AARP’s mission is “to empower people to choose how they live as they age.” Advocating for this idea while helping millions of seniors make good decisions during retirement has been noble by AARP.
However, when it comes to burial insurance, AARPs members should choose not to use the coverage they offer.
This AARP burial insurance review shows members of this organization would be wise to find alternative coverage because other life insurance options are cheaper.
Quick Links
What Kind of Life Insurance Does AARP Have?
AARP life insurance offers three plan types, term, permanent whole life, and guaranteed acceptance. The term plan is the most marketed product and can be found for a low initial monthly rate. However, the premium will increase every five years and eventually cancel when the policyholder turns 80.
The permanent whole life and guaranteed acceptance plans will never expire, and the price will not increase. However, these plans come with a high price point compared to other life insurance for seniors.
Can Anyone Get AARP Life Insurance?
AARP Life Insurance is only accessible to members and spouses of this organization. Becoming a member of AARP is simple as long as you are 50 years or older and pay the $16 yearly membership fee. Once you become a member, you can apply for an AARP Life Insurance plan through their website.
AARP is not a life insurance company and has a partnership with an insurance carrier that issues coverage.
Who Underwrites for AARP Life Insurance?
New York Life underwrites each policy taken out in association with AARP. New York Life has partnered with AARP, and only the members of this senior organization have access to these specific life insurance products. New York Life was established in 1845 with an A+ financial rating from A.M. Best.
AARP Life Insurance Plan Comparisons
| Term (Expires at 80) | Permanent Whole Life | Guaranteed Acceptance | |
|---|---|---|---|
|
Plan Type |
Term (Temporary) |
Whole Life (Permanent) |
Whole Life (Permanent) |
|
Coverage Amount |
$10,000 - $100,000 |
$5,000 - $50,000 |
$5,000 - $25,000 |
|
Age Range |
50 - 74 |
50 - 80 |
50 - 80 |
|
Price Increases |
Every 5 Years |
No |
No |
|
Waiting Period |
No |
No |
Yes (2-Years) |
|
Policy Expires |
Yes (80) |
No |
No |
|
Medical Questions |
Yes |
Yes |
No |
|
Health Exam |
No |
No |
No |
|
Must be AARP Memeber |
Yes |
Yes |
Yes |
AARP Term Life Insurance (Expires at 80)
The flagship product offered by AARP is the Level Benefit Term Life plan. Applicants must medically qualify for coverage. If they do, they will be eligible for AARP life insurance with no waiting period. However, the older you get, the less valuable the policy becomes.
This is because as you get into your senior years, the policy’s monthly premium increases, and eventually, when you turn 80, the plan will terminate altogether. Seniors 75 and older are not eligible for initial coverage with this plan.
Plan Facts
- Age Eligibility: 50 – 74
- Coverage Amounts: $10,000 – $100,000
- State Availability: All 50
- Medical Exam: No
- Health Questions: Yes
- Waiting Period: No
- Policy Terminates: At Age 80
- Increasing Premiums: Yes
- Builds a Cash Value: No
How Much is AARP Term Life Insurance?
A $10,000 life insurance plan can be purchased for females for $11 – $33 a month, while males will pay between $14 – $42 per month. However, the initial price will not be permanent, and your cost will surge every time you enter another group. The age groups are separated into 5-year increments, and the policy will eventually terminate at 80.
AARP Life Insurance No Waiting Period
After answering a series of medical questions and going through other underwriting requirements, the company will deem you eligible or ineligible for immediate coverage. If you do not qualify for AARP life insurance with no waiting period, you may get steered towards their guaranteed issue product.
The Price Increases Every 5 Years
AARP has age bands separated into five-year increments that will increase your monthly premium. For example, a 69-year female would be paying $81 per month for $25,000 of life insurance coverage, but when she turns 70, her price will surge to $141 per month. This is because she aged into another group.
A low-cost policy, to begin with, can become unaffordable once you move into another age group. AARP term life insurance plans have forced seniors to make a tough decision, either keeping a policy they can’t afford or canceling their coverage and forgoing financial protection.
At What Age does AARP Life Insurance End?
Along with the price increasing every five years, AARP’s term life insurance cancels altogether when the policyholder turns 80. AARP does allow seniors to convert their term insurance plan to permanent whole life coverage at any point before the policy is canceled.
This is a helpful feature but can still be unaffordable once converted due to the high prices of AARP’s permanent life coverage. It would be wise to avoid AARP term life insurance when planning for funeral costs. AARP does not issue initial coverage for anyone 75 and over.
Age Bands
- 50 – 54
- 55 – 59
- 60 – 64
- 65 – 69
- 70 – 74
- 75 – 79
- 80 policy terminates
AARP Whole Life Insurance (Permanent Coverage)
The Permanent Life Insurance plan that AARP offers is lackluster. It has all the features burial insurance for seniors should have, but it comes at a high price tag compared to the competition. You must medically qualify for this plan, and applicants between 50 – 80 can apply.
Plan Facts
- Age Eligibility: 50 – 80
- Coverage Amounts: $5,000 – $50,000
- State Availability: All 50
- Medical Exam: No
- Health Questions: Yes
- Waiting Period: No
- Policy Terminates: No
- Increasing Premiums: No
- Builds a Cash Value: Yes
Whole Life Benefits: AARP whole life insurance has traditional plan details that come with permanent coverage. Policyholders make their monthly premium payments, and the price will never change. Also, unlike the AARP Term Life Insurance plan, your death benefit will never terminate.
Immediate Coverage: This plan offers AARP life insurance with no waiting period. Day one coverage protects the policyholder immediately, and every applicant should attempt to secure this form of coverage. However, the AARP plan comes at a higher price than other available no waiting period coverage solutions.
Higher Premiums: AARP whole life insurance rates are excessive compared to other permanent plans. For example, a $10,000 policy for a 70-year-old male is $85 a month from AARP. Compared to Aetna life insurance, that same male would be paying $73 a month.
AARP Guaranteed Acceptance (No Medical Questions)
The guaranteed acceptance life insurance plan from AARP asks no health questions and approves every applicant. The insurance company will attach a two-year waiting period with this policy before the full death benefit can be awarded. This product has a high price point compared to other guaranteed acceptance plans.
Plan Facts
- Age Eligibility: 50 – 80
- Coverage Amounts: $5,000 – $25,000
- State Availability: 49 States (excluding NJ)
- Medical Exam: No
- Health Questions: No
- Waiting Period: 2 years
- Policy Terminates: No
- Increasing Premiums: No
- Builds a Cash Value: Yes
- Smoking Rates: No
Premiums are Expensive: Compared to other top guaranteed issue life insurance plans, this product is more expensive. Other insurance companies offer guaranteed acceptance plans for $10 – $40 less per month.
No Medical Questions: The AARP Guaranteed Acceptance plan has no medical underwriting. This is standard for all guaranteed issue burial insurance plans regardless of the company that issues the policy.
Two-Year Waiting Period: Coverage will only be paid out in full if the applicant passes away two years or more after the policy issue date. Attempt to find life insurance coverage that offers immediate protection.
How Much is AARP Life Insurance a Month?
For term insurance through AARP, women can expect to pay $11 – $33 a month for $10,000 of coverage, while men will pay $14 – $42. AARP life insurance rates for Permanent or Guaranteed Acceptance plans, applicants can expect to pay $26 – $145 monthly for $10,000 of coverage.
AARP Life Insurance Rates
AARP Term Quotes (Expires at 80)
Monthly Premiums
*The price will increase every time you age into a new bracket
| Female $10,000 | Male $10,000 | Female $25,000 | Male $25,000 | |
|---|---|---|---|---|
|
50 - 54 |
$11 |
$14 |
$29 |
$26 |
|
55 - 59 |
$13 |
$18 |
$38 |
$36 |
|
60 - 64 |
$17 |
$24 |
$58 |
$50 |
|
65 - 69 |
$21 |
$31 |
$81 |
$67 |
|
70 - 74 |
$33 |
$42 |
$141 |
$95 |
AARP Whole Insurance Rates (Permanent Coverage)
Monthly Premiums
| Female $10,000 | Male $10,000 | Female $25,000 | Male $25,000 | |
|---|---|---|---|---|
|
50 |
$26 |
$34 |
$58 |
$81 |
|
60 |
$38 |
$52 |
$87 |
$124 |
|
70 |
$65 |
$85 |
$156 |
$206 |
|
80 |
$97 |
$129 |
$237 |
$317 |
AARP GUARANTEED ACCEPTANCE QUOTES (NO MEDICAL QUESTIONS)
Monthly Premiums
| Female $10,000 | Male $10,000 | Female $25,000 | Male $25,000 | |
|---|---|---|---|---|
|
50 |
$45 |
$59 |
$110 |
$146 |
|
60 |
$60 |
$80 |
$147 |
$199 |
|
70 |
$87 |
$108 |
$215 |
$268 |
|
80 |
$112 |
$145 |
$278 |
$360 |
Buyer Beware – AARP Life Insurance for Seniors
Coverage is Expensive
Compared to its competition, AARP life insurance rates are getting lapped. For example, Mutual of Omaha burial insurance offers a 70-year-old female $10,000 coverage for $53 a month, while AARP offers the same plan for $65 a month.
Underwriting is Strict
The underwriting is very tight, and you could be pushed to their guaranteed issue plan without needing to be. Many applicants buy a more expensive plan because they do not know that other carriers will accept them.
Customer Service Issues
When deciding which insurance company to use, reviewing what current and past customers have said about their experience is essential. When you look into trusted organizations like the Better Business Bureau, you will see that customer satisfaction gets a poor rating.
Many of the grievances from current and past customers are billing issues, death benefit distribution delays, and overall poor customer service.
Group Life Insurance
When you take out a life insurance policy with AARP, you are receiving group coverage. This is different than purchasing an individual life insurance plan. The most significant difference is that group coverage plan details can change. If AARP/New York Life changes the plan structure, you have no choice but to accept the changes or cancel your coverage.
When you purchase individual life insurance, the plan details are locked into what was agreed upon.
FAQs – AARP Final Expense Insurance
Listed below are common questions about AARP burial insurance for seniors.
Does AARP Offer Life Insurance for Seniors?
AARP has three life insurance plans that are offered to seniors. Term insurance is the most popular option, with the premiums rising as you age and eventually canceling at 80. The other two plan options are whole life and guaranteed issue insurance. The three AARP final expense insurance plans are average at best, and lower prices can be found elsewhere.
Does AARP Life Insurance have a Waiting Period?
Term and whole life plans offered by AARP do not have waiting periods. The guaranteed acceptance policy is the only AARP plan that requires a waiting period. This plan option will cost women between $45 – $112 for $10,000 of coverage and men $59 – $145.
Finding Cheaper Coverage
When buying directly from insurance companies, customers can miss out on better options elsewhere. Work with an insurance agency that specializes in burial life insurance. This will ensure that you receive the lowest price and best coverage.
Final Thoughts About AARP Life Insurance For Seniors
a. Our AARP burial insurance review shows that this organization is not a life insurance company but has partnered with New York Life, which underwrites the policies. To access AARP funeral insurance, you must become a member, which costs $16 a year.
b. AARP burial insurance offers three products to its members, term, whole life, and guaranteed acceptance. These plans are higher in price than other top competitors.
c. Along with higher prices, strict underwriting is concerning and could lead to being placed in a waiting period plan that is not needed. Make sure to read customer reviews to understand current and former policyholders’ issues with AARP.