Considering buying senior life insurance from AARP? I uncover better options. Sure, AARP only offers these products to members, but are they really your best choice? I researched the various senior life insurance options offered by AARP and two of the three are basic term life insurance.
Term Life Insurance
Term life insurance can be an incredible, flexible type of life insurance, and has its perfect place in many people’s portfolio. But term life insurance is exactly what it says: term. It’s a policy written for a period of time, a “term”. It’s like renting a home – you only get to use it while you’re paying rent, you do not own it.
When you’re younger and healthier, term insurance is what protects your family financially in the event of our untimely and unexpected death. It can replace a working spouse’s lifetime income. However, each year that you get older, the renewal premium gets more expensive, and as your health declines, it gets even more expensive. Soon enough, a $1,000,000 policy goes from less than $1,000 per year to becoming nearly unattainable.
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Life Insurance Needs Change with Age
Also, as you get older, you’re not needing to replace a lifetime of income from your spouse, or provide enough money for the kids to get an education in the event of an early death. For most, as you get ready – or well into – retirement, the mortgage is paid (or close to it). The kids are on their own. At this stage, you’re just planning to take care of your final expenses (burial insurance).
You don’t want to leave a financial burden for your children or your spouse. This is why final expense (also known as funeral expense) insurance was introduced.
What’s Available from AARP?
AARP does a lot of great things for our seniors, but my opinion is that the life insurance they offer isn’t the best there is. There is certainly better. Let’s uncover what’s inside the life insurance from AARP, and you’ll soon agree there are better options.
In the column, “Cash Value” anything marked “no” in it means it’s term life insurance.
You can see two of the AARP policies are not renewable after age 80 – the age many will surpass quite easily today! So two of three options should already be eliminated from consideration. They don’t meet the criteria for good end-of-life expense coverage.
Side-by-Side Life Insurance from AARP
| Policy Type | Eligibility | Coverage Amounts | Medical Exam | Renewability | Cash Value |
|---|---|---|---|---|---|
| AARP Guaranteed Acceptance Life Insurance | Seniors between 50 and 80 | $2,500 to $25,000 | Not required | No | No |
| AARP Level Benefit Term Life Insurance | Seniors who want more coverage for a specific period of time | $100,000 to $1,000,000 | Required | Yes, until age 80 | No, policyholders have the option to convert it to a permanent policy |
| AARP Permanent Life Insurance | Seniors looking for guaranteed coverage for life | $10,000 to $50,000 | Required for graded, not required for level | Yes | Yes, policyholders can access cash value through loans or withdrawals |
The only permanent (whole life) AARP insurance option starts at $10,000, so if you don’t need that much, you’re still paying for it. The medical questions are going to be fairly stringent, and if you only qualify for their graded policy, you’ll still have to get a medical exam!
What’s Available with Final Expense Insurance?
I sell senior life insurance policies that are whole-life. Meaning they do not expire. The premiums won’t ever increase. The death benefit will never decrease. Your loved ones will get a tax-free check from the insurance company upon notice of your passing.
These policies are a much better life insurance option than the offerings from AARP.
Final Expense (Senior Life) Insurance plans are very simple to qualify for. The standard policies have no exams, and only a few medical questions. You will be surprised by what’s available.
Have Serious Medical Conditions?
I can help you shop graded and Guaranteed Issue polices. For folks with serious conditions that need coverage these plans are surprisingly affordable. In my opinion they are much better options than any of AARP’s life insurance offerings.
Contact me and let me help you shop for the best policy for your needs. (702) 867-8150
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