What AARP life insurance is and who sells it

AARP life insurance is not sold by AARP itself. AARP is a membership organization for people 50 and older. The organization endorses life insurance products and makes them available to members through partner insurance companies — typically New York Life, Mutual of America, or Hartford, depending on your state and membership status.

When you see "AARP life insurance" advertised, you are looking at a policy underwritten and issued by one of these insurance carriers, not by AARP. AARP receives a commission when members purchase these policies. The insurance company handles underwriting, claims, and customer service.

Membership in AARP is not required to buy life insurance from these carriers, but AARP members often receive discounted rates or simplified underwriting compared to non-members buying the same product directly.

Key Takeaways

  • AARP-branded life insurance is underwritten by insurance companies like New York Life or Hartford, not by AARP itself.
  • AARP members typically receive lower rates or easier underwriting than non-members buying the same policy from the insurance company directly.
  • AARP offers term life, whole life, and universal life products, with coverage amounts and age limits that vary by product and state.
  • You can compare AARP policies to other insurers' policies by looking at the same coverage amount, policy type, and your age to see actual price differences.
  • The underwriting process for AARP life insurance may be simplified for some products, meaning fewer medical questions or no medical exam required.

Types of AARP life insurance available

AARP offers three main types of life insurance through its partner carriers. Term life insurance covers you for a set number of years (typically 10, 15, or 20 years) and pays a death benefit only if you die during that term. When the term ends, coverage stops unless you renew, and premiums are usually lowest for term policies.

Whole life insurance covers you for your entire life as long as you pay premiums. Part of each premium builds cash value inside the policy that you can borrow against or withdraw. Premiums are fixed and do not increase with age, but they are significantly higher than term premiums for the same coverage amount.

Universal life insurance (sometimes called adjustable life) also covers you for life, but premiums and death benefits can be adjusted after purchase. Cash value grows based on interest rates set by the insurance company. Universal life premiums are typically lower than whole life but higher than term.

The specific products, coverage amounts, and age limits available through AARP vary by state and change periodically. You can see what is currently offered in your state by visiting AARP's life insurance page or calling the partner carrier directly.

Coverage amounts and age limits

AARP life insurance policies typically start at $5,000 in coverage and go up to $50,000 or higher, depending on the product and your age. Some products are available only to people 50 to 80 years old; others extend to 85 or 90. A few simplified-underwriting products are available to people as young as 45.

The maximum coverage amount you can buy usually decreases as you age. For example, a 50-year-old might be able to purchase up to $100,000 in term life coverage, while an 80-year-old might be limited to $25,000 or $50,000 on the same product. These limits vary by carrier and product.

If you need coverage above the maximum AARP offers, you can buy additional life insurance from other carriers. Many people combine an AARP policy with a separate term or whole life policy from another insurer to reach their desired coverage amount.

How underwriting works for AARP policies

AARP life insurance products fall into two underwriting categories: simplified issue and fully underwritten. Simplified issue policies ask health questions on the process but do not require a medical exam. You answer questions about your health history, current medications, and recent doctor visits, and the insurance company makes a decision based on your answers alone.

Simplified issue policies are faster to process — often approved within days — but typically have lower maximum coverage amounts and higher premiums per $1,000 of coverage than fully underwritten policies. They are useful if you want coverage quickly or prefer to avoid a medical exam.

Fully underwritten policies require a medical exam, usually conducted by a nurse who visits your home or meets you at a clinic. The exam includes blood pressure, weight, blood work, and sometimes an EKG depending on your age and coverage amount. Fully underwritten policies take longer to process (two to four weeks) but often have higher coverage limits and lower per-unit premiums.

Some AARP products may provide coverage without any underwriting for people in a specific age range (often 50 to 75) and coverage amount (often $5,000 to $25,000). These may provide-issue policies have the highest premiums but the fastest approval and no health questions.

Comparing AARP life insurance to other insurers

To compare AARP policies fairly with other insurers, use the same three variables: policy type (term, whole life, or universal), coverage amount, and your age. Request quotes from at least two other insurers — such as State Farm, Mutual of America (available outside AARP), or a term-focused carrier like Term4Sale or PolicyGenius.

Write down the exact premium, death benefit, and policy features for each quote. AARP policies are often competitively priced for members, but not always the lowest. The difference between AARP and a competitor might be $5 per month or $50 per month depending on your age, health, and the product type.

Remember that AARP members receive a discount on AARP-branded policies. If you are not an AARP member, you can buy the same policy directly from the insurance company (usually New York Life or Hartford), but you will pay the non-member rate, which is typically 10 to 20 percent higher.

How AARP life insurance premiums are set

AARP life insurance premiums depend on your age, health status, coverage amount, policy type, and sometimes your occupation or hobbies. Age is the largest factor: a 55-year-old pays significantly less than a 75-year-old for the same coverage. Health status matters more for fully underwritten policies (where medical exam results affect your rate) and less for simplified or may provide-issue policies (where health questions are limited or absent).

For term life, premiums are locked in for the length of the term (10, 15, or 20 years) and do not increase during that period. When the term ends, you can renew, but the new premium will be higher because you are older. Some policies allow you to convert to whole life without a new medical exam.

For whole life and universal life, premiums are either fixed for life (whole life) or adjustable (universal life). Fixed premiums mean you pay the same amount every month for as long as you own the policy. Adjustable premiums on universal life policies can increase if interest rates drop or if you do not have enough cash value to cover the cost of insurance.

What happens when you file a claim

When the policyholder dies, the beneficiary (the person named on the policy) contacts the insurance company with a death certificate and proof of identity. The insurance company verifies the claim, checks that premiums were paid, and confirms that the death was not excluded by the policy (for example, suicide within the first two years on some policies).

The insurance company then pays the death benefit to the beneficiary, usually within two to four weeks. The death benefit is paid as a lump sum unless the beneficiary chooses an alternative settlement option, such as receiving the money in installments or as a monthly income.

If the policy lapses because premiums were not paid, the death benefit is not paid. Some policies have a grace period (usually 30 days) during which you can pay a missed premium and keep coverage active. Check your policy documents to see whether your AARP policy includes a grace period.

Frequently Asked Questions

Do I have to be an AARP member to buy AARP life insurance?

No. You can buy the same policy directly from the insurance company (New York Life, Hartford, or Mutual of America, depending on your state) without AARP membership. However, AARP members typically receive a discount on premiums. If you are not a member, you will pay the standard rate, which is usually 10 to 20 percent higher.

Can I get AARP life insurance if I have a pre-existing health condition?

Yes, but the terms depend on the product. may provide-issue policies accept anyone in the may be able to access age range with no health questions. Simplified-issue policies ask health questions but do not require a medical exam; some conditions may result in a higher premium or denial. Fully underwritten policies consider your complete medical history; approval depends on the exam results and your current health status.

What is the difference between AARP term life and AARP whole life?

Term life covers you for a set number of years (10, 15, or 20) and is the cheapest option. When the term ends, coverage stops. Whole life covers you for your entire life, builds cash value, and has fixed premiums, but costs much more per month. Choose term if you need coverage for a specific period; choose whole life if you want permanent coverage and are willing to pay higher premiums.

How long does it take to get approved for AARP life insurance?

may provide-issue policies are approved within days, sometimes the same day. Simplified-issue policies typically take three to seven business days. Fully underwritten policies take two to four weeks because the insurance company must schedule and receive your medical exam results before making a decision.

Can I cancel an AARP life insurance policy and get my money back?

Term life policies have no cash value, so there is nothing to refund if you cancel. Whole life and universal life policies build cash value; if you cancel, you receive the surrender value, which is the cash value minus any surrender charges. Most policies have a free-look period (usually 10 to 30 days) during which you can cancel and receive a full refund of premiums paid.