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AARP Life Insurance Review

Life insurance can be an important part of your financial plan, regardless of what stage you are in life. Although many people believe that this type of insurance should only be purchased by those who have young families, the reality is that the proceeds from a life insurance policy can be used for a wide variety of things, such as the supplementing of retirement income for a surviving spouse, and / or the payment of one's funeral and other final expenses.
Before you purchase a life insurance policy, though, it is important that you ensure you are going with the right type of coverage, as well as the proper amount to fit your loved ones' anticipated needs.
It is also important that you review the life insurance company that you're considering buying the coverage through in order to determine whether or not it is financially stable, and that it can make good on its future claims.
One entity that offers life insurance coverage to its members is AARP (the organization that was formerly known as the American Association for Retired Persons). AARP's life insurance program provides coverage through New York Life Insurance Company - a company that has well over a century of experience in the insurance industry and is well known for being a trusted provider of life insurance, as well as many other forms of coverage.

The History of AARP

The American Association of Retired Persons, now known simply as AARP, was founded back in 1958 by Ethel Percy Andrus, Ph.D., a retired educator, and Leonard Davis - who was later the founder of the Colonial Penn Group of insurance companies.
AARP is a non-profit entity that has the primary mission of enhancing the quality of life for all individuals as they get older. For example, this organization advocates for positive social change, and it delivers value to its many millions of members via education, as well as advocacy and service.
The organization has many affiliated entities, including:

  • AARP Foundation
  • AARP Experience Corps.
  • AARP Institute
  • AARP Services Inc.
  • Legal Counsel for the Elderly
  • AARP Financial Services Corporation
  • AARP Insurance Plan

All people who are age 50 and over are eligible to become members of AARP (although the spouse or partner of an AARP member may also join, even though they may not yet be age 50). By being a member of AARP, people are eligible for discounts on a wide range of products and services, including insurance coverage. AARP is headquartered in Washington, DC.

AARP Life Insurance Review

AARP is largely known for addressing the many issues that can affect older Americans. This organization is heavily involved in lobbying at both the state and national government level. (AARP is, however, a non-partisan entity).
It is the AARP Services, Inc. arm of the organization than handles the long list of products and services that are offered as benefits to being an AARP member. Typically, by being a member of AARP, members can obtain discounts and other perks on the products and services.
New York Life Insurance Company underwrites the life insurance coverage that is offered through AARP. This insurer, which was founded more than 170 years ago, has a cash reserve in excess of $23 billion - so it is well prepared to meet all of its financial commitments, and then some.
Because New York Life is a mutual insurance company, policyholders may be eligible to receive dividends - and while these dividends are not guaranteed, the company has paid them consistently ever since before the Great Depression. In 2016 alone, New York Life paid out more than $10 billion in just dividends.
In addition, as of year-end 2016, this insurer held approximately $538 billion in assets under management, and it had roughly $957 billion in individual life insurance coverage in force. For that same year, the company had operating earnings of $1,954 million.

Insurer Ratings and Better Business Bureau Grade

Because AARP is not an insurance company, this entity does not possess ratings from the insurer rating agencies such as S&P, A.M. Best, Fitch, or Moody's. However, New York Life Insurance Company does - and this insurer, due to its strong financial position and positive claims paying experience - has earned very high ratings from all.
In fact, New York Life Insurance Company has the highest financial strength ratings awarded to any life insurer from all four of the major credit rating agencies. These include the following:

  • A++ from A.M. Best Company (as of July 20, 2017)
  • AAA from Fitch Ratings (as of June 27, 2017)
  • Aaa from Moody's Investors Service (as of August 1, 2017)
  • AA+ from Standard & Poor's (as of July 14, 2017)

In addition, while New York Life Insurance Company is not an accredited business of the Better Business Bureau (BBB), the company has been given a grade of A- by this organization. (This is on an overall grade scale of A+ to F).
Over the past three years, New York Life Insurance Company has closed out a total of 111 customer complaints - of which 36 have been closed within the past year. Of these 111 complaints, 62 had to do with problems with the company's products and/or services, 22 were related to billing and/or collection issues, 19 were regarding advertising and/or sales issues, and eight had to do with delivery issues.
AARP is also not an accredited business through the BBB. However, the Better Business Bureau has provided a grade of A+ to AARP. Throughout the past three years, AARP has closed out a total of 250 customer complaints, with 92 of these closed out within the past 12 months.
Of these 250 customer complaints, 122 had to do with problems with the company's products and/or services, 62 were related to advertising and/or sales issues, 52 were in regard to billing and/or collections, 13 related to delivery issues, and the remaining one was in regard to guarantee and/or warranty issues.

Term Life Insurance Products Offered Through AARP

AARP offers term life insurance protection to its members through New York Life Insurance Company. This product offers up to $100,000 in death benefit protection (with a minimum amount of coverage at $10,000), and because it is term life - which means that it provides coverage without any cash or investment build up - the premium can typically be quite affordable.
With a term life insurance product, the coverage will last for a set amount of time, or "term." There is no medical examination required as a part of the underwriting process, and acceptance for this coverage is based primarily on an AARP member's answers to just a few health-related questions and other information that is provided.
There is also no waiting period for the coverage to begin. So, if an applicant is approved, they will typically have their coverage in place within just a few days - or less. (With this group term coverage, most people who apply are accepted).
Those who are AARP members and who are between the ages of 50 and 74 are eligible to apply for this coverage. Spouses of these members who are between age 45 and 74 are also eligible to apply for this group coverage.
The rates for AARP term life through New York Life are very affordable and can start as low as $11 per month for $10,000 in coverage. (It is important to note that, once the policy's term of coverage has expired, the rate may increase in order to continue coverage going forward).

Other Products and Services Offered

In addition to term life insurance, AARP also offers permanent life insurance coverage through New York Life Insurance Company. A permanent life insurance policy will provide both a death benefit for protection, as well as a cash value build up, where the cash is allowed to grow on a tax-deferred basis. This means that there is no tax due on the growth of these funds, unless or until it is withdrawn.
The AARP permanent life insurance plan through New York Life offers up to $50,000 in death benefit coverage. Like the term coverage, there is no medical exam necessary for approval, and acceptance is based on an individual's answers to just three health-related questions.
There is also no waiting period on this coverage, which means that the policy will go in force right away. And, because it is a permanent life insurance policy, the plan cannot be canceled, provided that premiums are paid. Also, the amount of the premium will be locked in for the life of the policy - so, there is no need to worry about increasing rates in the future, even as the insured ages, or if they contract an adverse health condition.
There is a long list of other products and services that are offered through AARP to its members. In the category of health and wellness, these include the following:

  • AARP Caregiving Help and Advice from Genworth
  • AARP Dental Insurance Plan
  • AARP Essential Premier Health Insurance Plan
  • AARP Fitness and Wellness Program
  • AARP Hearing Care Program
  • ADT Personal Emergency Response System
  • AARP Hospital Indemnity Insurance Plan
  • AARP Long Term Care Insurance Plans
  • AARP Medical Supply Services
  • AARP Medicare Advantage
  • AARP Medicare Rx Plans (Medicare Part D)
  • AARP Medicare Supplement Insurance Plans
  • AARP Prescription Discounts
  • AARP Vision Discounts
  • Walgreens Way to Well Health Tour with AARP

AARP also offers numerous other benefits and discounts on products and services, such as:

  • Travel - Including hotels and resorts, roadside assistance, cruises, vacations and tours, and car rentals.
  • Financial Services - Such as insurance coverage for home and auto, credit cards, and home business plans.
  • General Discounts - Including those for legal services, security services, restaurants, retail (both physical and online), cell phones and service, and coupons for outlet malls.

How to Get the Best Premium Rates on Life Insurance Coverage Sold Through AARP

If you are seeking the best premium rates on life insurance coverage offered through AARP from New York Life - or any life insurance carrier - then it is typically recommended that you work with an independent life insurance agency or brokerage that can provide you with information about many different options. In doing so, you will be able to compare, side-by-side plans from various carriers, along with the premium rates that would be charged. From there, you can make a more well-informed decision as to which will be the best alternative for you.
When you are ready to move forward, we can help. We are an independent life insurance brokerage, and we work with many of the best life insurance carriers in the marketplace today. We can assist you with obtaining all of the important details that you need - and we can do so for you very quickly, easily, and conveniently, all from your computer, and without you having to meet in person with an insurance agent. If you would like to see the plans and rates that you may be eligible for, then just simply fill in the information needed on the quote form on this page.
Should you find that you still have any additional questions about life insurance protection, then please feel free to reach out to us directly and speak with one of our experts. We can be contacted, toll-free, by dialing 541-400-9040.
We understand just how overwhelming the purchase of life insurance can be. There are many different variables that you need to keep in mind, and you want to make sure that you are heading in the right direction with the coverage that you choose. But this process can be so much easier when you are working with an expert on your side. So, contact us today - we're here to help.

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