AARP Life Insurance for Seniors Review [2023]

Are you considering AARP life insurance for seniors? Anyone over the age of 50 may join the American Association of Retired Persons (AARP). Among its benefits, the organization offers exclusive life insurance policies in partnership with New York Life Insurance Company.

The AARP life insurance program from New York Life offers one convertible term life insurance plan and two permanent life insurance policies.

Read on to discover some AARP life insurance for seniors reviews, what the policy offers policyholders, how much it costs, and its financial strength.

To compare life insurance rates for top companies in your area, you can enter your ZIP code into our free quote tool above.

What does AARP life insurance offer for seniors?

If you are considering purchasing AARP life insurance, you can choose between these insurance plans:

• Level benefit term life. Benefits range from $10,000 to $100,000. Applicants must be less than 74 when signing up or renewing and the coverage ends at age 80. You must contact New York Life directly to raise the total benefit.
• Permanent life. This whole life insurance policy has a death benefit range of $5,000 to $50,000. It ends at age 95.
• Guaranteed universal life insurance. This whole life insurance policy ends at age 95. Its death benefit ranges from $2,500 to $25,000.

All three are no medical exam life insurance policies and can be converted into permanent life policies. All you need to do is contact New York Life and answer a few questions.

A successful application for the level benefit term life and AARP whole life policies depends on accurate health information you provide New York Life Insurance Company.

If you apply for the guaranteed acceptance life policy, you do not need to answer health questions. However, you will pay an extra “mortality risk” fee.

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Does AARP life insurance offer any riders?

Life insurance riders are add-on benefits to your life insurance policy, and the AARP life insurance program from New York Life offers only two riders: an accelerated benefit and a waiver of payments if you are in a nursing home.

The living benefit rider allows you to receive accelerated payments of up to half of your policy’s death benefit if you are diagnosed with a terminal illness with a prognosis of 24 months or less.

The payment waiver takes effect if you have been in a qualified nursing home for at least 180 consecutive days.

How much does AARP life insurance for seniors cost? (AARP Life Insurance Rates Chart 2021)

AARP term life insurance rates increase every five years. If you sign up at 50 years old, your rates will increase when you turn 55. Below is an AARP term life insurance rates chart by age and gender.

As you can see, you would need to be 50 to 64 years old to purchase affordable AARP senior-plan life insurance, even with the $100,000 benefit level.

You can lock in your AARP whole life insurance rates depending on your age when you sign up or when you decide to exchange your term life policy for a permanent policy.

What is the claims process for AARP life insurance?

When you die, your beneficiaries must file a claim with New York Life Insurance Company to get the death benefit:

• Download the claims packet online or request one by phone. Beneficiaries of AARP member policyholders may call 800-695-5165. Staff are available Monday through Friday, 8 a.m. to 5 p.m. Eastern Time.
• Mail or fax the completed form with the policyholder’s certified death certificate to the insurance company. The fax number is 855-381-5010.
• Provide any additional documentation to the claims representative if necessary.

Additional documentation may include proof of guardianship for a minor beneficiary and executorship papers for the deceased’s estate. Beneficiaries may go through a lengthy claims process if the policyholder dies within two years of enrollment.

The role of life insurance in a financial plan is an immensely important one. Do your research to make sure the policy you choose is right for you.

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How strong are the financial and consumer ratings for AARP Life Insurance for seniors?

New York Life Insurance reviews vary, and the company has received different ratings from four financial rating companies. The company has received good reviews, but its claims process has led to some complaints from beneficiaries in 2020.

As of Oct. 1, 2020, New York Life Insurance Company received an A++ (Superior) rating from A.M. Best and an AAA (Exceptionally Strong) rating from Fitch.

Moody’s Investor Service also gave the insurance company an AAA rating, and Standard & Poor’s gave the company an AA+ (Very Strong) rating.

According to the National Association of Insurance Commissioners, New York Life received 34 complaints in 2020 about its life insurance policies — less than 0.10% of all complaints to US-based insurance companies.

New York Life ranked ninth in the J.D. Power 2021 Customer Service Satisfaction Survey. The company scored 777 out of a possible 1,000 points, one point above the industry average.

Should you buy AARP Life Insurance for seniors?

Since AARP life insurance requires no medical examination during its application process, you won’t have to worry about what to expect when you need a medical exam for life insurance, and it might be ideal for you if you are a smoker or have pre-existing conditions.

If you decide to borrow against your whole life policy, your death benefit will decrease, and your payments will surpass it in value. Weigh the costs of an AARP life insurance policy against what you might want to leave your beneficiaries.

The death benefits and rates for permanent AARP life insurance for seniors over 85 might be reasonable in some cases. If you are younger, you might find a life insurance policy with increased benefits and lower rates.

Ultimately, compare plans. For example, look at companies such as Mutual of Omaha’s life insurance for seniors.

Feel free to compare AARP/New York Life rates with other companies to find one that is best for you.

To see life insurance rates from top companies in your area, just enter your ZIP code into our free quote tool above.

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