The American Association of Retired Persons (AARP) is best known for offering resources and discounts to nearly 38 million members, focusing on people over 50. But as you'll discover in our AARP life insurance review, AARP also has a range of health and financial tools, including life insurance.
AARP does not offer its own life insurance, but partners with New York Life, one of the best life insurance companies, to offer policies geared toward its members (50-year-olds and up). If you're an AARP member or considering joining and need to secure term or permanent life insurance coverage, read on to learn about the company's policies, how it works, and who can qualify.
AARP Life Insurance Overview
AARP is an organization for people over the age of 50. It provides products geared toward its members, like AARP auto insurance, AARP credit cards, and life insurance. Typically, AARP doesn't offer services itself, but partners with another company to provide benefits. In the case of life insurance, AARP offers life insurance through a partnership with New York Life.
New York Life is particularly known for its life insurance policies with investment potential, such as its variable universal life insurance. However, its partnership with AARP doesn't include these options. Instead, AARP members can find policies with no medical exam required and low death benefits in the form of term, whole, and guaranteed whole life insurance. These are often the most appealing and accessible policies for older applicants.
With all this in mind, AARP offers some of the best life insurance for seniors with policies limited to final expenses. For example, buyers who qualify for $150,000 in coverage may leave enough to pay off other debts or add to beneficiaries' college funds.
AARP Life Insurance Pros and Cons
AARP Life Insurance Pros
- No medical exam policies available
- Accelerated death benefit rider included
AARP Life Insurance Cons
- Relatively low death benefits
- Two-year waiting period for guaranteed life
AARP Life Insurance Plans and Coverage
AARP offers both term life and permanent life insurance coverage through its partnership with the insurer New York Life. Guaranteed acceptance life insurance is also available, and none of its policies require a medical exam. However, the company may use medical records to determine your policy limit.
New York Life Insurance has many options for buyers of any age looking for a significant investment or retirement planning tool. However, AARP's partnership only encompasses a limited number of New York Life's smaller insurance plans targeted to seniors.
The chart below provides an overview of the types of life insurance you can purchase from AARP via its partnership with New York Life.
Types of life insurance | Coverage length | Builds cash value | Waiting period |
Level Benefit Term | Up to age 80 | No | No |
Permanent Life | Lifetime | Yes | No |
Guaranteed Acceptance | Lifetime | Yes | Yes |
AARP Level Benefit Term Life Insurance
AARP and New York Life offer a level benefit term life insurance product similar to competitors' term life insurance policies. This policy does not require a medical exam, and approved applicants can maintain coverage up to age 80. Consumers also have the option to exchange this coverage for AARP-endorsed group permanent life insurance without another medical exam.
It's important to note while a medical exam may not be required for conversion, coverage and premiums are subject to change. Life insurance companies may still pull medical records and ask medical-related questions.
Level benefit term life insurance from AARP is available in amounts up to $150,000, and most applicants can get a quote online in a matter of minutes. Buyers should expect to answer some medical questions, and the company will pull existing medical records as part of the qualification process.
AARP Permanent Life Insurance
Permanent life insurance offers up to $50,000 in whole life insurance protection. No medical exams are required to qualify, but this does not mean existing medical data is not used.
Consumers pay premiums toward their permanent life insurance policy until age 95, when AARP considers the policy "paid up." The death benefit will then remain fixed until a claim is made without further financial burden on the policyholder.
Permanent life insurance from AARP also builds cash value you can borrow against during your lifetime. Many buyers also use accelerated death benefits to withdraw money to pay for medical bills and the cost of living when diagnosed with a terminal illness. Policies allow loans and other early withdrawals for different reasons. We recommend discussing details with a licensed New York Life agent.
Rates for permanent coverage are fixed, and the maximum available benefit is $50,000 for qualifying buyers.
AARP Guaranteed Acceptance Life Insurance
AARP also offers guaranteed acceptance life insurance policies, with no medical exam required. Note, however, that this type of coverage requires a two-year waiting period. During that time, the full death benefit applies for accidental death, but death by natural causes only qualifies for a return of 110% of premiums paid.
This type of protection can stay in force up to the age of 95 as long as customers pay their premiums, and it builds cash value over time. The maximum death benefit for guaranteed acceptance life insurance with AARP is $25,000.
Additional Coverage Options Available Through AARP Life Insurance (Riders)
AARP offers a limited selection of life insurance options through New York Life, but it also provides riders to customize plans. Additional riders available through AARP and New York Life include:
- AARP Term Rider Protect Plus: This rider lets customers increase coverage for a limited time with an attached term benefit. If you die within the predetermined term, your beneficiaries will receive the value of two policies. If you die after, it will default to the permanent policy value.
- Accelerated Death Benefit Rider: All life insurance policies from AARP offer an accelerated death benefit rider. It provides members with immediate access to half of their death benefit if diagnosed with a terminal illness with a life expectancy of 24 months or fewer. This rider is especially comforting for term policy buyers as the policy might otherwise lapse, resulting in no death benefit.
- Waiver of Premium: AARP offers a waiver of premium for customers who have been ordered to stay in a nursing home for at least 180 days so you don't have to worry about making payments during this time.
In addition to these riders, AARP also offers the Guaranteed Exchange Option. This guaranteed option lets its term life insurance customers convert coverage to permanent life insurance with no health questions or medical exams required. But, again, rates and the death benefit are subject to change.
How Much Does AARP Life Insurance Cost?
Age, ZIP code, coverage limits, and how long you want your protection to last are a few of the things considered when it comes to the average cost of life insurance. The costs may not represent the full picture, as a cheap term policy also expires without necessarily paying anything. Fortunately, AARP makes it easy to get an idea of the cost of its plans online and from home.
Business Insider ran term life insurance quotes for a 53-year-old woman and a 65-year-old man. Prices are as follows:
Policy Type | Coverage amount | 53 yo woman | 65 yo man |
Whole | $5K | $15 | $34 |
Term | $10K | $11 | $31 |
Whole | $10K | $29 | $66 |
Term | $25K | $18 | $67 |
Whole | $25K | $66 | $158 |
Term | $50K | $29 | $128 |
Whole | $50K | $114 | $299 |
Term | $100K | $52 | $236 |
Term | $150K | $72 | $323 |
How to File a Claim with AARP Life Insurance
AARP and New York Life make it easy for customers to file claims, displaying all the required information prominently on the AARP website. In addition, the claims portal explains the different options for filing a claim and what policyholders can expect.
Specifically, AARP encourages its members to file claims through the company's online portal. However, filing a life insurance claim by fax or mail is also possible.
You can fax all claims information to (855) 381-5010. Meanwhile, claims filed by mail should be sent to one of the following addresses:
Regular Mail
New York Life Ins. Co. AARP Operations
Attn: Claims Department
PO Box 30713
Tampa, FL 33630-3713
Express Mail
New York Life Ins. Co. AARP Operations
Attn: Claims Dept.,
Bldg. 3 - 1st Floor
5505 West Cypress Street
Tampa, FL 33607
Before starting a claim, AARP members need to download a claims packet from the website. Required information for a life insurance claim includes a certified death certificate, proof of guardianship for a minor beneficiary (if applicable), and executorship papers for the estate (if applicable).
Other documents may also be required depending on the type of claim (e.g., proof of accidental death).
AARP Life Insurance Customer Reviews and Ratings
AARP has poor customer reviews, receiving an average of 1.5 stars out of five on its Trustpilot page, though these reviews pertain to AARP as a whole, not just its life insurance. In fact, because New York Life underwrites AARP's policies, customer reviews of New York Life might be a better indication of what to expect from this policy.
New York Life Insurance has overwhelmingly negative reviews on its Better Business Bureau page, receiving an average of 1.08 stars out of five. Customers reported a number of issues, including difficulty receiving death benefits, issues processing medical documents, and frustrating interactions with representatives. It's worth mentioning that major life insurance companies often have low ratings with these customer review sites, often because reviews are left by people with something to say, which is usually negative.
For a more balanced picture of customer service, let's look at the National Association of Insurance Commissioners' complaint index, which rates a company based on how many complaints it receives against its share of the market. The average NAIC complaint index score is 1.00, meaning if a company scores below 1.00, it has fewer complaints than expected for a company of its size. If the company scores above 1.00, it has more complaints than the industry average. New York Life scored 0.24, indicating that it has far fewer complaints than expected.
Additionally, New York Life placed 8th in JD Power's 2023 survey of 22 life insurance companies for customer satisfaction. It received a 794/1,000 where the average was 790. For reference, State Farm placed in first with a 843.
AARP Life Insurance Alternatives
AARP vs. Gerber Life Insurance
If you're specifically looking for permanent life insurance for seniors, you can also shop with Gerber Life Insurance. It sells guaranteed acceptance life insurance for individuals ages 50 to 80 with no medical exams required with death benefits of $5,000 to $25,000.
Each policy builds cash value that policyholders can withdraw for medical bills and modest living expenses. Gerber also offers children's plans, accident protection, and whole life policies for working-age adults. However, it does not provide term or whole options for seniors to match the policies offered by AARP.
Gerber Life Insurance has an A rating for its financial strength from AM Best.
Read our Gerber life insurance review.
AARP vs. Protective Life
Protective Life offers more types of life insurance than AARP, including term life insurance, whole life insurance, and a few types of universal life insurance. Its available coverage limits are also significantly higher. For example, Protective Life lets applicants purchase term life insurance ranging from $100,000 to $50 million.
However, buyers can expect more restrictions without a medical exam. AARP makes no medical exams a defining feature of its policies aimed at seniors. Protective Life doesn't publish limits as openly. Its no medical exam policies may be tailored more for young, healthy buyers looking to avoid a little hassle.
Like other popular life insurance companies, Protective Life has solid ratings for financial strength (currently an A+ rating from AM Best).
Read our Protective life insurance review.
AARP Life Insurance FAQ
According to AARP, all AARP-endorsed life insurance is serviced by New York Life. So, ultimately, you'd be working with New York Life to complete your purchase.
New York Life underwrites all policies offered through AARP.
New York Life is a reputable life insurance company that has been in business since 1845. The company has an A++ rating from AM Best for its financial strength and is America's largest mutual life insurer.
AARP membership is available to all individuals who are ages 50 and older. While non-U.S. citizens can join AARP, memberships are limited to a year at a time, and when compared to pricing for American citizens, pricing can also rise significantly.
Why You Should Trust Us: How We Reviewed AARP Life Insurance
The four primary criteria we use to review life insurance providers are affordability, customer service, reliability, and company offerings.
Companies receive five stars for cost when premiums are close to the industry average cost of life insurance. According to our article on the average cost of life insurance, a life insurance policy may run you about $40 to $55 a month. However, cheap life insurance doesn't mean you're getting quality coverage. So, we weigh affordability against the company's offerings, customer service, and other factors.
We used the latest JD Power life insurance study to determine which company offers quality customer service. Approximately 3,000 life insurance customers score insurance companies yearly based on communication, interaction, price, product offerings, and statement satisfaction. Companies ranking above the industry average of 790 points have strong customer service.
We also used AM Best, a renowned credit rating agency, and the NAIC's complaint index to evaluate a company's financial stability and trustworthiness. AM Best tells us a company's financial health, and the NAIC's complaint index scores a company based on the aggregate total of complaints it receives.
Finally, we looked at what each company has to offer, including policy options, riders, and features like medical exam waivers. We also determined which demographic would most benefit from the company based on its products and prices.
Read more about how Business Insider rates life insurance.
