Life insurance is an essential component of many people’s overall financial plans. There are many reasons for this, depending on someone’s specific situation. For example, the funds that are received by a beneficiary from life insurance can be used for paying off large debt such as a mortgage or credit card bills, the payment of funeral and other final expenses, and / or for the payment of ongoing living expenses by survivors.
While the type and the amount of coverage are important factors to consider when purchasing life insurance, it is also wise to ensure that the insurance carrier that you purchase the coverage through is strong and stable financially, and that it has a good reputation for paying out its policy holder claims in a timely manner.
The History of AARP Life Insurance Company
AARP, the organization formerly known as the American Association of Retired Persons, has been in existence ever since 1958. This entity actually evolved from the National Retired Teachers Association, or NRTA, which was established by Dr. Ethel Andrus, a retired high school principal in response to the need for retired teacher’s health insurance coverage.
Throughout the years, AARP has grown significantly, and has also evolved in response to changes in society, while at the same time remaining true to its founding principles of promoting independence, dignity, and purpose for older persons; enhancing the quality of life for older persons; and encouraging older people “To serve, not to be served.”
Today, AARP boasts roughly 38 million members. The entity helps those who are age 50 and over to turn their goals and dreams into real possibilities. This organization is also a strong advocate for those who are considered seniors, in the areas of health care, income security, employment, and protection from financial abuse. The overall mission of AARP is, “We fight for and equip each individual to live their best life.” The organization is also well known for:
- Fostering communities with affordable and appropriate housing, as well as supportive community features and options for getting around;
- Leading efforts for updating the Social Security program, as well as the promotion of other types of retirement savings options to help all to achieve a lifetime of financial security;
- The promotion of adequate, affordable health care – which includes the ability to obtain needed prescription drugs and necessary long-term care services.
AARP Life Insurance Company Review
AARP offers its life insurance coverage through New York Life Insurance Company. There are both term and permanent life insurance options to choose from – and, there is no medical examination required as a part of the policy approval process. For these policies, the life insurance coverage approval is based primarily on the health information that is provided by an individual at the time he or she applies for the coverage.
New York Life Insurance Company has been in the business of offering life insurance coverage ever since 1845. Throughout the years, the company has grown considerably and has always been strong financially. As of 2016, the company has a cash reserve of more than $22 billion.
Insurer Ratings and Better Business Bureau Grade
Because of its financial strength and stability, New York Life Insurance Company has received high ratings from the insurer rating agencies. These include the following:
- A++ (Highest) from A.M. Best Company
- AA+ (Highest for life insurers) from Standard & Poor’s
- AAA (Highest) from Moody’s
- AAA (Highest) from Fitch
Also, even though New York Life Insurance Company is not an accredited company through the Better Business Bureau, it has been given a grade of B+ via the BBB.
Life Insurance Coverage Offered Through AARP
The life insurance coverage that is offered through AARP is protection that is underwritten by New York Life Insurance Company.
There are both term and permanent life insurance options that can be chosen. With the term life option, the insured is covered with death benefit protection only, without any cash value build up. An applicant can choose up to $100,000 in term life insurance protection. This affordable coverage will not require a medical examination as a qualification criteria.
Permanent life insurance is also available – up to $50,000 in protection. With permanent life insurance, the insured is covered by a death benefit, and there is also a cash value component attached to the policy. The funds that are in this cash value component are allowed to grow on a tax-deferred basis. This means that there are no taxes due on the gain unless or until the policyholder withdraws the money.
Like the term life insurance coverage, there is no medical examination required for the permanent life insurance policy offered by AARP. With this plan, there are just simply three health questions to answer.
AARP also offers a guaranteed acceptance life insurance plan through New York Life Insurance Company. With this policy, up to $25,000 in coverage can be obtained. This is permanent coverage, and the acceptance for this plan is guaranteed – regardless of the applicant’s health or health history. Coverage is affordable – and once qualified, the amount of the premium rates will never go up.
In addition to the term and permanent life insurance policies that are offered by AARP to its members, the organization also provides the ability to purchase the “AARP Young Start” plan. This is life insurance coverage that is obtained on the life of a child or a grandchild – and that the insured can keep for his or her entire life. This plan offers up to $20,000 in permanent life insurance protection – and the amount of the premium due will be locked in and guaranteed never to increase.
As with the other life insurance options, there is no medical examination that is required to qualify. The approval of the child for the coverage will be based on just a few health-related questions on the application. Coverage can be granted on children who are up to 17 years old.
Senior Life Insurance Protection
While some people believe that life insurance is only necessary for those who have young dependents who are reliant on their income, this is not necessarily the case. In fact, there are many reasons why seniors seeking life insurance should also have the protection and coverage a policy can provide. Just some of the reasons for this include:
- Payment of Funeral / Final Expenses – Today, the average cost of a funeral and other related expenses can range between $7,000 and $10,000. Because of this, it can be important to have a life insurance policy that offers proceeds for paying these types of expenses so that the burden of this debt does not fall into the hands of loved ones.
- Payoff of Debt – Seniors today may also have various debt obligations, such as a mortgage, auto loans, and / or credit card debt. By having a life insurance policy in place, these expenses can be paid off quickly and easily by loved ones.
- Charitable Gift – By naming a favorite charity on one’s life insurance policy, a tax-free gift can be made, and the funds can be used for furthering the good of the organization.
- Estate Equalization – In some cases, a senior may leave a business or other asset to one or more of their children. If the individual has other children and / or heirs, life insurance can provide a way to “equal out” the inheritance.
- Estate Taxes – In some cases, there may be estate tax due on the estate of a decedent. Without having life insurance properly set in place for paying off this obligation, loved ones may instead be forced to sell off assets to raise the necessary funds.
- Replacement of Retirement Income for a Spouse or Partner – Often, if a couple is receiving retirement income from a pension when the primary income earner passes away, the survivor could be left with far less income for paying his or her ongoing living expenses. The proceeds from a life insurance policy can provide a way of replacing that lost income source.
- Promise Keeping – Often, a senior will want to ensure that a child or a grandchild has the necessary funds for pursuing higher education, paying for a wedding, or putting down as a payment on a home. Life insurance can offer a way to provide those funds – even if the individual is not there.
The life insurance policies that are offered through AARP are geared towards those who are seniors. This coverage does not require a medical examination as a component of the approval process. This means that those who are in the older age bracket of 50+ may have a better chance of qualifying, as no blood or urine sample is needed by the insurer. In this case, the approval is simply based on the information that is provided by the applicant on the application for coverage.
Other Products and Services that Can Be Obtained Via AARP
In addition to the life insurance program, AARP offers a long list of additional benefits to its members. One of these includes the ability to obtain lifetime retirement income through an annuity. Because people are living longer now than at any other time in history, many people have a concern about outliving their income in retirement. However, a retirement annuity can allow the ability to obtain an ongoing and guaranteed income stream for life – regardless of how long you may live.
Other benefits that are offered through AARP include restaurant discounts, grocery coupons, and food delivery service, as well as travel benefits (such as discounts on rental cars, hotels, cruises, flights, and vacation packages); savings on auto insurance coverage; resources for caregiving; college savings solutions; credit cards; investment services; employment resources (that are specifically geared towards those who are age 50 and over); money tools; retirement resources; roadside assistance; home security services; discounts on the purchase of computers and other types of electronics; cell phone services; discounts on shipping via the UPS Store; and a wide array of discounts on other insurance programs, including:
- Auto insurance
- Homeowner’s insurance
- Long-term care insurance
- Health and Medicare Supplement insurance
- Mobile home insurance
- Motorcycle insurance
- Recreational vehicle and watercraft insurance
It is important to note that to obtain any of the coverages or benefits that are offered through AARP, it is first necessary to become an AARP member. This entails an annual fee of $16.
How to Find the Best Premium Rates on Life Insurance Coverage for Seniors
If you are a senior and you are seeking life insurance quotes, it is often best to work with an independent insurance agency or brokerage that has access to multiple life insurance carriers. In doing so, you will be much better able to compare policies, benefits, and premium quotes all in one convenient place and in an unbiased manner.
When you are ready to move forward with comparing your life insurance coverage options, we can help. We work with many of the best life insurance carriers in the marketplace today, and we can assist you with obtaining all of the pertinent details that you need for making an informed buying decision. We can do so for you very quickly, easily, and conveniently – and without the need to meet in person with a life insurance agent. So, if you are ready to proceed with the process, then just take a few moments to fill out the form on this page.
Should you find that you still have any additional questions or concerns regarding the AARP Life Insurance coverage – or, even if you happen to have any additional questions about life insurance in general – then please feel free to contact our experts directly. We can be reached via phone, toll-free, by calling 888-430-7668.
We know that the purchase of life insurance can at times feel somewhat overwhelming. There are a lot of different parameters to consider – and you want to be sure that you are purchasing the best possible coverage for your needs. So, contact us today – we are here to help.