Your Guide to the AARP Life Insurance Program

The AARP Life Insurance Program offers different insurance policies issued by New York Life Insurance Company for all eligible AARP members. The program supports older people — and anyone can join so long as they are at least 50 years old and is a member of the AARP. The AARP has over 37 million members and still growing.

AARP life insurance policies include Term Life Insurance, Permanent insurance, Easy Acceptance Insurance and Young Start Life Insurance. To get accepted, AARP members are not required to have a medical exam; there are only a few health questions they need to accomplish. So long as the applicant isn't terminally ill and meets the age requirement, acceptance is guaranteed.

If you struggled to get life insurance from other companies and you are at least 50 years old not terminally ill, no matter whether you are a member of the AARP or not, get a life insurance quote here.

AARP Life Insurance Policies

Term Life Insurance

AARP members ages 50-74 and their spouses can apply for Level Benefit Term Life Insurance. The policy holder can choose from $10,000 to 100,000 in protection. There is no medical exam needed; applicants will only need to answer health questions and other information. Coverage can last until the policyholder's 80th birthday. The death benefit of the policyholder stays level throughout the term but the rates increase when the insured enters a new 5-year age band. Since the rates increase over time, the insured won't know exactly how much they will be paying for their insurance later. All insured members can convert term-level insurance to permanent insurance so long as they do it before they turn 80 years old. The new rates would be based on the policyholder's age. Policyholders who want higher insurance coverage may call New York Life.

Whole Life Insurance

Also called burial insurance or final expense insurance as the amount of coverage is usually just enough to cover end-of-life expenses, are available for AARP members 50-80 years and their spouses' ages 45-80 can apply. The coverage available is between $5,000 to $50,000 and no medical exam is needed. So long as you do not have a terminal illness, anyone with a qualified age group can apply. The annual rates are the same throughout the life of the insurance and you can start making payments as soon as it's paid up. While the maximum coverage is $50,000, insured members can call New York Life if they want higher coverage.

In case the insured become terminally ill or disabled, whole life insurance comes with 2 riders:

Waiver of Premium - When you become disabled or ill and have to stay in a nursing home for at least six months, you will not have to pay premiums for the entirety of your stay (or until the policyholder turns 80 years old, whichever is sooner).

Accelerated Death Benefit - When you are diagnosed with a terminal illness and the medical doctor believes that you have less than a year to live, you are allowed to access up to 50% of your death benefit while you are still alive.

Easy Acceptance Life Insurance/ Guaranteed Acceptance Whole Life Insurance

Acceptance is guaranteed for AARP members ages 50-80 years old and their spouses' ages 45-80, so long as they do not have a terminal illness. Application is easy; members will only have to answer one health question. Members can get $2,500 to $25,000 insurance coverage but they can contact New York Life if they want higher coverage. For Guaranteed Acceptance Insurance, only a portion of the benefit (125% of the value of the premiums paid) is paid out if they die of natural causes. The full benefit is for members with accidental death.

You do not have to make premium payments after the age of 95. When you are diagnosed with a terminal illness, you can get up to 50% of your death benefit while still alive.

AARP Young Start Life Insurance

While life insurance for children allows the AARP members ages 50-80 to purchase whole life insurance policies for their children and grandchildren who are 17 years old and below, there are only 3 levels of coverage offered: $10,000 with a monthly premium of $5; $15,000 with a monthly premium of $7.5; and $20,000 with a monthly premium of $10. Application is easy as no medical insurance is required. Applicants only need to answer a series of health questions. When the child comes of age at 21 years old, he becomes the policyholder and can choose his own beneficiary.

AARP Life Insurance Program Pros and Cons

Most life insurance companies require older applicants to undergo a medical exam apart from answering a series of questions about their health and medical history. This won't be necessary with the AARP Life Insurance Program. So long as you meet the age requirement and are not terminally ill, you will get accepted for the program. When it comes to rates, the AARP is pretty transparent with it while other companies would require you to speak with a sales agent before getting the pricing. Also, you can easily apply online. If you are an AARP member with children or grandchildren, you can get an insurance policy for them for as little as $5 monthly.

While the AARP insurance is beneficial, it does have some downsides. The coverage options and restrictions vary by state and you will need to be a member of the AARP before you get accepted for any of their life insurance programs. The membership fee is $16 annually. Another downside is the maximum coverage allowed per member. Maximum coverage is only $100,000. You will need to speak with New York Life if you want higher coverage.

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