Life insurance is an important part of any financial plan. It provides peace of mind that your family will be taken care of in the event of your passing. AARP offers several life insurance policies to suit your specific needs. In this article, we’ll discuss AARP life insurance, how it works, and what you need to know before making a purchase.
What is AARP Life Insurance?
AARP (formerly known as the American Association of Retired Persons) is a nonprofit organization that provides services to adults over the age of 50. They offer several products and services, including life insurance. AARP’s life insurance policies are provided by New York Life Insurance Company, one of the largest and most trusted life insurance carriers in the United States. AARP offers term life insurance, which provides coverage for a set period of time, as well as whole life insurance, which covers you for your entire life.
What Type of Coverage Does AARP Life Insurance Provide?
AARP offers term life insurance policies that provide coverage for a set period of time, typically 10, 15, 20, or 30 years. The amount of coverage you can purchase depends on your age and health. Whole life insurance policies are also available, which provide coverage for your entire life. Whole life policies also provide a cash value that can be used for retirement income or to cover unexpected expenses.
What are the Benefits of AARP Life Insurance?
AARP life insurance offers several benefits, including:
- Affordable rates: AARP life insurance policies are competitively priced, making them more affordable than other life insurance policies.
- Flexible coverage: AARP offers a wide range of coverage options to fit your needs.
- Guaranteed acceptance: AARP life insurance policies are available to anyone over the age of 50, regardless of health or medical history.
- No medical exam required: Unlike other life insurance policies, AARP life insurance policies do not require a medical exam.
- Cash value: Whole life policies offer a cash value that can be used for retirement income or to cover unexpected expenses.
What are the Disadvantages of AARP Life Insurance?
While AARP life insurance offers several benefits, there are some drawbacks to consider. These include:
- Limited coverage options: AARP life insurance policies only offer term or whole life insurance.
- High premiums: AARP life insurance policies can be more expensive than other life insurance policies.
- Age restrictions: AARP life insurance policies are only available to those over the age of 50.
- No return of premium: Unlike other life insurance policies, AARP life insurance policies do not offer a return of premium if the policyholder outlived the coverage period.
How Much Does AARP Life Insurance Cost?
The cost of AARP life insurance depends on several factors, including the type of policy, coverage amount, age of the policyholder, and health. Generally, AARP life insurance policies are more expensive than other life insurance policies. However, the cost of AARP life insurance policies is still competitive compared to other life insurance policies.
Is AARP Life Insurance Right for You?
AARP life insurance is a good option for those over the age of 50 who are looking for an affordable life insurance policy. It offers several benefits, including flexible coverage options, guaranteed acceptance, no medical exam required, and cash value. However, it also has some drawbacks, such as limited coverage options, high premiums, age restrictions, and no return of premium. Ultimately, it’s up to you to decide if AARP life insurance is right for you.