Review of AARP Burial  Insurance Offering

Company Highlights

AARP Burial Insurance
  • Well Known Company backed by New York Life
  • Offers Guaranteed Issue Policies With 2 Year Waiting Period 
  • More Expensive Than Other No Exam Alternatives

NODLB.COM  RATING

If you are considering purchasing AARP burial insurance policies, you have landed in a good place. This review will briefly address the company’s history, financial ratings and offerings, underwriting niches, pricing, and alternatives.

Thank you for choosing NODLB.com to research AARP life insurance policies. Should you have any questions, please do not hesitate to call or send over an email.

AARP’s insurance program via New York Life provides coverage to qualified seniors with pre-existing conditions who have faced difficulties in obtaining life insurance policies elsewhere. No AARP issued policy requires medical exams to be taken. Therefore, unless you suffer from serious medical issues, you’re likely to discover whole life and term insurance premiums to be much lower elsewhere.

If you happen to be a senior looking for guaranteed acceptance insurance coverage or no medical examination policies, AARP provides reasonable premium quotes for its whole life insurance policies. However, death benefit amounts are restricted to $50000. Therefore if you require additional protection, it is advisable to search for a policy elsewhere. 

Burial Insurance Offerings From AARP

New York Life and AARP offer group whole life and term insurance plans for seniors, along with whole life coverage policies for minors. Their plans are either guaranteed acceptance or simplified issue. This means that no medical examinations need to be taken and that coverage issue is done very quickly. However, a disadvantage is that insurance companies tend to assume these applicants to be higher risks. This results in them charging significantly costlier premiums.

One should keep in mind that these plans are available only to members of AARP. This means you must  to be 50 years of age to qualify for the policies. Membership rates can be between $12-$16 a year, based on your payment method.

AARP Level Benefit Term Life Insurance Policies

Unless you suffer from a serious pre-existing medical condition and are concerned about your ability for passing a medical examination, AARP’s level benefit term life insurance plans offered via New York Life are not to be purchased or considered. These premiums happen to be incredibly high, increasing over time. Level benefits means that death benefits remain the same in spite of an increase in premium rates. Coverage for the policy ends once you become 80.

AARP also provides term life insurance policies, for its members aged between 50-74. These policies may be exchanged for permanent life insurance policies during any stage of the policy. Term life insurance death benefit amounts range between $10000-$100000, which means that bigger financial commitments like mortgages might not be covered by the payout from this policy. AARP’s term death benefits happen to be limited since these policies do not need medical examinations to be passed for receiving approval. 

AARP-issued term life insurance policies, provided via New York Life happen to be annually renewable plans. This does offer flexibility. However, premiums tend to rise along with increasing age. Initial premiums happen to be determined by which five-year bracket you’re in. Every time you get bumped up into the next age bracket, your premium rates increase.

While AARP’s term life insurance premium rates are very high, there are many other more competitive, no medical examination insurance policies based on your health profile. You should definitely look around & get quotes from multiple sources. Based on health,tobacco usage, BMI ratio and age,  term life insurance with no medical examination quotes are likely to vary greatly.

AARP Whole Life Insurance Policies Without Medical Examinations

Permanent life insurance policies, which also require no medical examinations, and  have than market premiums. Due to this, we don’t recommend that you for New York Life and AARP’s simplified issue whole life insurance, unless you’ve got pre-existing medical conditions that will prevent you from qualifying for  more affordable coverage elsewhere.

AARP also has no medical examination whole life insurance policies, which are burial insurance policies. These provide ample coverage that’s sufficient for covering funeral costs. AARP’s whole life burial insurance policies offer between $5000-$50000 in death benefits and are available in case you are between 50-80. 

As seen with various different whole life insurance plans, AARP’s whole life insurance coverage builds its cash value with the passage of time. Basically, this is the policy’s surrender value and one can borrow money using it as collateral, should an emergency pop up. However, AARP’s whole life insurance policies are unique because their premium payments only end after you become 95. 

Apart from that, AARP’s whole life insurance is provided with two riders, offering financial assistance, should you become critically ill or disabled:

 

  • Accelerated Death Benefits - When one is diagnosed with a critical disease that is terminal, and your doctor holds the opinion that less than twelve months are left before you pass away, one can access over 50% of their insurance policy’s death benefits during their lifetime.
  • Waiver of Premium - Should one become ill or disabled, causing them to shift to nursing homes, no premiums have to be paid for as long as you stay there or until you’ve turned eighty, whichever comes sooner. However, note that premiums are waived only if you’ve resided in a nursing home for at least six months.

AARP Guaranteed Burial  Insurance

New York Life and AARP offer AARP guaranteed life insurance policies as well. However, it isn’t obtainable in Washington or New Jersey. AARP’s guaranteed burial insurance policy resembles its no medical examination plan in that:

  • It's only available between age 50-80. 
  • No more premium payments have to be made upon turning 95. However, coverage still remains effective after that.
  • No medical examinations have to be taken
  • Upon being diagnosed with a terminal disease, one can receive 50% of listed death benefits during their lifespan itself.

One prime difference regarding AARP guaranteed life insurance plan is that it only offers  $2500 - $25000 worth of coverage. Apart from that, those passing away during this policy’s 1st two years won’t have their beneficiaries receive full listed death benefits. Only 125% of all premiums paid so far will be paid out. A waiting period is commonplace for all guaranteed acceptance coverage policies since insurance companies wish to avoid making huge payments in case patients with terminal diseases join.

While AARP guaranteed burial insurance policy offers affordable rates, one shouldn’t join AARP just to access this product, in case one already isn’t a member. As you will see, AARP’s quotes for this policy are similar to quotes from other competitors providing identical features, which don’t necessitate any membership.

Reviews Regarding AARP Life Insurance

AARP’s life insurance plans are managed and underwritten by New York Life, who is an insurer rated A++, meaning Superior, by A.M. Best. But this program of New York Life with AARP has also received  critical reviews regarding claims handling.

Truthfully, this is not unusual with Guaranteed issue life insurance policies and not exclusive to NYL/AARP{. The issue stems from applicants not fully understanding the waiting period to be eligible for full benefits.

For reducing the likelihood of confusion, ensure you have read AARP’s application questions well. Answer questions  honestly and provide beneficiaries with access to the policy along with payment methods. Also, inform your beneficiaries that they’ll have better support from AARP rather than New York Life, in case they run into troubles during the policy claims process.

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