AARP Life Insurance Review

Updated: October 3, 2024

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MoneyGeek’s Take: Is AARP Right for You?

AARP is an excellent option for those who are 50 years old and above, including seniors. The AARP life insurance program is only open to its members and eligible spouses until the age of 80.

AARP’s life insurance isn’t suitable for those who don’t fit this demographic. Our research found that Transamerica is a stellar choice for young adults, while Nationwide offers solid deals for those between the age of 30 to 40. If you’re a senior but don’t want to apply for AARP membership, State Farm is a great option.

Life insurance can be a worthwhile investment, so we recommend that you weigh the options available to you. If you meet the qualifications of AARP and are curious to know more, MoneyGeek’s guide can help you decide whether or not it fits your situation.

At a Glance: AARP Life Insurance

AARP

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Available in all states

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No medical exam required

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Receives fewer complaints than similar companies

cons

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You must be an AARP member to qualify

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Only caters to those who are the age of 50 and above

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Coverage might end once you reach the age of 80

COMPANY HIGHLIGHTS

AARP is a nonprofit, nonpartisan organization that advocates for individuals who are 50 years old and above, with a membership of 38 million people. The organization offers the AARP Life Insurance Program, which is underwritten by the New York Life Insurance Company. AARP Life Insurance earned a 0.20 complaint index in 2021 and 0.27 in 2022 from the National Association of Insurance Commissioners (NAIC), which means that it rarely receives complaints from consumers.

AARP offers the following policies:

  • Level Benefit Term Life Insurance
  • Permanent Life Insurance
  • Guaranteed Acceptance Life Insurance

While AARP life insurance is only available to those within the organization, it’s possible to register for a membership. Generally, spouses or partners must be between the ages of 45 to 80 to qualify. Consumers can take advantage of AARP’s no medical exam policy, which means that your current health condition isn’t the only way to qualify. AARP policyholders can rest assured that premiums won’t increase with whole life or guaranteed life acceptance policies. Almost anyone who signs up for guaranteed acceptance life insurance can secure a policy.

TABLE OF CONTENTS

Key Takeaways

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AARP doesn’t require applicants to undergo a medical exam.

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Guaranteed acceptance life insurance has the lowest cap at $25,000.

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Permanent life insurance from AARP caps out at $50,000, while term life insurance policies max out at $150,000.

AARP Policy Options Explained

The ​​Life Insurance Marketing and Research Association (LIMRA) published an Insurance Barometer Study in 2022, stating that roughly 68% of individuals with financial dependents have greater peace of mind because they have life insurance. Researching AARP’s offerings can help you decide the best policy for you and your loved ones.

Term Life Insurance Options From AARP

Term life insurance covers you for a certain number of years. In the event the policyholder passes away within the term, their beneficiaries can use the payout for mortgage payments, unpaid bills and even end-of-life costs.

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    Level Benefit Term Life Insurance

    You can choose from $10,000 to $150,000 in coverage with AARP Level Benefit Term Life. Note that coverage stops once you hit 80 years of age. Applicants don’t need to go through a medical exam.

Term life insurance is beneficial for buyers who are on a budget since this option is usually cheaper than other policy types. It’s also ideal if you only need coverage for a few years.

Whole Life Insurance Options From AARP

As long as you purchase whole life insurance while you’re eligible, coverage usually lasts until you pass away. Whole life insurance generally includes a cash value that accumulates over time and can be used to help pay for tuition fees, a new house or a new car.

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    Permanent Life Insurance

    AARP Permanent Life offers coverage up to $50,000. Simply answer a few health questions to qualify for a policy. Your rates will never increase.

Whole life insurance suits those who want to access living benefits since cash value and dividends can help finance certain expenses. This is also a good option for those who have young dependents and lifelong insurance needs.

Final Expense Insurance Options From AARP

Final expense insurance caters to seniors or individuals nearing end of life. This coverage type is specifically designed to help pay for funeral expenses and related costs.

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    Guaranteed Acceptance Life Insurance

    AARP Guaranteed Acceptance Life Insurance has a coverage cap of up to $25,000, and benefits are limited for the first two years. This coverage includes an extra mortality risk charge.

Remove the financial burden off your loved ones with final expense insurance coverage. This can help pay for end-of-life costs like burial expenses. Final expense coverage is ideal for those who don’t need a huge chunk of coverage or those who have relatively poor health.

AARP’s Life Insurance Riders

You can customize your life insurance by adding a rider that can tailor the plan to your needs. AARP offers one rider for its policyholders.

Rider
Description

AARP Term Rider Protect Plus

This offers an accelerated death benefit following the first two years of coverage. If you’re
diagnosed with a terminal illness and have a life expectancy of two years or less, AARP
allows you to immediately access half of the benefit amount. Policyholders also get a
waiver of premiums for certain nursing homes as long as it’s prescribed by their primary
care physician.

How to Get AARP Life Insurance

If you’re done comparing the pros and cons of each AARP policy, you’re ready to purchase life insurance. We highlight each step and what you can do if your application is rejected.

How to Buy Life Insurance From AARP

  1. 1
    Do Your Research

    AARP offers three types of life insurance, so we recommend reading about each one to determine the best option for your needs. While no medical exam is required, first check if you meet all the qualifications.

  2. 2
    Compare Quotes

    You can apply online through the AARP website and enter your personal information. Otherwise, you can call AARP at 1-800-607-6957. Once you get a quote, weigh the different options and create a shortlist. Note that factors like your medical history, age, lifestyle and gender can influence your rates.

  3. 3
    Approval

    As soon as your application is accepted, you’ll receive your policy. Take time to read through its terms and note questions or concerns that arise so you can discuss these with your agent.

What to Do if AARP Insurance Denies You Coverage

If your application for life insurance coverage is denied, you have options. Take the time to do the following:

  1. 1
    Contact Your Broker

    We highly suggest applicants reach out to their AARP agent and find out why their application didn’t go through. This ensures that you keep moving forward in the process of buying life insurance.

  2. 2
    Lifestyle Changes

    You can increase the likelihood of securing life insurance if you improve your health. Doing so might even help you pay a lower rate, so it’s a win-win situation.

  3. 3
    Explore Other Options

    Not every life insurance company requires a medical exam, so that might be a good place to start. Note that you may encounter more expensive rates and limited coverage.

Frequently Asked Questions About AARP Life Insurance

We outline the most common questions about AARP life insurance to guide you throughout the process of buying life insurance.

Can you borrow from your AARP life insurance policy?
What’s the maximum amount of life insurance coverage available from AARP?
Do life insurance policies from AARP pay dividends?
Can you get life insurance from AARP if you have cancer?
Do life insurance policies from AARP cover death by drug overdose?
Do life insurance policies from AARP cover death by suicide?

About Mark Fitzpatrick

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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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