If you’re one of the 38 million American Association of Retired Persons (AARP) members, you may have heard of their life insurance. They have a few options, including burial and term life insurance, but according to AARP Life Insurance reviews, seniors can find much better coverage.
You shouldn’t rely on AARP if you’re seeking affordable, reliable life insurance coverage. Final Expense Benefits has your senior life insurance needs covered. As experts in the market, we can help connect you to a quality plan from over 20 top life insurance providers.
To learn more about your life insurance options, call Final Expense Benefits at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET, or check our free online quoting tool for a personalized pricing estimate.
History of AARP
Founded by Dr. Ethel Percy Andrus in 1958, the AARP’s mission is to support seniors through aging. When Medicare was introduced in 1965, the AARP expanded its role to help members connect with healthcare and wellness services.
Today, the AARP provides a wide range of member benefits, including travel, lodging, restaurant discounts, member meet-ups, and insurance options. AARP Life Insurance is exclusively available to association members, but they don’t handle the policies themselves.
Instead, AARP Life Insurance is underwritten and managed by New York Life Insurance, one of the most well-established insurers in the United States. So, what does AARP offer, and are their life insurance options any good?
AARP Life Insurance Coverage Options
AARP has a few life insurance options for seniors: guaranteed whole life insurance, burial insurance, and term life insurance. Here’s what they offer:
1
AARP Whole Life Insurance
Whole life insurance is a policy that covers you for the rest of your life, as long as monthly premiums are paid. Additionally, whole life insurance builds cash value over time, making it a financial asset.
AARP’s whole life insurance options are guaranteed acceptance, so seniors with pre-existing conditions can get coverage. However, it does come with a few major drawbacks. First, guaranteed acceptance policies have waiting periods, and for AARP, you must wait for two years for the policy to become active.
These policies are also more expensive than other whole life insurance options — 25% to 40% higher. Plus, the death benefits are lower, too, with AARP’s benefit payout being $30,000.
For these reasons, guaranteed issue is recommended for seniors with serious health concerns, but it’s not necessary for those in good health.
2
AARP Burial Insurance
Also known as final expense insurance, burial insurance is a whole life insurance that offers flexibility, reliability, and low rates to seniors. Payouts range from $5,000 to $50,000 and are typically used to cover end-of-life expenses like burial plot costs or cremation fees.
Like all whole life options, burial insurance rates are locked in at the policy’s start, benefits will never decrease, and policies grow in cash value over time. However, medical underwriting for
burial insurance is intentionally relaxed to allow seniors to qualify for affordable coverage.
AARP Burial Insurance offers these benefits, but it has a major drawback: it’s a group plan. All AARP Burial Insurance plans are shares in a single policy managed by New York Life. Because you’re not able to manage your own policy, group life insurance benefits and rates can change with little notice. Plus, it’s difficult to tailor group plans to your needs because they offer little customizability and limited access to life insurance riders.
Seniors can get individual policies that offer better flexibility and long-term value than AARP burial insurance. Why would you want to spend the same rate for one of their policies as an individual plan with far more control?
If you’re looking for burial insurance that’s both affordable and customizable, contact Final Expense Benefits. We can help you find a policy that fits your needs.
Final Expense Benefits ensures you get coverage that truly fits your health and budget needs at a great rate.
3
AARP Term Life Insurance
Unlike whole life insurance, term life insurance only covers for a fixed period, usually 10 to 30 years. Term life policies usually have large death benefits; AARP Term Life Insurance ranges up to $150,000, but other providers offer term life coverage up to $1 million. They are so large because young adults use these policies to cover income loss upon their death.
A major benefit of term life insurance is that these policies usually have low monthly premiums. However, unlike most term life insurance providers, AARP doesn’t offer level term life insurance, a policy whose premiums are fixed. Every five years, your AARP Term Life Insurance policy’s rate will increase, eliminating one of the main benefits of term life insurance.
Plus, most seniors don’t qualify for the lowest term life insurance rates because of unfavorable medical underwriting requirements. Unlike whole life insurance, the policy can expire before you die, and if it does, neither you nor your beneficiaries receive any benefit.
Because of these limitations, term life is rarely the best option for seniors. Burial insurance offers more stability, permanent coverage, and consistent pricing.
AARP Life Insurance Rates by Age
Here are the average monthly AARP Life Insurance rates by age for a $10,000 policy based on a healthy, non-smoking male with no pre-existing conditions. Here’s what you can expect:
AARP Life Insurance for Seniors Over 60
| Age | Monthly Premium |
|---|---|
|
60 |
$50 |
|
61 |
$52 |
|
62 |
$54 |
|
63 |
$57 |
|
64 |
$59 |
|
65 |
$62 |
|
66 |
$66 |
|
67 |
$69 |
|
68 |
$73 |
|
69 |
$77 |
These figures are estimates only, based on a $10,000 final expense insurance policy with no applicant pre-existing conditions.
AARP Life Insurance for Seniors Over 70
| Age | Monthly Premium |
|---|---|
|
70 |
$81 |
|
71 |
$84 |
|
72 |
$84 |
|
73 |
$91 |
|
74 |
$96 |
|
75 |
$100 |
|
76 |
$105 |
|
77 |
$110 |
|
78 |
$114 |
|
79 |
$118 |
|
80 |
$122 |
These figures are estimates only, based on a $10,000 final expense insurance policy with no applicant pre-existing conditions.
AARP Life Insurance for Seniors Over 80
Unfortunately, AARP Life Insurance for seniors over 80 doesn’t exist. If you are a senior over 80, Final Expense Benefits can help you find coverage that benefits you and your family. Call us at (866) 786-0725 from Monday to Friday at 9 a.m. to 5 p.m. ET if you have any questions, and our life insurance experts can assist you.
AARP Life Insurance Pros & Cons
Pros
- High financial stability ratings
Insurers like New York Life are financially stable, so they’ll have the funds to pay death benefits when the time comes.
- Online application
The application process for AARP Life Insurance is easy by using New York Life’s application system. - AARP Member Benefits
AARP offers members several benefits, including travel and restaurant discounts, exclusive health, car, and life insurance options, a member-exclusive magazine, and more.
Cons
- AARP membership required
AARP Life Insurance is exclusive to AARP members, though membership is only $20 yearly.
- Average prices for below-average coverage
Life insurance from AARP offers industry-standard rates, but their policies don’t stand out in quality service or customizability.
- AARP policies are group plans
Changes can be made to your AARP policy without your approval because these policies are group plans and the organization is the policyholder, not you. If you’re investing in life insurance, you should choose a policy you have full control over.
- No options over 80
AARP’s maximum life insurance applicant age is 80, so seniors over 80 need to search elsewhere for coverage.
- Low coverage maximums
The maximum death benefits for AARP term life insurance are $150,000, and whole life is $50,000. - Difficult medical requirements
Seniors with pre-existing health conditions may have difficulty qualifying for AARP policies. Fortunately, other burial insurance providers are more lenient with health requirements.
AARP Life Insurance Reviews: Third-Party Rating Services
1
AARP AM Best Rating
AM Best is a service that rates life insurance providers’ ability to meet financial obligations and pay out policies on time. AARP is not a life insurer, so they aren’t rated. However, the company that underwrites AARP Life Insurance, New York Life, is rated A++ by AM Best. This is the highest rating AM Best offers and reflects New York Life’s history as a major life insurer.
2
AARP NAIC Rating
The National Association of Insurance Commissioners (NAIC) tracks complaints against life insurance companies and rates them on their yearly complaint index. Insurers should aim to rate below 1, the average rating across all insurers.
Because AARP isn’t an insurer, they aren’t tracked, but their underwriters, New York Life, are. They boast a rating of 0.27, which is what we’d expect from a company of their size and resources.
However, New York Group Life Insurance Company, which handles the group plans offered with AARP Life Insurance, has a 1.52 rating, indicating these policies are less popular among customers.
3
AARP BBB Rating
The Better Business Bureau (BBB) helps customers find trustworthy businesses, tracks customer complaints, and offers complaint resolution services for customers and businesses. Their rating scale ranges from F to A+.
AARP is BBB-accredited and rated A+, indicating the BBB believes they have exceptional customer relations skills. However, customers rate AARP 1.21/5, though this rating reflects customer opinions on all AARP services, not just life insurance.
AARP Life Insurance Reviews: Customer Ratings
Janet B
1/5
I contacted AARP to apply for life insurance. They declined my application saying I was too old. I thought that was what they were about.
John E
1/5
Life insurance through AARP is a joke, don’t buy their insurance, these people with their insurance will not be truthful with you, telling you their rates are permanent and will not increase..Then when they increase you find you are not getting the insurance they said you were. I had to cancel the policy and was told, and it showed online that there was a cash value check owed to me. Now they say there was no cash value to the insurance, never will again mess with these people or suggest anyone buys their insurance, lied to from the beginning.
Brian D
1/5
I am an AARP member and I am looking for Life Insurance. Many of us just want something to pay for funeral expense costs. Went onto the AARP site and was quoted over $300.00 a month for a $50,000.00 policy. I am looking for value not getting ripped off by what I thought was a quality forum and respected company for seniors. I have a life insurance policy with Met Life that I have had for over 20 years for $315,000 and I am paying a little over $300.00 a month and I was looking to save money on a policy not pay for almost as much for less.
We just need something to help not support our children and grandchildren. I have already purchased my plots and paid for the opening and closing and just wanted the piece of mind for other expenses. But I am at the point that I am going to set aside the premiums that I am paying , purchase my caskets and not pay the high price of stick it to the seniors as we have enough to worry about our health and trying to enjoy life and not get taken by people and companies that we trust. Shame on you.
How Much You Should Pay For Burial Insurance
Life insurance from AARP may be unreliable, but our top-rated life insurance partners offer better coverage, customizability, and rates. Burial insurance rates vary by age, health status, gender, and other factors, but typically range from around $30 to $150 monthly for $10,000 to $50,000 policies.
Unlike AARP, we believe your rates shouldn’t be hidden behind an application. Below are sample rates for a benchmark $10,000 burial insurance policy from some of our top providers. These rates are calculated using a non-smoking applicant with no pre-existing health conditions:
| Company |
Male 50y/o |
Female 50y/o |
Male 60y/o |
Female 60y/o |
Male 70y/o |
Female 70y/o |
|---|---|---|---|---|---|---|
|
$34 |
$27 |
$50 |
$40 |
$70 |
$56 |
|
|
$31 |
$26 |
$43 |
$35 |
$71 |
$53 |
|
|
$31 |
$24 |
$44 |
$33 |
$75 |
$53 |
|
|
$34 |
$29 |
$45 |
$35 |
$79 |
$59 |
|
|
$33 |
$26 |
$48 |
$36 |
$82 |
$58 |
These figures are estimates only, based on a $10,000 final expense insurance policy with no applicant pre-existing conditions.
If you’re interested in these or any of our great life insurance partners, call Final Expense Benefits at (866) 786-0725 or check our free online quoting tool for a no-pressure price estimate.
Final Thoughts
While life insurance from AARP may seem convenient, their policies are limited because they are group plans. Group plans work poorly for seniors and are tough to tailor to specific needs. You deserve a plan that puts you in control, with stable rates and personalized coverage.
At Final Expense Benefits, we connect you with top-rated insurers offering policies that meet your needs, not group plans. Let us help you get the coverage you and your family deserve.
To learn more, call us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET, or check our free online quoting tool.
FAQ
Does AARP have life insurance?
AARP offers burial, term, and guaranteed acceptance life insurance through their partner, New York Life.
How much is AARP life insurance for seniors?
Rates for AARP burial insurance typically range from $30 to $150 per month, depending on age and coverage amount.
What kind of life insurance does AARP have?
AARP offers burial insurance, guaranteed whole life insurance, and term life insurance exclusively to AARP members.
Is AARP life insurance good?
In our opinion, AARP’s options for life insurance are average, offering standard pricing but lacking in flexibility. Our partners and other top-rated life insurance providers often offer better policies with more customization at similar rates.
Where is AARP life insurance located?
AARP is headquartered in Washington, DC, while their life insurance partner, New York Life, is based in New York City.
What is burial insurance?
Burial insurance is a low-cost type of whole life insurance designed to offer seniors accessible, affordable coverage. Average benefit payouts range from around $5,000 to $50,000 and are typically used to cover funerals, cremation, burial plots, and other end-of-life expenses.