Overall Score

Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:

Factor Score Value
Price of Coverage
40%
No-Waiting-Period CoverageNo Waiting Period
20%
Financial Strength
20%
NAIC Complaint Index
20%
Overall Maximum
100%

Our ratings are tested with scoring model 1.1, a review formula that ensures consistency and accuracy in our assessments.

3.25 out of 5
3.0
Price of Coverage
Price of Coverage
40% of overall score

Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:

  • 50-5% more expensive
  • 46-10% more expensive
  • 311-20% more expensive
  • 221-30% more expensive
  • 1≥ 40% more expensive
2.0
No-Waiting-Period CoverageNo Waiting Period
No-Waiting-Period Coverage
20% of overall score

This scoring factor assesses whether an insurer offers coverage with no waiting period and, if so, how difficult it is to qualify for it. If an insurer does not provide coverage with no waiting period, it gets an automatic 1. A score from 2 to 5 indicates that immediate coverage is possible, and the higher the rating, the easier it is for the average applicant to qualify for it.

  • 5Most applicants qualify
  • 4Fairly easy qualification
  • 3Somewhat difficult qualification
  • 2Very difficult qualification
  • 1No-waiting-period coverage unavailable
5.0
Financial Strength
Financial Strength
20% of overall score

Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:

  • 5Superior (A+ or A++)
  • 4Excellent (A- to A)
  • 3Fair/Good (B- to B++)
  • 2Weak/Marginal (C- to C++)
  • 1Poor (D or Not Rated)
5.0
NAIC Complaint Index
NAIC Complaint Index
20% of overall score

The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:

  • 50.0 - 1.0 (avg or below avg complaints)
  • 41.01 - 1.5 (slightly above avg complaints)
  • 31.51 - 2.0 (up to 2x avg complaints)
  • 22.01 - 3.0 (up to 3x avg complaints)
  • 1≥ 3.01 (more than 3x avg complaints)
The AARP Life Insurance Program consists of three types of coverage for seniors- term life, whole life, and guaranteed acceptance whole life, all of which don’t require a medical exam. For some seniors, AARP is an excellent place to buy life insurance. However, other insurance companies usually offer lower prices and better terms.
Pros

  • All policies are underwritten by New York Life, which is an exceptionally strong insurer with an A++ rating.
  • Term plans are convertible to permanent coverage at any time.
  • Online application and quotes.

Cons

  • Prices are often more expensive compared to other insurance companies.
  • Term life policies have a rate increase every five years.
  • Getting coverage with no waiting period is very difficult if you have prior health issues.

A+
Superior
Aaa
Stable
AA+
Stable

AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.

Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).

S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).

Customer Review Ratings
BBB
1.08/5
253 reviews
2.3/5
14 reviews
4.0/5
52 reviews
1.6/5
36 reviews
Consumer Protection Organization Scores

The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.

A-
Not Accredited

The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.

Ratings and scores valid as of 10/30/2024.
Policy Type
Whole Life
New Applicant Age Range
50-80
Death Benefit Options
$5,000-$50,000
States Where Available
All
Builds Cash Value
Yes
Has Health Questions
Yes
2-Year Waiting Period
No
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Terminall Illness Rider
No
Policy Type
Whole Life
New Applicant Age Range
50-80
Death Benefit Options
$5,000-$25,000
States Where Available
All
Builds Cash Value
Yes
Has Health Questions
No
2-Year Waiting Period
Yes
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Policy Type
Term Life
New Applicant Age Range
50-74
Death Benefit Options
$10,000-$150,000
States Where Available
All
Builds Cash Value
No
Has Health Questions
Yes
2-Year Waiting Period
No
Medical Exam Required
No
Age When Policy Expires
80
Prices Increase
Every 5 years
Ethel Percy Andrus and Leonard Davis founded AARP in 1958 as an interest group to advocate issues affecting seniors. Despite popular belief, AARP is not an insurance company. Instead, AARP has exclusive partnerships with insurance companies (for example, New York Life underwrites all AARP life insurance plans) to offer their members access to various types of insurance. AARP gets a kickback from their insurance partners every time an AARP member buys a policy.
Founding Year
1841
Official Website
www.newyorklife.com
Headquarters
51 Madison Ave New York, NY 10010
Phone Number
800-225-5695

 

AARP Life Insurance Policies

AARP life insurance policies are underwritten by New York Life. You can see instant life insurance quotes and apply online for all their policies directly on the New York Life AARP website.

 

Guaranteed issue

The guaranteed acceptance whole life policy does not require answering health questions. Because your approval is guaranteed, there is a 24-month waiting period. If you die of natural causes during the waiting period, New York Life will only refund 110% of your premiums.

 

Permanent whole life

The permanent whole life policy has “simplified underwriting,” meaning that while you don’t have to take an exam, you must answer health questions that determine your eligibility. If you’re approved, there is no waiting period. Additionally, you can get this policy with living benefits at a small additional cost. It would allow you to receive up to 50% of the death benefit if you develop a chronic illness that lasts 90 days or more.

 

Term life

The term life insurance policy lasts until you’re 80 years old. At that point, the policy terminates, and you’re no longer insured (you don’t get your money back). However, while the policy is in force, the premium will rise every five years. There’s no exam to qualify, but you do have to complete a health questionnaire.

 

Pros & Cons Of AARP Life Insurance

The Good
  • Online application and quotes: You can see prices and fully apply online for all their products.
  • No exam: No type of life insurance with AARP requires a medical exam.
  • Guaranteed acceptance option: They have a guaranteed issue whole life policy if you have dire health issues or prefer not to answer health questions.
  • Offers term and whole life: Whether you want term or whole life, they have both options.
  • Small coverage amounts: You can buy coverage for as little as $5,000 or $10,000, which is great if you only need coverage for funeral costs.
  • Term is convertible: Their term policy includes the guaranteed option to convert to whole life at any time.
  • Backed by New York Life: AARP life insurance is underwritten by New York Life, which is the nation’s largest mutual insurer.
  • Available in all states: Their policies are available throughout the USA.
  • Paid up at 95: AARP permanent life insurance coverage is paid up at 95. That means you don’t have to make additional life insurance premiums, and your policy remains active. With most other companies, you have to pay until 100 or 120.
The Bad
  • Term life isn’t ideal for funeral coverage: Term life is the primary product AARP promotes for final expense insurance coverage. A term policy is not suggested (even though it’s cheaper) because it expires at age 80, leaving seniors uninsured and unable to cover their funeral expenses.
  • Prices are not competitive relative to other insurers: AARP’s life insurance policies are more expensive than many other life insurance companies.
  • Tough to qualify for: Their term and permanent life insurance policies with health questions seem to decline applicants with pre-existing medical conditions common among seniors.
  • Low coverage maximums: $150,000 is the most you can buy for term life. For whole life, $50,000 is the highest they offer.
  • You must be an AARP member: If you want to buy life insurance through AARP, you must pay the membership fee ($16 per year).
  • Term life prices rise every five years: Their term life insurance has a price increase every five years. Most other term life plans from other providers cost less per month and have a fixed rate.

 

How Much Does AARP Life Insurance Cost?

AARP life insurance prices vary greatly based on which product you choose. For example, a healthy, nonsmoking 65-year-old male seeking $25,000 in coverage will pay a monthly rate of $67 for term life, $158 for permanent whole life, and $225 for guaranteed acceptance.

The exact cost depends on your age, health, coverage amount, and which type of policy you buy.

 

Guaranteed acceptance

Age & Gender$10,000$25,000
Female age 50$45$110
Male age 50$59$88
Female age 55$52$129
Male age 55$69$169
Female age 60$60$147
Male age 60$80$199
Female age 65$72$177
Male age 65$91$225
Female age 70$87$215
Male age 70$108$268
Female age 75$100$248
Male age 75$123$306
Female age 80$112$278
Male age 80$145$360
Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/01/2024.

 

Whole life

Age & Gender$10,000$25,000
Female age 50$24$55
Male age 50$33$77
Female age 55$30$68
Male age 55$42$99
Female age 60$36$83
Male age 60$50$118
Female age 65$47$109
Male age 65$62$150
Female age 70$62$148
Male age 70$81$196
Female age 75$79$193
Male age 75$100$246
Female age 80$92$225
Male age 80$122$301
Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/01/2024.

 

Term life

Age Bracket & Gender$10,000$25,000
Female 50-54$11$18
Male 50-54$14$26
Female 55-59$13$22
Male 55-59$18$36
Female 60-64$17$32
Male 60-64$24$50
Female 65-69$21$44
Male 65-69$31$67
Female 70-74$33$74
Male 70-74$42$95
The monthly price increases every time you enter a new age bracket.
Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/26/2024.

 

Should You Buy The AARP Life Insurance Program?

AARP final expense life insurance products are generally not the best option for most seniors. The primary drawback is that they are more expensive than many other insurance providers. Yet, there are some ages for which AARP has excellent rates. For example, their prices are typically the lowest if you’re 75-80 years old.

Aside from the rates, seniors with prior health issues will find it very challenging to qualify for coverage with no waiting period.

Ultimately, if you need life insurance for a senior, you can likely get lower prices and no waiting period coverage from many other life insurance companies such as Mutual of Omaha, Alfac, Aetna, and many others.

Use the quote tool on this page to compare AARP’s rates against the best final expense insurance companies.

 

Frequently Asked Questions

Generally speaking, AARP offers life insurance for seniors that is pricely fairly. If you’re looking for quick coverage that you can buy online without taking an exam and don’t mind paying a premium for it, then AARP life insurance would be a good option. However, seniors can secure lower prices without an exam with many other life insurance companies. Besides the rates not being the lowest, seniors with pre-existing conditions will find it challenging to qualify for immediate coverage with AARP, whereas other providers would accept them.

AARP offers term life insurance where the price increases every five years and lasts until age 80. They also offer two types of whole life insurance- a “simplified issue” option with health questions and a guaranteed acceptance option with no health questions.

AARP’s term life policy ends on your 80th birthday. They also have two types of whole life insurance, both of which last forever.

AARP is not an insurance company. AARP is a senior advocacy group that markets various insurance products to its members. For example, all life insurance products from AARP are actually underwritten and issued by New York Life.

Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.

  1. New York Life AARP website. https://www.nylaarp.com/
  2. AARP whole life insurance. https://www.nylaarp.com/life-insurance/permanent
  3. AARP guaranteed issue. https://www.nylaarp.com/life-insurance/guaranteed-life
  4. costs $16 per year. https://www.aarp.org/membership/cost-of-membership.html
  5. Ethel Percy Andrus. https://www.aarp.org/about-aarp/history/ethel-percy-andrus-biography/
  6. Leonard Davis. https://www.aarp.org/about-aarp/history/aarp-founding-days.html
  7. types of insurance. https://www.aarp.org/membership/benefits/insurance/
  8. New York Life. https://www.newyorklife.com/about
  9. living benefits. https://www.nylaarp.com/life-insurance/permanent-living-benefits
  10. term life insurance. https://www.nylaarp.com/life-insurance/term/protection
  11. A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?ambnum=6820&AltNum=17026820
  12. Moody's. https://www.moodys.com/research/null-Moodys-affirms-Aaa-ratings-of-Northwestern-Mutual-and-New-York-Rating-Action--PR_1000008574#RATINGS-RATIONALE
  13. S&P Global. https://www.newyorklife.com/newsroom/Company-strength-ratings-affirmed-2023
  14. BBB. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
  15. Trustpilot. https://www.trustpilot.com/review/www.newyorklife.com
  16. Google. https://www.google.com/search?client=firefox-b-1-d&sca_esv=193f1ef4569f6575&sca_upv=1&q=New+York+Life+Insurance+Company&ludocid=11889585487692568853&lsig=AB86z5V1SwFA1nblUCqKyU6DWO4G&sa=X&ved=2ahUKEwjIj8qA3vyGAxXHATQIHSpwC4YQoAJ6BAglEAw&biw=1920&bih=878&dpr=1#lrd=0x89c258e913690e0f:0xa5004b01e08e1915,1,,,,
  17. Yelp. https://www.yelp.com/biz/new-york-life-insurance-company-new-york-2
  18. Facebook. https://www.facebook.com/newyorklife/reviews
  19. NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=91596&REALM=PROD&COCODE=91596&REALM=PROD
  20. BBB Score & Accreditation. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349