Couple Thinking About AARP Burial Insurance Review

Hopefully, you are reading this AARP burial insurance review before you purchase life insurance coverage through AARP.

American Association of Retired Persons (AARP) is a nonprofit, nonpartisan social welfare organization founded by Dr. Ethel Percy Andrus in 1958. Today, AARP has a membership of nearly 38 million people.

The AARP organization helps people in matters like health care, employment, income security, and protection from financial abuse. If you’re a senior, I’m pretty sure that you’ve received emails showing the different benefits of becoming an AARP member. One of their products is the AARP burial insurance plan.

AARP offers a variety of products and they have many years of experience giving life insurance to seniors across the nation. AARP burial insurance is one of their highest selling products. This burial insurance plan is commonly referred to as the AARP Life Insurance Program from New York Life.

Some of the products can be used as AARP final expense insurance. Since AARP is an interest group and not an insurance company, the life insurance coverage bought through AARP is covered by New York Life. This means your options are limited to only one company.

New York Life is the only supplier of AARP in terms of life insurance. AARP is somewhat like a marketing company that sells life insurance products to its 38 million members. AARP promotes these products to make a profit.

AARP sells its brand image to New York Life because they pay the top dollar for this privilege. In the years to come if another company pays higher than New York Life, AARP has the right to choose that company. And, they will have to change their life insurance program to fit that company.

In this article, we’ll give the complete information on what AARP burial insurance policies are all about. We have some relevant facts that you need to know to help you decide if AARP final expense insurance is the best fit for you.









Tell Me More About New York Life

New York Life is one of the largest life insurance companies in the United States. It is a reputable and highly rated company.

It has been selling various policies and life insurance coverage options since 1845. They presently operate in every U.S. State and many other countries.

New York Life Financial Strength Ratings

  • AM Best – A++, Stable outlook
  • Fitch Ratings AAA, Stable outlook
  • Moody’s – Aaa, Stable outlook
  • Standard & Poor – AA+, Stable outlook



Burial insurance policies are a popular choice among AARP members. The different types of burial insurance plans marketed by AARP through New York Life include:

  • Term
  • Permanent
  • Guaranteed

One thing you may notice is that they all have low face amounts. The highest face amount for level benefit term is $100,000, $50,000 for permanent life and $25,000 for guaranteed acceptance.



  • Provides up to $100,000 in protection
  • Coverage for people age 50-80
  • No medical exam (acceptance is based on answers to a few health questions)
  • No criminal record review
  • You won’t be penalized for smoking or chewing tobacco


  • Higher monthly premium
  • Competitors will charge less for a fixed premium
  • Premiums increase every five years
  • The policy expires at your 80th birthday

This policy is AARP flagship life insurance product. This policy does not include burial plans or final expense insurance, but it is marketed as such. If you’re looking for funeral insurance for parents or funeral insurance for over 80, this is not for you.

It is incredibly risky to purchase this policy if you plan to use it for final expenses. Unfortunately, many consumers don’t ask enough questions (which may be why this plan is their bestseller).

Don’t be confused when you hear level benefit term life insurance….the presentation is a little bit tricky.

To most insurance companies “level” means a term life policy that has a fixed premium for the whole term of the policy. To AARP the term level does not refer to rates, but it refers to the death benefit. The only thing “level” to AARP is the death benefit that does not decrease.

You may be thinking that the premiums are fixed, but AARP level benefit term life insurance rates increase every five years.

Coverage begins at age 45, and the premium will increase at age 50, then at age 55 and so on until you reach age 80 when the coverage ends.

This type of policy is cheaper than whole life, but level benefit term life insurance coverage expires when you turn 80.

They sell this plan as a burial insurance policy, but you will want a  burial insurance policy will not expire when you turn 80. There are many thousands of seniors who bought this plan, only to lose coverage on their 80th birthday.

What happens when you outlive your policy?

If you still want to be covered, you will be forced to find a new funeral insurance policy, which could be more difficult because of your age and health conditions. This policy ultimately ends when you turn 80.

When you live to be older than 80, your family will be left with your funeral expenses because your life insurance is gone. You won’t get any money back, and you don’t have the option to renew a new term. If this happens, you would need to apply for new coverage with a different type of plan which may be expensive.

Most life insurance companies offer term life policy until at least age 85, with many offering renewable term policy to age 95.

While getting burial insurance after 80 is still possible, there are still other options that will help you achieve permanent life insurance. The level benefit term life insurance by AARP may sound good at first, but you need to understand the fine print so you don’t end up in a financial pickle later on in life.

AARP life insurance rates are higher compared with other insurance companies, and the rates increase every five years.

If you really want term life insurance, you can get a better policy with other companies that have a lower monthly premium and a fixed monthly for the life of the plan. If you’re interested in term life insurance, give us a call and will help you find the carrier that fits your needs.


You need to answer these three health questions honestly and pass the medication history check and Medical Information Bureau (MIB) check to qualify for AARP life insurance.

  1. In the last 24 months, have you been diagnosed with, taking medication or treatment for stroke, heart disease, cancer, diabetes, lung disease, kidney or liver disease, immune system disorder, AIDS, AIDS-related complex?
  2. During the past two years have you been admitted in a hospital, extended care, nursing home, or specialized treatment facility?
  3. In the previous three months, have you consulted a physician or had medication, treatment, or any type of diagnostic test?

If your MIB file and prescription history show any treatments for any of the above-mentioned medical conditions, your application will be denied.

You will only be accepted if you answered no to all these questions, and your medication history is clear.



  • Provides up to $50,000 in protection
  • Lifetime protection
  • Guaranteed rates that never increase for any reason
  • Level death benefit – guaranteed never to decrease
  • No medical exam (acceptance based on three health questions)
  • Immediate coverage – no waiting period
  • Does not discriminate tobacco users
  • Available in 50 states


  • AARP monthly membership fees required
  • Premium is expensive compared with other insurance companies

This plan is along the lines of a traditional burial insurance policy.

Unlike the term plan that expires at the age of 80, you are covered your entire life for as long as you continue paying the monthly premium.

AARP permanent life insurance has a level premium with guaranteed rates that never increase for the life of the policy. It also has a level death benefit that does not decrease. This plan is simple to qualify; you need to be 45 to 80 years old to apply for coverage.

One of the best features of this burial insurance or senior funeral plan is immediate coverage. You are protected from day one, unlike other plans which have a two-year waiting period. Your beneficiary will receive the full death benefit if you pass away after your application is approved.

This product is real burial insurance for seniors, final expense insurance, or senior citizens’ funeral insurance that provides up to $50,000 in protection. AARP final expense insurance does not discriminate against people who smoke or chew tobacco. The premiums are the same for smoker and non-smoker.

There is no medical exam to qualify for this policy.

The qualification process for AARP permanent life insurance is based on three health questions that you need to answer, and you pass a prescription history check. Your application will be denied if you are taking certain prescription medications or you have MIB records that indicate you have any health conditions mentioned in the AARP health questionnaire.

You will not qualify for AARP permanent life insurance if you have the following health conditions:

  • Type 1 diabetes
  • Diabetes complications like diabetic coma, neuropathy, retinopathy or amputation
  • Heart disease
  • Liver diseases
  • Lung diseases such as asthma, COPD, chronic bronchitis, or emphysema
  • Lupus
  • Kidney diseases
  • Parkinson’s disease
  • Rheumatoid arthritis

Only a person in good health can medically qualify for AARP burial insurance senior.

If you’re not in good health, AARP will inevitably decline your application. The good news is we can find other insurance companies that will surely approve your application!

AARP permanent life insurance is also available. But, you specifically need to request for it. Tell their agents that you want this type of policy. If you don’t, you will most likely be offered their term life policy.

The main drawback of AARP permanent life insurance policy is the unattractive pricing.

The consumer price for this policy is significantly higher than most competitors’ prices.

For example, AARP permanent life insurance rates for a 50-year-old male applying for a $25,000 coverage comes in at $82 a month.

Compare insurance quotes to one of the top-rated life insurance company that offers $25,000 coverage for only $66.35. That is a savings of $187.80 a year or $5,634 in savings over 30 years.



  • Provides up to $25,000 in protection
  • Lifetime protection
  • Guaranteed acceptance (you can’t be turned down)
  • No health questions


  • Limited benefit for the first two years (waiting period)
  • Includes extra mortality risk charge

Guaranteed acceptance life insurance by AARP is also burial insurance, cremation insurance, and funeral insurance. This is designed to be the life insurance for the uninsurable.

The policy provides lifetime protection, and it won’t expire as long as you pay the premium on time. There is a level premium which means the monthly price will not change, unlike the Level benefit term life. The death benefit will not decrease as well.

The best part about AARP guaranteed acceptance plan is there is no medical exam, and no medical questions ask. If you’re wondering if you could get life insurance for my parents no medical exam. There is guaranteed acceptance if you are an AARP member and you meet the age requirements.

Because approval is guaranteed, there is a two-year waiting period before the policy will pay out 100% death benefit.

If you have an accidental death during the waiting period, New York Life will pay out the full death benefit. However, if you die from a natural cause during the waiting period, your beneficiary will receive a refund of 125% of the amount you paid.

The drawbacks of this plan are the price and the waiting period.

There is an extra mortality risk charge that is included in the pricing which makes AARP more expensive than many other insurance companies. Many other burial insurance companies offer the exact guaranteed acceptance coverage as AARP but cost much less.

For example, AARP guaranteed acceptance rates for 60-year-old male wanting $15,000 coverage is $90 a month. Now compare burial insurance quotes with other top rated company with the same policy which runs $61 a month. That is $29 a month in saving or $348 a year or $6,960 in 20 years.


Funeral and burial goods and services are quite expensive!

The national median cost of an adult funeral at $8,500 according to the National Funeral Directors Association.

This amount is expected to go higher depending on the kind of funeral services and the goods to be used. This figure only includes basic funeral costs without the plot and memorial services.

The rising cost of funeral services makes burial insurance the best way to shoulder the cost of final expenses.

Burial insurance will help your family to have a funeral budget that will pay the cost of a funeral, and anything left will let them pay debts and medical bills.

Burial insurance also called final expense insurance generally pays in cash. Your beneficiary will be free to use the payout for burial expenses or in any manner they choose. Burial insurance doesn’t bind your beneficiary to a particular funeral parlor, unlike pre-need plans from top pre-need insurance companies.

You should get burial insurance if:

  • You don’t have any life insurance
  • You like a separate life insurance policy and burial insurance
  • You don’t want to give financial burden to your family when you pass away.
  • You don’t have enough funds to pay your funeral expense


There are numerous benefits you can get from choosing AARP burial insurance, mainly if you don’t have other life insurance coverage in place.

However, despite all the advantages, AARP may not be the best to get your burial insurance. You need to weigh the AARP pros and cons before making your final decision…especially the higher pricing!

AARP life insurance policies can are one method for the financial future of family members. They offer a good selection of burial insurance policies and convenience in the application process. You can also get a discount from New York Life, but even with the AARP discount, it doesn’t mean that they are the cheapest insurance option.

You can find better rates from other top-rated insurance companies.

We hope this AARP burial insurance review has helped you better understand what AARP has to offer as well as the limitations when it comes to their burial insurance policies.

You can also read our review on Globe Life, Colonial Penn, Mass Mutual, Mutual of Omaha, TruStage, Lumico, and Lincoln Heritage.

If you’re looking for burial insurance for seniors, you’ve come to the right place. Funeral Funds is an expert in burial insurance and final expense insurance.

We have the best carriers that cater to seniors seeking affordable burial insurance coverage.

We can help you shop and compare your AARP insurance quote to get the best deal. You shouldn’t have to pay high premiums every month to get burial insurance coverage. We will help you find the perfect policy to fit your needs!


TV AND MAGAZINE ADVERTISEMENTS – Most burial policies or final expense policies you see advertised on television or in magazines are sold as “the best way” to shop for this protection.

In reality, most of these policies are the worst ones to purchase if you are looking for the best pricing and a permanent plan.

Just about everyone is eligible for immediate coverage and better pricing allowed by these heavily advertised policies that cost an arm and leg.

To make a long story short, it is better to shop for burial policies for seniors with a specialist in burial insurance, like, than to sign up with a company that spends ba-zillions of dollars each month advertising on television and in magazines.

Increasing Price Policies

Those TV and magazine final expense policies may increase in price every five years or have a two-year waiting period before your benefits kick in!

These policies aren’t all they’re cracked up to be, and you often end up at the short end of the stick by purchasing burial insurance this way.

These tricky television and magazine advertisements lure you in with an attractive rate, only to have the cost of your insurance increase every five years until you cannot afford the premiums, then you must cancel your policy.

What happens after you cancel the policy? You’ll die and will have wasted all that money because you bought a policy that increases in price as you get older. These policies just don’t cut the mustard for most folks!

Avoid policies that increase in price every year or end at a certain age. You don’t want your family to get hung out to dry when they need this coverage the most.

Why choose Funeral Funds for my burial policy?

The guaranteed issue folks claim you don’t even need to talk to an agent (but you will need to wait 2 years for your coverage to begin…even if you’re healthy).

Answering a few health questions will often get you immediate coverage and MUCH BETTER RATES.

Avoid these people at all costs!

For the rest of the life insurance agents, who are fine respectable people, they are most often generalists.

They deal with all kinds of life insurance policies.

They are Jack of all trades and Masters of none.

They are nice people, but they are not the logical choice if you want the best pricing and a burial insurance policy with no waiting period.

We work with 20+ final expense companies, so we can get you qualified for the best price plan with the intent of getting folks like you immediate coverage when possible.

We have to admit that, for the average burial insurance final expense insurance shopper, all the companies and options will often leave you more confused than a woodpecker in a concrete forest.


The reality is that inexperienced and less knowledgeable insurance agents will cost you loads of money by selling you overpriced burial and final expense policies.

Getting affordable burial policies for seniors doesn’t have to cost an arm and a leg.

Our job at Funeral Funds is to be the most knowledgeable burial insurance experts available. By doing so, we can knock it out of the park and get you the most accurate quote and affordable rates.

Once we know more about your age and health history, we can accurately give you burial insurance quotes from the final expense companies that are the best fit for you.

It is always in your best interest to work with an independent final expense insurance brokers, such as Funeral Funds.

With access to all the best final expense insurance companies, we will help you understand your best options, given your current age, health, and financial situation.


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