You have probably seen AARP on either a TV commercial or received a postcard in the mail from them promoting their AARP burial life insurance products. This may have you thinking, “Is this a good policy for me?” The answer is NO they are one of the worst life insurance companies for seniors.
So in this article lets talk about them.
We will cover:
- How their policies work.
- The pricing for their plans.
- if their plans are good or if they are bad for you.
The truth is there is no one best burial insurance company for everyone. They are all different in their own way and what really matters is whats good for you and your unique situation.
Many consumers are under the impression that all policies are the same. They assume all policies will be active with them their entire life and when they die the death benefit is quickly paid to the beneficiary.
As much as we wish this was true it is not the case at all. This is why we do what we do for our clients to make sure they are properly informed to make the right decision when it comes to their burial insurance plan.
Below you will see charts of AARP burial insurance quotes. Showing accurate figures is all a part of this AARP funeral insurance review.
These types of reviews are why we never recommend burial insurance with AARP because AARP burial insurance plans have gimmicks. Getting an AARP final expense policy is not a good idea.
We would recommend AARP accidental death insurance but you can get great accidental death insurance anywhere.
Stay far away from AARP recommended burial insurance because as we will expound on more later, you have to request their whole life policy otherwise you will get their term policy which is not permanent life insurance.
Whole life insurance is what you need to cover funeral expenses. If you do not request this policy on your phone call with them you could wind up with a term policy. Below you will see AARP burial insurance rates.
Table of contents
What is AARP Burial Insurance?
AARP burial insurance(cremation insurance, funeral insurance, final expense insurance for seniors etc.) is either a term life insurance policy, simplified issue whole life insurance policy or guaranteed issue whole life insurance policy.
These policies used to pay end of life expenses such as burial & funeral costs, credit card debt and medical bills left behind to your beneficiary to settle. Life insurance being paid to your beneficiary will give them the money they need to pay these costs.
It spares them from the financial burden of paying your end of life expenses out of their own pocket. Now you are going to see in this AARP burial insurance review their policies are not the best option for your family.
There are much more affordable options with better companies than AARP’s life insurance.
AARP’s 3 Different Burial Insurance Products
- AARP’s Level Death Benefit Term Life Policy.
- Face Amount – $10,000 – $100,000
- Eligible Age – 50 – 74
- Available States – All 50 States
- AARP Member Fee’s Required
This is their number 1 product. This is the product they advertise on TV and the internet every day.
The real question is “Is this policy any good?”
AARP Term Life Burial Insurance Policy Ends at Age 80 & Over
First and foremost, the policy full expires when you reach age 80.
This is a huge problem, not only does your coverage expire when you reach 80 but you do not get any of your money back and you would not be able to apply for another term life policy at this age.
In other words AARP’s term life burial insurance for seniors over 80 does not exist.
Your only option at that point would be to find a whole life policy which would be expensive at that current age.
Furthermore, the sad part is this information can be found directly on their website stating the expiration of the coverage and yet we have talked with clients in the past that did not know their coverage had expired.
This is the main product you will be pitched when you call in for AARP Final Expense Insurance. If you are looking for burial insurance this is not a product we would ever recommend.
Premiums Increase Every 5 Years
Another negative highlight of this coverage is the fact that monthly premiums increase every 5 years on the policy.
This is also public information found on their website however our clients we have spoken with in the past did not know this about their policies. There is not even any cash value with these term policies.
Cash value is like a small savings account found in a WHOLE LIFE policy that builds interest over time.
AARP Level Does NOT Mean Level Premiums
When you see the term “level” in the term AARP term life product this just simply means that the death benefit of the policy will not decrease over time.
That is funny considering that most consumers associate the term “level” with level premiums that never increase.
In fact if you look at their website the term “level” is conveniently located by the term “benefit”. The truth is most term life policies have a level death benefit this is nothing special.
A policy with a decreasing face amount are far and few between.
Qualifying for their Term Policy
AARP’s term policy will not make you take a medical exam however they will want you to answer 3 health questions, pass their MIB and prescription checks.
They are also very cut and dry you either pass or you get declined.
The health questions are very straightforward and If you’re currently being treated for any of these conditions, you’ll be denied immediately.
In the past two years, have you consulted a doctor or received treatment for or been diagnosed by a doctor as having a heart condition, stroke, cancer, lung disease, diabetes requiring insulin, liver or kidney disease, AIDS, HIV, or HIV related complex, or immune system disorder?
In the past three months, have you consulted a doctor or received treatment or diagnostic tests of any type?
If your MIB and prescription check all comes through on a positive note then you should be accepted without any issues.
In short there are no real advantages to this policy the reason we say this is because it is over priced and the premiums increase over time.
There are plenty of term life insurance companies that offer much more affordable rates and premiums that never increase. They even include terminal illness riders.
If you are interested in a term life policy with:
- Premiums that NEVER increase
- Lower Monthly Premiums
Give us a call and we can help you find a better option.
Temporary Types of Life Insurance are a Bad Idea For Final Expenses
The reasons for this are:
- You do not know when you will pass away.
- If your policy ends at age 80 how will your expenses be covered after it expires?
- The financial impact it will leave on your family when you die and your coverage expires will be severe.
We strongly recommend you do not gamble with your final expenses. if you outlive the policy this will make a serious financial strain on your family when you pass away.
Statistically speaking most term life policies never actually pay the benefit to the beneficiary because they expire.
Term policies are not a sufficient type of coverage for final expenses period.
Simplified Issue Whole Life Insurance AARP
- Face Amounts – $5,000 – $50,000
- Available Ages – 50 – 80
- States Available – All States
- AARP Monthly Membership Fee’s
Wanna hear something crazy? You actually have to request this policy when you speak with AARP otherwise you will be sold their term policy instead.
You have to specifically ask one of their agents for this policy.
Cost of AARP Burial Insurance All 3 Plan Types
Below are tables showing the cost of aarp burial insurance(Term life, simplified issue whole life, and guaranteed acceptance whole life).
The rates below come directly from AARP’s website quoting tool to provide the most accurate cost of AARP’s burial insurance.
AARP Simplified Issue Plan Cost
|Age||$5,000 Male Monthly Cost||$10,000 Male Monthly Cost||$25,000 Male Monthly Cost||$50,000 Male Monthly Cost|
|Age||$5,000 Female Monthly Cost||$10,000 Female Monthly Cost||$25,000 Female Monthly Cost||$50,000 Female Monthly Cost|
AARP Term Life Insurance Cost
|Age||$10,000 Male Monthly Cost||$25,000 Male Monthly Cost||$50,000 Male Monthly Cost||$100,000 Male Monthly Cost||$150,000 Male Monthly Cost|
|Age||$10,000 Female Monthly Cost||$25,000 Female Monthly Cost||$50,000 Female Monthly Cost||$100,000 Female Monthly Cost||$150,000 Female Monthly Cost|
AARP Guaranteed Issue Whole Life Cost
|Age||$5,000 Male Monthly Cost||$10,000 Male Monthly Cost||$15,000 Male Monthly Cost||$25,000 Male Monthly Cost|
|Age||$5,000 Female Monthly Cost||$10,000 Female Monthly Cost||$15,000 Female Monthly Cost||$25,000 Female Monthly Cost|
Does AARP Offer Burial Insurance?
AARP offers 3 different life insurance plans.
- 1st is their Level Benefit Term Life up to 100,000 in coverage.
- 2nd Simplified Issue Whole Life up to 50,000 in coverage.
- 3rd Guaranteed Issue Whole Life up to 25,000 in coverage.
Out of these 3 different plans the only 2 that remotely fit what burial insurance is supposed to be (A Whole Life Insurance Policy) are the Simplified Issue Whole Life and the Guaranteed Issue Whole Life plans.
Furthermore, heres another thing… AARP is not a insurance company. Consumers think that AARP burial insurance for seniors comes from AARP but it doesn’t. The life insurance from AARP is actually provided by New York Life.
AARP is just a marketing arm that New York Life uses. AARP allows this for whichever company will offer them the most money.
New York Life underwrites all their products being sold under AARP as well as their term life insurance. As for AARP’s auto insurance that is handled by Hartford and their health insurance is handled by United Health Care.
If a new company offers more money to AARP we have no doubt that AARP would endorse them as well.
How Whole Life Insurance AARP Works
Whole life insurance is much more simple to understand. This policy is much less of a headache because all whole life insurance policies work the same.
- The monthly payments will never increase at any time.
- The Death Benefits will never decrease for any reason.
- It is Day one level coverage.
- The policy will never expire no matter what age you reach.
As you can see.
That is how much more simple a whole life policy works theres not much to it.
When you get your policy it never changes and will pay out a cash benefit that is tax free to your named beneficary wether that is a daughter, son, spouse, cousin, grandchild etc.
There is underwriting and qualification involved in this policy as well. This includes the MIB and prescription history checks.
We always strongly encourage you to read the “terms and conditions” section of your policy to make sure there are no surprises.
What affects AARP Life Insurance Rates?
When it comes to AARP death insurance there are no tobacco or non tobacco insurance rates. They dont have different rates for tobacco vs non tobacco. The same rate goes for smokers or non smokers.
We do not see this very often most life insurance companies like Mutual of Omaha and Foresters Financial have seperate rates for this.
That being said even their whole life rates are significantly higher compared to Mutual and Foresters. Not only that but for a cheaper premium you can also get accidental death coverage as well.
AARP Guaranteed Life Insurance
- Face Amounts – $2,500 – $50,000
- Available Age – 50 – 80
- Available States – Every state
This is a guaranteed acceptance whole life insurance policy with no health questions. AARP is a non-profit organization that is for retired or soon-to-be retired folk.
Since this is a guaranteed acceptance policy there is a full 2-year waiting period for benefits to be paid to your beneficiary.
Any policy that is a guaranteed issue with no health questions will have a waiting period.
This policy is extremely simple to understand.
- Premiums stay the same for life
- Death benefit will never decrease
- The policy will never expire
- No benefit is paid for non accidental death for the first 2 years
Now if you pass away during the first 2 years due to natural causes your beneficiary will not get any money. However, if death occurs due to an accident it will pay the full face amount.
The only thing your beneficiary gets if you die from a natural cause within 2 years is the premiums you paid in plus 25% which is not much at all.
This is also public information on their website.
That wraps it up for AARP Guaranteed Acceptance policies.
Cheaper Guaranteed Acceptance Policies than AARP
The big issue here is that there are plenty of companies that offer much more affordable guaranteed issue policies than AARP.
There is no reason for you to overpay for a policy when you can find it much cheaper elsewhere.
Does AARP Have Final Expense Life Insurance?
Yes, AARP does have final expense life insurance. AARP final expense insurance is designed to protect your family from your end of life expenses. This includes burial or cremation services which range between $5,000 – $10,000.
As we mentioned before we have seen much cheaper rates for final expense life insurance with Mutual of Omaha. That would be our recommended life insurance company instead of AARP final expense life insurance.
AARP Life Insurance No Waiting Period Which Products?
Both AARP’s term life insurance product and their simplified issue final expense products have no waiting periods if a consumer can qualify.
That being said their underwriting for their funeral insurance is very strict which means not many consumers qualify for their burial insurance or term life insurance products.
AARP Burial Insurance Health Questions & Underwriting
It is significantly more difficult to qualify for AARP burial insurance than it is with other more affordable companies.
For their whole life policy that you actually have to specifically request otherwise, you are getting pitched term coverage.
The health questions and underwriting are so strict we have encountered clients that got turned down for them and helped them qualify for day one level coverage with more affordable carriers.
Their Simplified Issue Whole Life Application questions are as follows:
- Are you either a smoker or have you ever been diagnosed with a smoking related disease? If so, did you quit smoking more than 2 years ago? Have you been diagnosed with any other serious illness in the past 2 years? Have you sought any medical treatment in the last 3 months?
We have seen clients get turned down for conditions like:
- Diabetes with Insulin
- Heart Troubles
We help clients with these conditions every day get day one level coverage so why can’t AARP?
So if you are not in the best of health then AARP would not be a good option for you. However, there are plenty of carriers that we work with that will accept you for day one level coverage. We help 90% of our clients find level coverage.
Background of New York Life
- They were founded in 1845
- They operate in the US
- They advertise on most media platforms
- Their phone number or AARP burial insurance phone number is: 1 (888) 687-2277
Does AARP cover burial?
AARP does not New York Life is the actual life insurance carrier that can be used to cover a burial with the right policy.
Does AARP cover funeral costs?
Depends on what type of life insurance policy you have with them.
How much is AARP burial insurance?
Rates vary depending on age and health but most rates from New York Life are significantly more expensive than other burial insurance companies.
Should I use a Credit Card to pay for burial insurance?
No, you will want to use a bank draft through a checking account.