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AARP Life Insurance | Benefits, Coverage Options & Costs

Overview

Losing a loved one unexpectedly is not only disturbing emotionally but it also affects the entire family financially. Life insurance can minimize the financial aspect of this demise by offering substantial assistance according to the insurance plan. AARP (American Association of Retired Persons) is one of many life insurance programs available in the USA. It provides services and products specifically for older adults. This blog will discuss the benefits, costs, coverage, and other aspects of AARP life insurance. 

What is AARP Life Insurance

AARP is a nonprofit organization serving people 50 and older. Through its numerous programs, it provides a wide range of services to its customers. One such service is AARP insurance for seniors. AARP provides reliable coverage to all members through clear policies regarding life insurance. 

AARP Life Insurance

AARP Life Insurance Plans

AARP is not limited to a single plan but provides several options to cater to the needs of various customers with distinct requirements. The following are the primary types of life insurance options available for its members:

1. Term Life Insurance

This insurance policy provides coverage for a specific period, generally ranging from 10 to 30 years. If the insured person dies during the insurance term, the policy ensures that his family members receive his death benefits. It is a more affordable life insurance policy than whole life insurance, making it a viable option for those with limited requirements. It is ideal for covering expenses such as mortgages or providing funds for children’s educational expenses. 

 

Insurance coverage generally benefits anywhere between $10,000 and $100,000. A benefit for insurers is that they can register for this policy without any medical exam if their age is between 50 and 74 years. If the insurer thinks during the program that the whole life insurance is more beneficial for him, then there is an option to convert it to your desired program. Alternatively, the program is also renewable for the insurer.

2. Whole Life Insurance

The policy’s main feature is that it provides lifelong coverage to its customers. Apart from paying a death benefit, this plan also increases cash value. The insurer can withdraw or borrow against this profit. This policy is ideal for those who want to cover their final expenses and leave an inheritance for the survivors. 

 

Coverage for the whole life insurance starts at $10,000. An important feature of this policy is that its premiums remain level during the entire period. The cash value is collected on a tax-deferred basis. 

3. Guaranteed Issue Life Insurance

Another key option for AARP members is the Guaranteed Issue Life Insurance. It is designed for those who have medical issues that prevent them from qualifying for other life insurance policies. People with pre-existing policies can apply and qualify for this policy because it does not require health questions or medical exams. 

The coverage amount for this insurance policy is between $5,000 and $25,000. A limitation of this policy is that beneficiaries receive death benefits two years after the natural death of the insurer.

AARP Life Insurance Benefits

Many older adults prefer AARP life insurance policies to its competitors due to its unique features. Following are the advantages that you can get by using their services: 

Competitive Rates

AARP is more affordable than many other similar policies. They ensure to provide competitive rates to their customers by working with insurers. Their rates are Comparatively lower than life insurance and most other insurance providers. This makes it an ideal and affordable choice for older adults to get their desired insurance policy without straining on their financial resources.

Flexible Options

Many insurance policies attract customers with similar requirements. AARP is different from such organizations due to a wider range of available options. Their coverage provides relief to customers of varying requirements. They have policies that provide coverage for those with limited and specific requirements and those requiring permanent coverage. 

Simple Procedure

AARP offers multiple registration options for its customers. Members can apply through a licensed agent, over the phone, and online according to their preference. The application process is also straightforward and free from legal and medical complexities present in applications of other insurance providers. 

Medical Exam

The biggest hurdle for older adults while applying for an insurance policy is medical exams. Aged people usually suffer from chronic conditions, and insurance companies made it mandatory for them to pass multiple medical exams before deciding premiums for their policies. Some companies may outright reject them after finding complexities in their medical checkups. AARP has no such condition for seniors even if they have health issues. This facility is available for all AARP insurance policies, including term and guaranteed issue options.

Discounts

AARP is not only affordable in the initial stages of the policy, but also provides relief during different stages through discounts. Members can take advantage of these discounts, making it more affordable even from those insurance policies that are economical in the beginning.

AARP Life Insurance Coverage

AARP offers multiple policies to its customers having different requirements. Therefore, it is necessary to know in detail about various options and their coverage. It assists in understanding these policies to select the best option. Following are the main points that give an idea of each major insurance policy:

Term Life Insurance Coverage

The policy length for this option is from 10 to 20 years. Members can choose three options of 10, 15, and 20 years. There is a wide difference in coverage amount and customers can take death benefits ranging from $10,000 to $100,000. After expiry, members have the option to renew. However, premiums after renewal are based on the age of the applicant. 

Whole Life Insurance Coverage

There is no limited time with this offer and members can get permanent coverage for as long as payment of premiums. The minimum amount for death benefit is $10,000. It is possible to receive higher amounts if necessary. A unique feature of this option is the accumulation of cash value. It can be used as an emergency fund at the time when additional sources are required. 

Guaranteed Issue Life Insurance Coverage

One limitation of this coverage is the application of a two-year waiting period if the insurer dies due to natural causes. However, there is no waiting period in case of an accidental demise. Members can receive coverage from $5,000 to $25,000. The biggest of this option is the absence of any health questions. Therefore, it is the only option for those who fail to qualify for other life insurance policies due to medical reasons. 

AARP Life Insurance Costs

AARP is a more suitable option than most life insurance policies due to their lower premium costs. However, the cost may be different for different persons and depend on factors, such as age, health, type of policy, and coverage amount. You can expect the cost of each policy through the following features of each policy: 

Guaranteed Issue Life Insurance Cost

This policy is for people with higher health risks as it offers services without medical underwriting. Therefore, its premiums are higher and may cost $100 to $200 per month for a 25,000 policy. The purpose of these higher rates is to minimize the risks due to the ill health of the insurer.

AARP Life Insurance

Steps to Apply for AARP Life Insurance

The process of applying for AARP life insurance is easier compared to other life insurance options. Its main features are:

Become a Member

The initial step for AARP registration is becoming a member. After becoming a member, you are eligible for various benefits, such as additional services, discounts, etc. 

Estimate your Requirements

AARP provides different options for individuals according to their requirements. Therefore, it is necessary to determine your suitable coverage before purchasing a policy. The factors that determine your needs include your financial status, outstanding debts, etc. After assessing your needs, compare different options and choose the policy that fulfills your requirements without putting unnecessary financial burden. 

Complete and Review the Application

After estimating your needs and choosing the appropriate policy, now complete the application accordingly. After completion, review it completely to check and correct any deficiencies. 

Conclusion

AARP life insurance has several advantages for older adults not present in other life insurance policies. It is easier to join for most people due to no requirement of medical tests, and competitive rates. They also provide multiple options for individuals to cater to the needs of a larger segment of society. 

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We Are Here To Help With Your queries !

Health Insurance
What are the unique features of AARP Insurance?

AARP is different from its competitors due to their specific features. They do not require medical exams for older adults, and there are multiple options to choose from according to your needs and financial position. 

Does AARP assist with Medicare?

 Yes, AARP offers Medicare plans for members and non-members. There are various plans and pricing options for individuals.

What are the features of AARP Reward?

AARP rewards its members for various daily activities. They may include answering various quizzes, physical exercise, playing fun games, etc. You can earn points by doing these simple activities.

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