The life insurance division of the American Association of Retired Persons (AARP) partners with New York Life to offer term and life policies without the need for a medical exam. We research AARP’s financial stability, policy plan options, passengers, website tools, and customer service reviews to help you compare AARP’s life insurance policy options with the competition.
Company overview
AARP was founded in 1958 to provide senior citizens with access to quality health and financial services. With more than 38 million members, AARP is one of the largest nonprofits in the United States, available to all American citizens age 50 and older.
AARP Life Insurance is a division of AARP, offering term and whole life policies underwritten by New York Life, one of the largest life insurance companies in the US AARP allows users to get free quotes and subscribe to policies online or by phone.
AARP life insurance is only available to AARP members and is available in most states, but actual availability varies by product and state.
AARP also offers member-only offers on banking, investment accounts, fraud protection, and Medicare supplement plans.
Available Plans
AARP Life Insurance offers four types of life insurance plans. All of them are available to AARP members without the need for a medical exam.
Term life insurance with level benefits
AARP offers term life insurance for $ 10,000 to $ 100,000 in coverage. Instead of choosing a specific term, term life insurance expires when you turn 80. To continue coverage, you can convert your term life policy to a permanent life insurance plan once you turn 80 (or anytime before).
The policy is considered a “level benefit” plan, since the death benefit stays the same over time, but the premiums increase as you get older.
Permanent life insurance
AARP members can apply for permanent life insurance coverage up to $ 50,000. This is a type of lifetime policy that builds up cash value over time, which can be borrowed from if needed. Coverage ranges from $ 2,500 to $ 50,000, which isn’t necessarily enough to cover major expenses like a mortgage, but it can help cover end-of-life costs like burial and funeral costs.
AARP’s permanent life coverage is unique in that participants no longer have to pay premiums after age 95.
Easy to accept life insurance
Easy Acceptance Life Insurance is a comprehensive life coverage policy that will accept any applicant who is not terminally ill when applying. Coverage ranges from $ 2,500 to $ 25,000 and, similar to the permanent life insurance plan, participants no longer have to pay premiums after age 95.
Participants who die within two years of the start of the policy do not receive the full benefit. Instead, beneficiaries receive 125% of the premiums paid.
Young Start life insurance
AARP members can purchase a permanent life insurance policy for their children and grandchildren who are 17 years old or younger. Policies range from $ 10,000 to $ 20,000 and build cash value over time.
The policy can continue into adulthood and once the child turns 21, the policy becomes their responsibility. If they choose to continue with the policy, they will be responsible for paying the premiums, but they will also have control over the beneficiary allocation.
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Available riders
Many life insurance plans come with optional additional policy enhancements called riders. These insurance endorsements add additional benefits or personalized coverage options to insurance policies. Additional fees are generally billed as a small percentage of the policy premium or as a fixed annual fee. Rates vary based on policy, product, and options selected.
AARP offers two riders that can be attached to your permanent life insurance policies.
Accelerated Profit
If the AARP permanent life insurance holder is terminally ill with a life expectancy of 24 months or less, they can access up to 50% of the benefit while still living.
New York residents must receive a life expectancy diagnosis of 12 months or less to access this benefit.
Waiver of Premium
AARP members with permanent life insurance who are confined in a qualified nursing home for 180 consecutive days may be eligible for a waiver of premiums. This rider is automatically included in permanent life insurance policies and lasts as long as the stay in the nursing home.
The nursing home must be primarily engaged in providing skilled nursing care under the supervision of a licensed physician.
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Customer Service: Phone Support Only
All AARP life insurance policies are provided by New York Life. This means that when you call customer service, you are speaking directly to a representative from New York Life rather than one from AARP.
The AARP Life Insurance website has a place to make payments, update your personal information, access important forms, or manage beneficiaries. For direct customer service support, you can call New York Life directly for service and support at 800-607-6957.
AARP Life Insurance customer service hours are Monday through Friday from 8:00 am to 6:00 pm M. At 8:00 p. M. And on Saturdays from 9:00 am M. At 5:00 p. M. ET.
AARP Life Insurance does not offer 24/7 live chat support or phone support.
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Customer satisfaction: above average
The National Association of Insurance Commissioners (NIAC) conducts an annual survey of insurance company complaints and publishes their totals each year. This allows you to see which companies receive more complaints than the national average. A company with an average number of complaints would receive a score of 1.0.
AARP life insurance (offered through New York Life) has a lower-than-average customer complaint score of just 0.16 in 2020. This is six times lower than the national average for life insurance companies. (in relation to its market share). Their complaint rate score has also dropped from 2019, indicating that their customer service is improving over time.
Financial strength: A ++ (higher)
All AARP life insurance products are backed by New York Life, which is rated A ++ (Superior) by AM Best. New York Life is one of the largest and most financially strong insurance companies in the US, giving clients the confidence that they can trust the company’s ability to pay any claims on their policies.
New York Life is also ranked sixth out of 24 life insurance companies in JD Power’s 2020 US Life Insurance Study . This customer satisfaction rating is based on your application and guidance, communications, interaction, pricing, product offerings, and statements.
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Cancellation policy: generous 30-day trial period
AARP life insurance offers a free search period when you purchase one of their life insurance policies, while most only offer the 10-day minimum. If a customer decides to cancel for any reason within those 30 days, they will receive a full refund of premiums paid.
After the free trial period, the cancellation terms depend on the chosen life insurance policy. Term life policies can be canceled at any time, but will not refund premiums paid. Whole life policies allow clients to cancel their policy before its expiration date (at age 80). Because it is a cash value policy, clients will receive the accumulated cash value less any applicable fees.
*Cancellation fees are not publicly listed and may vary by policy.
AARP Life Insurance Price: High Premium for Modest Coverage
AARP life insurance premiums are particularly high compared to other life and term life rates This is due, in part, to offering policies that do not require a medical exam, as well as offering policies to smokers and individuals. with serious health conditions.
Appointments are based on age and responses to your short health questionnaire. Premiums can be paid monthly or quarterly.
Term life
Monthly premium estimates for a $ 100,000 term policy for a 55-year-old smoker.
| Age | Male | Woman |
| 55-59 | $ 238 | $ 144 |
| 60-64 | $ 348 | $ 222 |
| 65-69 | $ 478 | $ 314 |
| 70-74 | $ 690 | $ 550 |
Permanent life
Monthly premium estimates for a $ 100,000 permanent life policy for a 55-year-old smoker.
| Benefit amount | Male | Woman |
| $ 2,500 | $ 19 | $ 13 |
| $ 5,000 | $ 36 | $ 25 |
| $ 10,000 | $ 70 | $ 49 |
| $ 25,000 | $ 174 | $ 119 |
| $ 50,000 | $ 346 | $ 237 |
Easy to accept life insurance
Monthly premium estimates for an easily accepted lifetime policy of $ 100,000 for a 55-year-old smoker.
| Benifit amount | Male | Woman |
| $ 2,500 | $ 18 | $ 14 |
| $ 5,000 | $ 34 | $ 26 |
| $ 7,500 | $ 50 | $ 39 |
| $ 10,000 | $ 66 | $ 51 |
| $ 12,500 | $ 82 | $ 64 |
| $ 15,000 | $ 98 | $ 76 |
| $ 17,500 | $ 114 | $ 89 |
| $ 20,000 | $ 130 | $ 101 |
| $ 25,000 | $ 162 | $ 126 |
Early start life insurance
Lifetime coverage for children under 18 years of age.
| Benifit amount | Monthly premium |
| $ 10,000 | $ 5.00 |
| $ 15,000 | $ 7.50 |
| $ 20,000 | $ 10.00 |
Comparing AARP Life Insurance to Other Life Insurance
AARP life insurance doesn’t have many life insurance coverage options compared to other companies, but it is focused on your demographic (50 and older), and all of their policies require no examination. The plans are often priced higher than the competition, but for smokers or others with serious health problems, the price is on par with other high-risk life insurance policies.
AARP’s partnership with New York Life gives them access to a highly rated life insurance company with above-average customer satisfaction ratings.
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AARP Life Insurance vs. Lincoln National Life Insurance
Both AARP and Lincoln National offer no exam life insurance , with term and whole life policies available.
Here are some key differentiators between AARP and Lincoln National:
- Lincoln National offers level term policies, which means the policy term and premiums remain the same. AARP only offers level benefit term policies, with premiums increasing every five years.
- AARP Life Insurance is backed by New York Life, which is the largest life insurance company in the US.
- Lincoln National offers multi-term policies (5-30 years), while the duration of the AARP term policy simply goes up to 80 years.
- AARP (backed by New York Life) scored well above average on the NAIC Complaint Index, while Lincoln National scored below average.
While AARP life insurance can act as a good complement to other life insurance policies, Lincoln National may offer greater amounts of coverage available, depending on your age. If you are relatively healthy, Lincoln National may be a good option for life insurance. If you are a smoker or have a serious health condition, AARP offers no-test coverage at a reasonable cost.
| AARP Life Insurance (Underwritten by New York Life) | Lincoln National (subsidiary of Lincoln Financial) | |
|---|---|---|
| Market share | Largest in the US, 6.75% | Fifth largest in the US, 4.83% |
| Number of plans | 4 | 20+ |
| Online quotes available? | And it is | No |
| Service method | Direct phone | Telephone |
| AM best rating | A ++ (upper) | A + (top) |
| Complaints index | 0.16 (above average) | 1.25 (below average) |
Verdict
AARP life insurance offers a limited selection of products and most of them have a premium price. But AARP members who seek no-test coverage and smoke or have a serious health condition can get guaranteed coverage. Term life policies increase the premium over time, but can be converted to life at any time, giving members the flexibility to stay covered for their entire lives.
AARP Life Insurance is underwritten by New York Life, which is the largest life insurance company in the US (by market share). With above-average customer satisfaction ratings on both NAIC and JD Power, customers can rest assured that their policies are backed by a strong company in New York Life. Although AARP offers its life insurance exclusively to members, you should always compare life insurance rates with various companies before purchasing a policy.
Methodology
All of our reviews of life insurance companies are based on extensive research and analysis of each company based on offerings, customer service, financial stability, costs, and more. For each company, we compare the life insurance products offered, as well as available features and reported customer experiences.
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