When you need good life insurance coverage at affordable rates and substantial benefits, the AARP life insurance plan might seem like the right answer.
Unfortunately, the senior advocacy group might do a good job of lobbying for senior rights, they come up a bit short on their life insurance prices.
Developed by New York Life Insurance Company, the AARP life insurance plan attempts to hold a number of advantages your beneficiary can use to help financially compensate if you should pass unexpectedly. But once again the pricing comes up short.
New York Life is a very reputable and highly rated company, but their prices are often much higher than the competition. I know of one instance where a client was paying 50% more on a basic term policy than what he could have got with one of our top carriers.
The prime reasons for having the AARP life insurance plan is to help pay funeral expenses, accumulated debt as well as covering the everyday living expenses until they can get back on their feet.
There are several options to consider when deciding the right life insurance policy to choose from.
You will want to do a little research and select the right one that meets your needs as well as compliments any other policies, trusts or other benefits you are leaving behind to your loved ones.
Here’s a quick rundown on the type of policies that AARP offers:
AARP Level Benefit Term
This policy lasts for a set period of time and offers up to $50,000 in protection in case you are lost. This form of life insurance is good until you are 80 years old and as a benefit offers low initial premiums that do build over time, so you can gradually adjust to carrying this form of life insurance. There is no physical exam and there are only three health questions to answer.
Extra Protection Term
For those looking at a little more in the way of benefits, the Extra Protection plan is similar to the Level Benefit except it can provide up to $100,000 in protection and as with the three health questions qualification will also depend on the information that is collected about your health.
Permanent AARP Insurance
This type of coverage will last for your entire lifetime and offers $50,000 in protection with affordable premiums that do not rise as you age. As with the level benefit term, there is no physical example and acceptance is based on answering three simple health questions.
As with the permanent life insurance, this offer protection that will last a lifetime with up to $15,000 in protection for the first two years alone. Also, there is no physical exam and the premiums do not go up over time. While there are no health questions, there is an extra mortality risk charge that is included.
Selecting the right type of AARP Life Insurance is fairly easy, simply type in the amount of coverage you want and choose one of the four products in order to get all the information and a rate quote. Once you have decided on which one to select, you can apply online in almost all state or order by mail.
As a member of AARP you can start providing life insurance to your children or grandchildren through the Young Start program. This way, they can keep coverage going for their entire lives with no medical exams and only having to answer a few medical questions.
Is AARP the Cheapest Way to Go?
Even with the AARP discount, doesn’t mean that they’re the cheapest life insurance option out there. Many factors can determine this including pre-existing conditions and if you are in need of a high risk life insurance quote.
We have many carriers that cater to people over 60 years-old seeking affordable life insurance coverage. With over 60+ carriers at our disposal, a good majority of them will be come in better priced than what you can get with AARP. In fact, we’ve replaced several policies from AARP clients that were floored on how much less they could obtain a policy.
The best part is that it doesn’t cost to shop around and compare your AARP insurance quote with an independent agent. Talk with one of our professionals today to see if you can put more money back into your pocket.