5 Reasons You Should Be Worried About AARP Life Insurance

Do you have AARP life insurance? Are you considering purchasing an AARP life insurance? 

AARP is branded as an advocacy group for seniors lobbying for seniors’ rights; however, this senior rights protector’s claim may let you think they have the best life insurance plans. Most seniors can find better insurance options with other life insurance companies, so it is best to compare products and quotes before buying a policy.

This article will answer your questions if you want more information on AARP life insurance products for yourself or your parents.

In this article, we will go over the different reasons why you should be worried about AARP life insurance.

FOR EASIER NAVIGATION:

• REASON #1 – AARP Is Not an Insurance Company
• REASON #2 – Level Term Life Insurance Increase in Price Every 5 Years
• REASON #3 – Coverage Ends at Age 80
• REASON #4 – You Need to Be In Great Health to Qualify
• REASON #5 – It Has a Two-year Waiting Period

Reason #1 – AARP Is Not An Insurance Company

The first reason you should be worried about AARP life insurance is that AARP is not even an insurance company to begin with.

AARP is a popular organization selling life insurance for seniors. Don’t be misled; AARP is not an insurance company. The organization does not provide AARP insurance products. The term and whole life insurance policies sold to senior members over 50 with no medical exam are actually underwritten by New York Life. 

AARP has been endorsing New York Life since 2011. It’s an open secret that AARP endorses life insurance companies that give them the most benefits. AARP only serves as the marketing arm of New York Life. New York Life provides all life insurance policies acquired through AARP.

You need to be an AARP member to buy life insurance. This is the one important requirement you cannot escape.

AARP members, ages 50 through 79, can buy life insurance. There are two types of AARP life insurance available: term life insurance and permanent life insurance.

Term life insurance is available to members who are 50 to 74 years old. You can buy up to $100,000 coverage. You can qualify for coverage without undergoing a medical exam.

Permanent life insurance is available to AARP members who are 50 to 80 years old. You can buy up to $50,000 coverage without a medical exam.

Reason – Level Term Life Insurance Increase In Price Every 5 Years

The second reason you need to be worried about AARP life insurance is that their level term life insurance increases in price every five years. If you bought a level term life insurance from AARP, I suggest you read the “fine print.”

If you review the fine print, you will see that it says “affordable rates that increase over time.”

AARP market their term life insurance as a level term benefit. What’s misleading about this marketing tactic is that they are leading you to believe that the premium is level or won’t change for the policy’s life. 

Many seniors are led to believe that their monthly premiums will remain level when, in truth, what they mean when they say the level is that the DEATH BENEFIT will not change. The death benefit will never decrease.

Don’t get fooled by this marketing tactic. Almost every life insurance company offering term life insurance has a death benefit that never decreases.

When they say level, they mean your premium will remain the same for five years. Your term life insurance premium will only increase every five years as you enter each new five-year age band. Once you reach the next age band, you must pay the new monthly rate that applies to your current age.

Suppose you truly want a real level term life insurance. In that case, we can get you a level term life insurance policy with another company with a fixed premium that is guaranteed to never change for the term of the policy. If you’re interested in buying term life insurance, call us. We work with reputable life insurance companies that specialize in term life insurance.

Reason – Coverage Ends At Age 80

AARP term life insurance is only available to members ages 50 to 74 years old. It means, if you are 75 and older, you can’t buy a term life insurance policy with them. 

If you read the fine print, you will discover that term life insurance with AARP ends once you reach age 80. The coverage ends exactly when you need it the most. 

If you want a policy that will last, do not get term life insurance. Apply for permanent life insurance instead. AARP also offers permanent life insurance. However, they will not sell you this policy unless you specifically ask for it.

Reason – You Need To Be In Great Health To Qualify

To qualify, you need to answer the AARP insurance application’s health questions. Both term life insurance and permanent life insurance ask three health questions. 

Let’s take a look at the three health questions on the application:

1. In the past two years, have you had treatment for or been diagnosed by doctors having heart trouble, stroke, cancer, lung disease or disorder, diabetes, liver, kidney disease, AIDS, AIDS Related Complex, or immune system disorder?
2. In the past two years, have you been admitted to or confined in a hospital sanitarium, nursing home, extended care, or special treatment facility in numbers?
3. In the past three months, have you consulted a doctor or had treatment or diagnostic tests of any type?

If you answer “yes” to any of the questions, your application for coverage will be denied.

Aside from the three health questions, New York Life will also conduct a prescription history check. If you are taking prescription medications that are a red flag for specific health issues, your application will also be declined.

If you take a look at the health questions, you will realize that you need to be perfectly healthy to qualify for term life insurance and permanent life insurance with AARP.

The following health issues will cause your application to be declined:

1. Heart trouble (heart attacks, coronary artery disease, stents, bypass, pacemaker, AFib, arrhythmia, a blood thinner, blood clots, aneurysm, heart or circulatory surgery in the last two years)

2. Lung disease (asthma, emphysema, COPD, chronic bronchitis, sarcoidosis)

3. Kidney disease (renal problems, dialysis, chronic kidney disease)

4. Stroke and mini-stroke

5. Any type of cancer

7. Diabetes and diabetic complications such as retinopathy, neuropathy, nephropathy, diabetic coma, or insulin shock – if you have diabetes and take medications to manage your condition – you will not qualify for coverage with them.

The biggest problem with AARP underwriting is that only people in great health will qualify for coverage.

If you have health issues and you cannot qualify for AARP term life or permanent life insurance, they will offer you their pricey guaranteed issue life insurance policy.

If you have health issues, we can help. We work with many insurance companies that are exceptionally forgiving with these health issues, and they will approve you for first-day coverage.

Reason – It Has A Two-year Waiting Period

If you answered “yes” to the health questions in the AARP insurance application, expect to be offered a guaranteed issue life insurance. 

If you have any health issues, you will only qualify for guaranteed issue life insurance with AARP. This life insurance product does not ask any health questions; therefore, anybody can qualify for this plan.

The number five reason you should be worried about AARP guaranteed issue life insurance is that it has a two-year waiting period.

Because your acceptance is guaranteed, New York Life takes a significant risk in insuring you for coverage. They put a two-year waiting period on your policy as a safety net. This means that if you die from natural causes during the first two years of the policy, your beneficiary will not receive your full death benefit. They will only receive all the premiums you paid into the policy plus 25% interest.

New York Life will only pay full death benefit for accidental death during the first two years.

AARP will always offer this product to people who are not in perfect health. They keep offering this plan because many people couldn’t qualify for term life insurance or permanent life insurance with them. This plan is the most expensive plan offered by the company.

You see, most of the health issues not accepted by AARP qualify for first-day coverage with other life insurance companies. For example, if you have diabetes, you will only qualify for a guaranteed issue with AARP. If you have diabetes, even if you’re taking insulin, we can get you first-day coverage with diabetic-friendly life insurance companies.

Why would you settle for a plan with a two-year waiting period if you can qualify for first-day coverage?

Have you received life insurance offers from AARP? If you already have life insurance with AARP, review these five reasons why you should be worried about AARP life insurance. If you see something that keeps you worried, call me, and I will discuss your other options.

To purchase life insurance, it is important to understand that every life insurance company looks at your health issues differently. Some life insurance will decline you for coverage, while other companies will offer you first-day coverage even with some health issues.

My first goal is to find you a company that will accept your health issues at affordable rates.

I work with over 50 life insurance companies, most of which offer better rates than AARP – New York Life. Fill in our quote form to compare prices from different life insurance companies.