- 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.
- 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.
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 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.
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. |
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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.
| Company | Male, 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.
- AARP term life insurance. https://www.nylaarp.com/life-insurance/term/protection
- AARP's whole life insurance. https://www.nylaarp.com/Life-Insurance/Permanent
- AARP guaranteed issue. https://www.nylaarp.com/life-insurance/guaranteed-life
- AARP. https://www.aarp.org/about-aarp/company/what-guides-us/
- 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
- They offer. https://www.aarp.org/membership/benefits/insurance/
- New York Life. https://www.newyorklife.com/about
