If you are reading this article here today, I am going to assume you are a senior wondering if AARP life insurance is good deal. AARP term life insurance for seniors is actually provided by New York Life. AARP is just a sales organization marketing a life insurance product and is in no way an insurance company. All claims, term life rates and approvals are handled by NYL.
If you know specifically how many years you need financial protection for, then an appropriate term life insurance policy can fit that bill. An important key here…. don’t use term life insurance to plan funeral and burial expenses. Big, big mistake. Too many people have gotten caught trying to look into the crystal ball and found out the hard way that term coverage was the wrong choice. Term life insurance is designed for the unexpected, not certain, death. You need permanent life insurance such as final expense whole life insurance to guarantee protection for your family. The last thing the family needs at a highly stressful and emotional time is an expired life insurance policy.
Before you look at the AARP term life insurance rates below, be sure to use our instant life insurance quote tools located on this page. In 1 minute or less you’ll have the top rates for term life insurance and senior whole life insurance from the most competitive companies in the industry.
As part of this review, what I am about to unveil here regarding the senior AARP term product is likely to be disappointing and potentially shocking!
Why You Need to Be Cautious With AARP Term Life Insurance Rates
One of the most concerning factors of being a licensed field underwriter is seeing content on the internet not written by licensed and experienced life insurance people. Maybe you searched for “the best life insurance for people over 80” and you find and article written by an unlicensed writer/author? Many times, search results will just be general bloggers and so called “financial experts” etc.
Be careful where you are getting your information from folks. Where would you get important medical advice… your doctor or a better health blogger on the internet?
Most people would certainly look to their doctor for guidance.
Talk to pro’s who are in the business and work with retired people everyday. They have the experience and facts to advise you versus someone who might have done some basic research to satisy their opinion they have chosen write about. Problem is, there is no research that compares to being experienced, in the field and trained to make appropriate recommendations.
While many writers have good intentions, it is very difficult to advise consumers unless you have “earned your stripes.” A good pro will also have access to all top companies and products on the market if you really want to find the best plan for your budget. They are able to go shopping based on your age and overall health to find you the best offerings for you. No medical exams or blood tests either just like AARP.
Don’t be fooled by advice given by unqualified people. This is your family you are protecting. Apples are not apples with life insurance. Knowing the limitations of the policy is critical before making your purchase.
In speaking with a tremendous amount of seniors about life insurance for many years, the largest problems we hear are the complaints related to the experience of owning certain types of term life insurance particularly as a senior.
Specifically, the monthly cost not being level for the life of the policy. In other words, going up over time. Not all term life insurance policies have guaranteed level rates. Yes, rates do expire with any term policy after a preset number of years. At that point, the policy either expires or the cost becomes outragous to own. This is the end of the “term.” Some term policies go up in price as you own them while the future rates are not guaranteed in writing.
Many people also do not realize term policies have NO cash value, ever. Not that cash value is a benefit everyone needs, it is however, as stated earlier, important to understand the limitations of any life insurance policy and what your policy offers.
If you are looking for cash value accumulation inside the policy or planning for end of life expenses, this is, again the wrong type of life insurance. You should be looking at whole life insurance…something where there is a permanent guarantee of financial protection for your loved ones.
Term insurance is temporary life insurance…you are renting it most often on a monthly premium basis for 10, 20 or 30 years. When the “term” ends, then 1 of 2 things occur. First, the premium will go up drastically or second, the policy just terminates. Depending on your age of application, you may not even qualify to apply.
Mentioned this earlier, but some term life insurance policies go up in cost at regular intervals and have no written guarantees that those rates are locked in. This is typically a low grade policy that can be a financial trap in the making.
AARP/NYL seems to have adopted a philosophy of selling this type of term life insurance to seniors.
To top in off, in their term life insurance offering… you cannot apply for coverage after you have reached the age of 75.
What does that mean?
Well, you will be denied the AARP term life insurance rates regardless of your health at that point. You must be accepted prior to age 75.
The problems of this policy continue…
Term life insurance from AARP terminates at age 80.
In other words… after your 80th birthday, the policy expires. There is no refund or benefits of kind at this point.
However, you are allowed to change to a whole life insurance policy at any time and either accept the much higher premium at your current, attained age or request a much smaller policy. Whole life insurance at age 80 is quite a bit more expensive than at 65 or 75.
How many people do you know who have lived beyond age 80? I know a lot of people personally and have plenty of clientele who have lived to 90.
FYI, in general term life insurance policies offer a conversion privilege in them in the event you wish to buy permanent, lifetime protection. This will be guaranteed in the policy itself.
AARP term life insurance rates and benefits for seniors are nothing short of unimpressive.
For starters, the cost of AARP term insurance goes up every 5 years, period. Second, you cannot apply for coverage after you reach the age of 75.
Here is the kicker to the owner of this particular policy. None of the rates are guaranteed!
At the time you make application you will see the projected cost in the 5 year age block. However, once you read the fine print it is clear that NYL has the right to raise the cost of the premiums on all the policyholders of the AARP term insurance. No written guarantees for seniors on a fixed income.
Why not just have a level premium for the life of the policy and set the expiration for age 80?
Ladies and gentlemen, this is not a high quality policy.
Further, it seems to have a lot of limitations for those who need larger policies. $100,000 is a small term policy to be honest. Policies below this amount are generally for burial insurance and those should never be funded by term insurance that often expire prior to death. Term insurance is only for a known, defined period of time. An example: a loan. The loan will have a defined number of years of monthly payments. A term policy is a good solution to ensuring the family has money to pay off the debt during the defined period of time. Term life insurance is most often deployed by young families raising kids or to coverage a mortgage, loan etc. All defined periods of need.
How much coverage do you need? Do you want to have your premiums rise every five years or more until you get frustrated and potentially drop it? Is an expiring policy what you want? Does that meet the needs of your family? NYL and AARP certainly appreciate the endowment they receive when their policyholders drop the policy early.
I am sure you do not intend to drop your policy, but be sure you understand the realities of the policy you are researching. Those AARP term life teaser rates can become frustrating rates down the road. I have heard plenty of stories from upset people who thought they found “a good deal.”
Actual 2020 AARP Term Life Insurance Cost
Quotes provided below were taken directly from the NYL/AARP website on a fictitious 65 year old male, non tobacco user for term life insurance. Please be sure to carefully read the fine print below the quotation.
Next we have quotes below directly from the NYL/AARP website on a fictitious 65 year old female, non tobacco user for term life insurance. Please be sure to carefully read the fine print below the quotation. This is as important as the rates.
Term Life Insurance Rates from AARP – The Real Truth
You may have noticed that there are no rates provided by AARP/NYL for people age 75-79 who have this policy with them. This is where most policyholders are “shaken out” by another massive rate increase.
Imagine your AARP term life insurance rates nearly doubling every 5 years until it terminates.
Where does this potentially leave you or your family?
One other objective of this article is to educate you on why shopping for term life insurance based on brand familiarity is not a good idea.
Just a few days ago, at the time of writing this post, I spoke with a 69 year old man with 3 very significant health conditions. He requested a $500,000, 10 year term life insurance policy. Unfortunately his 3 health conditions significantly impacted his premium. Asthma and Diabetes combined with the lingering threat of COVID-19 are not a good combination. However, I was able to get him an offer of $534 per month for the next 10 years for $500,000 of coverage with guaranteed level premiums and death benefit. This was obtained from a very reputable, A+ financially rated (according to A.M. Best) life insurance company. That same gentleman would pay $272/mo minimum for just $100,000 at age 70 with the AARP/NYL product. Don’t forget, AARP rates go up at least every 5 years. This is certain. The fine print tells the truth.
The better alternatives, well….
Top life insurance carriers lock those rates in for the life of the policy term. $272 dollars would buy my new, anonymous client roughly $250,000 of 10 year term life insurance with absolutely no rate increases written into the policy. Ponder for a moment how much it would cost you for $100,000 of protection from AARP/NYL. Remember, those premiums go up significantly every 5 years to top it off!!
AARP Term Life Insurance For Seniors – Is This A Good Deal or Not?
Our AARP Term Life Insurance Review does not give this policy high marks. Term life insurance from AARP is not a special benefit offered just for being a member of the association. It is something they sell to their members. The question is, should you buy what they are selling?
AARP term life insurance is not a premium product by any means. Frankly, I think it reflects poorly on the association for numerous reasons.
Yes, you must be a member to apply for this policy.
My first question to you is…
Why would you elect to purchase a policy without value built into it? All this policy guarantees is that NYL will pay a selected death benefit as long as you pay the based on a premium which is not guaranteed and rises every 5 years until expiration at age 80. That is right. It could be higher in the future than estimated. The premiums are NOT guaranteed.
My next question to you…
If you only need temporary life insurance, why not have term life insurance which guarantees your premium for the number of years you want and in the size of policy which you need?
In my experience, most seniors get caught assuming that AARP will offer them special programs and benefits not found elsewhere. That is a false reality.
Folks, I get AARP membership info in the mail as well. The life insurance programs are subpar compared to the top senior life insurance products on the market.
I receive a lot of phone calls daily for final expense life insurance. No one is happy with their term policy from AARP. Most folks end up buying one of our plans instead. They just didn’t know the cost went up every 5 years and/or expired at age 80 until they had already bought it.
If you want the most affordable term life insurance for a senior, simply talk to an independent life insurance agent/broker that works with seniors regularly, understands your needs and has access to all the top life insurance carriers and plans designed for people 50+. He or she can shop it out for you. Just be sure they work with a good dozen carriers or more so you can be assured you are getting a good price on the policy you need.
Top shelf life insurance policies offer built in assurance including both rate and death benefit guarantees for the length of coverage you select. They also provide guaranteed conversion options should you desire to change to a permanent insurance policy.
Ladies and Gentleman, the AARP term life insurance cost of ownership is not warranted.
Is AARP term life insurance a good deal?
No, it is not.
Not intending to offended anyone, but this is the type of life insurance that comes on a junk flyer in the mail. It belongs in your circular filer. Mail the masses to bypass trained life insurance professionals who would advise against this type of policy. It should never be used to cover final expenses. Your family could be financially devastated. Because this plan expires at age 80, your family could end up in a major financial pickle and at one of the most difficult times of their lives.
Do yourself a favor, if your stuck on the belief that AARP life insurance in your answer, chose their whole life insurance products which will not expire or go up in price regardless of your age once you are approved. Lifelong coverage is what you need to cover your final expense. AARP life insurance for age 80 and above is not available.
Looking for a policy over age 80? You will need to speak with an independent professional agency like Maple Valley Insurance Group that has access to all the insurance companies that offer life insurance to seniors even age 80 +.
Always touch base with a seasoned, independent professional to discuss your life insurance needs and find out what your best options for coverage are. Don’t assume your health as a senior will prohibit you from getting affordable coverage. A good professional will be able to sort thru any and all health conditions you have to find the right insurance company and plan for you. Remember, all companies have different ways of evaluating their life insurance applicants.
We are here to help if you would like to discuss your situation with us. We are also a one stop source for all the top carriers and their products for seniors. Phone: 269-244-3420
If you have any comments as to why this AARP term life insurance program would be good value to anyone, be sure to leave this in the comments below. We enjoy and appreciate the feedback.