3.6 / 5

AARP life insurance review

Meant for people ages 50 and up, AARP policies have no medical exam requirement. But you’ll pay higher-than-average premiums and receive only up to $100,000 in coverage, which is not a lot.

Tim Torres

By

Tim Torres

Tim Torres

Reviews Editor

Tim Torres is a reviews editor at Policygenius, where he specializes in life insurance, homeowners insurance, auto insurance, and more. His work has also appeared in PC Mag, Tom's Guide, Tech Times, and elsewhere.

Published|5 min read

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money.

AARP

OVERALL

3.6

3.6

THE GOOD

    check mark

    No medical exams

    check mark

    Strong financial stability

    check mark

    Instant quotes online

THE BAD

    X mark

    Very expensive rates

    X mark

    Low coverage amounts

    X mark

    Only a few policies

    X mark

    Need AARP membership

THE BOTTOM LINE

Meant for people ages 50 and up, AARP policies have no medical exam requirement, which is great if you’re a smoker, have a chronic condition, or have had trouble getting insured in the past. But you’ll pay higher-than-average premiums and receive only $100,000 in coverage (not a lot!). Only consider AARP for supplemental coverage if you can afford it.

Policy details

Availability of such options as term length and no-med-exam availability.

5.4

Price

Average monthly premium cost for a predetermined applicant profile and common health conditions.

1.0

Financial confidence

Consumer confidence based on scores from major financial rating institutions.

9.8

Third-party ratings

Satisfaction from consumer sentiment institutions and complaints to state insurance boards.

8.0

Customer experience

Ease of application, convenience, online tools, and availability.

7.5

All set to shop?

The details

The good

No medical exams required. None of AARP’s policies have a medical exam requirement. If you’re age 50 and above, and have had trouble applying for insurance in the past, you may want to look into AARP for life insurance.

Strong financial stability. AARP policies are backed by New York Life Company, which has some of the strongest financial stability ratings in the industry. You won’t have to worry about filing a claim with this company.  

Instant quotes online. AARP provides convenient, quick online quotes, which makes shopping comparisons very easy to do for curious customers.

The bad

Very expensive rates. AARP charges more for its life insurance. That wouldn’t be so unusual if there were policy perks or high coverage amounts to account for, but that’s not the case. 

Low coverage amounts. The coverage maximum for term life insurance with AARP is $100,000. That’s exceedingly low for most situations. And considering how high the premiums are, AARP is just not a very good value. 

Only a few policies. AARP has one very basic term life policy with one rider available. Your only other choices: a standard whole life policy and a guaranteed acceptance policy. Not much to choose from. 

Need AARP membership. To apply, you need to be a member of AARP. If you’re not a member, you can sign up while you apply, but you will have to pay extra membership fees at the start of your policy. 

The breakdown

Policy details

Availability of such options as term length and no-med-exam availability.

5.4

AARP offers four policies, all underwritten by New York Life Insurance Company. None of them require a medical exam, so if you’ve been having trouble getting approved for a policy with other carriers then AARP could be a solution for you. You only need to answer some medical-related questions on your application. 

The catch is, you need to be an AARP member to apply. As you’d expect with AARP, issue ages skew older: you need to be between 50 and 74. 

Term life insurance 

Level benefit term life insurance

This is a basic term life policy, but with smaller amounts of coverage than you’d get with other carriers. 

Policy FeatureLevel Benefit Term Life
Eligible ages50 to 74
Term lengthsTerms expire at age 80
Coverage minimum$10,000
Coverage maximum$100,000

Also, you can’t choose your term with AARP. Rather, your policy expires when you turn 80, no matter your age or when you applied. This could work out well if you’re 50, but if you’re 74 and you want something that will last longer you’ll need to look elsewhere. 

Another important thing to note with this policy is that premiums will increase as you reach a new five-year age band. So if you’re 64 and you reach the 65-69 age band, your monthly rates will see an increase. 

Available riders

There is one rider available for AARP policies: a terminal illness rider. If you have 24 months or less to live, you may access half of your benefit amount.

Policy conversion

You can convert your term life policy to a permanent one before age 80. 

Permanent life insurance

AARP permanent life details

A whole life policy that lasts, yup, your whole life with up to $50,000 in coverage. There’s no medical exam requirement and premiums are guaranteed to remain the same. To apply you just need to answer some health questions. There is also a cash value component that builds over time. 

Guaranteed acceptance life insurance details

There’s no medical exam or health questions for this policy, you’re guaranteed acceptance no matter what. Premiums are guaranteed to remain level, but you only get up to $25,000 in protection. 

Like the other AARP policies, that is an extremely low amount of coverage if you have large responsibilities to pay off such as a mortgage. It is possible to apply for higher amounts, but you’ll have to call New York Life Insurance Company.

Price

Average monthly premium cost for a predetermined applicant profile and common health conditions.

1.0

The following is based on a non smoking male applying for $100,000, the highest coverage amount AARP offers:

AgeYour term averageIndustry average
50s$116.00$152.23
60s$236.00$493.98
70s$342.00n/a

Industry average prices are based on the average of monthly premiums collected from Policygenius partners, based on $500,000 of coverage for a 20-year term length policy.

This is not a perfect apples-to-apples comparison given our industry average pricing is based on higher coverage amounts. Still, AARP is not offering the greatest value here. 

Take these prices, and consider how much you’d pay for such a small amount of protection compared to other carriers that offer $500,000 or more in coverage. Then factor in premiums that increase each time you enter a new five-year band. That’s a lot to pay for a little. 

We recommend that you look at our best carriers page to find a better fit than AARP.

Also check out the best life insurance companies for seniors.

Financial confidence

Consumer confidence based on scores from major financial rating institutions.

9.8

Founded in 1958, AARP is an advocacy group for people over the age of 50. They offer branded health and life insurance and other services through affiliated partners, such as New York Life insurance Company. 

The following scores, from notable credit agencies and financial analysis firms, are based on New York Life Insurance company, which underwrites AARP’s policies. Applicants should have no worries at all about filing claims with AARP since New York Life has some of the strongest financial ratings in the industry. 

  • A.M. Best: A++

  • Moody’s: Aaa

  • Standard & Poor’s: AA+

A.M. Best, a credit rating agency that focuses on the insurance industry, gives New York Life Company an A++ (effective October 3, 2020), which is the highest score a company can receive. 

Bond credit rating agency Moody’s also gives New York Life Company its highest rating, Aaa.  

Standard & Poor’s gives New York Life Company an AA+, its second-highest rating.

Third-party ratings

Satisfaction from consumer sentiment institutions and complaints to state insurance boards.

8.0

Similar to the financial stability ratings, we looked at what customers and third-party review sites have said about New York Life, which underwrites AARP’s policies. No one has anything that bad to say about the company, based on our findings. 

  • Consumers Advocate: 4.6 / 5

  • Consumer Affairs: 3.9 / 5

  • NAIC complaint index: 0.24 

Consumers Advocate gives New York Life an “excellent” 4.6 out of 5.

Consumer Affairs, a site that lets verified users review companies, gives New York Life a more-than-solid 3.9 out of 5.

The National Association of Insurance Commissioners (NAIC) tracks complaints sent to state insurance departments. Its complaint index measures how many people have complained, with a score of 0 meaning there weren’t enough to count, and a score of 1 representing the baseline average. New York Life has a score of 0.24 means the NAIC has received less complaints than average as compared to other companies.

Ready to shop for life insurance?

Start calculator

Customer experience

Ease of application, convenience, online tools, and availability.

7.5

AARP provides a decent amount of transparency on its website. You’ll find policy information, FAQs, and an online quote tool.

All other customer service options, from phone support to claims, are handled by New York Life. There are no 24/7 phone service or live chat options available. 

Application process

You can apply easily for most policies online. 

Turnaround time

Since there are no medical exam requirements, decisions should be faster than average. Still, it could take up to two to four weeks for underwriting to be completed. 

Policy delivery

Policies are delivered electronically or by mail.

More information

State availability

AARP provides life insurance via New York Life to its members nationwide.

Change method

AARP members can change addresses, manage beneficiaries, and adjust other information using the online customer service portal.

Payment methods

AARP members can make payments online through the customer service portal or over the phone.

Digital tools

AARP’s website has a handy online quote tool, online application, and online customer service site where members can make payments and manage their policies.

Claims documentation

You can file a claim online or by phone. The beneficiary needs to provide a fully completed claim form and certified death certificate.

Frequently asked questions

How does AARP offer life insurance?

AARP is a nonprofit organization that offers life insurance to its members through a partnership with New York Life Company. New York Life pays royalty fees to AARP for the use of its brand name and underwrites all policies, and handles claims.

Does AARP offer whole life insurance?

Yes, in the form of AARP Permanent Life and a guaranteed acceptance policy. These products last for the duration of your life and never expire so long as you pay premiums. They also have cash value components that build over time.

Can I borrow from my AARP life insurance?

Yes, if you have one of AARP’s whole life policies, it’s possible to take a loan against your cash value to help with any expenses. If you die before the loan is paid back, the loan amount and any due interest is deducted from the death benefit.

Does AARP offer online quotes?

Yes, you can find instant quotes online for most AARP life insurance policies. You just input your name, address, and other information and you get a quote back.

Author

Reviews Editor

Tim Torres

Reviews Editor

gray linkedin icon link

Tim Torres is a reviews editor at Policygenius, where he specializes in life insurance, homeowners insurance, auto insurance, and more. His work has also appeared in PC Mag, Tom's Guide, Tech Times, and elsewhere.

Questions about this page? Email us at .