Because life insurance is a vital purchase for the protection of your family, it’s important that you make the best decision for your policy. There are hundreds of different companies and policy types to choose from, how are you supposed to know which ones fit your needs? We are here to help. One of the popular options for life insurance is AARP, but how does the company stack up against its competition?
The AARP life insurance plan might seem like the best choice.
Sadly, the senior citizen group misses the mark when it comes to cheap life insurance.
You have to be a member of AARP to purchase one of their policies, and group members will ALWAYS get better prices on products, right? Not so fast.
History of AARP
If you want to look at the beginning of AARP, you have to go all the way back to 1958. It all started with Dr. Ethel Percy Andrus, who was a form principal.
AARP actually started as the National Retired Teachers Association, which Dr. Andrus had established in 1947 to help retired teachers get adequate health insurance.
The NRTA received tons and tons of requests for assistance with health insurance, even though those people weren’t retired teachers. This showed Dr. Andrus and others the need for insurance help for seniors.
They have changed a lot, but they say they have stuck to their three main principles:
- Promote independence, dignity and purpose for older persons
- Enhance the quality of life for older persons
- Encourage older people, “to serve, not to be served
Now, this is how AARP got started, but what about today? If you haven’t heard of the company, then you haven’t watched TV or checked your mail in the past 50 years.
Just because they are well-known, doesn’t make them an automatic slamdunk.
Developed by New York Life Insurance Company one of the leading life insurance companies in the United States, the AARP plans try and offer several benefits to protect policyholders and families. But the price isn’t worth the protection
As far as the quality of New York Life Insurance Company, they are a great carrier, but their prices are far from great. I remember helping one customer save 50% on their monthly premiums.
You have to do some groundwork to 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. Make sure before you make your final life insurance purchase decision that you obtain quotes from numerous companies, such as Banner Life Insurance company or American General Life Insurance company to make sure that you are getting the best policy for your needs.
Guidelines and policies are different among each carrier in the marketplace. And with hundreds of different companies your rates could be all over the board and your time would be spent pouring over the many options. We have all the data you need for low cost term life insurance policies directly to you. Don’t waste your time talking on the phone with agents and answering the same questions repeatedly.
Here’s a quick rundown on the type of policies that AARP offers:
AARP Level Benefit Term
This plan lasts for a specific length and offers as much as $50,000 in protection in case you are lost. This policy lasts until you are 80 years old and the premiums begin cheap, but they slowly increase over time. There is no physical exam and you only have to answer three simple questions.
One of the biggest advantages to this plan is that it doesn’t require you to go through the medical exam to get life insurance coverage. A lot of seniors seeking life insurance have poor health or have several pre-existing health conditions, such as diabetes, that can prevent them from getting coverage if they have to go through the medical underwriting.
There are several pitfalls to these types of plans as well. The first is that any policy that doesn’t require a medical exam to be approved is going to be more expensive than one that does. We suggest avoiding no exam policies unless you know that you won’t be accepted for traditional coverage with an exam.
Extra Protection Term
Extra Protection Term is similar to the LEvel Term Policy, it gives more protection. You can buy up to $100,000 (double the previous policy).
This is an excellent option because most applicants need more life insurance coverage than the basic plan offers. It’s important that you get enough coverage to provide for your loved ones if anything tragic were to happen to you.
Permanent AARP Insurance
Their whole life allows you to get protection from $10,000 – $100,000 and is guaranteed for any applicant who is between 50 and 75.
An added bonus is you can add your spouse if they are between 45 and 74.
This is a great option for anyone that wants permanent life insurance protection. If you don’t want to every have to worry about losing coverage, or having to buy another policy, the permanent AARP plan is perfect for you. Although, these policies will cost more than a simple term life insurance policy.
As with the permanent life insurance, this offer coverage that will last a lifetime with up to $15,000 in coverage. Also, there is no exam and no premium increase. There is a mortality risk charge.
Once you’ve picked your plan, you can apply for the policy through the website or by mail.
One of the unique features of being an AARP member is the Young Start Program. This lets you get insurance coverage for your children or grandchildren as well.
The (Few) Advantages of AARP
So far, everything seems pretty negative about AARP, and for the most part, it is. But there are a few good things about buying life insurance through the membership group.
One of those is how quick the application can be. They have a simplified application process.
Also, with tier plans, you aren’t going to pay drastically higher rates if you smoke. This is rare, but AARP doesn’t drastically jack up your premiums if you smoke.
One other unique benefit of AARP is they won’t check criminal records. Just about every other carrier is going to look for any severe criminal activity, with AARP they won’t look into your past.
Sure, all of these things are great, but are they worth it?
You can get a fast policy which won’t cost you for being a smoker, but it’s still going to be noticeably more expensive.
Even with the member “discount,” they still aren’t the cheapest choice.
We have many carriers that cater to people over 60 years-old seeking affordable life insurance coverage. With over 60+ of the best life insurance companies at our disposal, a good majority of them will 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.
Talk with one of our professionals today to see if you can put more money back into your pocket.
Just like when you’re buying anything else, you probably shouldn’t go with the first option you price out. Going with the first insurance policy you find will cost you every month.
If you currently have an AARP policy, don’t worry, you aren’t locked into the policy. We can easily help you find a cheaper policy.
The more experience that a company has with insuring people over the age of 50, the better rates that you’re going to get. You shouldn’t have to pay ridiculous premiums every month to get life insurance coverage. Let us help you find the perfect policy to fit your needs.
If you have any questions about getting life insurance or about AARP life insurance policies, please contact us today. We would be happy to answer those questions and connect you with the perfect plan.
As a retired applicant, you might be wondering about your life insurance needs or how much you’ll spend on your coverage.
Don’t let any confusion or price keep you from getting life insurance. We would love to connect you with a cheap policy to protect your family.
Not only can we answer your questions about AARP and any insurance coverage needs.