Another look at AARP New York Life Term Insurance for SeniorsMar 20th, 2011 | By Sharon Shaw Elrod MSW EdD | Category: Senior Finances
Since 1994, New York Life Insurance Company has been the sole underwriter for AARP’s Term Life Insurance. A new agreement a couple of years ago confirmed the contract through 2011. More than one million AARP members have NYL Term Life Insurance through AARP. The Tampa office of NYL (where policies are written) increased from 25 employees in 1994 to 365 in 2004, reflecting the heavy volume of business from AARP members.
New York Life, founded in 1845, holds the title of the biggest mutual life insurance company in the United States and the world. In part because of its size, AARP members may purchase term life insurance with no medical exam… just three simple questions. AARP guarantees acceptance of all applications from members that are between the ages of 50 to 80, and spouses ages 45-80 also have guaranteed acceptance.
At age 80, AARP members may convert their term policies to whole life if they choose. That conversion also does not require examination by a physician. AARP will never cancel the policy, unless the member makes false statements on the application. Members will never see a rate hike. But there may be across-the-board raises, only at previously identified intervals, such as every five or ten years.
Additional terms of the policy include:
- Waiver of Premium for Certain Qualified Nursing Home Confinement: Following 180 consecutive days of confinement in a nursing home at the direction of a physician, premiums for AARP life insurance coverage will be waived for the remainder of the nursing home stay.
- Accelerated Benefit: If an insured member is diagnosed with a terminal illness and has a life expectancy of 12 months (for Texas residents 24 months) or less, half of the benefit amount can be immediately accessed. Proceeds may be used in any way the insured member sees fit.
Professional insurance agents should be consulted when any AARP member wants to take a look at life insurance plans; AARP does not advise members about insurance plans. Members are encouraged to carefully review insurance policy information before they commit to purchase any policy, from any company or organization. Quotes from several companies are usually the best way to insure getting the best term life insurance policy.
More information is available at http://www.nylaarp.com/.