For most people (not all), AARP burial insurance is not the smartest buy. The prices seem reasonable, but there are concrete reasons to opt for other providers if you need a final expense policy.
Regardless of which type of life insurance you want (term life, whole life, or guaranteed acceptance), the primary problem is that AARP funeral insurance is often more expensive than other final expense insurance companies.
For example, below is a side-by-side cost comparison for a $10,000 no-waiting period whole life policy for a 70-year-old female who does not use tobacco.
- Transamerica: $52.88
- Mutual of Omaha: $53.24
- AARP: $62.00
The other big issue is that while AARP offers life insurance with no waiting period, consumers often report it’s difficult to obtain. To get immediate coverage, you have to apply for one of their policies that asks about your health history. Based on feedback from real customers who applied with them, AARP seems to deny most applicants with pre-existing conditions. Instead, they counter by offering a policy with a two-year waiting period and a much higher premium.
The final issue is that no single AARP member has their own policy. Everyone is merely buying into a group plan. The red flag with group life insurance is that they can change the group policy (such as the cost or the terms and conditions) whenever they want.
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). That is especially true if you’ve experienced prior health issues.
It’s not all bad, however. For example, AARP does allow policyholders to manage their coverage online, and they offer small amounts of term life insurance (as low as $10,000), which is uncommon in the life insurance industry. Also, the prices for 80-year-old seniors (no coverage available at age 81+) are very competitive.
- 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 Life Insurance Work?
AARP from New York Life offers three types of policies- Term life, permanent whole life, and guaranteed acceptance whole life. All plans don’t require a medical exam, and the payout is always a tax-free cash benefit to your loved ones, which they can spend on anything (not just funeral expenses).
- Guaranteed issue: The guaranteed acceptance option is a whole life policy with no health questions. There is no underwriting, so 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 when you turn 80, the policy ends, and you don’t get your money back. Eligibility is based on your past health conditions.
How Much Does AARP Burial 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 | $33 | $79 |
| Male age 50 | $44 | $109 |
| Female age 55 | $38 | $93 |
| Male age 55 | $50 | $124 |
| Female age 60 | $44 | $109 |
| Male age 60 | $60 | $148 |
| Female age 65 | $52 | $127 |
| Male age 65 | $70 | $172 |
| Female age 70 | $64 | $159 |
| Male age 70 | $84 | $208 |
| Female age 75 | $88 | $131 |
| Male age 75 | $111 | $276 |
| Female age 80 | $112 | $278 |
| Male age 80 | $144 | $358 |
| Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 05/28/2025. | ||
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 05/28/2025. | ||
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 05/28/2025. |
||
AARP Final Expense Insurance Vs Other Insurance Providers
- $10K Policy Cost $79.60/month*
- New Applicant Ages 50-85 (50-75 in NY)
- Death Benefit Options 1-25 Units
- 2-Year Waiting Period Yes
- $10K Policy Cost $41.01/month*
- New Applicant Ages 45-85
- Death Benefit Options $2,000-$50,000
- 2-Year Waiting Period No
- $10K Policy Cost $43.99/month*
- New Applicant Ages 45-80
- Death Benefit Options $2,000-$50,000
- 2-Year Waiting Period No
The best burial insurance companies are 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 typically 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 not automatically include a benefit that covers end-of-life expenses. However, AARP does sell life insurance options that can 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. If you buy a simplified issue AARP policy, there is no waiting period (if approved) because your eligibility is based on your past and current health status.
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 it does not assist with funerals, help pay for them, or with preplanning. At best, AARP can sell you life insurance plans, which do provide peace of mind knowing the policy can be used to pay for cremation costs or burial expenses.
Only AARP term policies increase in cost every five years. On the other hand, AARP’s whole life insurance coverage has a fixed price for your entire life.
- Nationally licensed life insurance agent with over 15 years of experience
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
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.
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guaranteed acceptance option. https://www.nylaarp.com/life-insurance/guaranteed-life
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whole life policy. https://www.nylaarp.com/life-insurance/permanent
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living benefits. https://www.nylaarp.com/life-insurance/permanent-living-benefits
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Term life insurance. https://www.nylaarp.com/life-insurance/term/protection
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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
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A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?ambnum=6820&AltNum=17026820
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Moody's. https://www.moodys.com/research/null-Moodys-affirms-Aaa-ratings-of-Northwestern-Mutual-and-New-York-Rating-Action--PR_1000008574#RATINGS-RATIONALE
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S&P Global. https://www.newyorklife.com/newsroom/Company-strength-ratings-affirmed-2023
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BBB. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
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Trustpilot. https://www.trustpilot.com/review/www.newyorklife.com
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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,,,,
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Yelp. https://www.yelp.com/biz/new-york-life-insurance-company-new-york-2
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NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=91596&REALM=PROD&COCODE=91596&REALM=PROD
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BBB Score & Accreditation. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
