡.

So how does this policy work and what’s good and bad about it?

Your wish is our command…

 

Coverage That Expires At 80

First and foremost, this particular policy completely expires once you turn 80.

Crazy right?

After all it is a term life insurance policy. The word term is short for terminate.

So your coverage ends at 80 and you are no longer protected.

You don’t get any money back, and you don’t have the option to take out a new term policy.

At 80, your only option would be to get a whole life policy with them or another company. While getting burial insurance after 80 is definitely possible, it will be significantly more expensive because of your age.

You can see for yourself how this policy works. Below is a screenshot directly from their website that clearly explains how this policy expires at 80.

AARP Burial Insurance

Remember, any offer you ever receive from AARP is an attempt to sell you this term life policy.

 

Premiums That Increase Over Time

In short, the premiums on this AARP death insurance will increase every five years.

Take a look for yourself. Below is a another screenshot (we like to cite our sources 😎) that clearly describes how the premiums increase every five years.

AARP Burial Insurance

Now you are probably wondering…

What are their prices and how much will they be down the line? Don’t worry, you can see the prices a little further down.

 

If The Rates Aren’t Level, What Does “Level” Refer To With AARP Funeral Insurance?

It’s really quite funny that they call this level death benefit term life insurance. 99% of insurance companies use the word “level” to denote a term life policy that has fixed premiums for the life of policy.

However, AARP has pulled a fast one here.

See how they put the word “level” right before the word “benefit”?

AARP Burial Insurance

When they say level term, they are referring to the fact that the death benefit itself will always remain the same. While that’s certainly cool and all; it’s just not unique.

98% of term life insurance policies out there have a level death benefit. You would have to search far and wide to find one that has a decreasing benefit over time.

It’s our opinion that they do this on purpose. They want you to think the premiums are fixed until the policy ends at 80. As you now know, they do not.

 

Term Life Rates

Staying true to the screenshot tradition in this article, below you can see an image captured from their website that shows you the prices.

AARP Burial Insurance

Here’s how this works.

First, identify which age bracket you fall into currently. Then look at whatever the corresponding monthly payment will be for whatever death benefit you are contemplating.

That monthly payment will remain the same until you enter into the next age band. Once you enter the next age band, you will be subject to the new monthly rate for the age band you are in now.

This process repeats over and over. As you can see, the last age band is 70-74. Once you hit that band, your payment will remain whatever it is until you turn 80. It’s at that point where the policy would end, and your coverage would be over with.

 

How They Qualify Applicants For This Temporary Plan

To qualify you have to pass three health questions, a prescription history check, and an MIB check.

With AARP final expense insurance, it’s either an accept or decline. You either have these conditions, or you don’t.

AARP Burial Insurance

Below are the health questions they will ask you. If you say yes to any of these, you will not qualify.

  • In the past 2 years, have you had treatment or medication for or been diagnosed by a doctor as having heart trouble, stroke, cancer, lung disease, diabetes requiring insulin, liver or kidney disease, AIDS, AIDS related complex, or immune system disorder?
  • During the last 2 years, for any condition, have you been admitted to or confined in a hospital, nursing home, extended care or treatment facility?
  • In the past 3 months, have you consulted a doctor or had treatment, medication or diagnostic tests of any type?

If your medication history or MIB file reveals any treatments for any of these conditions, they will deny you.

However, if you can honestly say no to all those questions, and your prescription history doesn’t conflict with those answers, you should be accepted.

 

Pro’s & Con’s of their term life policy

In all honestly, there are no pro’s to this policy.

We know what you are thinking… That’s crazy!

Well it’s the honest truth.

There’s a 2 main reasons why we make this claim.

AARP burial insurance

 

Reason #1- The Price Is Too Dang High & It Increases Over Time

If you truly want term life insurance, you can easily get a better policy with another company that has the following benefits:

  • A lower monthly premium (could be as much as 50% lower)
  • Fixed monthly premiums (no increases as you get older)

Need we say more?

If for some reason you are interested in term life insurance, give us a call. We have some relationships with some very reputable agencies that specialize in term life insurance.

 

Reason #2- A Temporary Life Insurance Policy For Final Expenses Is A Bad Idea

Here’s the questions we encourage you to ask yourself…

  • Do you know when you will pass away?
  • If you buy a policy that ends at 80, how will you pay for your final expenses after it expires?
  • When you have no coverage because it expired, what will the financial impact be on your family considering they will now have to pay for your funeral costs?

Look

If you are truly comfortable with rolling the dice and getting a policy that expires at 80, go for it. We sincerely wish you the best of luck. Unfortunately the numbers are not in your favor.

AARP burial insurance

History has shown time and time again that a term life plan as a means to pay for end of life costs is about as good of an idea as what those construction workers are doing in that photo.

For heavens sake, what were they thinking?

 

Policy# 2: Simplified Issue AARP Whole Life Insurance

  • Face Amount Options: $5,000- $50,000
  • Age Availability: 50-80 (spouses 45-80 can apply too)
  • State Availability: All states
  • AARP monthly membership fees required

AARP whole life insurance is pretty much only available upon request. You will have to specifically ask one of their agents about this policy. If you don’t, our experience shows that you will almost certainly be sold their term life policy.

So let’s jump right into how this policy works…

AARP Burial Insurance

Whole Life Insurance AARP Will Not Ever Change

Because this policy is whole life, it’s incredibly simple to understand. Regardless of which insurance company you buy a whole life policy from, they all work the same.

You can expect the following from this AARP final expense insurance:

  • Monthly payments that will never increase for any reason
  • Death benefit is guaranteed to never decrease
  • Coverage goes into full effect on the first day of your policy if you qualify
  • Policy is guaranteed to never expire at any age (unlike their term policy)

That’s about it in regards to how this policy works. As we said, whole life policies are super simple to understand.

Once you get your policy, it won’t ever change, and it will payout a tax free cash benefit to your family to cover your final expenses.

To qualify for this policy, you do need answer some health questions, and pass a prescription history check. If you scroll down a little, you can see what types of health questions they will ask.

 

AARP Whole Life Insurance Rates

Below you can see the prices for this AARP death insurance.

AARP Burial Insurance

You will notice that there are no tobacco and non tobacco rates. That’s because they do not have separate rates for tobacco users. Everyone pays the same rate whether they use tobacco or not.

Crazy right?

It’s true, and definitely not normal. Most life insurance companies have tobacco and non tobacco prices. This is one of the strengths behind AARP whole life insurance rates.

Female

AGE$5,000$10,000$15,000$25,000
50$15.00$28.00$42.00$69.00
51$15.00$28.00$42.00$70.00
52$15.00$29.00$43.00$71.00
53$16.00$31.00$45.00$74.00
54$17.00$32.00$47.00$77.00
55$17.00$33.00$49.00$80.00
56$18.00$34.00$51.00$84.00
57$19.00$36.00$53.00$88.00
58$20.00$38.00$56.00$92.00
59$20.00$39.00$58.00$96.00
60$21.00$41.00$61.00$100.00
61$22.00$43.00$64.00$105.00
62$23.00$45.00$67.00$110.00
63$24.00$47.00$70.00$116.00
64$25.00$49.00$73.00$120.00
65$26.00$50.00$74.00$123.00
66$27.00$52.00$77.00$128.00
67$28.00$54.00$81.00$134.00
68$30.00$58.00$86.00$143.00
69$32.00$62.00$92.00$152.00
70$34.00$66.00$98.00$162.00
71$36.00$70.00$105.00$173.00
72$38.00$75.00$112.00$185.00
73$41.00$81.00$121.00$200.00
74$42.00$83.00$124.00$206.00
75$44.00$86.00$128.00$212.00
76$45.00$88.00$131.00$217.00
77$46.00$90.00$134.00$222.00
78$47.00$92.00$137.00$228.00
79$48.00$94.00$140.00$233.00
80$49.00$96.00$144.00$238.00

Male

AGE$5,000$10,000$15,000$25,000
50$18.00$34.00$50.00$82.00
51$18.00$34.00$51.00$83.00
52$18.00$35.00$52.00$85.00
53$19.00$36.00$53.00$88.00
54$19.00$37.00$55.00$91.00
55$20.00$39.00$57.00$95.00
56$21.00$40.00$60.00$99.00
57$22.00$42.00$62.00$102.00
58$23.00$44.00$65.00$107.00
59$23.00$45.00$67.00$111.00
60$24.00$47.00$70.00$116.00
61$25.00$49.00$73.00$121.00
62$27.00$52.00$77.00$127.00
63$28.00$54.00$80.00$133.00
64$29.00$56.00$84.00$139.00
65$30.00$59.00$87.00$144.00
66$31.00$61.00$90.00$149.00
67$32.00$63.00$93.00$154.00
68$34.00$66.00$99.00$164.00
69$36.00$70.00$105.00$174.00
70$38.00$75.00$111.00$184.00
71$40.00$79.00$118.00$195.00
72$43.00$84.00$125.00$207.00
73$46.00$90.00$134.00$223.00
74$47.00$93.00$138.00$229.00
75$48.00$95.00$141.00$235.00
76$49.00$97.00$145.00$240.00
77$50.00$99.00$148.00$246.00
78$51.00$101.00$151.00$251.00
79$52.00$103.00$154.00$256.00
80$54.00$106.00$158.00$262.00

If you are looking for another AARP whole life insurance quote, you can do so directly from their website.

That’s how we got their rates 😎.

 

How To Qualify For This Simplified Issue AARP Burial Insurance Plan

In order to qualify for whole life insurance AARP, you must be able to answer no to all of the following health questions:

  1. In the past 2 years, have you had treatment or medication for or been diagnosed by a doctor as having heart trouble, stroke, cancer, lung disease, diabetes requiring insulin, liver or kidney disease, AIDS, AIDS related complex, or immune system disorder?
  2. Within the past 2 years, for any condition, have you been admitted to or confined in a hospital, nursing home, extended care or treatment facility?
  3. In the past 3 months, have you consulted a doctor or had treatment, medication or diagnostic tests of any type?

In addition to those health questions, New York Life will also check your medication history and MIB file.

AARP Burial Insurance

If you have any medications or MIB records that are consistent with any of the conditions mentioned in those questions, they will decline you.

Unfortunately, the underwriting on this policy will get a lot of folks outright declined.

 

Pro’s & Con’s of AARP Whole Life Insurance

Unlike their term policy, this whole life policy from AARP is not 100% bad. If you have an affinity for AARP and you can medically qualify for this plan, it’s really not a terrible option. However, you can very likely do much better.

So when it is good and when is it bad?

Coming right up…

 

The Pro’s

Overall, the biggest pro to this policy is the fact that you will not have a waiting period if you qualify. In addition, they priced it well. It’s comparable to many other immediate death benefit whole life final expense policies on the market (but it can be beat price wise).

Last but not least, since the policy is whole life the payments won’t increase, the policy won’t expire, and the death benefits won’t decrease.

Want to know when someone should buy this policy?

Here’s when:

If you are a person who has the following attributes, this whole life insurance AARP is a good deal.

  • You smoke cigarettes (other types of tobacco do not apply)
  • You are healthy

That’s about it. If you are a person with the above conditions, you can’t go wrong with this policy. If not, there are better and cheaper options for you with other companies.

 

The Con’s

There are two massive drawbacks to this policy. Unfortunately for AARP, they are pretty big deal breakers.

  1. Price
  2. Underwriting

First of all, you can get the same thing for as much as 25% cheaper with other burial insurance companies. A no brainer right?

It gets worse…

Due to their underwriting restrictions, the following statement is unequivocal truth.

Most applicants simply will not medically qualify for AARP whole life insurance.

AARP burial insurance

We know what you are thinking… What sort of conditions will they not insure?

Here are some of the most common health issues we run into. If you have any of the following health conditions, you simply won’t qualify for this AARP burial insurance seniors:

  • Diabetes requiring insulin.
  • Complications of diabetes such as retinopathy or neuropathy
  • Heart trouble: Afib, blood thinners, CHF, fluid pills, coronary artery disease, any heart or circulatory surgery within the last 2 years, blood clots, or aneurysms
  • Lung issues: Asthma, COPD, emphysema, or chronic bronchitis
  • Parkinson’s disease
  • Systemic lupus
  • Seizure issues
  • Liver or kidney diseases
  • Rheumatoid arthritis
  • The list goes on…

That list is in addition to the standard uninsurable conditions such as HIV, Alzheimer’s, dialysis, or organ transplants.

As you can see, the only kind of person who can medically qualify for this policy is someone in pristine health.

Guess what?

If you are in pristine health, we could get you a much better price from multiple other companies.

Want to know something else?

If you aren’t in pristine health, AARP will decline you, but we have companies that will almost surely accept you!

 

Policy #3: AARP Guaranteed Life Insurance

  • Face Amount Options: $2,500- $50,000
  • Age Availability: 50-80 (spouses 45-80 can apply too)
  • State Availability: All states except NJ & WA
  • AARP monthly membership fees required

AARP guaranteed life insurance is a whole life policy up to $25,000 in coverage that has no health questions. Acceptance is guaranteed as long as you meet the age requirements and are an AARP member. Because acceptance is guaranteed, there is a two year waiting period before the policy will pay out a death benefit.

AARP burial insurance


Side Note: Any policy with any company that has no health questions will always have at least a two year waiting period. There is no company on the planet that has a guaranteed acceptance policy that protects you at all during the first two years.


If you are curious about how this particular policy works, read on…

 

AARP Guaranteed Issue Life Insurance Is A Whole Life Insurance So It Won’t Change

Because this policy is whole life, it’s not hard at all to explain how it works. In fact, you can completely understand this policy with the following bullet points:

  • Premiums are fixed for life
  • Death benefit cannot decrease
  • Policy will not expire at any age
  • No death benefit will be paid for non accident death during the first 2 years

You are probably wondering- what happens if I die during the first two years?

First of all, if the death is accidental, they will pay out the full death benefit even if this occurs during the first two years.

However, if non accidental death occurs during the waiting period, New York Life will simply refund 125% of the premiums you paid.

You can see for yourself with the screenshot below.

AARP burial insurance

Thankfully, you can’t lose anything, and 25% interest is nothing to balk about. No savings account will ever give you a return remotely close to that.

That’s about it to an AARP guaranteed issue life insurance policy. After the two years is up, you are fully protected. Because the policy is whole life, it won’t ever change and you, and you can rely on it to be there when your family needs it the most.

 

AARP Guaranteed Acceptance Life Insurance Quotes

Here you will see all the prices for this guaranteed life coverage with AARP.

Female

AGE$5,000$10,000$20,000
50$20.00$38.00$74.00
51$20.00$39.00$76.00
52$21.00$40.00$78.00
53$21.00$41.00$80.00
54$22.00$42.00$83.00
55$23.00$44.00$86.00
56$23.00$45.00$89.00
57$24.00$47.00$92.00
58$25.00$49.00$96.00
59$26.00$50.00$99.00
60$27.00$52.00$103.00
61$28.00$54.00$107.00
62$29.00$56.00$111.00
63$30.00$58.00$115.00
64$31.00$60.00$119.00
65$32.00$63.00$124.00
66$33.00$65.00$128.00
67$34.00$67.00$133.00
68$36.00$70.00$138.00
69$37.00$73.00$144.00
70$39.00$76.00$150.00
71$40.00$79.00$156.00
72$42.00$83.00$164.00
73$44.00$86.00$171.00
74$46.00$91.00$180.00
75$47.00$92.00$182.00
76$47.00$92.00$183.00
77$47.00$93.00$185.00
78$48.00$94.00$187.00
79$48.00$95.00$189.00
80$49.00$96.00$191.00

Male

AGE$5,000$10,000$20,000
50$23.00$45.00$88.00
51$24.00$46.00$91.00
52$24.00$47.00$93.00
53$25.00$49.00$96.00
54$26.00$50.00$99.00
55$26.00$51.00$101.00
56$27.00$53.00$105.00
57$28.00$55.00$108.00
58$29.00$56.00$111.00
59$30.00$58.00$115.00
60$31.00$60.00$119.00
61$32.00$62.00$123.00
62$33.00$65.00$128.00
63$34.00$67.00$132.00
64$35.00$69.00$136.00
65$36.00$71.00$140.00
66$37.00$73.00$145.00
67$39.00$76.00$150.00
68$40.00$79.00$156.00
69$42.00$82.00$162.00
70$43.00$85.00$168.00
71$45.00$88.00$175.00
72$47.00$92.00$183.00
73$49.00$96.00$191.00
74$51.00$101.00$200.00
75$51.00$101.00$201.00
76$52.00$102.00$203.00
77$52.00$103.00$205.00
78$53.00$104.00$206.00
79$53.00$105.00$208.00
80$54.00$106.00$210.00

 

Pro’s & Con’s of their guaranteed issue plan

To be perfectly blunt, there are no pros to this policy. There are only con’s, and the reason is simple.

There are many other funeral insurance companies that offer the same exact guaranteed acceptance coverage as AARP, but charge much less for it.

Why pay AARP a higher premium for what you can get elsewhere for much less?

AARP burial insurance

The cold hard reality is that aarp guaranteed acceptance life insurance is more expensive the many other companies for the exact same thing.

 

New York Life Background

Founded in 1845, New York Life has been in business for over 170 years. That’s a long time!AARP burial insurance

They presently operate in every U.S. state, and multiple other countries.

You can find them advertising on TV, all over the internet (they do big time for funeral insurance AARP), in magazines, and they have partnerships with multiple other respected organizations such as AARP.

They are structured as a mutual company which means they have no shareholders. With a mutual company, certain policyholders are eligible to receive dividends.

In short, if you have a policy with them, it’s a policy you can count on that will pay when you need them to.

 

Product Offering

Given their age and size, it’s no surprise that New York Life offers a wide range of insurance and investment products.

  • Life insurance
    • Whole life
    • Final expense
    • Term life
  • Long term care insurance
  • Annuities
  • Mutual Funds
  • Group coverage
  • Business insurance

 

Financials & Ratings

In all honestly, they are one of the most stable and reputable life insurance companies in the world. You would be hard pressed to find another insurance company that is as financially strong as New York Life. They are out there, but there aren’t many of them 🙂

You can view their 2016 financial report here. In short, here’s what you will find:

  • They have a lot of assets
  • They aren’t running out of money anytime soon

Below you can see how the four big rating agencies graded them. This was a picture taken directly from their website.

AARP burial insurance

About ChoiceMutual.com
About ChoiceMutual.com

Choice Mutual works with all the top burial insurance companies throughout the nation to secure you the best price possible.

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2 Comments

Robert Hearin

I am interested in procuring a New York Life policy for myself (age 71), my spouse (age 68) and a dear friend (age 79). I can be reached at 5**-3**-9*** in New Orleans, LA. RSVP, and thank you. Robert

July 11, 2017 at 10:02 pm
    Choice Mutual

    Hi Robert,

    We’ll call you shortly to help you with this.

    July 11, 2017 at 10:54 pm
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