- 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.
- 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.
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.
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
- 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.
- 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.
- No options under age 45: If you need life insurance and are under 45 years old, AARP has no options. For example, they don’t offer any life insurance for children or young adults.
- No options above age 80: If you need life insurance for a senior over 80, AARP cannot help you.
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.
- New York Life AARP website. https://www.nylaarp.com/
- AARP whole life insurance. https://www.nylaarp.com/life-insurance/permanent
- AARP guaranteed issue. https://www.nylaarp.com/life-insurance/guaranteed-life
- costs $16 per year. https://www.aarp.org/membership/cost-of-membership.html
- Ethel Percy Andrus. https://www.aarp.org/about-aarp/history/ethel-percy-andrus-biography/
- Leonard Davis. https://www.aarp.org/about-aarp/history/aarp-founding-days.html
- types of insurance. https://www.aarp.org/membership/benefits/insurance/
- New York Life. https://www.newyorklife.com/about
- living benefits. https://www.nylaarp.com/life-insurance/permanent-living-benefits
- term life insurance. https://www.nylaarp.com/life-insurance/term/protection
- 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
