Regardless of what age a person is, life insurance can be an essential part of the overall financial planning process. While those who are young may need coverage for protecting a spouse and / or young children from ongoing financial hardship in case of the unexpected, those who are older should also have this type of coverage for final expense needs and replacement of retirement income for a spouse, as well as the payoff of debts, and possibly even the payment of estate taxes.
When purchasing that coverage, it is important to ensure that you not only have the right amount of protection, but also the right type. It is also essential that you make sure that the entity you purchase the coverage through is strong and stable from a financial standpoint and that it has a positive reputation for paying out its policyholder claims. This is because, if or when there comes the time that a claim needs to be paid out, you won’t want your loved ones or another beneficiary to be left without the financial protection that they were counting on.
One entity that has been a solid organization in partnering with seniors across the United States is AARP. Formerly known as the American Association of Retired Persons, AARP is well known for its substantial lobbying power, as well as its purchasing power – and because of that, it can provide discounts on everything from meals, to hotels, to life insurance for its many millions of members.
For many years, AARP has partnered with New York Life Insurance Company to bring life insurance policies to those who are members of its organization. This is done via the AARP Life Insurance Program from New York Life Insurance Company. New York Life is one of the companies on our list of the top rated life insurance companies in the United States.
The History of AARP Life Insurance Company
Those who are age 50 and over are allowed to become members of AARP. At the low price of just $16 per year, members are able to take advantage of numerous pricing discounts that are provided, due in large part to the substantial buying power of AARP. These discounts provide incentives on financial services like life insurance policies and annuities.
New York Life Insurance – AARP’s life insurance provider of choice – is an extremely strong financial services and insurance company – has been offering insurance coverage for over 170 years. This company has its headquarters in New York City, New York.
This insurer held more than $871 billion of life insurance in force as of 2014, and at that same time it held more than $2 billion in surplus and asset valuation reserve – thus making it an extremely stable insurance carrier.
AARP Life Insurance Company Review
The life insurance program that is offered via New York Life Insurance Company is exclusively for members of the AARP organization. The life insurance products are endorsed by AARP. The coverage has simplified underwriting so that most who apply will qualify. And, due to the large group membership, ARRP members can typically also take advantage of discounted pricing on these and other products that are endorsed by the organization.
There are many life insurance carriers to choose from. However, AARP chose to partner with New York Life Insurance Company on its coverage. One reason for this is because New York Life is so committed to offering access to quality life insurance, as well as annuities, to those who are age 50 and over – which is the key membership base of AARP.
New York Life Insurance Company has been in partnership with AARP for over 15 years – and the partnership has expanded from offering life insurance, to also providing retirement annuities. These products provide lifetime retirement income to those who wish to supplement their income stream from Social Security and / or other retirement income sources.
AARP Life Insurance Company Financial Strength
Due to its extremely large amount of reserves, New York Life Insurance Company is considered to be strong and financially stable. It also has a great reputation for paying out its policy holder’s claims. For these reasons, the company has been given positive ratings from the insurer rating companies. These ratings include the following:
- AA+ from Standard & Poor’s – Very Strong
- A++ from A.M. Best – Superior
- AAA from Fitch – Exceptionally Strong
- Aaa from Moody’s – Exceptional
New York Life Insurance Company is not an accredited member of the BBB (Better Business Bureau. However, the BBB has given the insurer a grade of B+. This is on an overall grade scale of A+ to F. Throughout the past three years; there have been 93 total complaints that were closed with the Better Business Bureau. Of those, 33 were closed within the past year.
Life Insurance Products Offered By AARP
The life insurance program that is offered through AARP provides options when it comes to coverage. Through New York Life Insurance Company, members of AARP can opt for the following coverage:
Level Benefit Term Life Insurance Coverage
AARP members can obtain up to $100,000 in term life insurance protection. With term life insurance, the policyholder will get death benefit protection only, without any type of cash value or savings. Because of this, the plan can be quite affordable.
This plan does not require that the applicant go through any medical examination as a requirement for life insurance policy qualification. Therefore, all the applicant needs to do is just answer some health questions on the application for coverage.
This plan is available to members of AARP who are between the ages of 50 and 74. Also, spouses who are between the age of 45 and 74 may also apply for this coverage. AARP makes it easy to apply, as applications may be taken directly online.
If a person is not yet a member of AARP, he or she may do so at the time they apply for this life insurance coverage – provided that they are at least age 50 or over. If there are any questions, a toll-free phone number is available to ask – as well as to inquire about higher risk life insurance coverage options such as life insurance for smokers. Representatives are available between the hours of 8:00 a.m. and 10:00 p.m. Monday through Friday (Eastern Time), and between 9:00 a.m. and 5:00 p.m. on Saturdays.
If an applicant is not comfortable applying online, it is also possible to request information by mail and to then complete and mail in a paper application for coverage.
There are many nice advantages to this plan, including:
- No Waiting Period – Policyholders are covered from the first day that the policy takes effect. There is no waiting period.
- No Benefit Decrease – The amount of your benefits will remain the same, regardless of an increase in age or a decrease in the quality of your health.
- Exchange Privilege – At any time until the policy ends at age 80, the term insurance can be exchanged for a permanent life insurance policy for a permanent life insurance policy, without the need to prove insurability via a medical exam.
- Accelerated Benefits – If the policy holder is diagnosed with a terminal illness and have a life expectancy of only one year or less, half of the death benefit amount can be accessed in order to pay medical bills or other pressing needs. (Not available in certain states).
- Waiver of Premium – After the insured has been confined to a skilled nursing home for a total of at least 180 days, the premium on the life insurance policy will be waived.
- Return of Premium rider – You can add a return of premium term life insurance rider that will give you all of your premium payments back should you outlive the coverage.
These features set AARP policies apart from companies like Globe Life Insurance who offers similar but not quite as robust products.
Permanent Life Insurance Coverage
Permanent life insurance provides death benefit protection, along with cash value. While this means that the premium may be more than that of a comparable term life insurance policy, these policies also offer the ability to build up a nice amount of tax-deferred savings over time.
Through the New York Life Insurance plan, AARP members can obtain up to $50,000 in life insurance coverage with no medical exam. This means that most applicants who apply are approved for this coverage.
Because this is permanent life insurance protection, the coverage will remain with you through the rest of your life – provided that the premium is paid. The amount of the premium will not go up, regardless of your increasing age, or even if you attain an adverse health issue later on in life.
With this policy, there are only three health questions to answer on the application. And, there is no waiting period. You may even be able to obtain higher coverage rates by contacting AARP directly.
This permanent life insurance protection is available to AARP members who are between the ages of 50 and 80, as well as to the spouses of AARP members who are between the ages of 45 and 80.
Coverage may be purchased via the AARP website online. If an individual is not yet an AARP member, he or she may become one at the same time they apply for this coverage, provided that they are at least age 50 or over. Doing so will allow additional discounts on other products and many other benefits.
Other Coverage Products Offered Through AARP Life Insurance Company
In addition to the term and permanent life insurance coverage that is offered via New York Life Insurance Company for AARP members, there are also over insurance products that AARP members can take advantage of – typically at a nice discount in premium.
One of the other key products that AARP members can obtain via New York Life is annuities. These financial vehicles can offer a lifetime stream of retirement income – which can help to relieve the fear of outliving one’s savings. Today, as people are living longer than ever before, outliving retirement income is a concern. But, with a retirement annuity through AARP’s plan, that is no longer a worry.
Fixed immediate annuities that offer lifetime income with a cash refund are available to AARP members who are between the ages of 50 and 89. Lifetime income annuities with a ten-year guarantee are available to those AARP members who are between the ages of 50 and 85. Both of these annuity options allow the receipt of guaranteed monthly income payments for life. These annuities may be purchased using funds from savings and CDs, or even with money from an IRA or a 401(k).
How to Find the Best Life Insurance Quotes on Coverage
When seeking the best premium quotes on life insurance coverage, it is always best to shop around, this is true not only for life insurance but for other forms as well such as auto insurance and health insurance. But it can take a great deal of time to do that on your own. A better alternative is to work with either an agency or a brokerage that has access to multiple insurance carriers all in one place. This can allow you to more directly compare, in an unbiased manner, numerous life insurance policies, benefits, carriers, and premium quotes – and then from there to determine which will be the best for you and your coverage needs.
If you are ready to move forward with this purchase, we can help. We work with many of the top life insurance carriers in the industry today – and we can assist you with finding the best coverage for you. When you are ready to proceed, just fill out the life insurance quote form on this page.
There are many options for life insurance that are available to you – regardless of what age you may be. We will assist you in finding the one that works the best for you and your needs – at any stage in your life. So, contact us today – we are here to help.