AARP Term Life Insurance
Term life insurance from AARP offers coverage over a fixed period of time, or term. During the term, premiums increase as you enter into the next five-year age band. This can make budgeting unpredictable.
For instance, if you buy coverage at age 66, your rate will be based on the 65- to 69-year-old age group. At 70, your rate will increase and remain the same until you turn 75.
AARP’s Level Benefit Term Life Insurance is available to AARP members ages 50 to 74 and lasts until age 80. You can get $10,000 to $150,000 in coverage ($100,000 in Montana and New York) when you apply online. If you want more than $150,000 in coverage, you can call to work directly with an agent.
AARP’s term life insurance policy does not require a medical exam. When you apply, you’ll need to answer several health questions that are used to determine your eligibility and premium.
Another feature of AARP’s term life insurance is a built-in Guaranteed Exchange Option Rider. If you’re eligible, it allows you to convert your AARP term life insurance policy into permanent coverage when the term ends, without taking a medical exam or answering any health questions.
AARP Whole Life Insurance
Whole life insurance is a type of permanent life insurance coverage that can last for the duration of your life, as long as you pay the premium. Unlike a term life policy, whole life insurance policies include a cash value component that you can typically borrow or withdraw from. Whole life insurance is usually much more expensive than term life coverage.
AARP Permanent Life Insurance is a whole life insurance policy available for AARP members between age 50 and 80. You can get up to $50,000 in coverage when you apply online, but higher coverage limits are available if you work with an agent. There’s no medical exam required and your premium will never increase.
Once you turn 95 (or earlier, depending on your state), your policy is deemed “paid up.” That means your policy will remain in effect for the rest of your life, but you don’t have to continue making monthly payments.
AARP Guaranteed Issue Life Insurance
Guaranteed issue life insurance, also known as guaranteed acceptance life insurance, doesn’t require a medical exam or health questions. Everyone who applies gets approved, regardless of health.
Although it can be a good life insurance option for people who can’t qualify for other coverage, guaranteed issue life insurance generally has very low limits and is more expensive than whole or term life coverage.
AARP’s Guaranteed Acceptance Life Insurance is available to applicants between ages 50 and 80 (up to age 75 in New York). You can apply for up to $25,000 online, but higher coverage limits are available if you work with an agent.
AARP’s Guaranteed Acceptance Life Insurance policy builds cash value, which can be withdrawn or borrowed if you need to access money while you are still living. Plus, your policy is “paid up” once you turn 95 (in most states), and your premium payments end.
This policy has graded death benefits for the first two years. Beneficiaries may not be eligible for the full death benefit if you die within two years of buying the policy.
Compare AARP With Other Insurers
1
AARP Life Insurance
New York Life company structure
Stock
AM Best financial strength rating of New York Life
A++ (Superior)
Maximum term life coverage amount
$150,000
2
Lincoln Financial
Company structure
Stock
A.M. Best financial strength rating
A+ (Superior)
3
Mutual of Omaha
Company structure
Mutual
A.M. Best financial strength rating
A+ (Superior)
