AARP: The Organization

Dating back to 1958, AARP (originally the American Association of Retired Persons) is a not-for-profit, advocacy organization devoted to helping people age 50 and older to enhance their lives. With over 40 million members, AARP offers their members a variety of services, benefits, and protections, including medical policies for individuals under 65, Medicare supplement plans, as well as insurance for life, automobiles, long-term care, and home – and more enjoyable perks such as entertainment and travel packages. Due to its large membership, AARP is one of the most sizable organizations for this age group in the nation.

In 2005, AARP Financial Inc. was established, creating a set of products targeting members of the AARP organization. In order to help people secure their finances and make better decisions in retirement, AARP Financial provides numerous investment services for members such as mutual funds and financial advice. This subsidiary of AARP administers provider relationships and assesses the quality of various AARP-branded products and membership benefits. As an AARP member and policyholder, the services of AARP Financial are great tools to keep on hand.

AARP Life Insurance

The AARP Life Insurance Program

Life insurance products from AARP are underwritten by New York Life Insurance Company, with the options of term or permanent coverage. Depending on your needs, you can select a term life policy with up to $50,000 or up to $100,000 in protection, or a permanent life plan with a value up to $50,000. Whether you are interested in a plan to cover your funeral expenses, provide additional income to your loved ones, serve as an inheritance, or all of the above, you can find an AARP plan to meet your criteria.

No physical exams or medical tests are required to apply for any of their plans, which makes it incredibly simple to apply and removes quite a bit of effort in the process. A small number of basic health questions are asked on the application, mostly concerning treatment and diagnosis of cancer, lung disease, heart problems, diabetes, stroke, or hospitalization over the past two years. Major medical treatments or diagnostic tests in recent months are also considered. Fortunately, this means that health problems from earlier days will not be held against you.

The same underwriting liberties hold true for those with high-risk lifestyle choices, hobbies, or occupations, though such individuals should expect a few more questions on their application with several more years of medical history included. Overall, if you smoke, juggle flaming objects, or go on safari, and still want to support people and expenses after you’re gone, AARP is your ideal policy. However, AARP Life Insurance is not reserved for the adventurous alone.

 

Who Should Consider AARP Life Insurance

According to Richard Hisey, president of AARP Financial, these policies are “for the person who doesn’t want to go through the underwriting process, is comfortable doing business through the mail, and knows they are unlikely to be turned down for this insurance.” Though it may not be the cheapest life insurance policy available, there are many individuals who may not pass the strict criteria for underwriting that other companies require. If you are familiar with health insurance underwriting, you will know that even the slightest problems can cost you, and even lead to a full decline of coverage. AARP is thus a safety net for higher-risk individuals who want their own posthumous safety net.

 

AARP Coverage Options

Level Benefit Term Life Insurance

Extra Protection
Term Life

Permanent
Life Insurance

Guaranteed
Acceptance Life

Security lasting a certain amount of time Greater protection with higher dollar amounts; Lasts a certain amount of time Coverage that can span the duration of your life Guaranteed acceptance for lifelong coverage
Up to $50,000 $50,500 – $100,000 Up to $50,000 Up to $15,000 in protection;
Limited benefit for first 2 years
Can last to age 80 Can last to age 80 Can provide lifetime coverage Can provide lifetime coverage
Lower monthly premiums that gradually increase Lower monthly premiums that gradually increase Premiums remain the same regardless of age Premiums remain the same regardless of age
No physical exam No physical exam No physical exam No physical exam
Acceptance based on answers to three health questions Acceptance based on answers to a few health questions and other information Acceptance based on answers to three health questions No health questions;
Includes extra mortality
risk charge

 

 

References

 

1. 5 August 2009. Bob Trebilcock. CBS Moneywatch. Life Insurance and Annuities: Is AARP Looking Out For You?