Hey there, it’s Chris Huntley and this is the best AARP Life Insurance review you’ll find on the internet!
Yep! Look no further.
If you’re a member of the AARP, then you may be considering buying life insurance through them.
They specialize in products and advice for people in their later years, so it makes sense that you might think that AARP has some of the best rates around. RIGHT?
Nope!
…and I’m gonna fill you in on why they’re probably NOT the insurer for you.
Quick Table of Contents
- Ratings, Sample Quotes, & Savings Guide
- AARP Products
- AARP Life Insurance and Your Wallet
- Is AARP’s Simplified Application All It’s Cracked Up to Be?
- Final Assessment
Ratings, Sample Quotes, & Savings Guide
OF COURSE, AARP is a great organization. There’s no doubt about it.
…BUT there are better places to get your life insurance if you’re reasonably healthy.
Don’t get me wrong, they do have their strong points! Let’s take a look at ’em now:
- up to 100K in coverage without a medical exam,
- coverage for individuals 50 – 80,
- no criminal record review,
- they cover people with disabilities
- AARP offers a simplified application process,
- they provide coverage through New York Life, one of the best insurers in the market
- if you smoke, you won’t be penalized (that is if you don’t have COPD or emphysema)
But the REAL Question Is, Are They the Insurer for YOU?
AARP offers Term, Permanent and Guaranteed Issue Life Insurance for people from 50 up to 74 years of age.
Once you turn 80 the party is over. No more insurance for you!
Despite the fact I’m writing an AARP Life Insurance Review, they aren’t actually an insurer.
…and no that’s not a typo. New York Life provides the coverage, which is endorsed by AARP.
Their policies are especially interesting to older people because they:
- don’t require a medical exam,
- ask only 3 questions
- don’t make you wait for coverage
Sounds pretty compelling – ESPECIALLY if you have a medical condition.
BUT I’m here to tell you:
“No Exam life insurance appears to be a better gig than it actually is, if you are looking for the lowest rates, No Exam is NOT the path for you”
No AARP life insurance review would be complete without discussing their rating. If you’re looking to purchase life insurance, you need to work from the foundation up, when it comes to research.
This is one the most important steps!
The fact is, if your life insurance company is built on a shaky financial foundation, then they may not be able to pay out your beneficiary when the time comes. It’s just common sense to check them out before you make such a large investment in protecting your family.
Hey, who the heck wants to worry that their beneficiaries won’t get paid out when the time comes?
The good news is, New York Life Insurance is a VERY safe bet.
They’ve been around since 1845 and are the largest mutual life insurance company in the US and one of the biggest life insurers in the world!
Check out their ratings! They’re stellar.
Hey, it still doesn’t mean this is the insurer for you – but they are on VERY firm financial ground.
Which brings us to AARP’s selection of products:
AARP Products
AARP has traditional offerings that include permanent life insurance, term life insurance, guaranteed issue and a unique young start policy for those who have young children or grandchildren.
Beware! Not just anyone can purchase AARP policies. To be eligible for their products you have to be a member!
Let’s take a look at these products in more detail.
AARP’s Term Offering
Provides up to $100,000 of valuable group term life insurance, exclusively for AARP members from New York Life. There’s no medical exam. Your acceptance is based on your answers to a few health questions and other information we collect.
It’s a simple way to provide your family with resources to help:
- Make mortgage or loan payment
- Cover your family’s everyday bills
- Pay medical or final expenses, credit cards, and other debts
AARP’s Guaranteed Acceptance Offering
Provides up to $50,000 of valuable permanent group life insurance, exclusively for AARP members. No medical exam is required-acceptance is based on your answers to three health questions, and most who apply are accepted.
- It’s a simple way to get lifetime coverage that can help:
- Pay medical and funeral bills, or other obligations you may leave behind
- Meet everyday living expenses
- Leave a gift or added financial cushion for someone special
AARP’s Young Start Offering
Give a child or grandchild up to $20,000 of affordable life insurance they can keep for their entire lives. AARP Young Start from New York Life Insurance Company is permanent coverage available exclusively to AARP members, and offers:
- Coverage that can continue for life
- Low childhood rates
- No medical exam, just three health questions
AARP’s Permanent Offering
Provides up to $25,000 of permanent group life insurance — acceptance guaranteed* — exclusively for AARP members. There’s no medical exam and no health questions.
This affordable coverage can help:
- Cover medical and funeral expenses
- Pay other bills you may leave behind
- Provide a little extra peace of mind for your family
As you can see, AARP doesn’t offer a vast array of products. If you are looking for flexibility and coverage in excess of $100,000, then AARP is definitely NOT the insurer for you!
AARP Life Insurance and Your Wallet
So let’s take a look at how working with a Huntley Wealth agent, compares to working with AARP!
Here are AARP’s Term rates for Men & Women age 50 – 74:
Term Life Insurance Quotes AARP Men
| Age | $25,000 | $50,000 | $75,000 | $100,000 |
|---|---|---|---|---|
| 50-54 Years Old | $28.00 | $52.00 | $63.00 | $74.00 |
| 55-59 Years Old | $40.00 | $92.00 | $205.62 | $109.00 |
| 60 - 64 Years Old | $57.00 | $109.00 | $134.00 | $159.00 |
| 65 - 69 Years Old | $74.00 | $144.00 | $178.00 | $212.00 |
| 70-74 Years Old | $106.00 | $208.00 | $257.00 | $306.00 |
(Based on AARP’s Instant Quotes, as of 7/03/17, subject to change)
Term Life Insurance Quotes AARP Women
| Age | $25,000 | $50,000 | $75,000 | $100,000 |
|---|---|---|---|---|
| 50-54 Years Old | $21.00 | $37.00 | $44.00 | $52.00 |
| 55-59 Years Old | $30.00 | $56.00 | $68.00 | $80.00 |
| 60-64 Years Old | $46.00 | $106.00 | $52.94 | $125.00 |
| 65-69 Years Old | $63.00 | $121.00 | $148.00 | $175.00 |
| 70-74 Years Old | $94.00 | $184.00 | $225.00 | $266.00 |
(Based on AARP’s Instant Quotes, as of 7/03/17, subject to change)
So I am going to use Banner Life rates, one of our most competitive companies, to illustrate just how much we can save you.
Here are quotes for a 20-year term from ages 50 – 70:
Term Life Insurance Quotes Banner Life Insurance (Male)
| Age | $100,000 |
|---|---|
| 54 Year Old Male Preferred Non Smoker | $37.71 |
| 59 Year Old Male, Preferred Non Smoker | $59.14 |
| 64 Year Old Male, Preferred Non Smoker | $104.30 |
| 69 Year Old Male, Preferred Non Smoker | $192.67 |
| 70 Year Old Male, Preferred Non Smoker | $217.35 |
(Life Insurance Quotes based for 20 Year Guaranteed Level Term with a Preferred Rating, as of 7/03/17, subject to change)
Term Life Insurance Quotes Banner Life Insurance (Female)
| Age | $100,000 |
|---|---|
| 54 Year Old Preferred, Non Smoker | $26.85 |
| 59 Year Old Preferred, Non Smoker | $40.15 |
| 64 Year Old Preferred, Non Smoker | $78.92 |
| 69 Year Old Preferred, Non Smoker | $168.52 |
| 70 Year Old Preferred, Non Smoker | $175.70 |
(Life Insurance Quotes based for 20 Year Guaranteed Level Term with a Preferred Rating, as of 7/03/17, subject to change)
Closer Look
Now let’s take a closer look at what $100K in coverage for a male non-smoker with a preferred rating through Banner Life will look like compared to AARP:
AARP 54 Year Old (Basic Free Quote) — $74.00 Per Month
Banner 54 Year Old (Preferred) — $37.71 Per Month
AARP 70 Year Old (Basic Free Quote) — $306.00 Per Month
Banner 70 Year Old (Preferred) — $217.35 Per Month
Huntley Wealth Wins Hands Down!
PLEASE NOTE: These figures don’t even take into account the 5-year premium increase that AARP implements! Banner Life offers a guaranteed level term premium. Which means during your 20-year term you will NEVER pay more.
Not so with AARP.
A 50-year-old male will pay $74.00 per month for $100k in coverage until he turns 55. These increases will continue! By his 70th birthday, he will be paying a staggering $306.00 per month!
WHAAAAT!
Yep.
….and by the time he turns 80, he will be without insurance altogether.
Think about that for a while.
…The verdict is in
Sweet! We beat AARP’s term quotes for men & women ages 54 – 70 with a PREFERRED RATING for a 20-year term each and every time!
Plus we can get you MORE coverage than AARP will ever offer (think up to $1Mil)!
Your Rating is Your Key to Savings
The one thing I tell each and every client – is that predicted ratings are one thing – but it’s quite another thing to qualify for them.
Life insurance companies ALWAYS put their best foot forward when they are trying to entice people to buy their products.
You see, the thing is, these rates are based on your personal circumstances and health.
So if you’re looking at premiums for a preferred plus rating and you only qualify for standard, the prices will be substantially higher.
The good news is – not all life insurance companies approach underwriting the same way. Some are much more lenient than others for specific health conditions. At Huntley Wealth we take great pride in knowing the ins and outs of each insurer.
NOT SO with AARP.
It’s a simplified application – so it’s one size fits all.
That being said, f you aren’t in great condition health-wise then AARP’s simplified application process may really appeal to you.
Let’s check out the nuts and bolts of AARP’s offering to see if it’s everything they say it is.
Is AARP’s Simplified Application All It’s Cracked Up to Be?
Ok Chris, listen, I hear you about the savings. The thing is, I’m older and have a lot of health concerns. In fact, I think I will be declined altogether if I apply for a policy today.
….and I’m NOT kidding!
You know what I completely get your concerns. Remember I’ve been in this business for a VERY long time and there’s not much I haven’t seen. But please hear me out…
This is exactly what AARP wants you to think. If you’re too scared to take a medical exam, you’re gonna be much more likely to buy their simplified issue offering.
….but I will bet you dollars to doughnuts that life insurance with a medical exam will get your better premiums in the long run.
Not All Life Insurance Companies Are Created Equal!
Truer words have never been spoken. There is a lot of competition for your business.
So life insurance companies pursue niches. This means some insurers are more lenient for specific medical conditions than others.
Your health rating is the deciding factor when it comes to how hard premiums will hit your wallet.
The cost increases dramatically as your health declines, for obvious reasons.
So if you’re thinking Cool! I’m not that healthy so this No Exam option really looks pretty AMAZING to me.
I’d advise you to cool ‘yer jets.
AARP is well aware of these concerns. This offering gives you a false sense of security that you’ll be able to qualify for affordable premiums even if you’re not well.
The problem is, you’ll pay out the nose for the convenience of a simplified application or guaranteed issue life insurance.
Here’s a little insider secret…
…you probably think your situation is worse than it is. You have no idea how a life insurance company is going to rate you – BUT WE DO.
Health Ratings Are Where It’s At
You have NO idea how many clients come into my office worried about their upcoming life insurance physical.
Some can’t sleep the night before. I kid you not.
The thing is if they knew more about the process they wouldn’t be so concerned.
Things like high blood pressure and cholesterol aren’t the end of the world. The key is, if you have a medical condition, it should be well controlled.
The best part is, Huntley Wealth has a vast amount of experience in getting people covered who are considered high risk. The truth is, there are VERY, VERY few people that can’t find good coverage with the right assistance.
In a nutshell, no exam policies are almost always the wrong way to go. There are some exceptions, but they are truly EXCEPTIONAL.
So What About Those 3 Easy Questions?
Question 1
In the past 2 years, have you had treatment or medication for or been diagnosed by a doctor as having heart trouble, stroke, cancer, lung disease or disorder, diabetes, liver or kidney disease, AIDS, AIDS-related complex, or immune system disorder?
* This is a yes or no answer.
Gotcha!
Question 2
In the past 2 years, for any condition, have you been admitted to or confined in a hospital, sanitarium, nursing home, extended care, or special treatment facility?
* This is a yes or no answer. If yes, please list the date(s) of onset, along with types of treatment, medicine, and dosage.
Yep! Sure Do.
Question 3
In the past 3 months, have you consulted a doctor or had treatment or diagnostic tests of any type? (Note: You are not required to report negative AIDS or HIV tests.)
* This is a yes or no answer.
Hold Up, Slick!
AARP has access to databases with your medical records and prescription history. If they find that you had received treatment for cancer, heart disease or anything else they consider to be serious your application will be rejected. Yep – DENIED.
As you can clearly see, these questions are designed to catch serious illness. The truth is there is no eluding life insurance companies.
…and even if you do manage to slip through the cracks, your answers to these questions can be broadly interpreted. Honesty is ALWAYS the best policy when it comes to a life insurance application.
If you think you’re sick, apply for life insurance and mislead the company you choose, you’re beneficiaries won’t be able to collect their check.
Why?
Because that’s fraud.
Every client I deal with knows how I feel about this. It’s VERY important to be upfront and honest from the get-go.
Guess this simplified application isn’t so easy, peasy after all!
Guaranteed Level Terms are Great
You know I was looking at those rates and they don’t seem so bad if I can’t get a good health rating. Won’t I pay more with any insurer if that’s the case?
Of course and that’s a GREAT catch. BUUUT…..
There’s more to the story.
When Huntley Wealth deals with a life insurance company, the rates we give you are guaranteed to remain level for the entire term.
Basically, underwriters assess your situation and spread out the risk over the term you choose. This means no matter what your age or medical condition you won’t pay a penny more.
Sadly this is not the case with AARP.
Their premiums increase EVERY 5 YEARS!
Whaaaat!
YEP. Not only will you pay sky-high premiums, but they will continue to skyrocket over the duration of your term.
If you do the math you can see that as you move forward in your term your premiums may get to be more than you can afford.
Jeff Root of rootfin.com points out that:
“What’s misleading about how AARP markets this life insurance product is they call it “level benefit” term life insurance. This is deceiving because it leads seniors (and myself) to think their monthly premiums remain level – when in fact it’s your death benefit that remains level and not your premium payments. With this product, your monthly premium payments will go up every 5 years. So don’t get fooled by their marketing of this product.”
AARP Life Insurance Review: The Final Assessment
Hmmm….as you can clearly see my AARP life insurance review has a couple of bright spots – but their weaknesses definitely outweigh their strengths!
I can completely empathize with someone who thinks AARP is a dream come true.
If you are in poor health and in your 70s and feel you will be turned down for ANY coverage, their simplified application process seems like a gift.
They even offer a guaranteed issue policy, that doesn’t require you to answer any questions AT ALL!
BUT as we all know NOTHING is ever as simple as it seems.
AARP’s Strengths
No Exam Required, Fast Approval & Convenient:
AARP life insurance is convenient for its members. The products are easy to apply for and don’t require a medical exam.
All you have to do is answer a few medical questions (which may be a lot more complicated than you think). Which means that these products may be most advantageous for those who are not in the best of health and are likely to be declined by other insurers.
NOT SO FAST: Sounds GREAT right? You’re sick or worried that you might be and are afraid you won’t qualify for life insurance – so this is the opportunity you’ve been waiting for.
Hold yer horses. You may still be declined.
Yep! It’s true. They have access to medical and prescription databases. You can run but you can’t hide.
Products for the Elderly:
AARP offers $10,000 – $100,000 in affordable coverage to clients who are 50 – 74!
NOT SO FAST: AARP life insurance IS EXPENSIVE. Chances are Huntley Wealth can find you a better deal. There are also insurers that will offer you term until age 85 and will provide you with MORE coverage. This is especially interesting to those of you who need insurance for estate tax reasons.
AARP’s Weaknesses
No Competitive Quotes: The products they offer are only available through the 1 insurer – New York Life. You will pay their rates without having considered competitive quotes. Huntley Wealth has access to dozens of companies, so you get the best rates available.
Membership Fee:
On top of the life insurance premium you pay, you also have to join AARP to qualify for their insurance products which means you pay an additional membership fee.
Low Death Benefit Amounts:
The ceiling on coverage is comparably lower than what you will find through other life insurers. If you need more than $100,000 in life insurance – you’re out of luck. Don’t find leave yourself underinsured.
Expensive Premiums:
Because AARP’s life insurance products don’t require a medical exam, you automatically pay a much higher premium. Typically, no exam life insurance costs as much as 3 X what you would pay for a policy which requires an exam.
Not Suitable for Healthy Individuals:
If you are age 50 plus and in relatively good health, you would be better off finding a policy which does require a medical exam. The premiums you’ll be offered will be a LOT less than those you’ll pay through AARP.
The policy Terms Are More Limited:
AARP only offers term insurance up to age 80 while most other life insurers offer term policies to age 85.
Rising Premiums:
YEP. Unlike other insurers that offer guaranteed level term, your premiums will increase every 5 years with AARP. Not only will you pay more, but this cost will escalate as you grow older.
Find Out in 2 Minutes If We Can Beat AARP’s Rate
At Huntley Wealth, we treat every customer like they’re family. Our agents have NO sales quotas, so we’re able to spend all the time necessary with every client…. there’s no hurrying off to the next call with our agents.
The Financial Web article “3 Precautions About AARP Whole Insurance” points out that;
“…insurance companies that sell AARP products, have to pay a royalty to use the name AARP. Therefore, the cost associated with an AARP policy is actually higher than a normal policy. While some AARP policies truly are a good deal, some of them are more expensive just because they are part of the AARP umbrella”
Why You Should Call Huntley Wealth First
In summation, my AARP life insurance review gives you lots of cold hard reasons to do comparison shopping before you consider purchasing life insurance through AARP.
The best approach is to always use an independent life insurance broker, such as the agents here at Huntley Wealth. We work for you and not the insurance companies.
Every life insurance company rates people differently some are more lenient than others when it comes to particular health issues such as cardiac problems, weight, high blood pressure, and cholesterol levels.
The good news is, we know all the ins and outs of their underwriting processes.
Huntley Wealth Can Save You Lots of Money
I completely understand why people consider AARP. New York Life is a stellar life insurer…
…but their term life insurance products tend to be more expensive than their competitors.
You are also paying a premium for their simplified application process and no exam policy. Rates are ALWAYS better when you get a medical exam.
At Huntley Wealth we have access to over 40 of the top life insurers and will find a company that best suits your particular circumstances. This translates into SERIOUS savings ladies and gentlemen.
If you’re a senior between 50 – 80 years of age, we would love to speak with you.
Quite simply put, AARP life insurance isn’t typically the best deal for seniors who need life insurance.
Call us today at 888-603-2876, we can help!
*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.
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