AARP No Medical Exam Term Life Insurance Review: Policy Details, Sample Rates, & How to Apply
last updated on March 30, 2021AARP, formerly called the American Association of Retired Persons, is a nonprofit organization with close to 38 million members. AARP’s primary focus is to improve the lives of Americans who are 50 years and older.
While their mission statement is impressive, it’s important to understand the details of the products and services that they offer. In this case, we’ll focus specifically on AARP’s Life Insurance Program.
The AARP Life Insurance Program is designed to offer a range of life insurance products to its members.
Important: AARP is not a life insurance carrier. Their life insurance policies are issued through New York Life Insurance Company. AARP’s term life insurance program offers Level Benefit Term Life Insurance.
Below, we will review the 5 key features of AARP’s no exam term life insurance, sample monthly rates, and how to apply, to help you determine if this policy is a good fit for you.
Table Of Contents
- About AARP and Their Financial Ratings
- AARP No Exam Term Life Insurance Program Review
- Other No Medical Exam Life Insurance Programs Offered By AARP
- How Much Does No Exam Life Insurance with AARP Cost?
- How to Apply for Life Insurance with AARP
About AARP and Their Financial Ratings
Presently, AARP is contracted with New York Life, a highly rated life insurance company. All life insurance policies are issued through New York Life Insurance Company.
New York Life currently holds an “A++” rating from A.M. Best.
Keep in mind, AARP only contracts with one life insurance company at a time. In other words, your life insurance options are very limited. AARP acts as a marketer for life insurance to the highest bidder (currently New York Life) for their program.
AARP can benefit those older than 50 years old through advocacy and member benefits.
You’ll want to research the best no physical life insurance companies before making a purchase.
No Physical Term Life is not affiliated with AARP. You may reach AARP at 1-800-850-2658.
AARP No Exam Term Life Insurance Program Review
Let’s take a look at some key details of AARP’s life insurance program.
1. AARP Only Contracts with One Life Insurance Carrier at a Time
When you purchase life insurance through AARP, your policy options are, to put it mildly, limited.
Presently, AARP contracts with New York Life Insurance Company (source). For sure, New York Life is a highly rated company.
New York Life’s financial strength ratings are impressive.
But, keep in mind: New York Life is paying AARP to be their exclusive life insurance carrier. Exclusivity is not ideal when shopping for life insurance.
What is ideal: Shopping multiple carriers to find the best policy at the best price to fit your needs.
2. AARP’s Term Life Insurance Issue Ages are from 50-74 Years Old
You must be between the ages of 50 – 74 to qualify for AARP’s life insurance. Spouses of AARP members can be between the ages of 45 – 74.
To compare, a number of no exam life insurance companies, such as Foresters and Phoenix Life Insurance, have issue age ranges of 18 – 80 years old.
Also, it’s important to understand that AARP’s life insurance coverage always ends at 80 years old.
3. AARP’s Policy Amounts Range from $10k – $100k
AARP offers policies that range between $10,000 – $100,000.
Keep in mind, a cap of $100,000 is small compared to other carriers.
Additionally, AARP’s term life insurance is not ideal for end-of-life expenses (funeral, medical bills) because your coverage is guaranteed to end at age 80.
4. Your Policy Rates will Increase Every 5 Years
Unlike most term life insurance policies, AARP’s policy rates increase every 5 years.
The policy name, Level Benefit Term Life Insurance, is important to pay attention to. Wording matters.
What we mean: It is only the benefit (the amount your beneficiaries receive should you pass away during the length of your policy) that remains the same amount.
Your premiums (the amount you pay in exchange for your life insurance policy) increases every 5 years.
It’s important to look at a specific example to grasp how this impacts your pocketbook:
If you purchase a policy at age 50, by the time you reach age 70, you will be paying over four times the amount in premiums for the policy that remains the same size (in this case, $100,000).
5. AARP Does Not Require a Medical Exam
In fact, their underwriting process is quite simple. You will be asked 3 health questions to determine if you qualify:
- In the past 2 years have you had treatment for or been diagnosed by a doctor as having cancer, lung disease or disorder, diabetes, liver or kidney disease, AIDS, AIDS Related Complex, stroke, immune system disorder, or heart trouble?
- In the past 2 years, for any condition, have you been admitted to or confined in a hospital, sanitarium, nursing home, extended care, or special treatment facility?
- In the past 3 months, have you consulted a doctor or had treatment or diagnostic tests of any type?
*Underwriting health questions are subject to change.
AARP’s underwriting process, just 3 health questions, is simpler than most no exam life insurance carriers’ process.
Additionally, New York Life will review records from public databases (this is standard procedure):
- Driving record
- Pharmacy database
- Medical Information Bureau (records of previous insurance applications)
They do not require:
- Needles
- Nurses
- Liquid samples
Keep in mind – Plenty of carriers offer no medical exam life insurance – be sure to know your options.
Other No Medical Exam Life Insurance Programs Offered By AARP
In addition to their term life program, AARP offers three other life insurance products. Availability does vary by state:
AARP Permanent Life Insurance
- Up to $50,000 of permanent group life insurance
- No medical exam
- Acceptance is based on your health question answers
- Your rates will not increase
- Eligible to AARP members, 50 – 80 years old (spouses 45 – 80 years old)
AARP Guaranteed Acceptance Life Insurance
- Up to $25,000 of permanent group life insurance
- No medical exam
- Guaranteed acceptance – no health questions
- Limited benefits for the first two years
- Eligible to AARP members, 50 – 80 years old (spouses 45 – 80 years old)
AARP Young Start Life Insurance
- Give a child or grandchild up to $20,000 of life insurance
- Permanent life insurance
- No medical exam
- Acceptance based on health questions
- Eligible to AARP members, 50 – 80 years old for child or grandchild, up to age 17
Keep in mind – Permanent, guaranteed acceptance and baby life insurance (child) products are offered by many life insurance companies. It’s highly recommended you consider multiple carriers before purchasing a policy.
How Much Does No Exam Life Insurance with AARP Cost?
Let’s look at some sample quotes from AARP to compare their prices.
Monthly premium rates for a male for $50,000 in coverage:
Monthly premiums for females for $50,000 in coverage:
Important – Premium rates are significantly lower with other top-rated life insurance carriers. See our instant quotes.
Additionally, other carriers offer level premium term life insurance policies – meaning that the amount you pay for your life insurance policy will not increase.
Senior citizens, in particular, should consider all types of life insurance for seniors before making a purchase.
How to Apply for Life Insurance with AARP
AARP is a strong advocate for senior citizens. However, you need to think twice about the life insurance program they offer.
In order to purchase the best life insurance policy you qualify for, do two things:
- Partner Up – This is most important. You need an expert independent agent to collaborate with. An independent agent is not held captive to a particular life insurance company. That way, your best interest is at heart and you will have access to all the top non-med life insurance carriers.
- Prepare – Be ready to communicate effectively during the application process. This means writing down information about your medical history, medications, and lifestyle so that your answers are readily available.
