Above all, it is so important to be sure that your Burial Insurance is with a great carrier that specializes in burial insurance. Also, to be with a carrier that is reputable and completely transparent.
As you know, AARP is a company that has been around for a long time, since the 1950’s, and they offer burial insurance to seniors.
Unfortunately for their clients, they do not have a very good burial insurance product, and it is overpriced. The fact of the matter is AARP life insurance rates are simply not worth the coverage you are getting. In fact, there are far better options out there.
Don’t just take my word for it, we will look at the facts in this article and uncover the quality of AARP’s life insurance for seniors in 2023.
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History of AARP
AARP is considered an Interest Group according to Wikipedia. In 1958, a woman by the name of Ethel Andrus, who was a retired teacher, founded AARP with Leonard Davis. Interestingly enough, Leonard went on to be the founder of the Colonial Penn Group of insurance companies.
Unfortunately, that may be some foreshadowing on the AARP burial insurance, but let’s continue.
It was formerly known the American Association of Retired Persons, and prides itself in being a community for seniors ages 50 and up. They assist seniors with insurance of all kinds, home, auto, life, and health. Additionally, they have member benefits like discounts, exclusivity. For example, flight discounts, cruise discounts, rental car discounts, etc.
Basically if you can think of it, you may get a discount as an AARP member.
While being a member has great perks, I personally do not believe that the Life insurance is one of them.
AARP Life Insurance in 2023
As mentioned above, one thing that AARP offers is insurance.
Whether it is home, auto, life or health, you can get covered with AARP. The question then becomes, “Should you?”.
There are Three types of life insurance that AARP offers. Those are Term, Guarantee Issue, and Simplified Issue. The last two options mentioned are whole life plans, while the term policy works similarly to a true term product.
These life insurance products are actually provided by New York Life. AARP outsources the insurance, and all of it is provided by NYL.
Above all, keep in mind that all of these products are simplified issue, or simplified underwriting. This means that no medical exams are required, only a prescription check and simple health reports ran.
First things first, Term life insurance for seniors is rarely the best position for them to be in. Term life insurance is mostly designed for younger folks in order to protect their families with Mortgage Protection.
AARP term insurance is different than your typical term. In my opinion, it is not worth a dime. This is not me being harsh on AARP, I believe this for all the companies that offer these types of “term” policies, including Globe Life.
You can get coverage from $10,000 up to $100,000. What most people don’t know, is that the price increases every 5 years, AND the policy will terminate the day you turn 80. Unfortunately, many AARP insureds simply don’t know this, and it is horrible on AARP’s part.
The strategy here is to advertise very low rates, while rushing over the details of how it increases every 5 years and then eventually terminates when you potentially need it the most. I don’t know about you, but I would be livid if my parent or grandparent or someone dear to me had this policy and wasn’t aware of these details.
Guarantee issue, or Guaranteed acceptance plans have become increasingly popular in the last several years. One of the most popular programs that uses this type of product is the infamous $9.95 Plan by Colonial Penn.
When you hear someone say they have, or maybe you even have, a plan that is “guaranteed issue”, that means there is a waiting period. The waiting period will vary by company/carrier, but most are two years. Oddly enough, some go up to 4 years before they will pay the full death benefit.
Understand first that if you are someone that has many health issues, this may be the right product for you! Keeping that in mind, I don’t often have clients that have to have a waiting period. 90% of my clients are able to qualify for day one, level coverage, and that is due to me representing the absolute best carriers in the nation.
With AARP’s guaranteed acceptance plan, you can get anywhere from $5,000 in coverage up to $25,000. However, if you pass away during the first two years of the policy due to natural causes, your beneficiary will only receive 110% of the premiums you have paid in.
Basically, they will get a refund plus 10%. Hopefully it is crystal clear now why I do everything in my power to not have my clients go through a waiting period.
AARP has a standard Simplified Issue policy, that is provided again by New York Life. Protection goes in effect immediately, and it is a pretty decent burial insurance product.
Unfortunately, it is just not priced correctly. In fact, with my top carriers, you would pay HALF of what you would as a 50 year old female with $10,000 in coverage. That is absolutely huge!
At retirement age, it is important to save money every way you can. Why pay more for life insurance when you can get a better product with a better company?
Coverage amounts are slightly different than the guaranteed issue plan, Simplified issue goes from $5,000 up to $50,000. Again, very common for a burial insurance product. Many of the products I offer go up to this amount.
Most importantly, these policies are no medical exam required, can be paid in a variety of ways including credit card and EFT.
The thing to remember for the simplified issue plans is while they look better than the guaranteed issue, most people do not qualify for the simplified plan. The underwriting at AARP is very strict, and they are known for sending people to Guaranteed Issue for minor health concerns.
AARP Burial Insurance
At Ark Burial Insurance, I focus solely on burial insurance for seniors.
Ultimately, that is what I want to inform you about. I won’t be talking much about the term product, as it is not worth the time or effort, and it is not something I believe deserves any attention whatsoever.
Let’s focus on the burial insurance.
Both the guaranteed issue and the simplified issue are pretty standard, nothing very flashy about it. The bottom line is that these products are very expensive, especially when compared to others.
For those that want to see for yourself, get a quote here on my site, then head to AARP’s website and get yourself a quote as well. You will see a tremendous difference.
While there are multiple reasons for this, the number one is the quality of both the carrier and the product. With companies like Mutual of Omaha, Aetna/CVS, Royal Neighbors, or Prosperity, they specialize in quality burial insurance for seniors. They have been around for over a hundred years and aren’t going anywhere anytime soon.
Don’t get me wrong, I don’t believe AARP is going anywhere either, but they have very different projects going on. My carriers specialize in burial insurance. You wouldn’t go to a general surgeon for your brain surgery would you? Of course not, or let’s hope not anyways!
Ultimately, you would find a Neuro surgeon who specializes in fixing your particular problem. This is no different. The problem my clients face is they are all going to die one day. The solution I offer is not to stop the death, but to prevent financial hardship on the family by offering high quality burial insurance, through reputable companies.
This is what sets me apart.
AARP Burial Insurance Rates
As I mentioned above, AARP life insurance rates are nothing to shake a stick at. In fact, some would say they are horrible, especially when compared to the top carriers offered here.
We are talking $10+ per month for Women for $10,000 at the age of 60. That difference grows bigger and bigger the older, and more coverage you get.
The story is similar for men, who are more expensive already. AARP life insurance advertises heavily, but unfortunately does not back it up when it comes to business.
Other Burial Insurance Rates
Here are some rates you can expect when considering burial insurance.
If you are curious about AARP life insurance rates, you can check out their site, or simply add $10 at least to these prices. That will most often be accurate.
Is AARP Good for You?
As a burial insurance expert, if you are looking at AARP life insurance for seniors, I can confidently tell you that there are far better options out there.
Most importantly, I want to see seniors getting great coverage at great prices, and with AARP’s life insurance rates, that is not going to happen with them. Do yourself a favor and shop with an independent national agent that specializes in burial insurance.
Look no further than right here. You can get a free quote, with no obligations whatsoever. In fact, you can even get a quote, fill out a pre-qualification questionnaire to see what you would qualify for.
Filling out the questionnaire will allow me to pinpoint the best carrier, and separate the fakers from the makers, as well as get you the best priced policy in the industry.
In closing, I believe it is most important to realize how many quality options there are for you. While I would love to have you as one of my clients to serve, I want you to get quality coverage at a great price.
Ultimately, that is what is most important.
As always, feel free to leave your questions and comments down below for me. I look forward to serving you and your family!