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Learn how AARP life insurance policies work, the pros and cons, how to qualify, and how much their coverage costs.
Also, we’ll discuss how they compare to other providers and which other companies might offer something better.
New York Life AARP Life Insurance Program
AARP partnered with New York Life Insurance Company to offer AARP members life coverage, so you must be an AARP member to apply.
None of their policies require a medical exam, but eligibility for some of their life insurance plans depends on your health. AARP offers a variety of life insurance options, including term life, whole life, and guaranteed acceptance life insurance.
You can see instant life insurance quotes for all their policies directly on the New York Life AARP website and can complete the application process online, through the mail, or by calling and speaking with a licensed insurance agent.
| Features | Level Benefit Term Life | Guaranteed Acceptance Whole Life | Permanent Whole Life |
|---|---|---|---|
| Policy Type | Term Life | Whole Life | |
| New Applicant Age Range | 50-74 (Spouses: 45-74) | 50-80 (Spouses: 45-80) | 50-80 (Spouses: 45-80) |
| Death Benefit Options | $10,000-$150,000 ($100K in New York) | $5,000-$25,000 | $5,000-$50,000 |
| States Where Available | All | All except AK, LA, NJ, & OR | |
| Builds Cash Value | No | Yes | |
| Has Health Questions | Yes | No | Yes |
| 2-Year Waiting Period | No | Yes | No |
| Medical Exam Required | No | ||
| Age When The Policy Expires | 80 | Never | |
| How Often Prices Increase | Every 5 years | Never | |
| Terminal Illness Rider Included At No Extra Cost | Yes | Yes (only in effect after 2 years) | Yes |
AARP term life insurance
Level benefit term life insurance is the primary policy promoted through the AARP life insurance program. To qualify, you only have to answer some health questions. No medical exam is required, and there is no waiting period if you’re approved. It’s available to seniors 50-74 and their spouses 45-74. You can buy up to $150,000 in coverage (only $100,000 in New York) but can get more if you call and speak with a New York Life representative.
Since it’s a term life insurance policy, it will expire. On your 80th birthday, the policy terminates, and you’re no longer insured (you don’t get your money back). It’s a “level death benefit” because the amount of coverage you’re insured for will never decrease in value. However, the monthly premium payments will increase every five years.
It’s convertible, which means policyholders can call AARP at any point and convert from term life to whole life. If you convert to whole life, the price will be according to how old you are when you initiate the conversion, so expect a tremendous price increase.
AARP permanent life insurance (whole life)
AARP whole life insurance policies are available up to $50,000 in coverage to members 50-80 (spouses 45-80). It’s a permanent life insurance policy that lasts your entire life, and the price remains the same. If you live to be 95, the policy will become “paid-up,” meaning you no longer have to make any subsequent payments (your coverage remains in force). There is no medical exam to qualify, but you must complete a health questionnaire. If you’re approved, there is no waiting period.
AARP guaranteed acceptance life insurance
AARP guaranteed issue whole life insurance has no underwriting of any kind. You don’t have to undergo a medical exam or answer health questions. Approval is guaranteed regardless of pre-existing conditions. The main drawback that you must be aware of is the waiting period. If you die from anything other than an accident in the first 24 months, New York Life will only refund 110% of your premium payments. You must live for over two years before your loved ones can get the the full death benefit payout. AARP members 50-80 (spouses 45-80) can apply for $5,000-$25,000 in coverage.
Pros & Cons Of AARP Life Insurance
- Online application: You can fully apply online for all their products.
- Online quotes: Their online application allows you to get a quote 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 as little as $5,000 or $10,000, which is great if you only need an amount of 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, one of the nation’s oldest and most stable insurers.
- 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 plans 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.
- Have to be an AARP member: If you want to buy life insurance through AARP, you must pay to be a member (AARP membership costs $16 per year).
- Term 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 permanent options under age 45: If you need permanent life insurance and are under 45 years old, AARP cannot help you. For example, they don’t offer any life insurance for children.
- 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 of final expense insurance (or any type) depends on your age, health, coverage amount, and which type of policy you buy (term or whole life).
Term life rates
Remember, AARP term life insurance rates increase every time you enter a new five-year age bracket.
| Age Bracket | $10,000 | $25,000 | $50,000 | $100,000 |
|---|---|---|---|---|
| 50-54 | Nonsmoker: $14 Smoker: $23 | Nonsmoker: $26 Smoker: $48 | Nonsmoker: $45 Smoker: $90 | Nonsmoker: $79 Smoker: $164 |
| 55-59 | Nonsmoker: $18 Smoker: $31 | Nonsmoker: $36 Smoker: $68 | Nonsmoker: $65 Smoker: $130 | Nonsmoker: $116 Smoker: $238 |
| 60-64 | Nonsmoker: $24 Smoker: $43 | Nonsmoker: $50 Smoker: $97 | Nonsmoker: $94 Smoker: $188 | Nonsmoker: $171 Smoker: $348 |
| 65-69 | Nonsmoker: $31 Smoker: $56 | Nonsmoker: $67 Smoker: $131 | Nonsmoker: $128 Smoker: $256 | Nonsmoker: $236 Smoker: $478 |
| 70-74 | Nonsmoker: $42 Smoker: $79 | Nonsmoker: $95 Smoker: $187 | Nonsmoker: $184 Smoker: $368 | Nonsmoker: $342 Smoker: $369 |
Guaranteed acceptance rates
The rate is the same whether you smoke or not since there are no health questions for a guaranteed acceptance policy. The sample prices below are only for these precise ages.
| Age | Female $10,000 | Male $10,000 | Female $25,000 | Male $25,000 |
|---|---|---|---|---|
| 50 | $45 | $59 | $110 | $146 |
| 55 | $52 | $69 | $129 | $169 |
| 60 | $60 | $80 | $147 | $199 |
| 65 | $72 | $91 | $177 | $225 |
| 70 | $87 | $108 | $215 | $268 |
| 75 | $123 | $100 | $306 | $248 |
| 80 | $112 | $145 | $278 | $360 |
Whole life rates
As you look at the whole life rate chart below, remember that the price for AARP whole life insurance is based on your exact age.
For example, a 55-year-old will pay a slightly higher premium than someone who is 54.
| Age | Female $10,000 | Male $10,000 | Female $25,000 | Male $25,000 |
|---|---|---|---|---|
| 50 | Nonsmoker: $26 Smoker: $42 | Nonsmoker: $34 Smoker: $55 | Nonsmoker: $58 Smoker: $99 | Nonsmoker: $148 Smoker: $131 |
| 55 | Nonsmoker: $31 Smoker: $49 | Nonsmoker: $44 Smoker: $69 | Nonsmoker: $72 Smoker: $116 | Nonsmoker: $104 Smoker: $164 |
| 60 | Nonsmoker: $38 Smoker: $58 | Nonsmoker: $52 Smoker: $83 | Nonsmoker: $87 Smoker: $138 | Nonsmoker: $124 Smoker: $201 |
| 65 | Nonsmoker: $49 Smoker: $75 | Nonsmoker: $66 Smoker: $103 | Nonsmoker: $114 Smoker: $181 | Nonsmoker: $158 Smoker: $251 |
| 70 | Nonsmoker: $65 Smoker: $103 | Nonsmoker: $85 Smoker: $137 | Nonsmoker: $156 Smoker: $252 | Nonsmoker: $206 Smoker: $335 |
| 75 | Nonsmoker: $83 Smoker: $138 | Nonsmoker: $106 Smoker: $170 | Nonsmoker: $203 Smoker: $343 | Nonsmoker: $259 Smoker: $423 |
| 80 | Nonsmoker: $97 Smoker: $179 | Nonsmoker: $129 Smoker: $209 | Nonsmoker: $237 Smoker: $444 | Nonsmoker: $317 Smoker: $521 |
Is AARP The Best Life Insurance For Seniors?
AARP final expense life insurance products for seniors are generally not the best option for most seniors. The primary drawback is that they are more expensive than many other insurance providers. Secondly, the term and permanent life insurance plans with health questions are tough to qualify for.
AARP regularly offers seniors policies with a two-year waiting period and a much higher price for common medical conditions prevalent among seniors.
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.
AARP Complaints And 3rd Party Ratings
From a customer feedback perspective, there’s positive and negative feedback about AARP’s life insurance program. For example, there are an exceptionally high number of negative reviews on the website consumeraffairs.com.
On the flip side, New York Life’s complaint ratio with the National Association of Insurance Commissioners (NAIC) for group life was 1.70 in 2022 (group life), which is higher than average but not by much. The 2022 J.D. Power Life Insurance Study ranked New York Life 10 out of 21 insurance providers with a 775 score, slightly above the average (774).
From a financial stability perspective, AARP excels. New York Life is the insurance company that underwrites AARP life policies, and they have some of the highest financial strength ratings possible. New York Life has an A++ rating with AM Best (Superior), AAA with Fitch Ratings, Aaa with Moody’s, and AA+ with Standard and Poor’s.
The bottom line is that New York Life isn’t going anywhere, and they have the financial means to pay their claims to beneficiaries.
AARP Company Background
AARP was started in 1958 by Ethel Percy Andrus and Leonard Davis. It was started as a nonprofit interest group focused on senior-related issues.
Leonard later created Colonial Penn Life Insurance Company, which is famous for featuring Alex Trebek and Jonathan Lawson promoting their $9.95 plan on TV.
AARP heavily lobbies the government to advance issues that affect seniors. In addition, they sell paid memberships, granting them access to various discounts and benefits, including insurance products. At present, AARP markets life, pet, health, home, auto, long-term care, and many other types of insurance.
Frequently Asked Questions
The cost of AARP life insurance depends on which policy you buy, your age, health, and how much coverage you buy. For example, $10,000 costs a 65-year-old female $31.00 per month for term, $66.00 for whole life, and $91.00 for guaranteed acceptance.
AARP has a level benefit term life with a five-year increasing premium, simplified issue whole life, and guaranteed acceptance whole life.
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 term and whole life products offer a living benefit rider, also known as an accelerated death benefit rider. If you’re diagnosed with a terminal illness and given a life expectancy of 24 months (12 months in NY) or less, you can access up to 50% of your death benefit while alive. There is also a Nursing Home Waiver Of Premium Rider that waives premiums if you’re confined to a nursing home for 180 consecutive days. Lastly, the permanent whole life policy has an optional Term Rider Protect Plus, which adds on additional term coverage until 80.
