Having a life insurance policy is a great way to ensure sufficient financial support for your belongings or family after your death. If you are ever looking to purchase such a policy, AARP may reach your ears.
Typically, AARP is America’s leading life insurance program that offers different life insurance coverage through New York Life. Now a question may perplex your mind: How much does AARP charge for life insurance?
Well, AARP usually charges an average of $156 per month for a $100,000 coverage. However, this charge can be varied depending on factors like health condition, age, policy type, and how much coverage you purchase.
To dig into more information about AARP charges for life insurance, keep reading the context.
About AARP Life Insurance Program
AARP is a prominent marketing organization in the USA with around 38 million associates aged over 50 and over. Initially, this organization marketed affordable life insurance to seniors in the 50 states of America.
Now, AARP works as an affiliated group of New York Life and offers term and whole life insurance policies for seniors. Even this organization offers whole life insurance coverage for minors.
The good thing is that all policies are guaranteed acceptance or simplified issues, meaning insureds don’t have to undergo any medical exams.
Factors Affect The Charge Of AARP For Life Insurance
The charge of AARP for life insurance completely depends on some important factors. Here we have discussed such factors that will help you know what can affect your life insurance charge.
Placeholders’ age plays a crucial role in estimating life insurance charges. In that case, the younger you are, the less charge you will have to pay for a life insurance policy. Although AARP offers life insurance policies for seniors, the life insurance charge will vary depending on the insured’s age.
Studies found that the life expectancy of women is longer than men. In fact, females live nearly five years longer than men. Since insurers charge lower rates for life insurance who have longer periods to pay premiums, women are charged slightly lower rates for life insurance than men.
Although AARP doesn’t require placeholders to undergo any medical exams, the insurer will assume your life expectancy by observing you. In that case, if you look at poor health conditions, you will be charged higher than those with good health conditions.
Lifestyle & Occupation
AARP will charge high for life insurance if you’re related to any risky occupation, such as car racing, climbing treacherous, or military. The insurer thinks these occupations can lower anyone’s life expectancy at any time, causing them not to pay the premiums. Even relatively dangerous jobs like fishing, mining, or transportation also cause getting higher life insurance charges.
Smoking can negatively impact anyone’s life expectancy. For that, AARP charges high life insurance for those who smoke. Even some insurers charge twice for life insurance from smokers than non-smokers. So, if you’re a smoker, it can have a negative impact on the charge while AARP purchases life insurance.
Different Types Of Life Insurance Policies of AARP
AARP offers three different plans: term, permanent, and guaranteed acceptance life insurance. These policies don’t require any medical exams, but some plans will require the placeholder’s health condition. Below we have briefly talked about these plans.
● AARP Term Life Insurance
Term life plan is the primary policy promoted through AARP that lasts until the insurer’s age is 80. Once you go up to 80, the life insurance policy will expire, and you won’t be longer insured. This plan’s monthly premium will increase every five years, meaning your coverage will never decrease in value.
If you die within the waiting duration, your registered beneficiary will receive the full death benefits, free from taxes. Another good thing is policyholders can easily convert the plan from term to whole life insurance at any time by calling AARP.
● AARP Whole Life Insurance
AARP’s whole life insurance plan is mainly for seniors looking for a good amount to cover their funeral expenses and other debts. This plan also doesn’t require undergoing medical exams; you just have to answer some basic health questionnaires.
Seniors between 50 and 80 can only purchase this insurance plan. And the premium payments will end at age 95. Although premiums of whole life insurance costs are higher, the selected beneficiary will get fixed coverage after the insured dies.
● AARP Guaranteed Acceptance Life Insurance
Seniors aged 50 to 80 can purchase AARP guaranteed acceptance life insurance with a maximum coverage of $25,000. To purchase this plan, you don’t have to obtain any medical exam or health questionnaire.
This plan has a two-year waiting period; if you don’t die within this period, your beneficiary won’t get the full benefits of your policy. However, if you become terminally ill, you can issue up to 50 % of the death benefits.
How Much Does AARP Charge For Life Insurance?
The average charge of AARP is around $156 per month for $100,000. This charge rate can be varied according to the type of life insurance you choose as well as the factors discussed above. For your convenience, here we have shown charts about the charge of AARP for different life insurance policies.
1. Term Life Insurance:
2. Whole Life Insurance:
3. Guaranteed Acceptance Life Insurance:
Eligibility For AARP Life Insurance Coverage?
When purchasing life insurance plans, AARP will consider the following factors. Even New York Life also reviews these factors for potential disqualifying events.
● Health History
● Family health history
● Occupation and hobbies
● Criminal history
Some Frequently Asked Questions
People are sometimes perplexed about the cost of AARP life insurance. In such situations, several questions are raised in their minds. For that, here we have demonstrated some questions that people are asked frequently. Check these answers; you may find something new.
1. How To Apply For AARP Life Insurance?
You first have to contact the company by phone and visit their websites. You can apply for insurance by either filling up an online application form or mailing a paper application to your prepared insurance company.
However, you have to get a quote from your AARP website before beginning the application process. For quota, you will need to input your personal information like name and date of birth.
2. Is AARP Life Insurance Worth It After 60 Years Old?
If you can’t qualify for traditional life insurance due to poor health conditions, purchasing AARP life insurance will be worth it, even after 60.
This is because AARP-offered life insurance policies don’t require undergoing any medical exams. You may just need to answer some health-related questions in some plans.
3. Are AARP Offered Life Insurance Plans Good For Seniors?
AARP life insurance policies are specially designed for seniors aged above 50. However, AARP coverage won’t be a good choice for most seniors since these policies are more expensive than any other insurance provider.
But seniors with pre-existing conditions can purchase AARP life insurance plans to support their family financially to bear final expenses like funeral and burial costs.
You may not want your family or belongings to undergo any financial trouble after your death. That’s why purchasing AARP life insurance will be a good option to support your family financially in your absence.
Unfortunately, most people don’t know the charge of the AARP for life insurance, resulting in fear of purchasing a policy. However, after reading the context, you might have an overall idea: How much does ARP charge for life insurance?
In general, AARP charges an average of $156 per month for a $100,000 coverage. This charge rate will vary depending on factors, including age, health condition, gender, coverage amount, and policy type.