Many people ask us about AARP life insurance. They have one of the most popular senior life insurance organizations, which doesn’t automatically mean it’s the best possible plan.
Before purchasing life insurance through AARP (or if you already have one), it’s important to review the pros and cons of AARP and the other options available.
This AARP life insurance review will show you why AARP life insurance is generally not a good option if you’re looking for the best price on life insurance.
These are the most important conclusions…
AARP offers its members life insurance policies through New York Life. Term and permanent life insurance policies are available to seniors over the age of 50 and do not require a medical exam. Most seniors can find better prices with other life insurance providers, so it’s best to compare quotes before buying a policy.
With such a well-known brand and media presence, you’d think AARP life insurance would be competitive. Unfortunately they are not.
AARP is portrayed in the media as an advocacy group for older adults. They may advocate for the rights of seniors, but unfortunately they use their reputation as “advocates for seniors’ rights” to lend legitimacy to their policies with New York Life Insurance .
Don’t stop looking with this review. We’ve done others on Zander Insurance , Primerica Life Insurance , and United Home .
AARP life insurance is actually from New York Life
What most consumers don’t know about their life insurance offering is that New York Life pays AARP to be their exclusive life insurance provider, and unfortunately it’s far from the best product for seniors.
People in their heads think that every product offered by AARP has passed some kind of integrity or value assessment. This is not like this.
Before discussing AARP’s life insurance offerings, it’s important to understand AARP’s past.
AARP Life Insurance (underwritten by New York Life)Lincoln National (subsidiary of Lincoln Financial)
Market share Largest in the US, 6.75% 5th largest in the US, 4.83%
number of plans 4 20+
Online quotes available? Yes Nope
service method Direct phone Telephone
AM best rating A++ (higher) A+ (upper)
Complaint rate 0.16 (above average) 1.25 (below average)
Verdict
AARP life insurance offers a limited selection of products, most of which are priced higher. But AARP members who seek no-exam coverage and smoke or have a serious health condition can get guaranteed coverage. Term life policies increase in premium over time, but can be converted to whole life at any time, giving members the flexibility to stay covered throughout their lives.
AARP Life Insurance is underwritten by New York Life, which is the largest life insurance company in the US (by market share). With above-average customer satisfaction ratings from both the NAIC and JD Power, customers can rest assured that their policies are backed by a strong company at New York Life. Although AARP offers its life insurance exclusively to members, you should always compare life insurance rates with several companies before purchasing a policy
Methodology
All of our life insurance company reviews are based on extensive research and analysis of each company based on offerings, customer service, financial stability, costs, and more. For each company, we compared the life insurance products offered, as well as available features and reported customer experiences. Visit our life insurance review methodology for the full breakdown of what we evaluate for more than two dozen companies.
