AARP Term Life Insurance through New York Life Insurance Company

AARP Term Life Insurance is underwritten exclusively by New York Life Insurance Co., and has been since September of 1994. To the reported delight of AARP, New York Life will continue to do so at least through 2011. There was a very competitive bidding process for the right to be the exclusive underwriter for AARP Term Life Insurance, which is a massive organization, a fact that is easily noticeable since the Tampa based office of New York Life that writes the policies went from 25 employees in 1994 to 365 in 2004. There are over 1 million AARP members who are certificate holders.


New York Life was founded in 1845 and is the largest mutual life insurance company in the US, as well as one of the largest in the world. These factors may be contributors to the decision of New York Life to join in partnership with AARP for extra advantages to its members.


AARP members are able to purchase term life insurance without a medical exam simply based on three questions. The guaranteed acceptance policy is open to AARP members that are between the ages of 50 to 80, and spouses of members may apply from age 45 to 80.


AARP Term Life Insurance can only go to age 80 when the member has the chance to convert to whole life if desired. Amazingly, that conversion will not require a medical exam either. The policy coverage can never be cancelled by the company, unless the applicant made false statements on the application. Individuals can also never be singled out for a rate hike. There may be across the board raises however, but only at previously expressed intervals, such as every five or ten years.


Other attractive additions to policies are:

  • ·       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. 

AARP will never advise the members as to choice of insurance plans; they leave that to the professionals that sell and write insurance policies for a living. But, that is an important point to remember. No matter who is selling the policy, that is what they are there to do, sell policies.  It is important to take time to go over the documents and get quotes from other companies as well. 

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