BUYER BEWARE – AARP Term Life Insurance Rates and Review

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.

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.

You are going to want to have this information before continuing.

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 an article written by an unlicensed writer/author? Often 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 unlicensed health blogger on the internet?

Most people would probably look to their doctor for guidance first.

Talk to pro’s who are in the business and work with retired people everyday. They have the training, 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 at all. Knowing the limitations of the policy is critical before making your purchase.

In speaking with a tremendous amount of people 40-90 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.

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 continue paying. 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.

If you are looking for financial protection for end of life expenses for your loved ones, term life insurance is NOT that answer. Final expense whole life protection does not expire regardless of age, go up in price or reduce benefits. Term life insurance does.

Many life insurance consumers 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.

You see…

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, like most modern term life insurance policies, you are allowed to change to a whole life insurance policy prior to expiration and either accept the much higher premium at your current, attained age or request a smaller policy to lower the new cost. Whole life insurance at age 80 is quite a bit more expensive than at 65 or 75 particularily for men.

How many people do you know who have lived beyond age 80? I received calls from many people each week who are 80+. Plenty of my clientele who have lived to 90.

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.

Why?

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. You will have rate increases at age 55, 60, 65, 70 and so on. Unlike a whole life insurance policy, the monthly premium is not locked in.

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 people 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. $150,000 is a small term policy to be honest. Policies below this amount are generally for end of life expenses and those should never be funded by a term insurance policy 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 cover a mortgage, loan, income 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 expensive 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.

So, how do I know this? Feedback from hundreds of former NYL/AARP term life insurance owners calling us for affordable life insurance. Same story each time. Had not read their policy when they received it and assumed it was life long coverage and/or simply could no longer afford the high price tag particulary at age 75. Most did not even know that the policy expired at age 80 either. Most were in shock that AARP would offer this product to seniors at all.

Imagine your AARP term life insurance rates nearly doubling every 5 years until it becomes unaffordable or terminates. Did you realize that the price is not locked and will go up regardless of your health? While the price may be enticing from 50-70 or so, it is not competitive with a whole life insurance policy that will protect your family at a locked price the the rest of your life. While you may have saved a few bucks earlier, the savings is quickly eroded by the time to reach age 75. Problem is that whole life insurance will be considerably more expensive than if you had bought it years earlier and “locked” your permanent price.

Where does this leave you and/or your family when this AARP term life policy becomes too expensive or expires because you live past your 80th birthday?

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 to cover the time remaining on his mortgage.

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.

I should mention, this premium is 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 – A Good Deal or Not?

Our AARP Term Life Insurance Review does not give this policy high marks. Ladies and gentleman, if you own and AARP/New York Life policy, read the policy carefully! Again, apples are not apples among life insurance policies.

Term life insurance from AARP is not a special benefit for being a member of the association. It is something aggressively marketed to their members. The life insurance industry as a whole does not endorse term life insurance to be for final expense protection. It is strictly temporary life insurance, for the “what-ifs” in life during a defined period of time of life. Seniors planning for end of life expenses need guarantees to ensure their family is protected. AARP endorsing this product does not mean it is designed for final expenses for your family. The question is, should you buy what they are marketing? Why are you choosing this product? Are you planning for end of life expenses or do you have a specific timetable you need the temporary coverage for?

The reality…

AARP term life insurance is not a premium product by any means. Frankly, I think it reflects poorly on the association for numerous reasons. Most seniors are on a fixed income and need a policy they can afford for the rest of their life.

Why would you elect to purchase a policy without long term value built into it if you want final expense life insurance? Another area of concern with this policy…the premium could be higher in the future than estimated. Premiums are NOT guaranteed and the policy expires on your 80th bday.

My next question to you…

If you only need temporary life insurance, why not have term life insurance which guarantees your premium and policy amount for the number of years you want? This is called level term life insurance.

In my experience, most people get caught assuming that AARP will offer them special programs and benefits not found elsewhere. This 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 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 whole life plans instead. They don’t want to leave their families without the financial protection. They got a rude awakening at age 75 how expensive it became. Some were not aware the policy expires at age 80 either. This is the average life of a woman in the United States as of 2020.

If you want the most affordable 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 term insurance policies offer built in assurance including both fixed 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, whole life 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. Unless you only need life insurance till your 75th birthday when the rates jump way up.

Not intending to offended anyone, but this is the type of life insurance 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 and unable to pay your bills. Don’t lose site. This plan expires on your 80th birthday… your family could end up in a major financial pickle and at one of the most difficult times of their lives.

Don’t use term life insurance to plan funeral and burial expenses. Big, big mistake. Many people get caught trying to look into the crystal ball only to find out the hard way that term coverage was the wrong choice. Term life insurance is designed for the unexpected for a known/defined period of time. People planning for end of life expenses need permanent life insurance such as final expense whole life insurance to guarantee protection for your family for when “that day comes.” The last thing the family needs at a highly stressful and emotional time is an expired life insurance policy. Every week I hear a story from someone who went thru a bad experience with a deceased family member who had an expired term policy in their drawer or files.

Do yourself a favor, if you’re stuck with the belief that AARP life insurance is the answer, select the AARP, New York Life whole life insurance product. Yes, it is way overpriced compared to the top final expense whole life insurance companies, but it will not expire or go up in price, ever. This is a final expense whole life insurance product.

Now, an important fact to know. AARP life insurance for age 80 and above is not available regardless of their 3 products.

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 to 90. Remember, even if you bought a term policy from AARP 10 years ago, it will expire at age 80.

Find a seasoned, independent professional to discuss your life insurance needs and find out what your best options for coverage are. Buying final expense whole life insurance now is always a better solution when planning for the unknown day when we pass.

Don’t assume your health 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 insurance 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 people age 40-90. Phone: 269-244-3420

If you have any comments as to why this AARP term life insurance program might be of good value, be sure to leave your thoughts in the comments below. We enjoy and appreciate the feedback.

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