Having life insurance coverage in place can help you to ensure that your loved ones won’t have to suffer a financial hardship if the unexpected should occur. This is because the proceeds that are received from life insurance may be used for a long list of financial needs, including the payoff of debt – including a home mortgage – and as an income replacement for paying ongoing living expenses.
Today, there is a long list of different life insurance policy types that may be chosen from. This helps to better “personalize” one’s policy in order to best fit with specific insurance needs. Knowing the type and the amount of coverage, whether that should be $10,000 or $100,000 of life insurance coverage, that is needed can be extremely helpful in choosing the best plan for you.
In addition, choosing a good, solid company from which to purchase your life insurance is also highly important. This is because you want to be sure that the insurer will be there if and when it is needed to pay out its promised claim.
One provider of life insurance coverage is AARP. This entity has millions of members nationwide – and through AARP’s tremendous buying power, its members (and their spouses) can obtain needed insurance, often at a discounted premium rate.
We understand that all of this can be overwhelming when in the process of purchasing life insurance coverage for yourself or for a family member. If you need more help on understanding the ins and outs of the different types of coverage and what to expect, check out our post on life insurance for dummies for more guidance!
For many years, AARP was the acronym for the American Association of Retired Persons. Initially established in the late 1950s in response to the need for retired teachers’ health insurance coverage, AARP has grown into the largest lobbying group in the United States.
Today, AARP is defined as “a nonprofit, nonpartisan, social welfare organization with a membership of nearly 38 million that helps people turn their goals and dreams into real possibilities, strengthens communities, and fights for the issues that matter most to families – such as health care, employment, and income security, and protection from financial abuse.”
This entity focuses on members who are age 50 and older, and who are seeking ways to maximize their finances, as well as to learn about other important facts, such as fitness, saving / investing / retirement planning, and how to remain active in later years.
One of the key arms of the AARP organization, AARP Services Inc. (ASI) oversees and manages the relationships with companies that provide benefits to the members of AARP. There is a long list of providers, such as those that offer travel, phone service, home security, vehicle rental, food/dining, entertainment, medical / health care, wellness, and insurance coverage.
Types of Life Insurance Policies Offered Through AARP
AARP offers a variety of different life insurance policy options. These include both term and permanent. With a term life insurance policy, the insured is covered by death benefit protection only, which means that there is not cash value or savings build up within the policy.
Because of that, term life insurance can be quite affordable – especially for those who are in relatively good health and not overweight while seeking life insurance coverage. In addition, because term life insurance policies are issued for a certain period – or term – they are often referred to as “temporary” insurance policies.
This can make term life a viable alternative for those who are wanting to ensure that their survivor(s) will be able to pay off a mortgage balance, ensure that a child or grandchild has enough money for their future college education expenses, or even to cover everyday bills for a spouse or partner.
AARP also offers permanent life insurance coverage. These policies provide a level amount of death benefit, as well as a premium price that cannot be changed once the individual has been approved. These plans also offer several additional benefits that can help with providing the policyholder with financial security throughout his or her entire lifetime.
How the AARP Term Life Insurance Works
AARP offers a level benefit term life insurance policy option. This plan can provide up to $150,000 in death benefit coverage – with a minimum face amount of $10,000. The policies that are offered through AARP are underwritten by New York Life Insurance Company.
Members of AARP who are between the ages of 50 and 74 are eligible to apply for this coverage – and, because there is a simple application to complete, as well as no medical examination as a part of the underwriting process – most of those who apply for this coverage will be accepted.
Due to the ease of the AARP term life insurance approval process, many of these policies can be issued and in force within a very brief period (and in some cases, policies can be issued on the very same day of application).
The premium rates that are charged for the AARP level term life insurance are extremely affordable. For instance, for a male who is between the age of 50 and 54, $10,000 of term life coverage can be purchased for only $14 per month. This same amount of insurance protection can be purchased by a male who is between age 70 and 74 for only $32 in monthly premium.
Females who are members of AARP can obtain this term life insurance coverage for even less. (This is because females, on average, have a longer life expectancy than males). As an example, for $10,000 in term life insurance coverage, the premium cost for a female who is between age 50 and 54 would be just $11 per month. For a female between age 70 and 74, $10,000 in term life insurance coverage is available for just $25 each month. These premiums are locked in throughout the entire duration of the term insurance plan.
Because the AARP term life insurance coverage is offered by New York Life Insurance Company, policyholders can be sure that the underlying insurance carrier is strong and stable from a financial standpoint, and that the company has a positive reputation for paying out its life insurance claims.
New York Life Insurance Company has been in the business of providing insurance protection for more than 170 years. And, based on its financial stability, New York Life has been awarded the highest possible ratings from the insurer ratings agencies. These include an:
- A++ (Superior) from A.M. Best Company
- AAA (Exceptionally Strong) from Fitch
- AA+ (Very Strong) from Standard & Poor’s
- Aaa (Exceptional) from Moody’s
Other Insurance Products Provided By AARP
AARP also offers permanent life insurance coverage. With these policies, there is both death benefit protection, as well as the buildup of cash value within the plan. Once approved for a permanent life insurance policy through AARP, the premium that is due will remain level – and, provided that the premium continues to be paid, the coverage will last for the remainder of the insured’s lifetime. This is the case, even as his or her age increases, and if they contract an adverse health condition.
The cash that accumulates within the permanent policy’s cash value component is allowed to grow on a tax-deferred basis. This means that there will be no tax due on the growth of these funds unless or until the money is withdrawn.
Cash from the policy’s cash value component can either be withdrawn or borrowed – and it can be used for any reason that the policyholder chooses. This may include supplementing his or her retirement income, paying off high-interest debts, and/or taking a long awaited nice vacation.
The permanent life insurance through AARP is available to members of AARP who are between the ages of 50 and 80, as well as to the spouses of members who are between ages 45 and 80. As with the term insurance coverage, AARP’s permanent policy does not require applicants to go through a medical exam to qualify for the policy. Rather, policy acceptance is based on an individual’s answers to only three simple health questions. Therefore, many of those who apply for this coverage will be accepted.
This plan provides a minimum of $10,000 up to a maximum of $50,000 in permanent death benefit protection – and, provided that the premium is paid – the policy cannot be canceled by the insurance company for any reason.
The rates that are charged for this life insurance coverage are very affordable. For example, a male who is between the age of 50 and 54 can obtain $10,000 of permanent life insurance protection for between $34 and $37 per month. And, a male who is between the ages of 75 and 77 can obtain this amount of permanent death benefit coverage – and tax-deferred cash value build up – for less than $100 in monthly premium.
There are other nice features about the permanent life insurance protection through AARP. For example, just some of these benefits include the following:
- Paid Up Feature – While the monthly premium will end at age 95, the insured’s coverage will continue in full for the rest of his or her lifetime
- Guaranteed Premium Rates – Also, once approved for this plan, the amount of the premium will be locked in and guaranteed never to increase – even considering any adverse health conditions that may come along.
- No Decrease in Benefits – Likewise, the amount of the coverage that an insured purchase cannot be decreased over time. This means that loved ones can count on a certain amount of proceeds for paying off debt and/or any other financial need that they may have.
- Waiver of Premium – besides, the premiums on this coverage may be waived after the insured has been in a nursing home for 180 consecutive days – as long as this nursing home confinement is order by a doctor. This means that, even though the premium does not have to be paid during this period of time, the life insurance coverage will still remain in force.
- Accelerated Benefits – Plus, if the insured is diagnosed with a terminal illness and is given a life expectancy of 12 months or less (or of 24 months or less if in Texas or Illinois), up to half of the policy’s death benefit proceeds can be accessed. These funds can be used for paying medical expenses, or for any other need or want of the insured. (It is important to note that this particular feature is not available to those who are in the state of Washington or Massachusetts).
Where to Find the Best Premium Quotes on AARP Term Life Insurance Coverage
If you are looking for the best premium quotes on AARP term life insurance – or on any life insurance protection – we can help. We are an independent life insurance brokerage, and we work with many of the top-rated life insurance carriers in the industry. Because of this, we can provide you with a wide range of non-biased information – and premium quotes – on the life insurance coverage that may be right for you.
We can do so for you very quickly, easily, and conveniently – all directly from your home computer – and without you having to meet in person with a life insurance agent. So, if you are ready to shop and compare the many life insurance coverage options that could be available to you, then just simply taking a moment to fill out the quote form on this page. We also have many other life insurance company reviews for your reference such as AICPA Life Insurance Review or William Penn to name a few. Make sure you know all your options before your final life insurance purchase decision.
Should you find that you still have any additional questions or concerns about obtaining (or changing) life insurance coverage, please feel free to contact us directly by phone. Our experts can be reached and can walk you through all of the details that you require for making a well-informed life insurance decision. You can call us toll-free by dialing 877-235-9299.
The purchase of life insurance may seem a bit overwhelming. There are several key variables that come into play, and you want to be sure that you’re getting the best plan for your needs. So, contact us today – we’re here to help.
If you’re looking for a review of AARP Life Insurance, you’ve come to the right place. Coming up
So Here are the basics on what AARP offers in terms of term life insurance coverage. AARP offers two types of life insurance coverage. One is their level term benefit and two is their extra protection benefit life insurance.
So what is AARP’s level term benefit life insurance? Well, basically you can get up to $50,000 of coverage and you can be covered up to age 80 and there is about 3 health questions you have to answer to get approved with no physical exam. Well, that means it’s easy for you to get coverage. What’s the downside? The downside is that AARP’s life insurance is not level term insurance. Your insurance rate goes up every 5 years. What does that mean? As you get older your premiums increase. In fact they increase so much that you will no longer be able to afford it as time goes by. You’re much better off getting a lever term life insurance policy that does not increase in premiums over a period of 10,15,or 20 years.
My recommendation is if you can’t get traditional coverage you might want to try to work with AARP because they only have 3 health questions, but you’re going to end up paying a lot more money and you’re better off applying with a life insurance company that offers level term insurance. At Chooseterm.com we work with over 30 companies that offer level term insurance.
AARP’s extra protection life insurance offers up to $100,000 of insurance, and again you can get covered up to age 80 and you can get $100,000 worth of insurance. And AARP asks more questions, but still no physical exam to get you approved for that kind of policy. Its great, you can get approved, and you can probably get approved fairly quickly. However, again this is not level term insurance, and your insurance goes up every 5 years. So if you’re looking for term life insurance and you want your premiums to stay the same throughout a 10,15, or 20 year period, then you want to make sure you’re getting a level term life insurance.
At Chooseterm.com we’re able to beat the prices for AARP all the time, and work with people that have looked for quotes with AARP and realized that they’re much more expensive than what they can get by shopping the marketplace. You can visit our website chooseterm.com. You can click the link below and visit our site to fill out a quote form, and get your quote. And we can work with you to get you better rates than what AARP offers, and also if you need more coverage than just $100,000 we can help you get that as well. Thank you.