- You can see quotes and buy online.
- No medical exam is required to qualify.
- Policies are underwritten by New York Life, which has the best financial ratings possible.
- It is very hard to qualify for no waiting period coverage
- Rates are higher than most of their competitors
- There are no options for seniors over 80.
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).
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.
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.
How Does AARP Final Expense Insurance Work?
AARP offers three types of policies for final expense needs- Term life, permanent whole life, and guaranteed acceptance whole life. All plans don’t require a medical exam, and they all pay out a tax-free cash benefit to your loved ones, which they can spend on anything (not just funeral expenses).
Guaranteed acceptance
The guaranteed acceptance option is a whole life policy with no health questions. You’re guaranteed approval regardless of any pre-existing conditions. Because there are no health questions, there’s a two-year waiting period before you’re insured for natural causes of death. Any non-accidental death during the first two years will only result in a refund of your premiums.
Permanent whole life
This whole life policy is permanent life insurance with a fixed premium. To qualify, you must complete a health questionnaire. If you’re approved, there is no waiting period. There’s also an option (for an additional cost) to buy this policy with “living benefits” that would allow you to access up to 50% of the death benefit if you develop a chronic illness for at least 90 days.
Term life
Term life insurance is the most common type of policy AARP promotes. The price increases every five years and completely terminates on your 80th birthday. When you turn 80, the policy ends, and you don’t get your money back. To qualify, you must answer questions about your health history.
How Much Does AARP Final Expense Insurance Cost?
The cost of an AARP burial insurance policy could be as low as $12 per month or as high as $500. AARP life insurance rates depend on factors such as age, gender, coverage amount, state of residence, and health.
Below are some rate tables with sample burial insurance quotes for every AARP life insurance policy.
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 AARP’s Final Expense Life Insurance?
For most people (not all), AARP burial insurance is not a smart buy.
Yes, the prices seem reasonable, and New York Life Insurance underwrites the insurance. However, there are substantial reasons to opt for other providers if you need a final expense policy.
- Higher prices than most companies—AARP funeral insurance is often much more expensive than most other final expense insurance providers.
- Difficulty in qualifying for immediate coverage- AARP does have life insurance with no waiting period. However, you have to qualify for it by answering questions about your prior health issues, and therein lies the problem. Based on feedback from real customers who applied with them, AARP appears to deny most applicants with pre-existing conditions. They’ll usually counter by offering a policy with a two-year waiting period and a much higher premium.
- It’s group life insurance– No single AARP member has their own policy. Everyone is merely buying into a group plan. The main red flag is that New York Life can change the group policy whenever they want. They can change the cost or the terms and conditions of the coverage. Conversely, everything is locked in if you buy an individual policy.
If you need insurance for your funeral expenses, many other providers, such as Mutual of Omaha, Aetna, Alfac, and many others, offer lower prices (and no waiting period) than AARP’s funeral insurance. That is especially true if you’ve experienced prior health issues.
The best senior burial insurance is typically available only through independent insurance agencies such as Choice Mutual rather than being sold directly by the insurer.
Independent insurance agents (aka “brokers”) compare policies from multiple burial insurance companies for their clients to find the best deal possible.
Dealing directly with insurers like New York Life, Colonial Penn, or TruStage always leads to higher prices (and frequently a waiting period).
In short, find a good independent broker. Then, tell them what you’re looking for so they can find you the best policy.
Frequently Asked Questions
AARP membership does include a benefit that covers funeral expenses. However, AARP does sell burial life insurance meant to cover cremation and burial costs. According to the National Funeral Directors Association, the average cost of a funeral is $8,300. A final expense policy from AARP can offset funeral and other final expenses.
Only the AARP guaranteed acceptance whole life insurance policy has a waiting period. If you die during the first two years, your loved ones will only receive 110% of the premiums you’ve paid.
All AARP life policies can be used as cremation insurance. AARP life insurance policies pay out a tax-free cash benefit to your beneficiaries, which can be used to pay for cremation or other final expenses.
AARP offers members access to exclusive insurance policies, product discounts, and other benefits, but they do not assist with funerals. They don’t help pay for a funeral or with preplanning. At best, AARP can sell you final expense insurance, which can be used to pay for cremation costs or burial expenses.
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.
- AARP. https://www.aarp.org/about-aarp/company/what-guides-us/
- guaranteed acceptance option. https://www.nylaarp.com/life-insurance/guaranteed-life
- whole life policy. https://www.nylaarp.com/life-insurance/permanent
- living benefits. https://www.nylaarp.com/life-insurance/permanent-living-benefits
- Term life insurance. https://www.nylaarp.com/life-insurance/term/protection
- National Funeral Directors Association. https://nfda.org/news/media-center/nfda-news-releases/id/8134/2023-nfda-general-price-list-study-shows-inflation-increasing-faster-than-the-cost-of-a-funeral
- A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?ambnum=6820&AltNum=17026820
- Moody's. https://www.moodys.com/research/null-Moodys-affirms-Aaa-ratings-of-Northwestern-Mutual-and-New-York-Rating-Action--PR_1000008574#RATINGS-RATIONALE
- S&P Global. https://www.newyorklife.com/newsroom/Company-strength-ratings-affirmed-2023
- BBB. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
- Trustpilot. https://www.trustpilot.com/review/www.newyorklife.com
- 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,,,,
- Yelp. https://www.yelp.com/biz/new-york-life-insurance-company-new-york-2
- Facebook. https://www.facebook.com/newyorklife/reviews
- NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=91596&REALM=PROD&COCODE=91596&REALM=PROD
- BBB Score & Accreditation. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
