Written by Anthony Martin Fact Checked by Jeff Root & David Duford
Anthony Martin
Anthony Martin is a nationally licensed insurance expert with over ten years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
Jeff Root
Jeff Root is a nationally licensed life insurance expert with over 15 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
David Duford
David Duford is a nationally licensed insurance expert with over ten years of experience. He has personally helped more than 1500 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
Fact Checked
This article has been thoroughly reviewed by the author and third-party life insurance experts to ensure it adheres to our quality standards for accurate and honest advice.
Learn more about our editorial standards.
|
4 minute read
|
|
4 minute read
|
As a licensed insurance agency, Choice Mutual is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.
Editorial Disclosure
Our mission is to provide credible content written and fact-checked by verifiable experts to educate consumers like yourself. All content is regularly updated and reviewed to ensure the highest degree of accuracy. We do earn a commission from the sale of insurance products seen on this website. That said, our evaluations, commentary, opinions, and recommendations are not influenced by monetary gain. We always suggest what’s best for each customer rather than what makes us the most money.
Learn more about our editorial standards.
Compensation Disclosure
As an independent insurance agency, Choice Mutual gets paid a commission from our insurance partners every time we sell a policy. Without us, the insurance companies would not have a customer. Your policy does not cost more because we helped you, and our advisory services cost you nothing. The exact amount we get paid for each sale varies depending on the applicant’s age, health, and the specific product applied for. We never recommend products based on which one pays us the most. We suggest products based on the needs and desires of the applicant. It’s also worth noting that we pay our sales agents a salary rather than on a commission-only basis. Choice Mutual does not earn money via selling sales leads or data to third parties, referring users to other websites, displaying ads on our website, or other means.
Learn more about how we make money and other FAQs.
Licensing Disclosure
Choice Mutual is a licensed insurance agency authorized to sell insurance in all 50 U.S. states, including D.C. You can verify our license and lines of authority on our licenses page.
Check Prices
Overall Score
Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:
| Factor | Score Value |
| Price of Coverage | 40% |
| No-Waiting-Period CoverageNo Waiting Period | 20% |
| Financial Strength | 20% |
| NAIC Complaint Index | 20% |
| Overall Maximum | 100% |
Our ratings are tested with scoring model 1.1, a review formula that ensures consistency and accuracy in our assessments.
3.25 out of 5
Rating methodology
3.0
Price of Coverage
Price of Coverage
40% of overall score
Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:
- 50-5% more expensive
- 46-10% more expensive
- 311-20% more expensive
- 221-30% more expensive
- 1≥ 40% more expensive
Download price audit
2.0
No-Waiting-Period CoverageNo Waiting Period
No-Waiting-Period Coverage
20% of overall score
This scoring factor assesses whether an insurer offers coverage with no waiting period and, if so, how difficult it is to qualify for it. If an insurer does not provide coverage with no waiting period, it gets an automatic 1. A score from 2 to 5 indicates that immediate coverage is possible, and the higher the rating, the easier it is for the average applicant to qualify for it.
- 5Most applicants qualify
- 4Fairly easy qualification
- 3Somewhat difficult qualification
- 2Very difficult qualification
- 1No-waiting-period coverage unavailable
5.0
Financial Strength
Financial Strength
20% of overall score
Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:
- 5Superior (A+ or A++)
- 4Excellent (A- to A)
- 3Fair/Good (B- to B++)
- 2Weak/Marginal (C- to C++)
- 1Poor (D or Not Rated)
5.0
NAIC Complaint Index
NAIC Complaint Index
20% of overall score
The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:
- 50.0 - 1.0 (avg or below avg complaints)
- 41.01 - 1.5 (slightly above avg complaints)
- 31.51 - 2.0 (up to 2x avg complaints)
- 22.01 - 3.0 (up to 3x avg complaints)
- 1≥ 3.01 (more than 3x avg complaints)
Rating methodology
The AARP Life Insurance Program consists of three types of coverage for seniors- term life, whole life, and guaranteed acceptance whole life, all of which don’t require a medical exam. For some seniors, AARP is an excellent place to buy life insurance. However, other insurance companies usually offer lower prices and better terms.
Check Prices
Pros
- All policies are underwritten by New York Life, which is an exceptionally strong insurer with an A++ rating.
- Term plans are convertible to permanent coverage at any time.
- Online application and quotes.
Cons
- Prices are often more expensive compared to other insurance companies.
- Term life policies have a rate increase every five years.
- Getting coverage with no waiting period is very difficult if you have prior health issues.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).
S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).
Customer Review Ratings
Consumer Protection Organization Scores
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
A+
Not Accredited
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
Policy Type
Whole Life
New Applicant Age Range
50-80
Death Benefit Options
$5,000-$50,000
States Where Available
All
Builds Cash Value
Yes
Has Health Questions
Yes
2-Year Waiting Period
No
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Terminall Illness Rider
No
Policy Type
Whole Life
New Applicant Age Range
50-80
Death Benefit Options
$5,000-$25,000
States Where Available
All
Builds Cash Value
Yes
Has Health Questions
No
2-Year Waiting Period
Yes
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Policy Type
Term Life
New Applicant Age Range
50-74
Death Benefit Options
$10,000-$150,000
States Where Available
All
Builds Cash Value
No
Has Health Questions
Yes
2-Year Waiting Period
No
Medical Exam Required
No
Age When Policy Expires
80
Prices Increase
Every 5 years
Ethel Percy Andrus and Leonard Davis founded AARP in 1958 as an interest group to advocate issues affecting seniors. Despite popular belief, AARP is not an insurance company. Instead, AARP has exclusive partnerships with insurance companies (for example, New York Life underwrites all AARP life insurance plans) to offer their members access to various types of insurance. AARP gets a kickback from their insurance partners every time an AARP member buys a policy.
Founding Year
1841
Official Website
www.newyorklife.com
Headquarters
51 Madison Ave New York, NY 10010
Phone Number
800-225-5695
AARP Life Insurance Policies
AARP life insurance policies are underwritten by New York Life. You can see instant life insurance quotes and apply online for all their policies directly on the New York Life AARP website.
Guaranteed issue
The guaranteed acceptance whole life policy does not require answering health questions. Because your approval is guaranteed, there is a 24-month waiting period. If you die of natural causes during the waiting period, New York Life will only refund 110% of your premiums.
Permanent whole life
The permanent whole life policy has “simplified underwriting,” meaning that while you don’t have to take an exam, you must answer health questions that determine your eligibility. If you’re approved, there is no waiting period. Additionally, you can get this policy with living benefits at a small additional cost. It would allow you to receive up to 50% of the death benefit if you develop a chronic illness that lasts 90 days or more.
Term life
The term life insurance policy lasts until you’re 80 years old. At that point, the policy terminates, and you’re no longer insured (you don’t get your money back). However, while the policy is in force, the premium will rise every five years. There’s no exam to qualify, but you do have to complete a health questionnaire.
Pros & Cons Of AARP Life Insurance
The Good
- Online application and quotes: You can see prices and fully apply online for all their products.
- No exam: No type of life insurance with AARP requires a medical exam.
- Guaranteed acceptance option: They have a guaranteed issue whole life policy if you have dire health issues or prefer not to answer health questions.
- Offers term and whole life: Whether you want term or whole life, they have both options.
- Small coverage amounts: You can buy coverage for as little as $5,000 or $10,000, which is great if you only need coverage for funeral costs.
- Term is convertible: Their term policy includes the guaranteed option to convert to whole life at any time.
- Backed by New York Life: AARP life insurance is underwritten by New York Life, which is the nation’s largest mutual insurer.
- Available in all states: Their policies are available throughout the USA.
- Paid up at 95: AARP permanent life insurance coverage is paid up at 95. That means you don’t have to make additional life insurance premiums, and your policy remains active. With most other companies, you have to pay until 100 or 120.
The Bad
- Term life isn’t ideal for funeral coverage: Term life is the primary product AARP promotes for final expense insurance coverage. A term policy is not suggested (even though it’s cheaper) because it expires at age 80, leaving seniors uninsured and unable to cover their funeral expenses.
- Prices are not competitive relative to other insurers: AARP’s life insurance policies are more expensive than many other life insurance companies.
- Tough to qualify for: Their term and permanent life insurance policies with health questions seem to decline applicants with pre-existing medical conditions common among seniors.
- Low coverage maximums: $150,000 is the most you can buy for term life. For whole life, $50,000 is the highest they offer.
- You must be an AARP member: If you want to buy life insurance through AARP, you must pay the membership fee ($16 per year).
- Term life prices rise every five years: Their term life insurance has a price increase every five years. Most other term life plans from other providers cost less per month and have a fixed rate.
- No options under age 45: If you need life insurance and are under 45 years old, AARP has no options. For example, they don’t offer any life insurance for children or young adults.
- No options above age 80: If you need life insurance for a senior over 80, AARP cannot help you.
How Much Does AARP Life Insurance Cost?
AARP life insurance prices vary greatly based on which product you choose. For example, a healthy, nonsmoking 65-year-old male seeking $25,000 in coverage will pay a monthly rate of $67 for term life, $158 for permanent whole life, and $225 for guaranteed acceptance.
The exact cost depends on your age, health, coverage amount, and which type of policy you buy.
Guaranteed acceptance
| Age & Gender | $10,000 | $25,000 |
|---|---|---|
| Female age 50 | $45 | $110 |
| Male age 50 | $59 | $88 |
| Female age 55 | $52 | $129 |
| Male age 55 | $69 | $169 |
| Female age 60 | $60 | $147 |
| Male age 60 | $80 | $199 |
| Female age 65 | $72 | $177 |
| Male age 65 | $91 | $225 |
| Female age 70 | $87 | $215 |
| Male age 70 | $108 | $268 |
| Female age 75 | $100 | $248 |
| Male age 75 | $123 | $306 |
| Female age 80 | $112 | $278 |
| Male age 80 | $145 | $360 |
| Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/01/2024. | ||
Whole life
| Age & Gender | $10,000 | $25,000 |
|---|---|---|
| Female age 50 | $24 | $55 |
| Male age 50 | $33 | $77 |
| Female age 55 | $30 | $68 |
| Male age 55 | $42 | $99 |
| Female age 60 | $36 | $83 |
| Male age 60 | $50 | $118 |
| Female age 65 | $47 | $109 |
| Male age 65 | $62 | $150 |
| Female age 70 | $62 | $148 |
| Male age 70 | $81 | $196 |
| Female age 75 | $79 | $193 |
| Male age 75 | $100 | $246 |
| Female age 80 | $92 | $225 |
| Male age 80 | $122 | $301 |
| Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/01/2024. | ||
Term life
| Age Bracket & Gender | $10,000 | $25,000 |
|---|---|---|
| Female 50-54 | $11 | $18 |
| Male 50-54 | $14 | $26 |
| Female 55-59 | $13 | $22 |
| Male 55-59 | $18 | $36 |
| Female 60-64 | $17 | $32 |
| Male 60-64 | $24 | $50 |
| Female 65-69 | $21 | $44 |
| Male 65-69 | $31 | $67 |
| Female 70-74 | $33 | $74 |
| Male 70-74 | $42 | $95 |
| The monthly price increases every time you enter a new age bracket. Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/26/2024. | ||
Should You Buy The AARP Life Insurance Program?
AARP final expense life insurance products are generally not the best option for most seniors. The primary drawback is that they are more expensive than many other insurance providers. Yet, there are some ages for which AARP has excellent rates. For example, their prices are typically the lowest if you’re 75-80 years old.
Aside from the rates, seniors with prior health issues will find it very challenging to qualify for coverage with no waiting period.
Ultimately, if you need life insurance for a senior, you can likely get lower prices and no waiting period coverage from many other life insurance companies such as Mutual of Omaha, Alfac, Aetna, and many others.
Use the quote tool on this page to compare AARP’s rates against the best final expense insurance companies.
Frequently Asked Questions
Generally speaking, AARP offers life insurance for seniors that is pricely fairly. If you’re looking for quick coverage that you can buy online without taking an exam and don’t mind paying a premium for it, then AARP life insurance would be a good option. However, seniors can secure lower prices without an exam with many other life insurance companies. Besides the rates not being the lowest, seniors with pre-existing conditions will find it challenging to qualify for immediate coverage with AARP, whereas other providers would accept them.
AARP offers term life insurance where the price increases every five years and lasts until age 80. They also offer two types of whole life insurance- a “simplified issue” option with health questions and a guaranteed acceptance option with no health questions.
AARP’s term life policy ends on your 80th birthday. They also have two types of whole life insurance, both of which last forever.
AARP is not an insurance company. AARP is a senior advocacy group that markets various insurance products to its members. For example, all life insurance products from AARP are actually underwritten and issued by New York Life.
Article Sources
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
- New York Life AARP website. https://www.nylaarp.com/
- AARP whole life insurance. https://www.nylaarp.com/life-insurance/permanent
- AARP guaranteed issue. https://www.nylaarp.com/life-insurance/guaranteed-life
- costs $16 per year. https://www.aarp.org/membership/cost-of-membership.html
- Ethel Percy Andrus. https://www.aarp.org/about-aarp/history/ethel-percy-andrus-biography/
- Leonard Davis. https://www.aarp.org/about-aarp/history/aarp-founding-days.html
- types of insurance. https://www.aarp.org/membership/benefits/insurance/
- New York Life. https://www.newyorklife.com/about
- living benefits. https://www.nylaarp.com/life-insurance/permanent-living-benefits
- term life insurance. https://www.nylaarp.com/life-insurance/term/protection
- A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?ambnum=6820&AltNum=17026820
- Moody's. https://www.moodys.com/research/null-Moodys-affirms-Aaa-ratings-of-Northwestern-Mutual-and-New-York-Rating-Action--PR_1000008574#RATINGS-RATIONALE
- S&P Global. https://www.newyorklife.com/newsroom/Company-strength-ratings-affirmed-2023
- BBB. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
- Trustpilot. https://www.trustpilot.com/review/www.newyorklife.com
- Google. https://www.google.com/search?client=firefox-b-1-d&sca_esv=193f1ef4569f6575&sca_upv=1&q=New+York+Life+Insurance+Company&ludocid=11889585487692568853&lsig=AB86z5V1SwFA1nblUCqKyU6DWO4G&sa=X&ved=2ahUKEwjIj8qA3vyGAxXHATQIHSpwC4YQoAJ6BAglEAw&biw=1920&bih=878&dpr=1#lrd=0x89c258e913690e0f:0xa5004b01e08e1915,1,,,,
- Yelp. https://www.yelp.com/biz/new-york-life-insurance-company-new-york-2
- Facebook. https://www.facebook.com/newyorklife/reviews
- NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=91596&REALM=PROD&COCODE=91596&REALM=PROD
- BBB Score & Accreditation. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
Have some questions?
Ask the community network!
Use the fields below to post a question directly to our forum and get answers from verified experts and fellow consumers. You can also visit the forum to explore all final expense insurance discussions — or maybe answer a question yourself.
Suggested Articles For You
Leave a Message
We’re always happy to offer our guidance.
Fill our the form and we’ll contact you shortly.
By pressing "Submit" you agree to our privacy policy and consent to have a Choice Mutual agent contact you by email, phone call, text/SMS message at the phone number and email you provide. Consent isn’t a condition to purchase our products.
