Introduction
The Life Insurance Division of the American Association of Retired Persons (AARP) partners with New York Life to offer term and whole life policies without the need for a medical exam. We researched AARP financial stability, policy plan options, riders, website tools, and customer service reviews to help you compare AARP life insurance policy options with the competition.
company overview
AARP was founded in 1958 to provide senior citizens with access to quality health and financial services. With more than 38 million members, AARP is one of the largest nonprofit organizations in the United States, available to all US citizens age 50 and older.
AARP Life Insurance is a division of AARP, offering term and whole life policies underwritten by New York Life, one of the largest life insurance companies in the US. AARP allows users to get free quotes and sign up for policies online or by phone.
AARP life insurance is only available to AARP members and is available in most states, but actual availability varies by product and state.
AARP also offers exclusive member offers on banking services, investment accounts, fraud protection and Medicare supplement plans.
Available Plans
AARP Life Insurance offers four types of life insurance plans. All of them are available to AARP members without the need for a medical exam.
Term life insurance with level benefits
AARP offers term life insurance from $10,000 to $100,000 in coverage. Instead of choosing a specific term, term life insurance expires when you turn 80. To continue coverage, you can convert your term life policy to a permanent life insurance plan once you turn 80 (or any time sooner).
The policy is considered a “level benefit” plan because the death benefit stays the same over time, but the premiums go up as you get older.
permanent life insurance
AARP members can apply for permanent life insurance coverage up to $50,000. This is a type of whole life policy that builds cash value over time, which can be borrowed from if needed. Coverage ranges from $2,500 to $50,000, which isn’t necessarily enough to cover major expenses like a mortgage, but can help cover end-of-life costs like burial and funeral costs.
AARP permanent life coverage is unique in that participants no longer have to pay premiums beginning at age 95.
Easy Acceptance Life Insurance
Easy Acceptance Life Insurance is a whole life coverage policy that will accept any applicant who is not terminally ill when they apply. Coverage ranges from $2,500 to $25,000, and similar to the permanent life insurance plan, participants no longer have to pay premiums beginning at age 95.
Participants who die within two years of the start of the policy do not receive the full benefit. Instead, beneficiaries receive 125% of the premiums paid.
Young Start Life Insurance
AARP members can purchase a permanent life insurance policy for their children and grandchildren who are 17 years old or younger. Policies range from $10,000 to $20,000 and build cash value over time.
The policy can continue into adulthood and once the child turns 21, the policy becomes their responsibility. If they choose to continue with the policy, they will be responsible for paying the premiums, but they will also have control over the assignment of beneficiaries.
available riders
Many life insurance plans come with optional additional policy enhancements called riders. These insurance endorsements add additional benefits or personalized coverage options to insurance policies. Additional fees are usually billed as a small percentage of the policy premium or as a flat annual fee. Rates vary based on policy, product, and options selected.
AARP offers two riders that can be attached to your permanent life insurance policies.
accelerated benefit
If an AARP permanent life policyholder becomes terminally ill with a life expectancy of 24 months or less, they can access up to 50% of the benefit while they still live.
New York residents must receive a life expectancy diagnosis of 12 months or less to access this benefit.
waiver of premium
AARP members with permanent life insurance who are confined to a qualified nursing home for 180 consecutive days may be eligible for a premium waiver. This rider is automatically included in permanent life insurance policies and lasts as long as the nursing home stay.
The nursing home must be primarily engaged in providing skilled nursing care under the supervision of a licensed physician.
Customer service: Phone support only
All AARP life insurance policies are carried by New York Life. This means that when you call customer service, you will speak directly to a New York Life representative instead of an AARP representative.
The AARP Life Insurance website has one place to make payments, update your personal information, access important forms or manage beneficiaries. For direct customer service support, you can call New York Life directly for service and support at 800-607-6957.
AARP Life Insurance customer service hours are Monday through Friday from 8:00 a.m. to 5:00 p.m. M. To 8:00 p.m. and on Saturdays from 9:00 a.m. to 5:00 p.m. M. To 5:00 p.m. M.ET.
AARP Life Insurance does not offer live online chat support or 24/7 phone support.
Customer Satisfaction: Above Average
The National Association of Insurance Commissioners (NIAC) conducts an annual survey of insurance company complaints and publishes their totals each year. This allows you to see which companies receive more complaints than the national average. A company with an average number of complaints would receive a score of 1.0.
AARP life insurance (offered through New York Life) has a below-average customer complaint score of just 0.16 in 2020. This is six times lower than the national average for life insurance companies (in relation to its market share). Their Complaint Index score has also dropped from 2019, indicating that their customer service is improving over time.
Financial strength: A++ (higher)
All AARP life insurance products are underwritten by New York Life, which has an A++ (Superior) rating from AM Best. New York Life is one of the largest and most financially strong insurance companies in the US, giving customers the confidence that they can rely on the company’s ability to pay any claims on their policies.
New York Life also ranks sixth out of 24 life insurance companies in JD Power’s 2020 US Life Insurance Study . This customer satisfaction rating is based on your application and guidance, communications, interaction, price, product offerings, and claims.
Cancellation policy: generous 30-day trial period
AARP Life Insurance offers a free search period when you buy one of its life insurance policies, while most only offer the 10-day minimum. If a customer decides to cancel for any reason within those 30 days, they will receive a full refund of premiums paid.
After the free trial period, cancellation terms depend on the chosen life insurance policy. Term life policies can be canceled at any time, but premiums paid will not be refunded. Whole life policies allow customers to cancel their policy before its expiration date (at age 80). Because it is a cash value policy, clients will receive the accumulated cash value less applicable fees.
Cancellation fees are not publicly listed and may vary by policy.
