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)
AARP life insurance rates vary based mainly on which product you choose (whole, term, or guaranteed acceptance), your age, gender, and the coverage amount. Depending on those factors, monthly prices start as low as $11 or as high as $600.
Pros

  • Online quote engine that shows actual prices.
  • All policies don’t require a medical exam.
  • Backed by New York Life, one of the nation’s largest, most financially secure insurers.

Cons

  • Most other companies offer lower prices.
  • Term life insurance has a cost increase every five years.
  • Strict underwriting will often deny seniors with pre-existing conditions.

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-$30,000
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
Found in 1958, AARP is an advocacy organization that focuses on senior-related issues. They offer a suite of benefits to their members, including access to exclusive insurance products.

AARP is not an insurer; instead, it just markets insurance products to its preferred providers. They offer members life, health, home, and auto insurance. In the case of life insurance, the policies are underwritten and issued by New York Life.

Founding Year
1841
Official Website
www.newyorklife.com
Headquarters
51 Madison Ave New York, NY 10010
Phone Number
800-225-5695

 

AARP Term Life Insurance Rates

AARP term life insurance rates are based on which five-year age bracket you fall into. For example, the first bracket is 50-54, meaning anyone who is 50, 51, 52, 53, or 54 will all pay the same price.

Also, since AARP’s term insurance rates increase over time, your price will rise as you enter a new bracket. For example, if you’re 54, you’ll fall into the 50-54 bracket. On your 55th birthday, you’ll enter the 55-59 bracket, which means your premium will increase to a higher amount.

Below is an AARP term life insurance rate chart and calculator that outlines the exact cost for various coverage amounts.

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.

 

AARP Whole Life Insurance Rates

Whole life insurance has a fixed cost. Whatever rate you pay initially is what you’ll always pay. In addition, the coverage is permanent.

Also, there is no waiting period if you qualify for AARP’s whole life insurance. Keep in mind that you will have to answer questions about your health to qualify (no medical exam is required).

Below is a whole life rate chart and calculator showing sample monthly premiums.

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.

 

AARP Guaranteed Acceptance Rates

AARP guaranteed issue life insurance does not require you to answer health questions or undergo a medical exam. Because acceptance is guaranteed, there is a two-year waiting period. If you die during the waiting period, AARP will only refund 110% of the money you paid.

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.

 

Is AARP Life Insurance The Best Option For Seniors?

Just because AARP is a senior advocacy organization, that does not inherently mean the products they promote are the best life insurance for seniors.

The truth is, AARP final expense insurance products are often much more expensive than companies like Mutual of Omaha, Aetna, and Aflac, to name a few.

Here are three examples to illustrate how AARP life insurance rates are bested by other reputable companies.

CompanyMale, Age 65
Non Tobacco
$10,000 Final Expense Policy
Female, Age 70
Non Tobacco
$25,000 Final Expense Policy
Male, Age 50
Tobacco User
$25,000 Final Expense Policy
AARP$62.00$148.00$124.00
Aflac$55.81$133.63$108.57
Mutual of Omaha$56.48$128.29$90.87
Aetna$58.19$140.22$113.75

In addition to their price inferiority, AARP products that require you to answer health questions are tough to qualify for.

That means seniors with pre-existing conditions often will be flat-out denied by AARP.

 

How To Get The Lowest Price On Any Type Of Life Insurance

As mentioned, AARP life insurance products are overpriced compared to other providers.

But the good news is that plenty of other final expense insurance companies offer lower burial insurance prices and won’t deny seniors with prior health issues such as diabetes and many different conditions.

If you need final expense insurance, you will secure the lowest rate by working with an independent broker. Independent agencies compare offers from multiple providers to find the best deal.

One of the primary drawbacks to working with AARP is that they cannot offer you any other companies that might give you a better policy.

But when you work with a broker, they can match you with whichever company suits you best. Best of all, working with a broker is free (no fees or surcharges), and the insurance doesn’t cost more because you worked with an agent.

 

Frequently Asked Questions

AARP life insurance can cost as little as $11 monthly or as high as $900. The final price depends on the type of policy (whole, term, or guaranteed acceptance), product, age, gender, state of residence, and health.

In most cases, AARP life insurance is not a good buy for seniors because they can get cheaper rates from other providers. In addition, the AARP subjects many seniors with health conditions to a two-year waiting period where other companies would approve them for an immediate coverage plan.

Buying a whole life policy is best when looking for life insurance to cover your final expenses. While cheaper per month, term life will generally expire around age 80. Most people live longer than 80 years old, which means they would not have insurance to cover their burial since the term policy would have expired. Whole life burial insurance guarantees coverage for life, so you can rest assured that it will always be there to pay for your end-of-life expenses regardless of when you die. It’s also worth noting that term life insurance has strict underwriting, making it hard to qualify. Most seniors with prior and current health issues are not eligible for term life insurance but can qualify for a final expense whole life policy.

Seniors looking for insurance to cover their final expenses should look for a whole life policy since it lasts forever. Buying term life insurance to cover your burial is risky since most people (over 90%) outlive term insurance policies. Seniors needing insurance to pay off a debt, such as a mortgage or a car note, should seek a term policy if possible. Term insurance is best to cover a temporary need like a financial debt. Remember that age and health also heavily influence which products seniors can qualify for. For example, an 81-year-old senior is not eligible for term insurance. It’s best to speak with an experienced insurance agent who can consider your situation and recommend your best options.

Only the AARP guaranteed acceptance policy has a two-year waiting period. There are no health questions or exams, so there is a waiting period. If you’re eligible for the AARP term life or permanent whole life products (both have health questions), there is no waiting period.

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. AARP term life insurance. https://www.nylaarp.com/life-insurance/term/protection
  2. AARP's whole life insurance. https://www.nylaarp.com/Life-Insurance/Permanent
  3. AARP guaranteed issue. https://www.nylaarp.com/life-insurance/guaranteed-life
  4. AARP. https://www.aarp.org/about-aarp/company/what-guides-us/
  5. A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?ambnum=6820&AltNum=17026820
  6. Moody's. https://www.moodys.com/research/null-Moodys-affirms-Aaa-ratings-of-Northwestern-Mutual-and-New-York-Rating-Action--PR_1000008574#RATINGS-RATIONALE
  7. S&P Global. https://www.newyorklife.com/newsroom/Company-strength-ratings-affirmed-2023
  8. BBB. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
  9. Trustpilot. https://www.trustpilot.com/review/www.newyorklife.com
  10. 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,,,,
  11. Yelp. https://www.yelp.com/biz/new-york-life-insurance-company-new-york-2
  12. Facebook. https://www.facebook.com/newyorklife/reviews
  13. NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=91596&REALM=PROD&COCODE=91596&REALM=PROD
  14. BBB Score & Accreditation. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
  15. They offer. https://www.aarp.org/membership/benefits/insurance/
  16. New York Life. https://www.newyorklife.com/about