Benefits and Drawbacks of the AARP Life Insurance Program

The AARP Life Insurance Program for Seniors is popular and well known, but like all things, it has drawbacks. Learn more to decide if it is right for you.

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Being a senior has its own list of unique problems and issues. By the time you have reached your golden years, you are expected to have a stable retirement plan that has enabled you to live comfortably through these years. But what if this is not the case? What if you don’t have a retirement plan and pension checks don’t arrive at your doorstep regularly?

This is one of the reasons why many older people choose AARP as their life insurance policy of choice – it is relatively cheap. The application process is simple. And the coverage begins quickly.

The AARP Brand is Trusted by Many

There are certain companies and brands that just bring to mind a high reputation just by mentioning their name. AARP is one of those brands, particularly for seniors who are shopping for life insurance. AARP life insurance for seniors is a group life insurance program offered by New York Life, specifically for AARP members. With group life insurance, you can purchase coverage through a provider on a “wholesale” basis for its members, so the coverage ends up costing each individual member less than if they had to purchase an individual policy outside the group.

AARP Life Insurance Plan for Seniors

AARP is a non-profit organization that is working for the rights of senior Americans. It has members all over the USA. This organization provides cheap and affordable resources for men and women over the age of 50. By registering with the organization and becoming a member, you are entitled to the various opportunities, services, and discounts they provide. The life insurance plans they offer is one resource that many are taking advantage of today.

This program offers two different types of coverage

One is a level benefit term life insurance policy that can provide up to $100,000 of term coverage. The other option is up to $50,000 of group whole life insurance.  and one is permanent is a permanent lifetime insurance policy. This type of policy costs more than term life, but the rate remains constant and there is a savings aspect where the policy builds cash value over time.

Benefits and Drawbacks of the AARP Life Insurance Plan


Compared to other senior life insurance products, this plan has a number of benefits for AARP members. One of the benefits is that you are not asked to provide any medical history or background. The rates of the premium remain constant and will not change over time. Depending on your ability to pay the premium, this insurance plan provides lifetime coverage.


As with any insurance plan, there are certain drawbacks. With the AARP life insurance plan, the premiums are higher than other insurance plans. However, this is due to the cost of risk because there  a medical exam isn’t being done to fully evaluate health. There is a waiting period – a two year limited benefit period. If accidental death occurs in the first two years, full benefits will be paid. However, if death occurs due to natural reasons, 125% of the premiums paid will be reimbursed.

Is AARP life insurance right for you?

Since death is an inevitable part of the human experience, an AARP life insurance plan is a great way to provide peace of mind about what you are leaving behind for your loved ones. Applying for the plan is simple and quick and does not involve lengthy questionnaires. With no medical check-up required, it is an easy way for seniors between the ages of 50 and 80 to get life insurance. If you need more coverage than what this policy can offer or if your health is excellent and you don’t mind a medical exam, then I recommend that you choose an individual policy.

Learn more about the AARP insurance program through their website. You should also compare rates for other senior insurance policies from other highly rated companies so you can obtain the most affordable policy for your needs.

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