AARP Burial Insurance Review 2021: Is This Your Best Option?

AARP Burial Insurance Review
AARP Burial Insurance Review 2021: Is This Your Best Option?

Disclaimer: Willamette Life is a direct competitor of New York Life. This post is written to help you make a purchasing decision and to understand your options better.

AARP & New York Life Insurance Logo

Almost every senior has received a promotional letter in the mail about products to cover funeral costs and why it’s a good option.

There are different types of policies marketed to seniors as a way to pay for funeral expenses.

Having a solid foundation and learning about burial insurance policies types will allow every senior to make an informed purchasing decision.

AARP burial plans, in particular, will flood your mailbox with offers and “deals” to pay for final bills and funeral expenses.

AARP Burial Insurance Review 2021

AARP has partnered with New York Life. The actual insurer is a third-party company (New York Life Insurance) but is endorsed by AARP.

Only AARP members have access to these specific New York Life Insurance products.

New York Life is a well-respected, A+ financially rated company, meaning that they are stable and will pay the claim when the policyholder passes away.

Company Details

  • Established: 1845
  • A.M. Best Finacial Rating: A+ (superior)
  • Headquarters: New York City, New York

Plan Types

There are three policies offered to AARP members.

  • Plan 1: Level Benefit Term
  • Plan 2: Permanent
  • Plan 3: Easy Acceptance

Level Benefit Term

Plan 1: Level Benefit Term Life Insurance

This is a term life product that will have affordable monthly premiums initially, but over time these payments will increase, and coverage will ultimately terminate.

This is the flagship insurance policy that New York Life offers to AARP members.

Level Benefit Term Life Insurance Plan Facts

  • Age Eligibility: 50 – 74
  • Coverage Amounts: $10,000 – $100,000
  • State Availability: All 50
  • Medical Exam: No
  • Health Questions: Yes
  • Waiting Period: No
  • Policy Terminates: At Age 80
  • Increasing Premiums: Yes (See Age Bands)
  • Builds a Cash Value: No
  • Smoking Rates: Yes
  • Access to Coverage: AARP Members Only

Policy Terminates at 80

With all term policies, your coverage will eventually end. This product terminates at the age of 80.

Statistics show that this coverage option can leave families financially vulnerable.

  • Females in the United States, on average, live until 81.2
  • Males in the United States on average live until 76.2

Ultimately the policyholder is betting that they will not outlive their coverage.

For this reason, the AARP Level Benefit Term plan did not make our best burial insurance companies list.

Price Raises Every 5 Years

This term policy’s price will increase every five years, and eventually, you may not be able to afford it.

There are obvious reasons to be skeptical when buying a term product for your funeral expenses that increases the price.

AARP Price Chart

AARP Term Life Insurance Rates

The term plan has two unique factors that are not common in other burial insurance plans.

Age Bands: This is the age bracket that policyholders are placed in. Each bracket lasts approximately five years. Once you age into the next bracket, your monthly price will surge.

This process will repeat itself until you reach the age of 80. Once you have reached that age, your policy will cancel altogether.

Restriction Ages 74-79: You cannot obtain initial coverage once you are over the age of 74.

Female

Monthly Premiums

Age $25,000 $50,000 $100,000
50-54 $18 $29 $52
55-59 $22 $38 $69
60-64 $32 $58 $108
65-69 $44 $81 $154
70-74 $74 $141 $272
75-79 $74 $141 $272
80 Plan Terminates Plan Terminates Plan Terminates

Male

Monthly Premiums

Age $25,000 $50,000 $100,000
50-54 $26 $45 $79
55-59 $36 $65 $116
60-64 $50 $94 $171
65-69 $67 $128 $236
70-74 $95 $184 $342
75-79 $95 $184 $342
80 Plan Terminates Plan Terminates Plan Terminates

Health Questions for Level Benefit Term Life Insurance

AARP term life insurance for seniors has a series of health questions.

In the Past 12 Months, Have You:

  1. consulted a doctor or medical professional, or had treatment or diagnostic tests of any type (exclude routine annual physical and HIV when answering)?
  2. needed help from a person or device to independently walk, bathe, or dress?
  3. taken or been prescribed any medications?

In the Past 5 Years, Have You:

  1. been admitted to or confined in a hospital, nursing home, extended care, or special treatment facility?
  2. received in-home medical therapy or assistance?
  3. had treatment or medication, or been diagnosed by a doctor or medical professional as having any of the following?
  • Heart Trouble Cancer
  • Drug or Alcohol Abuse
  • Liver Disease
  • Immune System Disorder (excluding HIV)
  • Stroke
  • Diabetes
  • Requiring Insulin
  • Asthma and/or COPD
  • Kidney Disease
  • AIDS

For every question answered “Yes,” you will be asked to provide details, such as: condition(s), date(s) of onset, treatment, medicine and dosage.

Permanent Life Insurance

Plan 2: Permanent Life Insurance

The Permanent plan from New York Life and AARP is a standard final expense and burial insurance product, offering immediate coverage for those who qualify.

AARP Permanent Life Insurance Plan Facts

  • Age Eligibility: 50 – 80
  • Coverage Amounts: $5,000 – $50,000
  • State Availability: All 50
  • Medical Exam: No
  • Health Questions: Yes
  • Waiting Period: No
  • Policy Terminates: No
  • Increasing Premiums: No
  • Builds a Cash Value: Yes
  • Smoking Rates: Yes
  • Access to Coverage: AARP Members Only

Price Never Increases

Determining how much burial insurance costs is straightforward and easy to understand. Policyholders make their monthly premium payments, and the price will never change. This will help any senior on a fixed income budget for monthly expenses with no surprise rate increases.

Coverage Never Expires

Your death benefit will never decrease or expire. This feature is one of the most important when looking into a burial insurance plan. Having complete financial certainty is important to leave loved ones the resources needed.

Immediate Coverage

Day one coverage protects the policyholder immediately. Every applicant should attempt to secure immediate coverage. However, the AARP plan is at a higher price point than other immediate coverage options.

AARP Whole Life Insurance Rates

The rates listed are permanent and will never change. The oldest age someone can receive initial coverage is 80.

Female

Monthly Premiums

Age $10,000 $15,000 $20,000
45 NA NA NA
50 $25 $37 $49
55 $30 $45 $59
60 $37 $54 $72
65 $47 $70 $93
70 $63 $94 $124
75 $81 $121 $161
80 $100 $149 $198
85 NA NA NA

Male

Monthly Premiums

Age $10,000 $15,000 $20,000
45 NA NA NA
50 $33 $48 $64
55 $41 $61 $80
60 $48 $72 $95
65 $61 $91 $120
70 $79 $117 $156
75 $98 $146 $194
80 $123 $184 $245
85 NA NA NA

What are the Three Health Questions for AARP Life Insurance?

Listed below are the three medical questions that will be asked of applicants.

  1. In the past 3 months, have you consulted a medical professional or had treatment, medication or diagnostic tests of any type? (Note: You are not required to report negative AIDS or HIV tests.)
  2. In the past 2 years, for any condition, have you been admitted to or confined in a hospital, nursing home, extended care or special treatment facility?
  3. In the past 2 years, have you had treatment or medication for, or been diagnosed by a medical professional as having any of the following?
  • Stroke
  • Diabetes Requiring Insulin
  • Drug or Alcohol Abuse
  • Liver Condition
  • Heart Condition
  • Cancer
  • Immune System Disorder
  • Lung Condition
  • Kidney Condition
  • HIV or AIDS

Easy Acceptance

Plan 3: Easy Acceptance Life Insurance

This is a guaranteed acceptance whole life product that asks no health questions and accepts every applicant. Guaranteed acceptance will allow you to secure permanent coverage, but a two-year waiting period will be enforced with this plan.

AARP Guaranteed Acceptance Life Insurance Plan Facts

  • Age Eligibility: 50 – 80
  • Coverage Amounts: $2,500 – $25,000
  • State Availability: 48 States (excluding NJ & WA)
  • Medical Exam: No
  • Health Questions: No
  • Waiting Period: 2-years
  • Policy Terminates: No
  • Increasing Premiums: No
  • Builds a Cash Value: Yes
  • Smoking Rates: No
  • Access to Coverage: AARP Members Only

No Medical Qualifications for AARP Easy Acceptance Life Insurance

The Easy Acceptance plan has no medical underwriting. As long as the applicant has not been diagnosed with a terminal illness that gives the senior less than two years to live, approval is guaranteed.

Price and Coverage is Locked In

The price will never rise as long as you keep the policy in force by paying your monthly premiums.

Also, coverage will never decrease or terminate. This will allow families to be prepared for inevitable funeral costs.

Two Year Waiting Period

This means that your coverage will only be paid out in full if you die two years or more after the policy issue date. This can be problematic for many families counting on the death benefit to help cover burial expenses.

If the policyholder dies in the first two years of the plan issue date, the payout will depend on how the death occurred.

Natural Death: If you were to die of natural causes in the first two years, the carrier would refund the premiums paid plus 25% to your beneficiary.

Accidental Death: If you were to die of accidental death in the first two years, the entire policy’s face amount would be paid to your beneficiary.

AARP Easy Acceptance Rates

These rates will be higher than the AARP Permanent Life Insurance plan. This is due to no medical questions being asked and the higher risk for the insurance company.

Female

 Monthly Premiums

Age $10,000 $15,000 $20,000
45 NA NA NA
50 $43 $64 $85
55 $50 $74 $99
60 $57 $85 $113
65 $69 $102 $136
70 $83 $124 $165
75 $96 $143 $190
80 $107 $160 $213
85 NA NA NA

Male

 Monthly Premiums

Age $10,000 $15,000 $20,000
45 NA  NA NA
50 $33 $48 $110
55 $64 $95 $126
60 $75 $112 $148
65 $85 $126 $168
70 $101 $150 $200
75 $115 $171 $228
80 $135 $201 $268
85 NA NA NA

Common Questions About AARP Final Expense Insurance

Listed below are common questions about AARP burial insurance for seniors.

Is AARP Life Insurance Reputable?

AARP is not a life insurance company. They contract with a life insurance provider that then uses the AARP brand name for marketing their products. Currently, New York Life life insurance company is the carrier that AARP endorses. As a leader in the senior information market, this brand name carries weight.

Is AARP Life Insurance for Seniors a Good Idea?

The Level Benefit Term plan is not a good idea for seniors planning their final expenses due to the consistent rate increases and eventual termination. AARP Permanent Life Insurance is a more expensive option when compared to other whole life funeral insurance policies. Easy Acceptance lags far behind compared to other guaranteed issue plans on the market due to its cost.

Does AARP Offer Burial Insurance?

AARP partners with life insurance companies to offer financial products. The company that uses the AARP name to sell its products is the New York Life Insurance Company. Within this partnership, 3 policies are offered, with the most marketed being the Level Benefit Term plan.

What is the AARP Burial Insurance Phone Number?

The number to contact is 800-607-6957. This will direct you to the AARP Life Insurance Program from New York Life.

Does AARP Offer Final Expense Insurance?

AARP and New York Life Insurance have a partnership. AARP allows the life insurance company to use its name and branding. AARP does not specifically offer final expense insurance coverage, but its partner does.

Is AARP Life Insurance Over 90 an Option?

The oldest age that the New York Life Insurance Company will approve is 80. Other funeral insurance companies, like Aetna, will cover applicants until the age of 89. Applicants over the age of 90 will not receive funeral insurance coverage from AARP.

Are AARP Life Insurance Reviews Good?

AARP and New York Life Insurance Company are both reputable brands. However, the three plans offered to seniors are below average for monthly premium pricing and plan structure.

woman with cane smiling

Final Thoughts About AARP Funeral Insurance

a. New York Life Insurance offers three different final expense insurance plans to AARP members. This AARP burial insurance review shows that there are better options on the market.

b. The Level Benefit Term Life Insurance plan should never be used for funeral expenses. This is due to the price increasing as seniors age and eventually expiring altogether. The Permanent and Easy Acceptance plans are at a higher price point than what can be found elsewhere.

c. Planning for your final expenses is not something you should gamble with. Before applying for coverage, call an independent agent or agency to help you navigate the process.

At Willamette Life, we have access to many different insurance companies and can compare the best plans.

Call Willamette Life at 844-576-0019 

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